Central Africa Republic: Central African Republic Energy Profile

The Central African Republic (CAR), is a landlocked country in Central Africa. It borders Chad in the north, Sudan in the north east, South Sudan in the east, the Democratic Republic of the Congo and the Republic of the Congo in the south, and Cameroon in the west. The CAR covers a land area of about 240,000 square miles (623,000 km²), and has an estimated people of about 4.4 million as of 2008.

Bangui is the capital city. Most of the CAR consists of Sudano-Guinean savannas but it as well includes a Sahelo-Sudanian zone in the north and an equatorial forest zone in the south. Two thirds of the country lies in the basins of the Ubangi River, which flows south into the Congo River, while the remaining third lies in the basin of the Chari River, which flows north into Lake Chad. Since most of the territory is located in the Ubangi and Shari river basins, France called the colony it carved out in this region Ubangi-Chari, or Oubangui-Chari in French.

It became a semi-autonomous territory of the French Community in 1958 and again an independent country on 13 August 1960. For over three decades next independence, the CAR was ruled by presidents who either were not freely elected or took power by force. Local discontent with this system was from presently on reinforced by international pressure, following the end of the Cold War. The initial multi-party democratic elections were held in 1993 with resources provided by the country\'s donors and help from the UN Office for Electoral Affairs, and brought Ange-Félix Patassé to power.

He lost popular support during his presidency and was overthrown in 2003 by French-backed General François Bozizé, who went on to win a democratic election in May 2005. Inability to pay workers in the public sector led to strikes in 2007, forcing the resignation of the government in early 2008. A new Prime Minister, Faustin-Archange Touadéra, was named on 22 January 2008. The Central African Republic is one of the poorest nations in the world and part the ten poorest nations in Africa. The Human Development Index for the Central African Republic is 0.369, which gives the country a rank of 179 out of 182 nations with data.

Energy sources

Total installed electricity capacity (2008): 46 MW

Total primary energy supply (2008): 1064.2 ktoe
Biomass: 91%
Oil and oil products: 8%
Hydro-electric: 1%

Historically, wood has been the major fuel to provide heating. The current energy mix consists of hydro-electric and thermal. Some diesel power and solar photovoltaic panels are as well used. Renewables contributed 54.3%, or 25 MW, to the installed generation capacity in 2008. The majority of biomass consumption is produced indigenously. Total electricity generation in 2008 was 162.0 GWh, with a per-capita consumption of 37 kWh

At present there are three hydro-electric plants in operation: Boali 1 (8.75 MW), Boali 2 (10 MW) and Gamboula (0.2 MW). Their total capacity is nearly 19 MW and average annual production is 130 GWh. Boali 3 (10 MW) has recently been commissioned, in addition to a 6 MW thermal power station at Bangui, the capital.

Reliance

The Central African Republic does not currently produce either petroleum or natural gas. The country\\\'s petroleum needs are met through imports; in the absence of any domestic refining capacity, only refined products are imported. The vast majority of the people still depend on traditional biomass use for the majority of their energy needs. Energy self-sufficiency for the country stood at approximately 91% in 2008 because of this. Total oil imports in 2009, inclunding refined products, were 2,418 bbl/day.

Extend network

Regarding the sub-sector electricity, supply is unable to meet request. In 2010, the rate of access of the people to electricity was 4% at national level, 15% in Bangui, 1% in secondary centres and near 0.0% in the rural environment, home to most of the country’s poorest populations. The country’s grid system is as follows:

• High voltage grid: 110 kV - 84 km;
• Medium voltage grid: 15 kV - 290 km; and,
• Low voltage grid: 220 V - 433 km.

There is an interconnection with the Democratic Republic of Congo, to convey power produced at the Mobaye hydro-electric dam.

Capacity concerns

The Bangui interconnected power system is small. There are two hydropower facilities (Boali 1 and 2) with a current generation capacity of 15 MW; this capacity is not reliable because of the lack of maintenance, and there are frequent power failures. In addition, there is currently 2 MW of diesel power in Bangui (though the utility has limited ability to pay for fuel). Peak request in 2008 was estimated at 27 MW, but given estimated system losses in 2009 of 48%, there is a large gap between supply and request. System losses are approximately 15% technical losses and 33% non-technical losses (i.e. theft and inaccurate billing). There has been a breakdown of the two hydropower plants (Boali 1 and Boali 2) which supply power to Bangui and surrounding areas. In addition, ENERCA, the national-owned utility, has financial problems due mainly to the low collection rates of bills. Historical rates of cost recovery have been consistently around the 75% mark. An increasing proportion of people in provincial towns and businesses (e.g. mining, agro-industries, logging and planters), are using diesel or petrol powered generators to produce their own electricity. In 2008, diesel prices were approximately US$ 1.44 per litre. Unit capacity ranges from 2 to 650 kVA, and their total output is at least the same order of magnitude as the capacity of ENERCA\\\'s. Private generators as well include solar and hydro-electric micro power stations. Obtaining a power connection costs up to 52 times the average yearly gain in the country.

Renewable energy

Solar energy
Solar energy is as well a viable option, with average horizontal irradiation reaching 6.0 kWh/m2/day in some regions. World irradiance in the country ranges from 2,000 to 2,400 kWh/ m2. Owing to its high cost, this technology could be reserved for specific applications, such as pumping for general water supply or for powering telecommunication systems inclunding for low-energy applications, such as low-consumption lamps, radios and televisions, telephone recharging and small computing equipment.

Wind energy
The potential for wind energy is present, with some sites having average wind speeds in excess of 5 m/s. However, wind power use is still largely unexplored in the country.

Biomass energy
Traditional biomass use for heating and lighting is still prevalent. According to studies, the biomass intensity of the Central African Republic is currently sustainable. No studies have been conducted as to possible non-traditional biomass use in the country. Over 50% of the country is covered with some form of forest, of which approximately 10% is currently being used as an energy resource.

Geothermal energy
No study has currently been undertaken to determine the geothermal potential of the Republic.

Hydropower
The role of renewable energy technologies is most likely to evolution with the electrification of the major towns in the country by the exploitation of hydropower. Currently the Mbali River, a tributary of the Oubangui in the Boali region north-east of Bangui, is considered to have impressive hydro-electric potential. This region is the major centre for hydropower production in the country. Some areas that are considered priorities for small or micro hydro development include: Bocaranga, Paoua, Baboua, Bossangoa, Ndélé, Sibut, Bangassou, Bria, Kembe, Bambari, Bouar, Carnot, Berbérati, Kaga- Bandoro and Mbaîki (ENERCA, 2009). Major potential large-hydropower developments include the 300 MW Palambo project, 65 km North of Bangui, initially proposed as part of a wider project to improve water flow into Lake Chad. However, the necessary investment for this project is approximately US$ 450 million, and hence further project development has been slow since the initial proposition.

Energy efficiency

The potential for energy efficiency in the electricity sector is completely high, with distribution and technical losses having a severe impact on electricity service in the country. Improved generation and distribution infrastructure, inclunding additional rigorous billing regulations, would improve this. Distribution infrastructure in much of the country relies on aging, bare-wire lines, which are often a target for electrical and physical theft, due to the high copper content of the systems, and the relieve of illicit connection. Commercial sector energy efficiency is due affected by the lack of effective power transmission in the country, with firms often being forced to operate their own, often expensive and inefficient, diesel generators to guarantee a reliable power supply. Efficiency in power generation is as well being promoted in the country through the involvement of WEG Industries, through generation equipment leasing.

Ownership

Electricity market
The electricity sub-sector in the Central African Republic is not highly developed because of the large size of the country and its low people density, the effects of a decade of socio-political unrest on the network infrastructure, and the poor performance of the national-owned company Énergie Centrafricaine (ENERCA), responsible for the sub-sector. Only 4% of the people had access to electricity in 2010. Supply (18.75 MW) is lower than request (24 MW) in Bangui, the capital; hence load shedding and outages are frequent. Country-wide load shedding has increased from 8 hours to roughly 13.5 hours per day in 2010. ENERCA\\\'s production is mainly from hydroelectric sources, because thermal generation is little used owing to the high cost of fuel. In the provinces, ENERCA generates electricity from thermal sources; secondary plants are supplied with electricity for four to five hours a day.

The town of Mobaye (608 kilometres from Bangui) is the only one to have regular electricity supplies because it imports electricity generated by a plant in the neighbouring Democratic Republic of the Congo. Under the CEMAC CET, such imports are subject to customs business of 10% inclunding VAT at 19%.

Liquid fuels and gas market
Upstream oil and gas activities in the country have been limited to exploratory projects, and the country does not currently produce oil or gas. Activities downstream of the petroleum sub-sector (import, storage, transport, distribution and marketing) were privatised in 1999, and the national-owned company Centrafricaine des pétroles, (PETROCA, Central African Petroleum Company) was liquidated. Service stations are supplied by Total-Centrafrique and Trading d\\\'exportation de pétrole brut et de produits pétroliers (TRADEX,), while the Société de gestion des actifs logistiques (SOGAL) is responsible for storage.

Competition

Since independence, with the exception of private generation and independent production, electricity service provision has been run by the vertically-integrated ENERCA, which produces, distributes and markets electricity throughout the country. Since the services supplied by this national-owned company were poor in quality, the government, next liberalising the sector in edict 05.001 of 1st January 2005 and introducing an Electricity Code to the Republic, undertook the restructuring of the company. However, currently ENERCA still holds an effective monopoly on power activities in the country.

Total-Centrafrique and TRADEX have exclusive distribution rights until 2011. Afterwards, other approved operators will be able to distribute petroleum products and have access to the SOGAL\\\'s structures. The latter as well has exclusive rights that ended in 2011.

Energy framework

The Poverty Reduction Strategy Paper 2008-2010 (PRSP) sets as a major objective the development of the national energy infrastructure, in order to ensure that power provision can be carried out, inclunding guaranteeing the development of the people’s economic life.

According to the PRSP, major short and medium-term emergency measures will be implemented so that:
(i) people groups in urban and rural areas can access quality energy services at a lower cost, and
(ii) resources are managed in a sustainable fashion via public–private partnership initiatives.

To this end, initiatives will be taken, and even boosted in the following areas:
(i) reforms will be continued in the electricity and hydrocarbon sub-sectors,
(ii) ENERCA will be restructured,
(iii) an energy data system will be created and made operational,
(iv) the electricity production, transport and distribution capacity of the interconnected (Boali-Bangui) network will be increased,
(v) power transfer at a sub-regional and regional level will be promoted,
(vi) the electrification of rural areas will be promoted,
(vii) micro hydro-electric dams will be constructed,
(viii) the regulation capacity of the hydrocarbons markets will be developed,
(ix) the decentralisation and reinforcement of storage capacities and the diversification of supply channels will occur, and
(x) reductions will be made in the country’s energy dependence.

In addition, the government is planning to build a dam on the Kotto at Kembé to produce electricity to supply the uranium and gold mining sites.

Currently, Governmental energy policy is focused on three key objectives; upgrading the Boali 1 and 2 hydropower stations and their associated distribution network, up-rating Boali 2 and 3 with the addition of new equipment, and optimising the running of ENERCA to improve economic performance.

Energy debates

Plans have been proposed to utilise the country\\\'s vast agricultural potential for the production of biofuels. With one of the lowest people densities globally, the potential for widespread biofuel feedstock production has been suggested as a possible poverty-alleviation mechanism.

China and the AfDB have as well pledged donor support for the enlargement of the Boali 3 station, which was last estimate to begin in the second quarter of 2011, following signing of the co-operation agreement in February.

Energy studies

The Central African Republic is member of the Economic and Monetary Community of Central Africa (CEMAC). Through the Brazzaville Declaration (2005), the country is committed to integrate energy access as a focal area in poverty reduction strategies, and participate in the development of a Regional Action Plan to Promote Access to Energy in Central Africa.

ENERCA as well represents the Republic in the Central African Power Pool (CAPP), which was initially created in 2003 to organise and manage an integrated Central African power network. Upcoming CAPP projects involving the Republic include two cross-border electrification projects with the DRC.

Role of government

ENERCA’s general manager reports to the Ministry of Mining, Energy and Hydraulics. Since January 2005, there has been a new Electricity Law, which enables private sector participation in the sector. There is as well a newly appointed electricity sector regulator, the ARSEC.

Government agencies

No government agency is currently operating in the sustainable energy sector in the country. An NGO, Research on Innovative and Appropriate Technology for Sustainable Improvment(RETNAD), is active in promoting the sustainable use of biomass resources.

Decree No. 273 of 11th September 2005 established the Autonomous Agency for Rural Electrification (ACER), which is responsible for the development of rural electrification in the country. Objectives of the Agency include a 15% rural electrification rate by 2015, and to achieve this, approximately 35 small hydro-electric sites have been identified for development.

Energy procedure

Rural electrification in the Central African Republic is still in its infancy. That is why, in 2004, the Central-African government adopted a national energy policy framework favouring renewable energies, with a view to reducing poverty over the 2005-2015 period. The ACER is as well promoting independent power production from the private sector, to compliment the rural electrification strategy.

In light of the current energy deficit, a three-phase strategy was adopted: modernizing Boali 1 and Boali 2 hydroelectric stations and distribution grid; increasing production by using the Boali 3 and extending Boali 2; and restructuring the sector and improving management of ENERCA.

Modernisation of Boali 1 and 2 and the distribution grid began in 2008 with €4.2 million from the Agence Francaise de Developpement (AFD), which will be supplemented by US$8 million from the World Bank. Boali 2 and Boali 3 could as well be extended as part of the regional project for production, and interconnection with the DRC, scheduled for 2009, and financed by the African Development Bank (AfDB).

In 2011, the AfDB, in collaboration with the African Development Fund, produced a Regional Integration Strategy Paper for Central Africa, inclunding the Republic. Specific objectives for the Republic under the strategy include the strengthening of institutional capacity and economic governance, and the strengthening of the economic regional integration infrastructure, inclunding electrical inter-connection.

Energy regulator

In terms of restructuring the sector, the following agencies are presently operational:
(i) The Central African Rural Electrification Agency (ACER);
(ii) The Central African Electricity Regulation Agency (ARSEC);
(iii) The Central African Oil Products Storage Company (SOCASP); and
(iv) The Oil Product Price Stabilization and Regulation Agency (ASRP).

Degree of independence

ARSEC is financed through the government budget, and through a separate charge levied on the sale of electricity. The Agency is required to make its operations and finances transparent under the current IMF Heavily Indebted Poor Nations (HIPC) initiative.

Regulatory framework

According to the new Electricity Code approved in 2005, the production, transport, import, export, distribution and sale of electricity are open to competition; nevertheless, approval by the Ministry, following a technical opinion by the ARSEC is required for this purpose. Approved producers may supply their customers through the ENERCA network, or may set up their own networks. 

Regulatory roles

The sale price for electricity is determined in an order issued by the Minister responsible for energy; the scale applied dates from 8 February 2006. ENERCA is responsible for ensuring its own levels of operational standards, until ARSEC assumes a additional controlling role in the sector.

Energy regulation role

The Ministry of Energy is responsible for regulation of the mining sector. The Ministry as well regulates the petroleum sector in the country.

Regulatory barriers

The lack of a regulatory framework to support the implementation of sustainable energy projects is a barrier to increasing market penetration. Increasing the operational role of ARSEC in regulation of the electricity sector would lead to fairer market conditions. Further development of the energy sector could be completed in part through the introduction of a clear legal and regulatory framework for private sector participation, grid extension and sector management.

Overview data for Central African Republic