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 (e) Power plants

Angola

(i) Is there a standard form of power purchase agreement?

There is no standard form of PPA used in Angola.

(ii) Independent Power Projects: are there any IPPs in existence?

Please see “Legal and Regulatory Framework” section.

(iii) Merchant power: are there merchant power plants and if so, are they allowed to (or obliged to) sell power back to the grid?

Pursuant to the General Law of Electricity, the responsibility of meeting the national needs of power is assigned to the Public Electric System, which includes the National Network of Power Transport ("NNPT") and all the production facilities and transportation and distribution network connected to it. Both the NNPT and the facilities connected to it are provided for by way of a public service concession.

The law provides for the existence of power distribution companies. The tariffs within the Public Electric System are subject to regulation by the government, after the concessionaires' proposal; the government may subsidise the consumers in order to bear the costs of power producers, ensuring the profitability of their activity. Outside the Public Electric System the terms of the marketing of power are set by the parties contractually.

The power generated in Angola is only allotted to supply the domestic market and is still insufficient to meet national needs. In addition, some power consumed in Angola is currently imported from Namibia utilising the regional power grid, promoted by SADC, with an estimated power production capacity of 39,000 MW. The importing and exporting of power is subject to prior approval of the relevant entity, plus the finance and trade entities, being the prices set through negotiation with the consent of the relevant body and the financial entity.


Guinea

(i) Power purchase agreement: is there a standard form of power purchase agreement used in the jurisdiction?

There is no standard form of power purchase agreement used in the jurisdiction. There has been an IPP in the jurisidction and it is likely that the form of PPA used in that project will be seen as a basis to be used for any other project.

(ii) Independent Power Projects: are there any IPPs in existence?

Please see “Legal and Regulatory Framework” section.

(iii) Merchant power: are there merchant power plants in the jurisdiction, and if so, are these plants allowed to (or obliged to) sell power back to the grid?

Privately owned power plants exist in Guinea and they are allowed to sell power back to the grid.

Ivory Coast

(i) Is there a standard form of power purchase agreement?

There is no standard form of power purchase agreement. However, the ANARE and the CIE set out the terms of the contracts and it has to be approved by the Minister of Energy. The AZITO Project would be used as a basis for any further IPP in the country.

(ii) Independent Power Projects: are there any IPPs in existence?

Please see “Legal and Regulatory Framework” section.

(iii) Merchant power: are there merchant power plants and if so, are they allowed to (or obliged to) sell power back to the grid?

Merchant power plants exist and are allowed to sell power back to the grid.

Kenya

(i) Is there a standard form of power purchase agreement?

There is no standard form prescribed by legislation. There have, however, been a number of IPPs in recent years (Tsavo, Rabai, Olkaria) and the form of PPAs negotiated on these projects have, in general, large points of similarity and it is likely such a form of PPA would be utilised for any further IPP in the country (as is currently the case in a number of IPP negotiations ongoing in Kenya). Each of Walker Kontos and Trinity have been involved in a number of IPPs in recent years.

(ii) Independent Power Projects: are there any IPPs in existence?

Please see “Legal and Regulatory Framework” section.

(iii) Merchant power: are there merchant power plants and if so, are they allowed to (or obliged to) sell power back to the grid?

Each of the IPPs undertaken to date in Kenya have sold all capacity/energy to KPLC pursuant to a long-term PPA.

Madagascar

(i) Is there a standard form of power purchase agreement?

There is no standard form of power purchase agreement in Madagascar.

Art14 of the Electricity Code sets out some basic clauses which must be included such as concessionaire rights and liabilities; general conditions on construction and upkeep of installations; the process for applying sanction in case of violation of the agreement; the provisions regarding financing of facilities and concessionaire activities; provisions related to the tariff; provisions related to the dispute process; provisions regarding the conditions of installations transfer and recovery by the authorized authority at the end of the concession or authorisation; general conditions related to the construction and exploitation and installations; concessionaire activities.

A number of IPPs have been undertaken in Madagascar and the form of PPA agreed will likely form a basis for negotiation on any future IPP.

(ii) Independent Power Projects: are there any IPPs in existence?

Please see “Legal and Regulatory Framework” section.

(iii) Merchant power: are there merchant power plants in the jurisdiction, and if so, are these plants allowed to (or obliged to) sell power back to the grid?

Privately owned power plants exist and are allowed to sell power back to the grid.

Mali

(i) Is there a standard form of power purchase agreement?

There is no standard form of power purchase agreement used in Malian jurisdiction. Any power plant purchase agreement must be submitted and approved by the CREE.

(ii) Independent Power Projects: are there any IPPs in existence?

Please see “Legal and Regulatory Framework” section.

(iii) Merchant power: are there merchant power plants and if so, are they allowed to (or obliged to) sell power back to the grid?

Power plants owned by private investors are allowed to sell power back to the grid.

Mauritius

(i) Power purchase agreement: is there a standard form of power purchase agreement used in the jurisdiction?

There is no prescribed form of power purchase agreement. A number of IPP projects have been concluded, however, and the form of the PPA has become familiar and followed in these projects.

(ii) Independent Power Projects: are there any IPPs in existence?

Please see “Legal and Regulatory Framework” section.

(iii) Merchant power: are there merchant power plants in the jurisdiction, and if so, are these plants allowed to (or obliged to) sell power back to the grid?

There are certain power plants that do not fall into the general definition of merchant power plants but which produce electricity that is sold to CEB and supplied to the national grid.

Morocco

(i) Is there a standard form of power purchase agreement?

There is no national standard power purchase agreement. A number of IPP projects have been concluded, however, and the form of the PPA has become familiar and followed in these projects.

(ii) Independent Power Projects: are there any IPPs in existence?

Please see “Legal and Regulatory Framework” section.

(iii) Merchant power: are there merchant power plants and if so, are they allowed to (or obliged to) sell power back to the grid?

Merchant power plants have not yet been developed in Morocco. All capacity/energy is sold pursuant to a long-term PPA.

Mozambique

(i) Power purchase agreement: is there a standard form of power purchase agreement used in the jurisdiction?

No, there is not a standard form of Power Purchase Agreement (“PPA”). Thus, the parties may freely negotiate same and include the provisions same deem relevant. Although, certain provisions are mandatory to be included in the agreements entered into between the parties including, but not limited to, (i) tariffs, (ii) payments and invoice procedures, and (iii) anti-corruption provisions.

(ii) Merchant power: are there merchant power plants in the jurisdiction, and if so, are these plants allowed to (or obliged to) sell power back to the grid?

There are no merchant power plants in Mozambique yet.

The law does not prevent the existence and/or the operation of merchant power plants in Mozambique. Nevertheless, there is not a specific regime applicable to merchant power plants, thus the Electricity Law shall apply. In fact, the difference between merchant power plants and regular power plants is not based on legal grounds but rather on the relevant commercial strategy and practice. Therefore, such distinction shall be assessed based on relevant provisions governing the commercial relationship between the parties to the PPAs. This said, whether or not merchant power plants are allowed (or obliged to) sell power back to the grid shall be defined therein and/or in the relevant Concession Contract entered into with the relevant authority.

Niger

(i) Power purchase agreement: is there a standard form of power purchase agreement used in the jurisdiction?

By the Convention of concession, the power project provides directly power to the consumers under the conditions at the Chapter VIII of the Decree n°2004-266/PRN/MM/E dated on 14th of September 2004 (see above). The standard form of a purchase agreement is called “police d’abonnement”. 

(ii) Independent Power Projects: are there any IPPs in existence?

Please see “Legal and Regulatory Framework” section.

(iii) Merchant power: are there merchant power plants in the jurisdiction, and if so, are these plants allowed to (or obliged to) sell power back to the grid?

There are power plants owned by private entities in the Niger. They are allowed to sell power back to the grid.

Nigeria

(i) Is there a standard form of power purchase agreement?

The NERC has a standard Power Purchase Agreement ("PPA") which was agreed between the PHCN, NERC, and some of the independent power producers. The standard PPA however is a model which may be adapted by the parties to each power purchase transaction.

(ii) Independent Power Projects: are there any IPPs in existence?

Please see “Legal and Regulatory Framework” section.

(iii) Merchant power: are there merchant power plants and if so, are they allowed to (or obliged to) sell power back to the grid?

There are no merchant power plants in Nigeria presently. A merchant plant (not being a captive plant) would need to sell such power to the PHCN as it is currently the only transmission entity operating the national grid.

South Africa

(i) Is there a standard form of power purchase agreement?

At present, there is not a standard form PPA in respect of base load projects. However, NERSA has stated that it intends to issue a standard form PPA for such projects. NERSA has issued a draft standard form PPA for renewable projects.

(ii) Independent Power Projects: are there any IPPs in existence?

Please see “Legal and Regulatory Framework” section.

(iii) Merchant power: are there merchant power plants and if so, are they allowed to (or obliged to) sell power back to the grid?

South Africa has a single buyer at national level and there is no merchant power market. At present, Eskom is the single buyer at a national level. On the basis of the ERA Regulations, it appears that a single buyer's office will be established but it is not yet clear whether this office will remain within Eskom or will be independent of Eskom.

Municipalities have the right to enter into PPAs and procure the provision of power capacity directly to themselves. However, the financial standing and creditworthiness of each municipality should be investigated on an individual basis, especially in light of the provisions of Chapter 13 of the MFMA. Furthermore, their ability to enter into long term financial commitments need to be carefully considered in respect of each transaction, pursuant to the provisions of the MFMA.

Tanzania

(i) Is there a standard form of power purchase agreement?

There is not a standard form of PPA used in Tanzania, except if the project is for less that 10 MW in which case EWURA has approved a form of Standardised PPA which TANESCO must use. Otherwise the form of PPA signed by TANESCO in respect of Songas IPP and IPTL IPP will likely form a basis for negotiation in respect of any other IPP in the country.

(ii) Independent Power Projects: are there any IPPs in existence?

Please see “Legal and Regulatory Framework” section.

(iii) Merchant power: are there merchant power plants and if so, are they allowed to (or obliged to) sell power back to the grid?

There are no merchant power plants in Tanzania. All capacity/energy is sold to TANESCO pursuant to a long-term PPA.

Uganda

(i) Is there a standard form of power purchase agreement?

There is no standard form PPA used in Uganda though certain templates have however evolved over time due to IPPs such as Bujagali. Members of Trinity and Shonubi Musoke have been involved in the development of such a form of PPA over a number of years.

(ii) Independent Power Projects: are there any IPPs in existence?

Please see “Legal and Regulatory Framework” section.

(iii) Merchant power: are there merchant power plants and if so, are they allowed to (or obliged to) sell power back to the grid?

At present there are no Merchant Power Plants operational in Uganda. All capacity/energy is sold to UETC pursuant to a long-term PPA.

Zambia

(i) Is there a standard form of power purchase agreement?

No.

(ii) Independent Power Projects: are there any IPPs in existence?

Please see “Legal and Regulatory Framework” section.

(iii) Merchant power: are there merchant power plants and if so, are they allowed to (or obliged to) sell power back to the grid?

There are no merchant power plants to any significant size although Copperbelt Energy Corporation ("CEC") generates power itself for its own mining customers. Otherwise all capacity/energy is sold to ZESCO.

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