Full meaning
African Union
Community of Sahel–Saharan States
Common Market for Eastern and Southern Africa
Economic Community of West African States
Foreign direct investment
Gross domestic product
Inclining block tariff(s)
International Monetary Fund
Independent power producer
Kilowatt
Kilowatt hour
Liquid petroleum gas
Megawatt
Pay as you go
Power purchase agreement
Private public partnership
Standard and Poors Global Ratings
Sub-Saharan Africa
Transmission and distribution
Time of use
West African Economic and Monetary Union
United Nations Industrial Development Organization
Value added tax
World Bank Regulatory Indicators for Sustainable Energy
Projection for 2030
2017/2018 reporting year
SSA average includes South Africa. Calculation for SSA average and country data: Total consumption (2016) / total population (2016).
SSA average: 18%
This includes diesel, kerosene and gasoline subsidies.
Rates and tariffs were converted with the average exchange rate to the Euro in April 2020. Exchange rates available from ec.europa.eu
Rates and tariffs were converted with the average exchange rate to the Euro in April 2020. Exchange rates available from ec.europa.eu
Rates and tariffs were converted with the average exchange rate to the Euro in April 2020. Exchange rates available from ec.europa.eu
Energy Sector
Energy Sector
Investment Overview
Benin’s installed capacity in 2018 was more than 60 MW lower than its peak demand of 240 MW. This deficit combined with low generator asset availability means that the country is reliant on imports to meet demand. According to the Autorité de Régulation d'Electricité (ARE) (Electricity Regulatory Authority) Benin imported approximately 98.5% of their required electricity in 2018. Per capita electricity consumption is less than a third of the SSA average, likely a result of the relatively high tariffs compared to other countries on the continent.Almost two thirds of the population remain unelectrified, equating to 1.44 million households. There is also a significant disparity of access between urban and rural areas, with rural electrification rates of less than 10%. The country expects electricity demand to nearly double to 432 MW by 2025. By 2030 Benin hopes to achieve 100% electrification with a total installed capacity of about 1,180 MW.
Benin’s energy sector has had limited private participation in the past. More recently the country has expressed interest in fostering greater levels of private-sector participation. Efforts will focus on upgrading infrastructure and accelerating rural access to energy through distributed generation. The government has taken active steps to further this interest, including dismantling the national utility’s current monopoly, outsourcing its management and undertaking policy reform.
Renewable energy projects are slowly gaining momentum. A request for expressions of interest for the construction of a 25 MW solar power plant was published in early 2018. In June 2019, the country’s Council of Ministers approved construction of an additional four solar PV plants with a combined capacity of 50 MW.
Structure
With support from international development organisations, the government is working to improve generation and distribution infrastructure, promote off-grid generation through private participation and undertake policy reform.
In September 2019, the government appointed a private company to manage the national utility, Société Béninoise d'Energie Electrique (SBEE) for a period of four years. In addition, the 2020 electricity code was adopted in April 2020 which brought an end to the monopoly held by SBEE. The new code opens the sector to private investment, spanning generation, transmission, and distribution of electricity, and reinforces the capacity of the regulator to ensure competition. Under these new regulations and with support from development partners, the government approved the construction of four solar power plants in 2019, totalling 50 MW of capacity to be developed through PPPs.
Electricity is generated by the Communauté Electrique du Benin (CEB) (Electric Community of Benin), Société Béninoise d’Énergie Électrique (SBEE) (Electric Energy Company of Benin) and PARAS Nigeria. In 2018, CEB, based in Togo, generated 59.5% of Benin's electricity, SBEE 1.5%, and PARAS, based in Nigeria, 39%. The majority of SBEE's share comes from rental power provided by Aggreko and MRI. In total, 98.5% of electricity is dependent on imports.
CEB is also responsible for electricity transmission in Benin (and Togo).
SBEE is responsible for all electricity distribution in Benin. Société Béninoise d’Énergie Électrique (SBEE) (Electric Energy Company of Benin) is a state-owned utility active in generation and distribution of electricity.
Communauté Électrique du Benin (CEB) (Electric Community of Benin) is a bipartite generation and transmission utility supplying electricity to SBEE and the Togolese utility. It is jointly owned by the Governments of Togo and Benin.
Agence Béninoise d’Électrification Rurale et de Maîtrise d'Énergie (ABERME) (Beninese Agency for Rural Electrification and Energy Management) is responsible for developing and implementing national and regional rural electrification and energy management programmes, developing pilot rural electrification projects and instituting incentive schemes to promote rural electrification and energy management. Ministère de l'Énergie (Ministry of Energy) is responsible for formulating and implementing national energy policy and regulations and mobilising funding in the energy sector.
Présidence de la République du Bénin (The Benin Presidency) is implementing an investment programme called Revealing Benin. Running up to 2021, the programme has a budget of €13.78 billion earmarked for nine sectors including energy. Autorité de Régulation d'Électricité (ARE) (Electricity Regulation Authority) has been set up to ensure compliance with regulations and laws in the electricity sector, quality of service, as well as financial stability of the sector. L'Association Inteprofessionnelle des Spécialistes des Énergies Renouvelables du Bénin (AISER) (The Interprofessional Association for Renewable Energy Specialists) is an association that promotes and advocates for renewable energy in Benin.
Agence de Promotion des Investissements et des Exportations (APIEx) (The Investment and Export Promotion Agency) promotes investment in Benin. It assists with business registration and other administrative procedures.
A few IPPs operate in Benin, such as Aggreko and MRI. These are on a rental basis.
In September 2019, the government appointed a private company to manage the national utility, Société Béninoise d'Energie Electrique (SBEE) for a period of four years. In addition, the 2020 electricity code was adopted in April 2020 which brought an end to the monopoly held by SBEE. The new code opens the sector to private investment, spanning generation, transmission, and distribution of electricity, and reinforces the capacity of the regulator to ensure competition. Under these new regulations and with support from development partners, the government approved the construction of four solar power plants in 2019, totalling 50 MW of capacity to be developed through PPPs.
Generation:
Electricity is generated by the Communauté Electrique du Benin (CEB) (Electric Community of Benin), Société Béninoise d’Énergie Électrique (SBEE) (Electric Energy Company of Benin) and PARAS Nigeria. In 2018, CEB, based in Togo, generated 59.5% of Benin's electricity, SBEE 1.5%, and PARAS, based in Nigeria, 39%. The majority of SBEE's share comes from rental power provided by Aggreko and MRI. In total, 98.5% of electricity is dependent on imports.
Transmission:
CEB is also responsible for electricity transmission in Benin (and Togo).
Distribution:
SBEE is responsible for all electricity distribution in Benin. Société Béninoise d’Énergie Électrique (SBEE) (Electric Energy Company of Benin) is a state-owned utility active in generation and distribution of electricity.
Communauté Électrique du Benin (CEB) (Electric Community of Benin) is a bipartite generation and transmission utility supplying electricity to SBEE and the Togolese utility. It is jointly owned by the Governments of Togo and Benin.
Agence Béninoise d’Électrification Rurale et de Maîtrise d'Énergie (ABERME) (Beninese Agency for Rural Electrification and Energy Management) is responsible for developing and implementing national and regional rural electrification and energy management programmes, developing pilot rural electrification projects and instituting incentive schemes to promote rural electrification and energy management. Ministère de l'Énergie (Ministry of Energy) is responsible for formulating and implementing national energy policy and regulations and mobilising funding in the energy sector.
Présidence de la République du Bénin (The Benin Presidency) is implementing an investment programme called Revealing Benin. Running up to 2021, the programme has a budget of €13.78 billion earmarked for nine sectors including energy. Autorité de Régulation d'Électricité (ARE) (Electricity Regulation Authority) has been set up to ensure compliance with regulations and laws in the electricity sector, quality of service, as well as financial stability of the sector. L'Association Inteprofessionnelle des Spécialistes des Énergies Renouvelables du Bénin (AISER) (The Interprofessional Association for Renewable Energy Specialists) is an association that promotes and advocates for renewable energy in Benin.
Agence de Promotion des Investissements et des Exportations (APIEx) (The Investment and Export Promotion Agency) promotes investment in Benin. It assists with business registration and other administrative procedures.
A few IPPs operate in Benin, such as Aggreko and MRI. These are on a rental basis.
Key Actors
Gridfinder Map
Transmission (OSM)
Distribution (predicted)
Electrification targets
Utility/distributor
Société Béninoise d’Énergie Électrique (SBEE) (Electric Energy Company of Benin) is a state-owned utility active in generation and distribution of electricity.Communauté Électrique du Benin (CEB) (Electric Community of Benin) is a bipartite generation and transmission utility supplying electricity to SBEE and the Togolese utility. It is jointly owned by the Governments of Togo and Benin.
Agence Béninoise d’Électrification Rurale et de Maîtrise d'Énergie (ABERME) (Beninese Agency for Rural Electrification and Energy Management) is responsible for developing and implementing national and regional rural electrification and energy management programmes, developing pilot rural electrification projects and instituting incentive schemes to promote rural electrification and energy management.
Ministry (Ministries)
Ministère de l'Énergie (Ministry of Energy) is responsible for formulating and implementing national energy policy and regulations and mobilising funding in the energy sector.Présidence de la République du Bénin (The Benin Presidency) is implementing an investment programme called Revealing Benin. Running up to 2021, the programme has a budget of €13.78 billion earmarked for nine sectors including energy.
Regulator
Autorité de Régulation d'Électricité (ARE) (Electricity Regulation Authority) has been set up to ensure compliance with regulations and laws in the electricity sector, quality of service, as well as financial stability of the sector.Others
L'Association Inteprofessionnelle des Spécialistes des Énergies Renouvelables du Bénin (AISER) (The Interprofessional Association for Renewable Energy Specialists) is an association that promotes and advocates for renewable energy in Benin.Agence de Promotion des Investissements et des Exportations (APIEx) (The Investment and Export Promotion Agency) promotes investment in Benin. It assists with business registration and other administrative procedures.
A few IPPs operate in Benin, such as Aggreko and MRI. These are on a rental basis.
Tariffs
Tariff components
Consumption Charge (/ kWh)
€0.18
Meter Charge (€/kVA/month)
€0.76
Tax on Consumption Charge (/kWh) (Social tariff exempted)
18% VAT
Rural Electrification Fund levy (/kWh)
XOF 3 (approx €0.01)
Consumption Charge (/ kWh):
€0.13
Meter Charge (€/month):
€3.84 or $5.40 per month per kVA (rate depends on meter type)
Tax on Consumption Charge (/ kWh):
18% VAT
Demand Charge (€/kVA):
Commercial: €6.84 (for power consumption >630 kVA), Industrial: €10.64
Rural Electrification Fund Levy (/ kWh):
XOF 3 (approx €0.01)
Monthly Connection Maintenance:
€17.96
N/A
Average retail tariff by consumption category
Average LV
18.2
Residential (average of social tariff & IBTs)
15.3
Commercial
18.7
Street Lighting
20.5
Average MV
13
Commercial (average of categories)
15.2
Industrial
11.8
N/A
Is the retail electricity tariff subject to periodic review?
NoBenin has no official framework in place for tariff revisions and the national operator has no flexibility to adjust the tariff without government approval. Following a tariff increase in 2010 the operating deficit was reduced. In an effort to reduce this deficit the government has announced that tariffs will be increased in September 2020 and again in Q1 2021.
Quality standards
Agence Nationale de Normalisation, de Métrologie et du Contrôle Qualité (ANM) (National Agency of Standardisation, Metrology and Quality Control) is responsible for implementing and monitoring national policies relating to standardisation, certification, product verification and quality promotion. Relevant standards include building and public works and electrical equipment. One example is standard NB 10.07.001, which applies to electric lamps manufactured in Benin or imported into the country. The standard is published as an annex to Decree Nr. 2018-563 of 19 December 2018 on performance standards of electric lamps and air conditioners.
The ECOWAS Centre for Renewable Energies and Energy Efficiency (ECREEE) recently launched a tender to develop regional quality standards for bioethanol for cooking and transportation.
The ECOWAS Centre for Renewable Energies and Energy Efficiency (ECREEE) recently launched a tender to develop regional quality standards for bioethanol for cooking and transportation.
Electrification rates
% National electrification rate
2018
% Rural electrification rate
2018
% Urban electrification rate
2018
Total installed capacity (MW)
2030
1182.2
2018
177.2
Peak demand (MW)
2025
432
2018
240
Electricity consumption by sector (MWh), 2017
Commercial & Public Services
500.09
Residential
372.16
Industrial
255.86
Per capita electricity consumption (kWh/person)
2016
105.13
SSA average (2016)
365.6
Electricity and petroleum product subsidies (% of GDP)
Electricity subsidies, 2017No data
N/A
Petroleum product subsidies, 2017
1.10%
€123,349,800.00