ECOWAS Ministers of Energy discuss operationalisation of regional power market
Ministers of Energy in ECOWAS Member States met in Cotonou, Benin on October 7, 2023 to review recommendations from regional energy experts on some documents which are considered critical to the operationalisation of the electricity market.
The documents were validated by the experts whose two-day meeting ended a day earlier in Cotonou.
The documents
The documents are the Directive for the Harmonisation of the Criteria for the Granting of Licences and Authorisation to Participate in the Regional Electricity Market; the Regulation on the Surveillance of the ECOWAS Regional Electricity Market; and the Regulation on the ECOWAS Regional Electricity Market Levy.
The Directive on the Harmonisation of the Criteria for Granting Licenses and Authorisation for Participation in the Regional Electricity Market is expected to promote a level-playing field for cross-border electricity trade among ECOWAS Member States.
Considering the different rules and procedures in Member States, a harmonised licensing framework will ensure that licensing does not restrict entry into the regional power market and will also provide the regulatory tools to assist regulators in their oversight functions.
For the Regional Electricity Market Supervision Regulation, it will establish rules and procedures for the supervision of participants in cross-border power trade to promote a favourable regional approach to investment and capacity development.
The Market Supervision Regulation includes the mechanisms for monitoring market participants’ behaviour to support an efficient, reliable, and sustainable Regional Electricity Market in compliance with the Regional Market Rules, the Operation Manual of the West African Power Pool (WAPP), the Market Procedures and other approved Regional Electricity Market documents.
The Regional Electricity Market Levy Regulation seeks to establish a fee to finance the operation and functioning of the regional power market and ensure its effective supervision and regulation.
Regulatory framework
Contributing to the discussions, Ghana’s Minister of Energy, Dr. Matthew Opoku Prempeh, reminded his colleagues of the need for a robust regulatory framework for the operation of the ECOWAS Regional Electricity Market anchored on transparency, competition, non-discrimination and environmental sustainability.
He stressed the need for member countries to strengthen their energy transition policies, which will ultimately lead to the development of a robust regional transition framework to ensure that they achieve their net-zero targets, in the context of the respective economic growths.
He said the meeting has deepened the bond among ECOWAS Energy Ministers in their quest for affordable, ready and accessible energy, for the prosperity and progress of their countries.
