Segmentos de mercado

Benin has seen relatively little private mini-grid activity to date. This is however changing rapidly, mainly thanks to the government-led Projet de Valorisation de l'Énergie Solaire (PROVES) (The Solar Energy Development Project), which aims to install a total of 105 solar/diesel hybrid mini-grids across Benin. The project is being implemented in collaboration with the Programme Régional de Développement des Énergies Renouvelables et d'Efficacité Énergétique (PRODERE) (Regional Programme for the Development of Renewable Energies and Energy Efficiency). By November 2019, construction of 79 mini-grids has been completed in 77 rural villages. Capacities range from 15 to 75 kW and 13 of these will be connected to the national grid.

mini-grid companies operational in Benin include ASEMI Group, Power:On, PowerCorner, PowerGen Renewable Energy, SMA Sunbelt, Sunfoka Energy, and Village Industrial Power. Some companies are looking to scale up in Benin. One example is Sunkofa, which is currently expanding their portfolio to 40 mini-grids. The enactment of the new electricity code and an increasing number of project-specific government calls for private participation are motivating factors. For example, at the end of 2019, a request for expressions of interest for the operation of the 79 PROVES and PRODERE mini-grids was published by the Agence Béninoise d’Électrification Rurale et de Maîtrise d'Énergie (ABERME). In addition, Sunkofa, in partnership with PowerGen, recently won a tender with the Benin Off-Grid Clean Energy Facility to develop 40 sites.

mini-grid developers and operators benefit from a relatively supportive digital infrastructure, with the mobile cellular subscription penetration rate at 82% and the mobile money subscriptions penetration rate at 135%. As of March 2020, diesel pump prices stood at €0.79 per litre, an increase from €0.66 per litre back in 2016 when prices were below the sub-Saharan Africa average. This gradual price increase over the long term could improve the business case for renewable or hybridised mini-grids.

The Ministry of Energy maintains a website dedicated to off-grid energy information, at www.benin-energie.org.

The Electricity Code of 2020 (Law Nr. 2020-05 of 1 April 2020) replaces the previous Electricity Code (Law Nr 2006-16 of 26 March 2007). The code brings an end to utility (SBEE) monopoly on energy generation, transmission, distribution and marketing, by inviting private sector engagement in these domains. The law provides for declaration, authorisation and public service delegation contract regimes. All electrical installations for own use below an installed capacity to be determined by decree are subject to the declaration regime. The authorisation regime is applicable to generation, distribution and marketing of electricity in the public interest, generation for eligible customers, generation, distribution and marketing in off-grid areas and self-generation above a certain installed capacity threshold to be determined by decree. The public service delegation contract is applicable to generation above an installed capacity threshold to be determined by decree, transmission, and distribution and marketing activities not designated to aforementioned regimes. The law also distinguishes between two off-grid electrification regimes: A concession regime, which applies to systems larger than 500 kVA, and an authorisation regime, which applies to systems smaller than 500 kVA. Order Nr. 2020-006 specifies the fees payable for licence, concession and authorisation applications, as well as for submitting declarations of system installations. The fees are distinguished by installed capacity. Decree Nr. 2018-415 of 12 September 2018 on off-grid electrification (mini-grids and standalone systems) in the Republic of Benin requires all off-grid providers to hold an operating licence and adds that systems of larger than 500 kVA will be subject to a concession framework, while systems smaller than 500 kVA only require authorisation from ABERME. All off-grid operators are expected to comply with relevant technical standards. Since this decree is promulgated in the framework of the repealed 2007 Electricity Code, it is unclear whether it will still be applied in its present form. As of May 2020, no announcements had been made. Decree Nr. 2014-205 of 13 March 2014 on construction permitting requires that all individuals and companies wishing to implement any form of construction (even in absence of foundations) are required to apply for a building permit beforehand. Only transmission lines and transformers are exempt.

The solar home system (SHS) and pico-solar market in Benin is experiencing strong growth. In 2019, 53,265 SHS and pico-solar products were sold by companies affiliated with GOGLA and Lighting Global, up from 14,488 in 2018 - nearly a four-fold increase. Approximately 75% of these sales were made by Fenix International. Other companies active in the sector include Canopy Energies, Greenlight Planet, Rural Spark and Shinbone Labs.

ARESS, Axcon Energy, BBOXX and Lagazel are also active and are being supported by the Benin Off-Grid Clean Energy Facility. The continued roll-out of this facility and the improved regulatory environment are expected to attract more companies to Benin in the coming years.

In 2019, approximately 98% of SHS and pico-solar products were sold on a PAYGO basis, up from 96% in 2018. The remaining products were bought with cash. The significant PAYGO market share correlates with a high penetration rate of mobile money accounts (135%) in Benin.

The Programme Régional de Développement des Énergies Renouvelables et d'Efficacité Énergétique (PRODERE) programme is active in the SHS and pico-solar market and by 2018 had distributed 164 standalone solar systems to health centres and schools in the Niéhoun and Pentigan localities.

The Ministry of Energy maintains a website dedicated to off-grid energy information, at www.benin-energie.org.

The Electricity Code of 2020 (Law Nr. 2020-05 of 1 April 2020) replaces the previous Electricity Code (Law Nr 2006-16 of 26 March 2007). The code brings an end to utility (SBEE) monopoly on energy generation, transmission, distribution and marketing, by inviting private sector engagement in these domains. The law provides for declaration, authorisation and public service delegation contract regimes. All electrical installations for own use below an installed capacity to be determined by decree are subject to the declaration regime. The authorisation regime is applicable to generation, distribution and marketing of electricity in the public interest, generation for eligible customers, generation, distribution and marketing in off-grid areas and self-generation above a certain installed capacity threshold to be determined by decree. The public service delegation contract is applicable to generation above an installed capacity threshold to be determined by decree, transmission, and distribution and marketing activities not designated to aforementioned regimes. The law also distinguishes between two off-grid electrification regimes: A concession regime, which applies to systems larger than 500 kVA, and an authorisation regime, which applies to systems smaller than 500 kVA. Order Nr. 2020-006 specifies the fees payable for licence, concession and authorisation applications, as well as for submitting declarations of system installations. The fees are distinguished by installed capacity. Decree Nr. 2018-415 of 12 September 2018 on off-grid electrification (mini-grids and standalone systems) in the Republic of Benin. It requires all off-grid providers to hold an operating licence and adds that systems of larger than 500 kVA will be subject to a concession framework, while systems smaller than 500 kVA only require authorisation from ABERME. All off-grid operators are expected to comply with relevant technical standards. Since this decree is promulgated in the framework of the repealed 2007 Electricity Code, it is unclear whether it will still be applied in its present form. As of May 2020, no announcements had been made.
Decree Nr. 2018-563 of 19 December 2018 on performance standards of electric lamps and air conditioners specifies that all lamps manufactured in Benin or imported shall conform to the NB 10.07.001 standard. This standard is published as an annex to the decree. Since this decree is promulgated in the framework of the repealed 2007 Electricity Code, it is unclear whether it will still be applied in its present form. As of May 2020, no announcements had been made.

Captive power in Benin is limited to a few rooftop solar PV projects. The company ARESS is operational in this market and has installed a number of these systems. Other reported projects include a 500 kW rooftop solar PV system at a cold store in Cotonou installed by AB Solar and two rooftop solar systems installed by SEVA (6 kW at the Lulabu mission in Natitingou and 11 kW at the Tanguiéta Hospital). The government has expressed interest in installing solar PV on some of their administrative buildings.

Captive power regulations were enacted more than a decade ago, but these do not make provision for feed-in tariffs. Since the enactment of the new electricity code in April 2020, it is expected that these regulations will be updated to include recommendations for a suitable feed-in tariff.

The Electricity Code of 2020 (Law Nr. 2020-05 of 1 April 2020) replaces the previous Electricity Code (Law Nr 2006-16 of 26 March 2007). The code brings an end to utility (SBEE) monopoly on energy generation, transmission, distribution and marketing, by inviting private sector engagement in these domains. Independent generators of electricity are allowed to sell to resellers and directly to eligible clients on conditions that will be stipulated by an order yet to be published. Self production and grid feed-in is allowed, provided that less than 50% of generated electricity is fed into the grid. The law provides for declaration, authorisation and public service delegation contract regimes. All electrical installations for own use below an installed capacity to be determined by decree are subject to the declaration regime. The authorisation regime is applicable to generation, distribution and marketing of electricity in the public interest, generation for eligible customers, generation, distribution and marketing in off-grid areas and self-generation above a certain installed capacity threshold to be determined by decree. The public service delegation contract is applicable to generation above an installed capacity threshold to be determined by decree, transmission, and distribution and marketing activities not designated to aforementioned regimes. The law also distinguishes between two off-grid electrification regimes: A concession regime, which applies to systems larger than 500 kVA, and an authorisation regime, which applies to systems smaller than 500 kVA. Decree Nr. 2018-415 of 12 September 2018, regulates off-grid electrification (mini-grids and standalone systems) in the Republic of Benin. It requires all off-grid providers to hold an operating licence and adds that systems of larger than 500 kVA will be subject to a concession framework, while systems smaller than 500 kVA only require authorisation from ABERME. Since this decree is promulgated in the framework of the repealed 2007 Electricity Code, it is unclear whether it will still be applied in its present form. As of May 2020 no announcements had been made.
Order Nr. 2020-006 specifies the fees payable for licence, concession and authorisation applications, as well as for submitting declarations of system installations. The fees are distinguished by installed capacity. Decree Nr. 2014-205 of 13 March 2014 on construction permitting requires that all individuals and companies wishing to implement any form of construction (even in absence of foundations) are required to apply for a building permit beforehand. Only transmission lines and transformers are exempt. Decree Nr. 2007-655 of 31 December 2007 on the modalities of declaration and authorisation of self-produced electricity states that systems with capacities exceeding 500 kVA are required to apply for authorisation, while systems between 50 and 500 kVA only need to be declared. The decree elaborates on the process of applying for authorisation and for declaring systems. A maximum of 50% of the total generation is allowed to be fed into the grid. Since this decree is promulgated in the framework of the repealed 2007 Electricity Code, it is unclear whether it will still be applied in its present form. As of May 2020 no announcements had been made.

95% of Benin's population does not have access to clean cooking solutions. Wood and charcoal are the main solid fuels used by 72.2% and 21.2% of the population respectively. These fuels are typically used in inefficient stoves, leading to indoor air pollution. Wood and charcoal are produced and harvested in an unsustainable manner to supply growing urban markets. Consumption of liquid petroleum gas (LPG) is relatively limited because of the high refill costs of bottles, sporadic shortages, limited distribution networks and lack of consumer awareness.

The Ministry of Energy, in its Plan d'Action National des Énergies Renouvelables (PANER) 2015-2030 (National Renewable Energy Action Plan) has set a target to achieve 100% access to improved cookstoves by 2030. A number of organisations operate in this space. Energising Development (EnDev) has supported approximately 1.2 million people with access to improved cookstoves. Almighty Service Plus manufactures and sells improved cookstoves and environmentally friendly charcoal briquettes. Bolivia Inti Sud Soleil (BISS) also distributes efficient wood cookstoves. Since 2009, BISS has distributed a total of 2,761 cookstoves. Teg Stove manufactures improved cookstoves locally, fitted with thermo-electric generators to charge mobile phones and serve other very small electric loads. (B)energy, a biogas company, is also active in Benin.