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Abstract
The concept of power trading is considered in the
context of the vision of the New Partnership for
Africa Development (NEPAD). A most promising
option is to utilise the rich water resources of the
Democratic Republic of Congo for hydro-power
generation. Present and anticipated future potential
generating capacities are quoted. The development
of the Inga 3 and the Grand Inga schemes could
supply grid-connected African states with sufficient
electricity to stimulate their respective socio-eco-
nomic development. Today’s situation and plans are
outlined, emphasising requirements for success.
These include financial investment through public-
private partnerships, the all-important role of gov-
ernments to ensure political stability and independ-
ent regional regulation for equitable wheeling
charges.
Keywords: hydropower, NEPAD, governance, polit-
ical stability, service delivery
1. Introduction
Africa is the sole continent where 25 – 30% of the
population only has access to electricity, compared
to Europe where 100% of the population has
access. There is, however, an opportunity to change
the African scenario since the Democratic Republic
of Congo (DRC) has the hydropower potential to
boost the electricity capacity within the Central
African region, the Southern African Development
Community (SADC) countries, and possibly, the
entire continent.
Electricity is a vital part of economic stability and
growth in Africa. Stability in electricity production
could promote the development of different eco-
nomic sectors. When a country has insufficient
energy, in terms of electricity production, distribu-
tion and access, then problems arise in terms of the
development of that country. African nations, in
particular, require collaboration within their energy
sectors in order to develop. The development of
electricity production within the DRC has potential
to attract foreign investment thus impacting on
other Africa countries.
The aim of an electricity company is to produce
and distribute electricity to its customers and to gen-
erate an acceptable income. In order to achieve
this, utility companies should invest adequately in
infrastructure which includes constant maintenance
of the power supply. The Edison Electric Institute
(2002) claims electricity is an important element in
the achievement of social, sustainable develop-
ment. The electricity industry considers access to an
adequate supply of electrical energy a basic require-
ment towards the eradication of poverty (Edison
Electric Institute, 2002).
This paper indicates how the Inga scheme, if
managed properly, will contribute to the New
Partnership for African Development (NEPAD) as
well as to the SADC sub-region as a whole. The
result can be achieved through regional co-opera-
tion in the electricity sector including the West
African Power Pool (WAPP), based in Lagos
(Nigeria); the East African Power Pool (EAPP),
based in Nairobi (Kenya); the Central African
Power Pool (CAPP) in Brazzaville; and the South-
ern African Power Pool (SAPP), based in Harare.
These different pools seek to improve the electricity
supply and its security within sub-Saharan Africa.
2. NEPAD vision of the energy sector
According to NEPAD (2001), energy plays a key
role in the development process, providing primari-
ly a domestic necessity. Energy is also a factor of
production, directly affecting prices of other goods
and services and the competitiveness of enterprises.
There is an unequal generation capacity of energy
across the African continent. This imbalance ham-
pers progress. NEPAD has short listed priority proj-
Journal of Energy in Southern Africa • Vol 18 No 3 • August 2007 19
NEPAD vision and the INGA hydro-electric scheme
LM Tshombe
I W Ferreira
E Uken
All of the Cape Peninsula University of Technology
Journal of Energy in Southern Africa 18(4): 19–25
DOI: http://dx.doi.org/10.17159/2413-3051/2007/v18i4a3395
ects, which could help stabilise the energy sector in
Africa.
According to Sekose (2003) the African
Development Bank has agreed to finance two of the
project-linking electricity power grids in West and
North Africa. The long awaited project to develop
the Inga-electric power plant on the Congo River
and to link it to other countries is a priority. Many
feasibility studies have been conducted in different
regions throughout Africa. A report was submitted
to the most advanced countries, including recom-
mendations on how the developed world could
contribute to project implementation.
Many discussions have been held aimed at
developing the energy sector within the African
continent (World Summit on Sustainable Develop-
ment, 2002). During that workshop the energy sec-
tor under NEPAD reported African countries should
increase access to reliable and affordable commer-
cial energy. Within 20 years, reliability should be
increased and the cost of energy decreased to
enable an annual economic growth of 6%.
In order to emphasise that view, Saunders
(2002) argues there are six points, critical to
NEPAD’s success. These are: to inward investment
and the need for increased investment in Africa’s
infrastructure; poor transportation and an inade-
quate electricity system in Africa are major barriers
to economic development, adding to the overall
cost of exports; peace and security on the Africa
continent; capacity building for an economy of 6%
growth every year in each country to help to reduce
poverty; capacity building in finance and market
access, a critical issue as Africa needs good financial
mechanisms and fair trade with other partners; and
increased investment in human development to
secure rapid progress in education and the delivery
of effective health-care systems. These points must
be prioritised to achieve the project.
Since the private sector will not fund electrifica-
tion that does not provide a positive return, it is
worthwhile examining some examples of similar
projects being funded by, including the construction
of the Mepanda Hydropower Plant in Mozambique.
Another project shared by the Economic
Community of West African States. The United
States of America International Development
(USAID), the Banque Ouest Africaine de
Development and others have been approached to
buy into these projects. The price of electricity, once
these projects become operational has yet to be
determined.
Another project is the Grand Inga Integrator.
The DRC government works hand- in- hand with
other financial institutions raising funds for the con-
struction of the largest hydro-electric scheme in sub-
Saharan Africa. Construction of the Grand Inga
may be considered a major priority in terms of har-
nessing African hydro potential. The DRC’s new
democratic government has decided to prioritise
the electricity sector. According to the CEO, Vika Di
Panzu, of Societe Nationale d’Electricite (2005) the
DRC government invited various stakeholders,
including the World Bank, International Monetary
Fund, Banque de Paris, and others who promised
to inject funding for the Grand Inga project (Vika Di
Panzu, 2005). Additional financial assistance will be
provided by the African Development Bank.
3. Electricity supply
There is, therefore, a need for an African transmis-
sion network under NEPAD. The construction of
such a network will materialise once a partnership
between the government and the private sector is
cemented. Each government should evaluate the
possibility of involving internal investors for network
construction. If local investors cannot invest, each
government should invite international companies
to participate for the success of the project. The
transmission network will include those countries
who want to buy electricity from the Grand Inga.
The Inga site is 3 000 km from the southern African
region, and 4 000 km from Egypt. The network in
the SADC region will join the DRC to Angola,
Namibia and South Africa. Major investment will
have to be made in Angola, since most of the net-
work was destroyed during the civil war. The cost of
this network reconstruction remains unknown.
Ekongo (2004) has said the objective was to
build an African transmission network to make it
possible to regulate electricity throughout Africa.
The power generating countries would then be in a
position to supply electricity to countries with a
shortage. The aim of NEPAD is to create a system,
to ensure no country was without access to electric-
ity at any given time. It emerged at the World
Summit on Sustainable Development that as much
as 70% of the total population of Africa lacks a
basic service. The electricity, to be generated by
Grand Inga, would therefore, reduce the numbers
who lack access to electricity services in Africa by a
50% (WSSD, 2002). In terms of distribution this
would depend on each country as distribution net-
works were already place in place in most countries.
What would happen is most of the countries would
join the upgrade of the distribution network to sup-
ply new customers.
4. INGA hydro-electric project
The Congo River has an annual flow rate of 42
000m3 per second (SNEL, 2000). It is one of the
largest rivers in the world with a significant gradient
along its lower course. Between Sikila Island and
the Congo River mouth (15 km as the crow flies)
there is a difference in altitude of 102 m. This dif-
ference in altitude produces a sequence of rapids
which make the Inga Dam the largest single source
of hydropower in the world.
20 Journal of Energy in Southern Africa • Vol 18 No 3 • August 2007
4.1 Current plan
The DRC is the leader of potential electricity gener-
ation – 370 000 Gigawatt per hour (GWh), ahead
of Cameroon 115 000 GWh and ahead of Mada-
gascar’s 320 000 GWh productions (SNEL, 2000).
Figure 1 shows the site of Inga 1 hydropower with
Inga 2 on the right hand side. In the same area, the
DRC government and other SADC countries plan
to build the third phases of Inga 3, while the con-
struction of Grand Inga will not be far from these
three hydropower plants.
In Table 1, the capacities of the various Inga
hydro-power plants are given.
The hydro site has the potential for the DRC to
produce up to 100 000 MW. The construction of the
new sites requires investment, because others
power plants require urgent refurbishment. Since
1996 the DRC’s national consumption of electricity
has decreased, after negative economic growth.
In 1998 the total domestic peak demand was
approximately 650 MWh. The mining industry, the
single biggest consumer during the 1980s, with
more than 60% of the total consumption, reduced
its share to 25% in the last few years (Sadelec,
2000). The decrease of the electricity production
was because in Inga 1 and Inga 2, some units were
not operating because of a lack of spare parts. The
actual production capacity in the DRC was only
750 MWh, although the total installed capacity
stood at 2473 MWh.
The consumption of electricity began to change
within the mining sector in Katanga Province
between 2003 and 2006. Before the end of 2007
the actual production will increase with the rehabil-
itation of Inga 1 and Inga 2.
4.2. Future plan
Many countries struggle to distribute electricity
internally because of poor management of utilities.
The Mbendi Information Service (2003) has
Journal of Energy in Southern Africa • Vol 18 No 3 • August 2007 21
Figure 1: Inga 1 and Inga 2 and where Inga 3 and Grand Inga will be constructed
Source: SNEL, 2005
Table 1: Inga hydro electric plants
Element of hydropower Inga 1 Inga 2 Inga 3 planned Grand Inga planned
Number of unit 6 8 7 52
Total installed capacity 351 MWh 1424 MWh 1344 MWh 44 000 MWh
Height of water head 50 metres 58 metres 60 metres 150 metres
Gross energy capacity 2 400 GWh 10 400 GWh 9 900 GWh 324 900 GWh
analysed the problems of power supply in Africa,
concluding an inadequate power supply in many
African countries, was a major barrier to economic
growth. The causes of the supply difficulty are
numerous and diverse. Civil wars in some African
countries such as Angola have left generation and
transmission facilities damaged. Based on the dam-
age from civil war, many governments’ financial
plans have been stretched to the extent that the
maintenance of electricity facilities has become a
low priority. In addition, many countries have unre-
liable equipment and few means to upgrade them.
African countries should, however, transform their
energy sectors in order for to stimulate economic
development.
In accordance with IEA (2003), developing
countries account for a little more than a quarter of
global electricity production. By 2030, this share is
expected to increase to 44%. These countries could
be producing as much electricity as the OECD. In
order to provide for this rapid increase, they will
need to invest more than US$ 5trillion (R40 trillion)
in electricity infrastructure. For most countries, this
means that investment should increase to well
above current levels.
The Grand Inga scheme could be one of the
solutions for NEPAD’s economic development of
the continent. The DRC government itself cannot
realise this vision. It requires the participation of
stakeholders. The Electricite De France (EDF) made
an evaluation concerning the construction of the
Grand Inga. Table 2 presents the financial estima-
tion done by the EDF on behalf of the DRC utility.
This estimation could be changed in terms of the
US$ fluctuation in the international market.
The construction of Grand Inga will contribute
positively to the socio-economic development of
different parts of the African continent. According to
a feasibility study conducted in 1997 by EDF, the
French electricity company, Grand Inga will supply
Egypt appreciable from 2012 onwards, as well as
other countries such as the Central Africa Republic,
and Sudan. In Figure 2, Inga 1 and Inga 2 are
shown.
Figure 2: Photograph of Inga 1 and 2
In the West Africa sub-region, Nigeria and the
DRC have signed an agreement for the develop-
ment of a transmission network from the DRC to
Nigeria. The tapping of electricity from the DRC will
solve some of the problems which Nigerian utilities
face. The demand for electricity in Nigeria grows
annually, but power outages occur frequently. The
transmission of power within the DRC will reduce
the problems of power failures within Nigeria.
Power security will impact positively in terms of eco-
nomic growth and social development. The power
from the DRC will benefit not only Nigeria, but
increase capacity in the Western African Power
Pool, showing that the construction of the Grand
22 Journal of Energy in Southern Africa • Vol 18 No 3 • August 2007
Table 2: Grand Inga and power higher ways
Source: SNEL, 2005
Demand Unit 2012 2014 2016 2018 2020
Northern highway (Egypt) MW 4 000 6 000 7 000 8 000 10 000
Western highway ( Nigeria) MW 4 000 5 000 6 000 7 000 8 000
Southern highway (SADC) MW 3 500 5 000 6 000 7 000 8 000
Total (including Central African Region) MW 11 500 16 000 19 000 22 000 26 000
Installed capacity MW 13 500 18 000 21 000 24 000 27 750
Number of units #18 24 28 32 37
Generation cost/ step 106 $ 5 661 981 654 654 818
Cumulative generation cost $/kW 419 369 347 331 316
Transmission systems costs 106 $8 303 -4 858 -4 649
Total cost 106 $13 964 981 5 552 654 5 467
Revenue load factor %70
Electricity price c$/kWh 3.5
Annual energy GWh 70 518 98 112 116 508 135 000 159 432
Annual revenue 106 $/y 2468 3434 4078 4722 5580
Inga is to be a priority requirement for the NEPAD
programme.
The Southern Africa sub-region will also benefit
from the Inga hydro-scheme, because of the con-
struction of Inga 3, which has five participating
countries. This project is called the Western
Corridor Project with member states such as the
DRC, Angola, Namibia and South Africa. The real-
isation of this project is a collaboration of five utili-
ties (SNEL, Eskom, ANE, Nampower and BPC).
These companies have decided to jointly contribute
to the construction of Inga 3, while the head office
of this Westcor Company is based in Gaborone. It
has been shown that the construction of Inga 3 will
probably boost the capacity of electricity in the
SADC region. The introduction of the Westcor proj-
ect will benefit the SADC in two ways as result of
Inga hydropower. The eastern corridor network has
the Inga Shaba network, which has links with
Zambia, Zimbabwe and South Africa. The intro-
duction of Inga 3 will increase the trading of power
within the Southern Africa Power Pool. Currently,
the trading of electricity has decreased because of a
lack of capacity within the SADC sub-region. There
is less capacity trading in the short term electricity
market at SAPP (Muhiya, 2006), since most of the
power is traded on bilateral agreements between
countries.
5. Requirements for success
According to a director of the International Energy
Agency (IEA, 2003), a US$5 trillion investment
within the electricity sector of developing countries
would be a daunting task, particularly in Africa and
India.
5.1. Financial
The investment for power generation for export
could be hampered by financiers’ perception of risk
related to country specific issues, or to the multina-
tional character of the project. The nature and
degree of risk varies from country to country on the
African continent. This could be civil war or politi-
cal instability (Croussilat, 1998).
Transmission tariffs also play a major role in
financing the creation and expansion of a transmis-
sion network. According to Croussilat (1998) where
cross-border transmission has been developed,
costs are bundled into a delivery capacity. Most
countries should use the same technical standards
for the transmission line.
The transformation of the electricity industry in
Sub-Saharan Africa is a prerequisite for larger
investments in the electricity sector. It is also argued
by the World Bank Group (2003) that a regional
perspective on the energy market and sector devel-
opment presents significant benefits. Interconnec-
tion of national petroleum and the power market
will encourage private investment, which increases
market size, thereby helping investors to manage
commercial and political risk.
Interconnections encourage global scale proj-
ects. Investments in redundant facilities need to be
avoided, and strategic and macroeconomic risks
decreased by expanding a country’s supply choices.
Furthermore, energy interconnections create export
opportunities. In the DRC, the energy sector is
unique in its potential to forge closer economic ties
among countries within the region.
Many investors are unprepared to invest in some
African countries for differing reasons. For example,
the problem of political instability discourages
investors. This situation has, however, begun to
change in some. For example, there is now peace in
Sierra Leone, which has allowed the completion of
the Bumbuna Hydropower project, with a capacity
of more than 50 MWh, to continue until 2008.
Currently, few households within the city of
Freetown have access to electricity (Mazzei; 2005).
The reason for this long delay is because of political
instability and civil war. It took two decades for
completion of that hydro-power plant.
Engineering News (2004) reported some of the
international energy-sector investors’ attitudes
towards West Africa have become impartial,
because of the small size of the region’s countries
and their history of military coups. This argument
highlights the idea that African leaders should
develop effective strategies in order to achieve
NEPAD objectives as far as energy is concerned.
The development of a power pool, through inte-
grating the region’s electricity sector, would result in
a massive market, while well-managed and trans-
parent cross-border energy trading, will alleviate
investor concerns about high risk profiles of certain
countries. There are others important issues such as
a stable policy, feed-in tariffs, power purchasing
agreements, and predictable rational regulation.
5.2. Role of government
Berg (2000) argues that change with regard to pub-
lic policy of the electricity sector should take into
account fundamental conditions within the electric
utility industry. In the case of the DRC, there is no
new policy in respect of the electricity sector. The
utility works with a policy implemented in 1978
when the status of the company was approved
under the legal framework of public enterprise. The
new government has already considered the possi-
bility of implementing reform in most public enter-
prises. SNEL is one company which the govern-
ment seeks to reform, thereby reducing government
control.
Political and economic stability not only con-
tribute to a strong economy, but also have a strong
positive external effect by providing steady markets
for suppliers. Hill (2003) argues that electricity plan-
ning issues are more complicated in developing
Journal of Energy in Southern Africa • Vol 18 No 3 • August 2007 23
countries than in developed. Many developing
countries face problems of financing construction of
new power plants, including many African states.
The success of NEPAD should have an impact
on the political stability of several nations. Without
political stability it could prove difficult for private
partners to invest. The construction of Grand Inga
will go hand-in-hand with political stability. It is an
opportunity for the host government to develop a
major platform for investments across the country
within different sectors. The state should implement
an improved policy, acceptable to the policy maker
(government) and the private sector. An effective
policy will guarantee an improved result where
there is a strong institution to implement such poli-
cy. One responsibility concerns service delivery to
citizens. In addition, governments should provide
improved infrastructure as a means to attract
investors. Following the same argument, Stiglitz
(1997) suggests any attempt to assess the appropri-
ate role of governments within development,
should come to terms with the limitations of gov-
ernments, as well as the limitations of markets. In
countries where governments remain ineffective,
the scope for their action should be corresponding-
ly limited. It is well known in most of the develop-
ing countries that government’s role is limited in
terms of service delivery.
It is also important to discuss the cost of electric-
ity in African countries, especially in relation to
NEPAD objectives, although the cost of electricity
was not discussed. In addition, experience shows
that Sub-Saharan African countries have varying
electricity prices. For example, electricity is expen-
sive in Kenya compared to countries such as South
Africa where the tariff is low. Botchway (2000)
proves the role that governments can play to solve
problems of electricity, is to allow nations to estab-
lish electricity companies. However, he demon-
strates how the role of government is necessary for
a good performance of the industry. An analysis of
global changes shows that the state usually plays a
major role within the industry. The electricity sector
has been considered as part of a national security
concern and requires an effective policy in order to
control the utility. Another element to be noted is
government control of the utility, which must ensure
all have access to electricity.
According to Botchway (2000), the electricity
industry has also been restrained by national bor-
ders with regard to where power is generated and to
who it is supplied. To the extent that any significant
international relations that existed, they are related
mainly to financing and the equipment or technol-
ogy supply aspects of the industry. An increasing
emphasis on the international dimensions of such
business is a new characteristic of the electricity
industry. This is one reason why African countries
have developed regional co-operation in terms of
electricity generation. Examples of this are the
Southern African Power Pool, Western African
Power Pool and the Eastern African Power Pool.
The NEPAD vision for the energy sector should
assist all regional bodies to work together coopera-
tively.
5.3. Regional regulations
Most governments suggest a regional regulatory
body. It should begin to review the cost of electrici-
ty tariffs within the sub-region. This could be the
case of the SADC, East Africa region, and the West
Africa region. The regional regulatory body should
be independent and different from the present
Regional Electricity Regulators Association of
Southern Africa (RERA). The regional regulatory
body should fix and review the wheeling charge on
the transmission network. Currently the wheeling
charge is being discussed by member states and
electricity companies in a power pool. Each partici-
pating country should nominate key knowledgeable
personnel to serve on the electricity regulator. The
old mechanism should be dropped to give the
regional regularity body effective control.
6. Conclusions
In line with NEPADs vision, it is concluded that the
challenges and security of electric power to sub-
Saharan African countries could be met through
power trading. This should be based on the devel-
opment of the Inga 3 and Grand Inga hydro-power
schemes in the Democratic Republic of Congo.
Meaningful power trading between the West African
Power Pool, the East African Power Pool; and the
Southern African Power Pool is feasible and recom-
mended.
Success of the outlined scheme depends largely
on adequate financial resources to be raised by for-
eign investment in public-private partnerships. For
this to materialise, respective governments will have
to ensure political stability. The present and future
potential generating capacities are cited, proving
the technical feasibility of the proposed schemes. It
is recommended that an independent regional
energy regulator be established for this project,
replacing the existing association of the various
national regulators.
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Received 23 March 2007; revised 17 August 2007
Journal of Energy in Southern Africa • Vol 18 No 3 • August 2007 25
