Yemisi Izuora
The US industrial giant, General Electric, GE has disclosed plans to install and upgrade energy supply systems in Benin and Ivory Coast.
The GE Renewable Energy will build two new energy distribution systems in Benin and upgrade three substations in Ivory Coast as a commitment to energy access in West Africa.
The Paris-headquartered renewables subsidiary of United States industrial giant General Electric (GE) has secured agreements with both countries to upgrade their systems at a time when lack of access to power, or unreliable access is one of the major factors holding back industrialisation and economic development across the continent.
As such, there has been a big drive for investment in this area, led by institutions such as the African Development Bank (AfDB), which has made power supply one of its ‘High 5s’ goals and which recently invested in mini-grids in Democratic Republic of the Congo.
Its work this year has also included feasibility studies for electricity co-operatives in Nigeria and Ethiopia and renewable energy in sub-Saharan Africa.
Earlier this month, AfDB president Akinwumi Adesina used a speech in Washington, DC, to call for a greater investment from the US, highlighting energy as a key sector.
Speaking about the new projects, GE Renewable Energy’s Grid Solutions president and chief executive in South Africa Lazarus Angbazo said: “Energy is a key component for on-going development in Sub-Saharan Africa. With only 45 per cent of electrification rates in many countries in the region, it is critical to develop an end-to-end solution to increase energy access and foster economic development. These projects reinforce GE’s involvement in implementing key infrastructure for energy transmission and interconnection development in Africa through smart solutions and turnkey project expertise.“
Benin is currently limited by having to import 85 per cent of its energy from abroad and the first project there will be the design and provision of an advanced distribution management system (ADMS), software which allows the management of multiple energy systems, on behalf of local energy provider Société Béninoise d’Energie Electrique(SBEE). GE said the system would enable the anticipation, identification and solution of grid problems.
The second will be the overhaul of the Cotonou National Distribution Control Center’s substations and telecommunications set-up.
A local representative of the Millennium Challenge Account, a US-Benin programme which aims to develop economic growth, said in a statement:
“The distribution management system will help optimise energy distribution, reduce electricity losses and minimize shortages. This project is aligned with the government’s ambition to efficiently manage the generation from power plants, microgrids and other grid infrastructure to improve the quality, efficiency and availability of power to our customers. This system will also help manage the security and maintain control of the grid.”
Benin ranked poorly on EY’s Africa Attractiveness Index last year, reflecting its lack of appeal to international investors, although as a member of Organisation pour l’Harmonisation en Afrique du Droit des Affaires (OHADA), it does have some standardised business laws and access to dispute resolution mechanisms and in 2015, the country’s then prime minister, Lionel Zinsou told ALB that the country’s recent success as a democratic and peaceful country should count in its favour when attracting investment and called for further diversification.
In Ivory Coast, the corporation is refurbishing substations in Ferke, Man and Taabo, which provide power to the north, west and central regions, respectively.
In a statement, the secretary general of local energy provider CI-ENERGIES, Bile Gerard Tanoe, explained the need for the project: “With about 90 per cent of the country’s population having access to electricity and the growing demand for energy, limited distribution systems cause a total energy loss of approximately 20 per cent annually. There is a need to rehabilitate and strengthen the country’s grid infrastructure. This project will improve the power capacities of Ferke, Man and Taabo substations to help mitigate total energy losses and provide the reliability needed to limit the total unavailability of these critical substations.”
Ivory Coast began the year by receiving Africa Finance Corporation funding for a hydroelectric power station.
Brenda Mbathi was recently appointed as the chief executive of GE East Africa, while Jay Ireland, the former president and chief executive of GE Africa, recently joined US law firm Covington & Burling as a senior adviser.