To address issues in the power industry across West Africa, regulators, operators, and government representatives are advocating for blended finance modules. They have also suggested initiatives including capacity building, public awareness and engagement, strengthening regional institutions, investing in infrastructure, gradual market liberalization, policy alignment and coordination, and supporting business expansion in the region.
These proposals were made at the ninth Regional Electricity Regulatory Authority (ERERA) summit of the Economic Community of West African States (ECOWAS) held in Accra, Ghana. Mr. Kocou Laurent Rodrigue Tossou, Chairman of ERERA, stated, “By implementing these recommendations, ECOWAS member states can improve access to affordable and reliable electricity, facilitate energy trade, and foster economic growth.” He called for the creation of financial tools and incentives to attract capital to the electrical industry, including exploring blended finance options that combine public and private sector resources.
Mr. Tossou also urged ECOWAS member states to harmonize their national power policies with regional frameworks by establishing uniform regulatory standards and procedures to promote cross-border energy trade. He emphasized the importance of enhancing ERERA’s and the Regional System Market Operator’s ability to monitor and manage power trade activities, enforce compliance, and resolve disputes.
The ERERA Chairman expressed optimism that the region’s newly created regulatory framework would be implemented to improve access to affordable electricity for all customers. Mr. Emmanuel Mannah, Director General of the Sierra Leone Electricity and Water Regulation Commission, highlighted that high charges in the area are often due to unscientific pricing methods. He explained that ERERA is working to ensure national regulators adopt a more scientific and analytical approach to pricing, which would lower costs by improving efficiency through precise data processing.
Dr. Ishmael Ackah, Executive Secretary of the Public Utilities Regulatory Commission (PURC), emphasized the importance of private investment in addressing the sector’s challenges, as governments alone cannot solve all the problems. He noted that regulators play a critical role in balancing the interests of producers, consumers, and externalities, such as environmental impacts, to ensure investors receive a positive return on their investment. Dr. Ackah added, “What regulators should not do is micromanage; instead, they should set the standards and rules. ERERA aims to accomplish that.”
