STRATEGIC & COPORATE PLAN
THE ROAD MAP OVERVIEW
Regional power trade in Eastern Africa has been occurring on a small scale and driven by bilateral agreements (e.g. Ethiopia-Sudan, Ethiopia-Djibouti, Kenya-Uganda) and existing diversity
- Several organizations are involved in developing regional power system projects, including EAPP, NELSAP, EAC, EGL, ENTRO and joint coordination units for specific projects
- Now, regional power system operation is at a critical juncture:
- Many systems will soon be heavily interconnected to one or more utilities for the first time
- Critical interconnection projects (e.g., EKT) are progressing and will continue to need support
- Smaller interconnection projects are coming online in the next 1-2 years
- Generation capacity is expanding, with major new facilities planned to come online by end of 2016
- Preparation is ongoing to have soft engineering infrastructure in place
- Leadership in the region have renewed drive to push regional trade forward
STRATEGIC PLAN 2016-2026
Strategic Plan is under development
The EAPP – General Secretariat is drafting the EAPP Strategic Plan 2016 – 2026. The first corporate plan 2012 – 2014 came to its end in 2014. The year 2015 was considered by EAPP – General Secretariat as transition period for the preparation of report and audit which was part of the previous EAPP Corporate Plan.
EAPP – General Secretariat internally created a team to prepare the EAPP Strategic Plan 2016 – 2026 as it was for the first EAPP Corporate Plan 2012 – 2014.
- THE EAPP STRATEGIC PLAN 2016 – 2026 APPROACH.
The preparation of the EAPP Strategic Plan 2016 – 2026 will use the “Balanced scorecard” approach which will allow EAPP to focus on strategy and results. This approach will also improve the organizational performance related to the implementation of the strategic plan.
The preparation of the EAPP Strategic Plan will consider the following:
- EAPP Vision and Mission Statements,
- EAPP Objectives,
- Evaluation of the first EAPP Corporate Plan 2012 – 2014,
- EAPP achievements since 2005 up – to – date.
- The SWOT Analysis of the organization (EAPP),
- The EAPP updated Regional Master Plan (Priority projects),
- Strategic decisions by EAPP – Steering Committee and Council of Ministers.
- THE STEPS TAKEN FOR PREPARATION OF THE EAPP STRATEGIC PLAN 2016 – 2026.
The document is under preparation and the preparatory team is at an advanced stage in the preparation of the EAPP Strategic Plan 2016-2026, but the communication and involvement of EAPP stakeholders (EAPP (All organs and EAPP – General Secretariat employees)) and Development Partners is very important for strategic planning process to ensure the ownership of the plan and alignment of the strategic plan, programs and projects of different Development Partners.
The following steps have been taken or are in the process of reformulation:
- Definition of EAPP priorities,
- Definition of strategic themes, objectives, measures and initiatives,
- Alignment of the performance with the strategy,
- Understanding the linkage between the strategic themes, objectives and initiatives.
- EAPP VISION, MISSION AND OBJECTIVES.
The strategic plan of EAPP is based on EAPP vision and mission. The following are vision and mission statements:
“To optimize the usage of clean energy resources available in the region to benefit the region’s society with reduced cost of electricity production and increased rate of access.”
“Integrating regional investment in power generation and transmission; integration of national power system operations into unified regional electricity market and trade energy among member countries to secure power and optimize the usage of energy resources in the region to benefit the society with reduced cost of electricity production and increased access rate.”
EAPP’s main objectives are;
- To secure power supply for the region’s countries
- Optimize the usage of energy resources available in the region by working out regional investment scheme in power generation, transmission and distribution taking into account the environment effects;
iii. To increase power supply in the region in order to increase access rate of the population to electricity in Eastern Africa,
- To reduce electricity production cost in the region by using power system interconnection and increase power exchange between countries;
- To provide efficient coordination between various initiatives taken in the field of power production, transmission as well as exchange in the region;
- To create, in the framework of New Economic Partnership for African Development (NEPAD), a conductive environment for investment in order to facilitate integration projects financing in the fields of power generation and transmission in the region.
vii. Facilitate, in the long term, development of Electricity Market in the region
- EAPP PRIORITIES.
Priority issues for the EAPP include the following.
- Implementation of identified regional projects (EAPP Regional Master Plan 2014) by 2020,
- Ensuring that the EAPP-General Secretariat has the necessary support and funding to implement all the identified activities by EAPP including its routine activities.
- Implementation of the new organizational structure involves acquiring the staff and other resources.
- Retaining EAPP key and trained staff and continuous capacity building.
- Acquisition and deployment of the material resources required for operations (EAPP Offices (Headquarters and Coordination Center), Communications Systems [ICT Systems, VSAT, OPGW etc.] SCADA system and Expansion of the Power Market Platform),
- Development on an ICTs Systems Infrastructure, (Networks, Systems and Development)
- Addressing gaps in the legal, regulatory and networked system operation areas.
- Development of the market (as per the approved Power Market Development Road Map),
- Creation of a Team of Experts to Develop regional projects (Projects Development Support Team),
- Develop, Review and approval by EAPP (SC, IRB, COM) of all required tools for the power market to start by 2016 – 2017 and the necessary regulatory instruments,
Note that for the implementation of regional projects, the following six transmission lines have been identified by the 2011 and 2014 Regional Master Plan as urgent to be implemented during this period of this strategic plan (2016 – 2026):
- Sudan – Ethiopia,
- Egypt – Sudan,
- Rwanda – Tanzania,
- Uganda – South Sudan,
- Libya – Egypt,
- Kenya – Uganda
Due to time constraint, the preparation and required actions (Finance mobilization) should start in 2016.
For the six transmission projects mentioned above, the following steps should start by 2016:
- Evaluation of the existing feasibility studies and update,
- Feasibility study of the interconnector Rwanda – Tanzania,
- Perform the feasibility and detailed design studies for the mentioned transmission lines,
- Start negotiations of the cost sharing to those lines by countries,
- Securing financing of the 6 projects by member countries.
An estimated budget for those six lines are shown in the table below:
|COSTS OF REGIONAL TRANSMISSION LINES (INTERCONNECTORS) BY 2020
|No.||Interconnection between||Distance (km)||Type||Capacity (MW)||Estimated Costs in Mio US$|
|1||Sudan – Ethiopia||550||AC, 500kV||1600||373|
|2||Egypt – Sudan||775||AC, 500kV||500||233|
|3||Rwanda – Tanzania||115||AC, 220kV||200||30|
|4||Uganda – South Soudan||200||AC, 400kV||600||77|
|5||Libya – Egypt||163||AC, 220kV||200||38|
|6||Kenya – Uganda||254||AC, 400/220kV||300||44|
|TOTAL BY 2025||2,057||3,400||795|
In addition to the implementation of the regional projects, the construction of the EAPP Headquarters including the SCADA/EMS system are a part of the preparatory works to provide power market trade and system operation coordination activities. The detailed design was conducted and completed.
The scope of the project will consist of following 4 components:
- Consultancy services for the Implementation of the SCADA/EMS System.
- Supply, Installation, and Commissioning of a SCADA/EMS and communications system. (Turn-key contract).
- Construction of the Headquarters Building.
- Consultancy for Headquarter Civil Works Supervision.
- KEY ISSUES AND CHALLENGES.
The EAPP SWOT analysis identified the following key issues and challenges which need a particular attention such as:
- Shortage of power for trading in the market in first years (2016-2017),
- Limited number of participants trading in the power market,
- Limited transmission capacity for wheeling, and few interconnectors available in the region,
- Delays in Increase of Financial Contribution for running the EAPP by the Members,
- Duplication of activities among the development partners and regional institutions,
- Lack of permanent Office facilities for the EAPP – General Secretariat though the EAPP has secured a plot donated by the Ethiopian Government.
- Poor access to electricity, hence low sales volume,
- Lack of SCADA facility to monitor power flow tools for the market operations, monitoring / follow-up of system operation, planning. (SCADA, PSSE, AGC, etc.)
- Lack of Continuation in Capacity building in power market and systems Operations for The Technical Committees, EAPP – General Secretariat and Utilities staff.
- Financial constraints and challenges to finance power infrastructure at the utility level.
- Lack of harmonization in the regulatory, as well as network operation, planning and design processes despite the existence of EAPP Grid Code,
- Lack of financial system (policies) and budgeting (options).
- Lack of funds to implement studies and regional projects.
- EAPP STRATEGIC THEMES.
On the basis of EAPP’s vision, mission, objectives in the IGMOU and after gathering up-to-date information on internal strengths and weaknesses and external opportunities and threats, the following strategic themes below were identified as strategic issues requiring a planned and coordinated response over the coming ten (10) years (2016-2026).
- Power Infrastructure Development,
- Development of Regional Power Market,
- Excellence in Operational Activities,
- Learning and Growth.
The strategic themes and objectives are as in the attached summary tables of the formulated balanced scorecard matrix for discussions and improvement. The measures will be developed later after defining all strategic objectives and initiatives by all EAPP stakeholders (EAPP Organs and Development Partners).