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Cameroon

( Last update: August 2006 )

Electricity Market
Sector structure
Upstream The country's two main hydro stations, Edea and Song-Loulou, are located on the Sananga River, while the smaller Lagdo station is located near Garoua.

Successful development of Cameroon's estimated 500,000 MW of hydroelectric potential could make the country a net electricity exporter in the future.

Presently, however, Cameroon 's heavy reliance on hydropower leaves – representing approx. the 77% of production in 2005 - its electricity sector extremely vulnerable to droughts. Cameroon relies on approximately 30 aging diesel power stations as back-up facilities, the largest of which are located in Garoua (20.0 MW), Douala (15.4 MW), and Yaounde (10.8 MW). These stations accounted for the 23% of power production in 2005.

AES-SONEL has managed generation and distribution of Cameroon's electricity unitl 2001, when US-based AES Corporation purchased a majority stake in the state-run Société Nationale d'Electricité de Cameroun (SONEL).

AES-SONEL is the sole generation company.
Networks AES-SONEL owns and operates the sole transmission system (over 1,800 Km of high coltage and 12,000 km medium voltage.

AES-SONEL is the sole distribution system. It owns and operates three distinct system: Southern Interconnected Grid (SIG) includes Douala and Yaoundé; Northern Interconnected Grid (NIG) – three northern provinces served by Lagdo hydroelectric plant and 14 MW thermal generation, and Remote network – 86 Small Thermal Units (24MW) support 31 small distribution systems.
Downstream The market is not liberalised.

Five large users and 1,200 medium voltage customers.

In October 2003, AES-SONEL and the government adopted a new electricity tariff structure to reduce electricity costs for residential customers.
Gas Market
Sector structure No gas sector. Despite some proven reserves (reserves (110 bcm), 62 bcm of which are concentrated in five fields (Sanaga Sud, Matanda, Isongo, Kita and Logbaba) current use of natural gas is limited to in-field electricity generation, gas-lift operations, and field re-injection to assist production. These five fields could supply electricity to Cameroon for 400 years (based on a 100 MW plant consumption at 50% LF).
Current issues Cameroon is a member of the Energy Pool of Africa, which aspires to eventually connect the electricity grids of all members of the Central Africa Economic Community (CEEAC).

AES-SONEL and Électricité de France (EDF) have conducted studies concerning a Chad-Cameroon interconnector project in the near future.

On going electricity sector reform. The way is open for independent power producers (IPPs) and other energy investors, to enter Cameroon’s natural gas sector and help secure her energy needs for the rest of the century.

On going electricity infrastructure development programme (133MW in thermal capacity since privatisation and $500MM investment planned over next five years).

Reducing hydrology risk as thermal costs adjust tariffs during bad hydrology years.

Improving standard of service to meet the customer and country needs.
Sources IERN staff on publicly available information.