COMESA Prioritizes Energy Infrastructure Dev’t to Ensure Reliable, Affordable Energy

Addis Ababa, September 18, 2024 (FBC) – Common Market for Eastern and Southern Africa (COMESA) has prioritized regional energy infrastructure development to ensure reliable and affordable energy access, Regional Association of Energy Regulators for Eastern and Southern Africa CEO, Mohamedain E. Seif Elnasr remarked.

A three-day Validation Workshop of the African Development Bank (AfDB) Funded Project on Regional Harmonization of Regulatory Frameworks and Tools for Improved Electricity Regulation in COMESA was kicked off in Addis Ababa today.

In his remark, Regional Association of Energy Regulators for Eastern and Southern Africa (RAERESA) CEO, Mohamedain E. Seif Elnasr thanked the Eastern Africa Pool (EAPP) and the Ethiopian Government for co-hosting the workshop in Addis Ababa.

“I believe that the tranquility, peace and the warmth of this country and its people provides the most ideal environment in which to take the process of regional economic co-operation and integration to greater heights,” Mohamedain said.

AfDB has funded the regional project designed to enhance the sustainability of the electricity sector of the region, he stated.

“COMESA has prioritized regional energy infrastructure development to ensure reliable and affordable energy access. This initiative acknowledges the crucial role of a conducive regulatory environment and robust utilities in attracting private players and fostering competition.”

COMESA is also collaborating with the World Bank to increase energy access for 100 million people and support the deployment of renewable energy, the CEO stated.

Electricity Sector Regulation Director at the Ethiopian Petroleum and Energy Regulatory Authority, Bahru Olijra said the stakeholders engagement is invaluable to work together to shape the future of energy in the region.

COMESA has been pivotal in fostering economic integration and development across Member States.

“Energy, as the lifeblood of our economies and societies, is undeniably central to this progress. Harmonizing our regulatory frameworks is therefore not just an option, but an imperative,” Bahru noted.

“Today, we gather to share insights, exchange best practices, and forge a shared path towards a regulatory environment that is efficient, transparent, and conducive to sustainable energy development. By aligning our approaches, we can unlock the full potential of regional energy trade, enhance energy security, and ultimately improve the lives of our citizens.”

Africa, a continent blessed with abundant energy resources, paradoxically faces a severe energy crisis, he observed.

For him, despite significant progress, the pace of electrification is far from adequate to meet the growing demands of rapidly expanding populations.

“The stark reality is that 75% of the world’s population without access to electricity resides in Africa,” he noted.

“Our region, Eastern and Southern Africa, is not immune to this challenge. The gap between energy supply and demand continues to widen, affecting industries, businesses, and households alike. A staggering 365 million people in our region lack access to electricity, and 558 million lack access to clean cooking. Despite hosting 18% of the world’s population, Africa consumes less than 6% of global energy. Excluding South Africa, Sub-Saharan Africa’s per capita energy consumption stands at just 180 kilowatt-hours (kWh), compared to 6,500 in Europe and 13,000 kWh in the United States.”

Without significant intervention, the region’s energy supply will not keep pace with rising demand driven by urbanization, economic growth, and population expansion.

According to the World Bank, the pace of electrification in the region needs to triple to achieve universal electricity access by 2030. Otherwise, there will still be more than 300 million people without electricity in the COMESA region by that time, Bahru stated.

In Ethiopia, our national grid remains concentrated in major population centers, limiting access to electricity for the vast majority of our rural population. Expanding electricity access to rural areas, townships, and commercial centers is a long-term necessity and essential for balanced socio-economic growth at the national and regional levels, he added.

The limited power supply also significantly impacts economic and industrial development in our region. It raises the cost of doing business and diminishes our ability to attract new investments.

It is imperative that we transform this narrative. By harnessing our collective expertise and political will, we can accelerate electrification, attract investment, and build a sustainable energy future for all.

“As we embark on this journey, let us be guided by cooperation, a shared vision, and a commitment to excellence. I am confident that this workshop will be a catalyst for positive change.”

East African Power Pool Secretary General, James Wahogo said the workshop deals with a component of a broader assignment like Elaboration of Regional Electricity Regulatory Principles (RERP), Regulatory and Utility Key Performance Indicators (UKPI) for COMESA.

The workshop is crucial as it complements the works of East African Power Pool as COMESA’s specialized institution, he noted.

According to him, the East African Power Pool (EAPP) region has achieved certain milestones over the years towards its objective of enhancing power system interconnectivity, cross border electricity trade and institutional capacity.

“Deepening regional power system integration in our region yet requires deployment of many more interconnection lines including concerted actions to allow for expansion of multilateral power trade and seamless operation of the regional grid formed through interconnection of the national power grids.”

In line with that he mentioned about the implementation of various activities aimed at advancing development of new interconnection projects to ensuring reliable and secure operation of the interconnected regional power system and fostering multilateral power trade.