2024-08-25 09:45:10
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In the Republic of Guinea, the issue of the purchase price of electricity is at the heart of economic debates. The country, although abundant in natural resources, is forced to buy electricity from various companies, before reselling it at a loss to the population, a situation that weighs heavily on public finances.
Electricity Suppliers and their Tariffs:
The Guinean government obtains its electricity from several sources, each with different costs. The main suppliers include:
Tèpower: This company, located in Tannerie in the commune of Matoto, sells the kilowatt hour to the government at a price of 2,900 Guinean francs. This high cost reflects the significant investments needed to maintain electricity production in this area.
Souapiti Management Company (SOGES): With one of Guinea’s most ambitious hydroelectric projects, the government is buying kilowatt-hours at 1,200 Guinean francs. Souapiti represents a more economical alternative, although infrastructure challenges remain.
Sénélec: Thanks to the interconnection with Senegal, Guinea buys electricity from the company Sénélec for 1,900 Guinean francs per kilowatt hour. This interconnection is crucial for the stabilization of the Guinean network, but remains more expensive than internal solutions.
Le Bateau Turc: This mobile supplier, which arrived in Conakry on August 15, 2024, is negotiating the kilowatt hour at 1,700 Guinean francs, a more favorable price compared to the 2,900 Guinean francs practiced under the presidency of Alpha Condé.
Selling at a Loss: A Risky Subsidy Strategy
Despite these high purchase prices, electricity is resold to the population at a subsidized rate of 800 Guinean francs per kilowatt hour, on the recommendations of the government. This subsidy policy aims to make electricity accessible to the population, but generates a significant financial loss for the State.
With 675,000 customers declared by Electricité de Guinée (EDG) for the greater Conakry area, the difference between the purchase cost and the sale price is entirely covered by the government. This situation highlights the need for deep reforms in the energy sector.
Current reforms: Towards a Modernization of the Energy Sector
Faced with the growing insolvency of households and public institutions, not forgetting industrialists, the President of the Transition, General Mamadi Doumbouya, has given strict directives for the installation of prepaid meters, starting with the ministerial departments, now all equipped. This first step will be followed by the installation of meters in households, with the aim of an in-depth reform of the EDG.
The Turkish ship, with a capacity of 114 megawatts, is expected to be connected to the EDG interconnected network by August 25, 2024. This connection will increase the country’s energy supply, thus reducing pressure on other sources of supply.
Finally, the Ministry of Energy has one year to install solar power plants in the capitals of the country’s natural regions. This initiative aims to prevent a new energy crisis similar to that of the dry season of 2024.
Conclusion: A Major Challenge for the Guinean Government
Minister of Energy, Hydraulics and Hydrocarbons Aboubacar Camara and his cabinet are facing a colossal challenge: transforming Guinea’s energy sector into a sustainable and economically viable model. Managing purchasing costs and implementing necessary reforms will determine Guinea’s energy future, a crucial issue for the country’s socio-economic development.
Abou of Kindia