Lettre de Développement du Secteur de l’Énergie (LPDSE)
Senegal launched its comprehensive energy planning initiative in 1997 with the Lettre de Développement du Secteur de l’Energie (LPDSE). It has been revised several times. The 2012 policy outlined objectives for improving performance in the medium term. The main targets are: (a) ensuring energy security and increasing energy access for all; (b) developing a policy mix that combines thermal generation, bio-energy, coal, gas and renewables, and seizing opportunities for regional interconnections; (c) continuing and accelerating energy-sector liberalisation by encouraging independent production and institutional reform in the industry; (d) improving the competitiveness of the sector in order to lower the cost of energy and reduce sector subsidies; and (e) strengthening regulation of the sector; (f) reducing energy demand and increasing energy efficiency; (g) increasing share of hydropower through the participation in regional cooperation projects such as the Western Africa Power Pool (WAPP) as well as further mentions on security of supply of oil products and increasing the electrification rates in rural areas.
Electricity Act 1998 (Law no. 98-29)
The enactment of the Electricity Act 1998 opened up the energy sector and paved the way for private-sector investment in electricity generation, as well as establishing the CRSE. It was amended in 2002 in order to provide a greater level of transparency to the procedures for inviting private sector tenders.
Renewable Energy Act 2010 and Proposed Strategy
The regulatory framework in Senegal is mainly comprised of several decrees promulgated on an irregular basis. The two most recent and most important decrees for implementing the Renewable Energy Act were issued in December 2011. They lay down the conditions for purchasing and paying for electricity generated by renewable energy plants, the conditions for connecting these plants to the grid, and the conditions for purchasing and paying for surplus electricity from captive power plants that generate electricity from renewables. However, reduced taxes and customs duties applicable to renewable energy equipment are only considered on a case-by-case basis. The decrees are therefore aimed at eliminating inefficiencies, decreasing the cost of supply to consumers and promoting development funding for the energy sector.
Decree No. 2011-2013 provides conditions of power purchase and remuneration for electricity generated by renewable energy plants and the conditions of their connection to the grid. It also provides the formula for the avoided cost which serves as a reference for calculating the power purchase price cap. It also contains elaboration on renewable power purchase obligation and feed-in tariffs for different renewable energy technologies.
Decree No. 2011-2014 specifies the conditions for purchasing surplus renewable electricity from self-producers. Among other provisions it sets the maximum intake from renewable energy sources (variable power), the purchase price, as well as conditions for purchases of surplus energy and connection to the grid.
Proposed Renewable Energy Strategy
The National Action Plan for Renewable Energy (Plan d’Actions National des Energies Renouvelables, PANER) developed under the auspices of ECREEE encompasses targets and objectives that aim to inform the national strategy. The sector is however awaiting the confirmation of the renewable energy development policy, which has been under development since 2011. The policy is said to aim for a share of 10% or 400 MW for renewables in the country’s electricity mix by 2020 with other sources mentioning even higher targets. The technologies that are expected to contribute are still to be announced but PV and wind seem likely to be preferred. The policy envisages a master plan aimed at developing flagship projects and identifying funding sources. It also emphasises the need to strengthen training and research and development in order to maintain and improve the effectiveness of the legal and institutional framework when it comes to promoting renewable energy investments.
In any case, it will be aided by the government’s Plan for an Emerging Senegal (Plan Sénégal Emergent, PSE) adopted in 2012 which through its long-term vision promoting sound economic and social policies also integrates the notion of geographically more equally distributed energy services as well as a better conjugation of energy with the strategically important sectors such as industry and agriculture – also by the promotion of clean energy.