Renewable energy policy is a work in progress for Côte d’Ivoire. Having once been one of the most stable countries in the region, Côte d’Ivoire suffered from a decade of conflict and stagnation from which it only emerged in 2011. Although policy changes have been slow, there is significant potential for renewable energy, and a number of projects are being developed. However, other than a reduced rate of VAT for solar panels, there are no official incentives outside of the general investment code.
Côte d’Ivoire is unusual for the region in that a significant share of its electricity is generated by independent power producers (IPPs). Since the 1990s, independent gas-fuelled power plants have accounted for three-quarters of generation, with the rest produced by state-owned hydropower plants (which previously accounted for 100% of generation). The market structure is designed to create a favorable operating environment for IPPs. The Compagnie Ivoirienne d’Electricité (CIE) operates the transmission and distribution grids under an exclusive concession granted by the Ivorian state. The CIE is a private company, in which the government holds a minority stake, and it is responsible for collecting bills from consumers and paying the IPPs under a contractual payment structure.
A new electricity law was passed in April 2014, which opens all market segments to competition and makes it possible to feed electricity to the grid. However, the details are still being written. The government agreed in 2012 on an energy sector plan that prioritizes investment in fossil-fuelled power generation and transport infrastructure, and commits the country to achieving a 5% share of renewables in final energy consumption by 2015, rising to 15% by 2020.
However, with the exception of its experience in the small hydro sector (57MW), Côte d’Ivoire has yet to exploit its considerable renewable energy potential. Further delays in the drafting of the renewables implementation decrees of the 2014 electricity law mean that the country is unlikely to meet its renewables targets this year or next.
The government’s primary policy objective is “electricity for all”, which requires increasing generation capacity and extending the electricity grid. The bulk of capacity expansion will proceed from new hydroelectric dams and additional fossil fuel generation. However, renewable energy does play a part in this program: the government has launched tenders and is currently evaluating proposals for mini-grids powered by solar, biomass, or small hydro in remote localities.
The country produces significant biomass feedstock on its cocoa, coffee, sugar, and palm oil plantations. Some factories have been using biomass to generate electricity for their own consumption for years. One palm oil producer has installed an anaerobic digestion plant. There is also utility-scale development, with a 40MW biomass plant being developed.
The Ivorian electric grid covers most of the country, but the connection cost is prohibitive for many people. As a result, there is a large disparity between the number of people who live in a grid-connected locality and the households that are actually connected. There is a subsidized electricity rate for the lowest-capacity users, and the government is introducing a scheme to help make connection more accessible by smoothing payments.
Other than a reduced rate of VAT for solar panels, there are no official incentives for renewable energy development. There is significant solar potential in the north of Côte d’Ivoire, but regulations for feeding electricity to the grid are still to be defined. Accordingly, there are no MW-scale or grid-connected plants. Existing solar installations are restricted to a few remote villages, industrial users, and wealthier homeowners’ rooftops.
Score Summary
Cote D’Ivoire scored 0.71 in Climatescope 2015, placing it 42nd on the list of countries overall. This represented an increase of four places compared with its position in 2014. The highest score was on Enabling Framework Parameter I.
The country gained three places on Parameter I to rank 29th. The structure of its power sector and its energy access policies helped to support its score.
On Clean Energy Investment and Climate Financing Parameter II, Cote D’Ivoire was placed last among the 55 nations, owing to a very low level of investment to date.
The country ranked 37th overall on Low-Carbon Business & Clean Energy Value Chains Parameter III. The presence of a small number of clean energy value chains and service providers helped to prop up its score.
On Greenhouse Gas Management Activities Parameter IV, the country ranked 48th, reflecting some activity in the carbon offsetting category.