The establishment of necessary technical, strategic, and financial backing to speed up the implementation of the Continental Power System Master Plan (CMP) at the centre of technical discussions during the 2nd Dakar Financing Summit for Africa’s Infrastructure Development (DFS-2)  

A side-event under the theme “Structuring sustainable solutions for financing Africa’s energy security and resilience: Africa Single Energy Market (AfSEM) and Continental Power System Master Plan (CMP)” was held on the margins of the DFS-2. The CMP, a blueprint for the Africa Single Electricity Market (AfSEM), is tasked with identifying key priority generation and transmission projects crucial for the realisation of the AfSEM. It is envisaged that the AfSEM and CMP will contribute towards achieving some of the key aspirations of Agenda 2063 and actualising the AU’s Pan-African vision to create an integrated world-class infrastructure crisscrossing the continent for facilitating technology development, integration and intra-African trade.

The side event brought together representatives from AUC, AUDA-NEPAD, AfDB, European Union, Southern Africa Power Pool (SAPP), USAID, Power Africa, Association of Power Utilities of Africa (APUA), COMESA, Kenya Energy ministry and UNECA to discuss financing mechanisms available for the AfSEM and CMP development, implementation and operationalisation and explore opportunities for investment in energy infrastructure projects identified within the CMP and PIDA PAP2.

In his opening remarks, speaking on behalf of Dr Kamugisha Kazaura, AUC Director of Infrastructure and Energy, Mr Joseph Mwangi indicated the importance of the AfSEM for the integration of Africa. Dr Towela Nyirenda-Jere, representing the Director for AUDA-NEPAD Programme Delivery and Coordination Division, Mr Amine Idriss Adoum, said that the CMP will identify all the key priority generation and transmission projects which are crucial for the realisation of the AfSEM and that the AfSEM and CMP will be synchronised to achieve the common continental goals stipulated in the AU Agenda 2063.

A panel discussion held during the session unpacked critical areas which are instrumental in the success of the CMP, namely the financing of power infrastructure to achieve the goal of a prosperous Africa based on inclusive growth and sustainable development, financing the preparation of priority projects, and capacity building in partner institutions while transitioning to the next phase of AfSEM and CMP implementation.

The panelists highlighted that DFIs and public funding would not be sufficient to meet Africa’s vast electricity infrastructure needs, which calls for innovative ways of attracting financing. In this regard, some of the ideas floated included looking at funding projects from a regional perspective instead of a country perspective,package transmission projects to be hand in hand with generation projects and introducing the concept of Independent Power Transmitters (IPTs) instead of only focusing on Independent Power Producers (IPPs). The CMP could also be positioned as an attractive choice for Climate Finance, and the challenges faced with implementing PIDA PAP 1 projects could serve as lessons for the CMP and AfSEM.

The panelists reiterated the pertinent themes of effective project planning, preparation and communication. Planning and capacity-building activities at the continental, regional and country levels should be coordinated to avoid duplication and sending mixed messages to the market. The focus of project preparation should not be only to mature projects for DFI and grants but also to attract private sector participation. Regional project benefits need to be communicated well at the country level because national systems are presently the backbone of the acceptability of such projects. In such communications, universal electricity access should be viewed as an enabler of domestic consumption and industrialisation.

The recommendations from the panel discussion will form the basis for designing the next phase of the Continental Master Plan. The AfSEM and CMP will be synchronised to achieve the common continental goals outlined in Africa’s Agenda 2063 vision.