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energY

beNiN: opeN For

cleaN eNergY

iNvestmeNt

african country ready for big infrastructure investments to strengthen electricity grid
and cut emissions in second compact with Millennium Challenge Corporaton.

Benin was selected in December 2011 as an up to 80 MW while decreasing its dependence improve grid reliability, and
eligible country by the Millennium Challenge on external energy sources. As part of this reduce losses and untmely
Corporaton’s (MCC) board of directors to project, four photovoltaic solar power plants of outages. The project will help
develop a second compact afer successful an overall capacity of 50 MW will be installed in improve the grid serving Cotonou
completon of the frst one. Nattngou, Djougou, Parakou and Bohicon. and also regional networks as a
complement to photovoltaic solar
An analysis of obstacles to economic growth That is together with the rehabilitaton of three generaton plants investments,
and private investment identfed electricity existng thermal generaton plants of an overall as well as the building of a
provision and energy infrastructure as some of estmated capacity of 32 MW in Nattngou, modern distributon dispatch and
the major constraints to development in Benin. Parakou and Porto-Novo, as well as the control center to more efectvely
The second Benin Compact is focused on the rehabilitaton and installaton of an additonal manage the network.
energy sector with $US 375 million representng turbine at the Yeripao micro hydroelectric plant
MCC funding and $US 28,125 million in natonal for a total generaton capacity of 1 MW. Finally, the of grid electricity
contributons. It is a frst in MCC funding for access project will help improve
renewable energy. The implementaton of renewable resource and strengthen Benin’s of-grid
projects for generatng electricity in Benin
The programme’s objectve is to “increase (Millennium Challenge Account Benin II) would electrical policy and insttutonal
environment together with
businesses productvity, and to create great help to reduce the use of fossil fuels and hence providing a grant facility to fund
economic opportunites for households, as well greenhouse gas emissions. of grid electrifcaton.
as to increase the Benin government’s ability Lesser reliance on fossils
to provide public and social services through The second Benin Compact is
quantty and quality improvement of electricity.” Thus, the long-term impacts of establishing the greatest MCC funded energy
photovoltaic power plants (PVPP) at various generaton project to date. It will
venture’s aims locatons in the country would be benefcial, help cover about one third of
The programme includes four projects: policy allowing not only for increased availability of
reform and insttutonal strengthening; electricity, but also producing electricity in a way the 250 MW electricity demand
peak. This Compact includes
electricity generaton; electricity distributon; that does not directly consume fossil fuels. the largest solar photovoltaic
of-grid electricity access.
To calculate greenhouse gas reductons, it is investments for about 50 MW,
The reform project aims, frst, to improve the assumed that a litre of diesel would generate the largest of grid electricity
overall governance of the electricity sector three kilowat hours of electricity and that a project amountng to $US 45
through operatonal support to an independent, total of 121.2 gigawat hours per year would be million, and an important reform
strong and professional regulatory insttuton, generated by the PVPP. Since the combuston project of $US 41 million.
as well as tarif reforms and the establishment of a litre of oil releases 0.003 tonnes of CO2, The second Compact will serve as
of an insttutonal and regulatory framework according to the World Resources Insttute, the a lever to mobilise private sector
favourable to independent electricity producers. implementaton of all proposed PVPPs would resources to efectvely promote
result in savings of about 119,240 tonnes of CO2
Second, it looks to improve governance of the per year based on reducing the use of diesel fuel renewable energies in Benin.
electricity distributon company, operaton and
maintenance of infrastructure. by 250,000 barrels. Over the 25 year lifespan of www.ucf.bj
the PVPPs, a cumulatve reducton of 2.5 million
Third, it aims to inform and educate people on tonnes of CO2 would be achieved.
tarifs, energy efciency and other key issues of grid bolstered
the electricity sector.
The electricity distributon project aims
boosted capacity at modernizing and strengthening Benin’s
The energy generaton project will help increase electricity distributon infrastructure to expand
the country’s domestc generaton capacity by grid capacity to accommodate future growth,

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