HOME ABOUT NARUC OUR PROGRAMS COMMITTEES EVENTS RESOLUTIONS INDEX MYNARUC CAREER CENTER Go! INTERNATIONAL About NARUC International Where We Work What We Do News Regulators in Southern Africa Make Progress Towards Promoting Cross-Border Electricity Trade New Cost of Service Study Manual Developed to Help Ethiopian Energy Sector Stakeholders Design Cost-Based Electricity Rates and Expand Electricity Access Tanzanian Utility Regulator Spearheads Stakeholder Agreement to Strengthen Natural Gas Pipeline Safety Tariff Toolkit: Primer on the Impact and Treatment of Grants, Donor Assistance, and Concessional Financing Guidelines for Advancing Economic and Quality of Service Regulation in Africa's Electricity Sector Infographic: Supporting Gender Equity in the Energy Sector Ethiopian Regulator Approves Groundbreaking Mini-Grid Directive, Improves Licensing Process, Paving the Way for Increased Electrification NARUC's Asia Gas Partnership from 9,000 Miles Away Senegalese Regulators Make Progress towards Diversifying the Energy Market and Creating a Healthy Investment Climate Tariff Toolkit - Depreciation Expense: A Primer for Utility Regulators Tariff Toolkit: Primer on Primary Drivers of Electricity Tariffs for Utility Regulators Energy Regulation in Europe and Eurasia is Critical to Achieving Renewable Energy and Energy Security Goals Revised Data Collection Templates and Common Set of Metrics and Method(s) for Establishing Performance Benchmarks Energy Regulators from Armenia and North Macedonia Make Progress in Cyber Preparedness Tanzanian Regulators Make Strides in Unlocking Energy Sector Potential through Safe Expansion of Natural Gas Utilization Tariff Toolkit: Primer on Rate Design for Cost-Reflective Tariffs New USAID & NARUC "Advancing Women Leaders in Energy" Project to Promote Gender Equity within Energy Regulatory Agencies in Europe and Eurasia Zambian Regulators Demonstrate Ongoing Commitment to Gender Equity in the Energy Sector by Hosting NARUC Women in Energy Regulation Internship Program Central Asian Countries Map Next Steps in Energy Sector Development through Participation in Regional Regulatory Partnership A Regulator's Guide to the Use of Production Simulation Tools for Market Analysis A Regulator's Guide to the Use of Load Flow Study Tools for Transmission Planning Albania Establishes First-Ever Cybersecurity Regulation for the Electricity Sector Infographic: Developing Natural Gas Infrastructure and Markets Understanding Cybersecurity Maturity Models within the Context of Energy Regulation How Much Does Cybersecurity Really Cost? Roadmap for the Development of Downstream Natural Gas Markets Infographic: Modernized Grids Can Increase Security Risks Ugandan Regulators Draft Isolated Grid System Regulation to Achieve Rural Electrification Goals Ethiopian Regulator Drives Investment in the Energy Sector through Improved Financial Reporting NARUC International: Publications, Partnerships, and Events (July 2020) Infographic: Markets Promote Energy Independence by Increasing Transparency and Investment Exploring Africa's Mini-Grid Tariff Methodologies International Cooperation through Papua New Guinea Electrification Partnership (PEP) Assists Regulators in Meeting Ambitious Energy Targets Kenyan Regulators Advance Open Access Market Framework and Rule to Expand Electricity Access and Promote Regional Power Trade The Impact of the NARUC Women in Energy Regulation Internship Program on Current and Former Interns Women in Energy Regulation Internship Program Works to Advance Gender Equity in Africa Evaluating the Prudency of Cybersecurity Investments: Guidelines for Energy Regulators A Cost of Capital and Capital Markets Primer for Utility Regulators The Utility Regulator's Role in Promoting Cybersecurity: Resilience, Risk Assessment, and Standards Regulatory Accounting: A Primer for Utility Regulators Promoting Transparency and Public Participation in Energy Regulation: A Communications Primer for Utility Regulators Zambian Regulators Advance Framework to Support Off-Grid Electricity Development In a Regional First, Bosnia Launches Electricity Price Comparison Tool The Indispensable Role of Energy Regulators in Protecting the Electric Grid Through USAID-supported Cybersecurity Project, U.S. and Eastern European Energy Regulators Develop Model for Regulatory Cybersecurity Strategies Worldwide The Regulatory Cybersecurity Strategy: a Key Building Block for an Energy Sector's Cybersecurity Policy Framework Nigerian Regulators Advance Key Accounting Tool to Support Electricity Sector Improvement Gender Internship Cultivates Interest in Effective Utilization of Energy How Strong Regulatory Frameworks Support Development The Practical Guide to Women in Energy Regulation Tanzania Advances Natural Gas Pipeline Safety Rules Following USAID, NARUC Support Regulators, System Operators Collaborate on Steps to Increase Reliability and Promote Investment in Black Sea Region Intern in Tanzania Gains Skills in Natural Gas Monitoring Tanzanian Officials Agree on Key Plan to Improve Energy System Through Time-of-Use Rates Georgian Regulator Reflects on Growth, Relationship with USAID and NARUC USAID Supports Intern at Kenyan Energy Regulator to Learn 'Soft Skills' and Reach Career Goals Internship at Kenyan Electricity Regulator Sets Young Woman on Path to Career Success Nigerian Regulator Advances Electricity Reliability and Market Reform through Eligible Customer Rule Ukrainian Regulator's Website Honored for Transparency, Consumer Friendliness Southeast Europe Regulators Take Important Step Toward Retail Electricity Choice Sri Lankan Regulator Takes Significant Step Toward Renewable Energy A Decade of Progress in Europe and Eurasia Sri Lankan Regulator Improves Long-Term Generation Planning Tanzanian Regulator Advances Key Pipeline Safety Rules Ukrainian Regulator Improves Customer Service Through Call Center Kenyan Regulator Honored For Work to Improve Energy Efficiency Bosnia and Herzegovina Gives Consumers More Electricity Choice Black Sea Regulators on Path to Effective Cybersecurity Strategies Rwandan Regulator Improves PPA Review, Stakeholder Engagement East African Regulators Finalize Key Regulatory Accounting Tools Kosovar Regulator Strengthens Transparency and Accountability Black Sea Energy Regulators Tackle Cybersecurity Challenges Ugandans Draw Lessons on Regulatory Accounting from South African Regulator Georgian Regulator Boosts Security and Clean Energy Opportunities Moldova Spurs Efforts to Improve Sustainability and Energy Security Rwandan Regulator Aims to Improve Power Purchase Agreements In-Depth Trainings Offer Critical Skills and Capacity to Regulators NARUC Supports Safer, More Reliable Gas Transmission in Tanzania Arizona Regulators Featured in Article about NARUC-USAID Work Cambodian Regulator Eyes Improved Service through Data Collection Cambodian Regulator Seeks Higher Quality Service for Consumers U.S., Mexican Regulators Collaborate Remotely to Support Reform Mexican Regulators Build Certificate System To Support Clean Energy Mexican Grid Code Reflects Vision of Stronger, More Reliable System Southeast Asian Regulators Work to Advance Energy Security Ethiopians Work To Lay Groundwork For Sound Electricity System New Regulations Help Tanzanian Power Plant Fire Up East African Regulators Move Forward On Cross-Border Trade Black Sea Regulators Agree to Promote Energy Efficiency NARUC Brings Nigerians Together On Cost-Reflective Tariffs Collaboration Guides Mexican Energy Officials on Path to Reform Virtual Events Get Involved Resource Library Contact Us Tag Cloud Accounting Billing Black Sea Bosnia and Herzegovina Cambodia Clean Energy Communications Competition Consumers Cost of Service Study Cost-Reflective Tariff Cross-Border Trade Customer Service Cybersecurity Data Collection Demand-Side Management East Africa Energy Efficiency Energy Security ERRA Ethiopia Eurasia Europe Europe and Eurasia Gender Gender Internships Georgia Grid Growth Investment Job Shadow Kenya Kosovo Markets Mexico Moldova Natural Gas Nigeria Pipelines Planning Power Africa PPA Public Outreach Regional Cooperation Regulatory Reform Reliability Renewable Energy Retail Choice Revenue Rwanda Service Quality South Africa Southeast Asia Southeast Europe Sri Lanka Stakeholder Outreach State Department Sustainability Tanzania Tariff Reform Training Transmission Transparency Uganda Ukraine Uniform System of Accounts USAID USEA Utility Rate School Volunteers Women in Energy Senegalese Regulators Make Progress towards Diversifying the Energy Market and Creating a Healthy Investment Climate May 2021 – With support from the United States Agency for International Development (USAID) and Power Africa, the National Association of Regulatory Utility Commissioners (NARUC) engages in a regulatory energy partnership with Senegal’s Commission de Régulation du Secteur de l’Electricité (CRSE) as a means of strengthening its technical capabilities to regulate electricity and facilitate information sharing, consensus-building, and collaboration between energy sector stakeholders. Under the partnership, NARUC has provided technical assistance to the CRSE to support its efforts to employ more diverse power generation sources and meet ambitious energy sector goals. As a result of this support, the CRSE is working to increase Senegal’s generation capacity by gaining the knowledge needed to further integrate natural gas into the energy mix. Additionally, the CRSE is taking steps to create an enabling environment for investment in the power sector through enhancing transparency and efficiency within the power procurement process. Working to Meet Goals Set by Plan Sénégal Emergent Energy sector development is a key component of the Plan Sénégal Emergent (PSE), a national plan established to achieve structural transformation of the economy and reach middle-income status by 2035.[1] Alongside goals related to sectors such as health and infrastructure, some of the plan’s key energy objectives include lowering generation costs by reducing dependence on imported fuels and increasing access to electricity.[2] However, much remains to be done. Currently, electricity is generated primarily by fuel imports, and while electricity access has reached 90% in urban areas it is still limited to roughly 44% in rural areas.[3] Moreover, Senegal has high electricity prices that are set at approximately 30% to 40% below cost recovery[4] as well as one of the highest production costs in sub-Saharan Africa – about $0.30 a kilowatt-hour (kWh). To enact successful reforms and ensure affordable and consistent access to energy throughout the nation, accelerating access to diverse generation sources is crucial. Senegal is rich in natural resources. According to the World Bank, by 2025, its installed capacity should include a minimum of 22% renewable energy resources (including solar, wind and hydroelectric power), 64% gas, and 8% coal.[5] In order to use these resources as a means of furthering economic and social development, the Government of Senegal adopted a “Gas to power” strategy in 2018. This strategy defines the areas of intervention for the development of electricity production from natural gas, and provides a legal, regulatory, and institutional framework for the midstream and downstream gas sector. In response, NARUC is sharing international best practices to ensure the smooth implementation and integration of natural gas into the energy portfolio. Recently, NARUC recruited four French-speaking regulatory experts from both Canada and France to engage with CRSE staff, Senelec,[6] and the Ministry of Petroleum and Energy on pipeline and regulatory developments. As a result, the CRSE learned about key regulatory frameworks and tools such as collecting accurate and precise data, developing safety protocols, and tariff setting. Achieving a More Transparent Power Procurement Process The CRSE is also making great strides in attracting private investment and increasing energy affordability by adopting measures to structure the power procurement process in a more transparent manner. Through exchanging best practices with NARUC experts on competitive bidding processes and procedures, the CRSE has gained clarity on the roles and responsibilities of each stakeholder, resulting in increased collaboration and efficiency throughout the procurement process. In the late 1990s, Senegal became one of the first countries in Sub-Saharan Africa to introduce private sector participation in the electricity industry[7] through independent power producers (IPPs). An IPP is a non-public utility company that invests in or owns power generation facilities,[8] and operates through power purchase agreements (PPAs) with a buyer, which is usually a state-owned electricity utility. In order to secure a PPA, IPPs must participate in a procurement process, which is frequently done through the use of competitive bids. A key benefit of competitive bids is that they force all potential electricity suppliers to publicly and transparently bid against one another, thereby lowering energy prices and giving investors assurance that energy projects will be awarded using fair contracting practices.[9] The CRSE is mandated to facilitate the procurement process in Senegal. However, due to their limited experience in this capacity, Senelec currently manages the process and is the single buyer for IPPs. This has produced some miscommunication, as Senelec primarily negotiates with MEDER and the CRSE only has an observer role in the tender process. As a result, it is not always involved in the discussions, strategic planning, and/or overall coordination. Since coherent and consistent procurement policies require that all stakeholders involved in the decision-making and oversight of the procurement process share aligned objectives, this breakdown in communication has resulted in significant delays in project development and a lack of diversity in supply. In order to shorten the procurement timeline and achieve greater transparency, the CRSE has leveraged NARUC assistance to boost its capacity to review and analyze both PPAs and competitive bids. Through gaining a deeper understanding of these processes, the CRSE will be better equipped to work collaboratively with other stakeholders to ensure that all contractual conditions are in line with energy sector goals, add megawatts to the grid, increase the likelihood of success for future projects, and provide greater confidence to investors through creating an enabling environment for private sector investment in generation projects. To access a French translation of this story, click here. This story is made possible by the generous support of the American people through the United States Agency for International Development (USAID). The contents are the responsibility of NARUC and do not necessarily reflect the views of USAID or the United States Government. Photo Credit: © JEGAS RA / Adobe Stock [1] “Senegal Energy Outlook.” IEA. https://www.iea.org/articles/senegal-energy-outlook [2] “Senegal Power Africa Fact Sheet.” USAID. https://www.usaid.gov/powerafrica/senegal [3] Idem. [4] “Making Senegal a Hub for West Africa.” International Monetary Fund. https://www.imf.org/external/pubs/ft/dp/2015/afr1501.pdf [5] “Project to Promote a Shift towards Lower Carbon Power Generation in Senegal (P169744).” The World Bank. http://documents1.worldbank.org/curated/en/581421558458547633/pdf/Concept-Project-Information-Document-PID-Project-to-Promote-a-Shift-towards-Lower-Carbon-Power-Generation-in-Senegal-P169744.pdf [6] Senelec is the national electricity company of Senegal. [7] “Energy sector analysis Senegal: Petroleum & gas.” Netherlands Enterprise Agency. https://www.rvo.nl/sites/default/files/2017/09/Report-Energy-sector-Senegal.pdf [8] “IPP.” 2b1st Consulting. https://2b1stconsulting.com/ipp/ [9] “Competitive Energy Procurement.” USAID. https://www.usaid.gov/energy/procurement/auctions ABOUT NARUC NARUC History and Background NARUC Staff Regulatory Commissions NARUC Services to Members Submit a Calendar Item Past NARUC Presidents Update your NARUC member profile Employment Opportunities Board of Directors Executive Committee NEWS LinkedIn Press Releases YouTube OUR PROGRAMS Overview Policy and Advocacy Center for Partnerships & Innovation NARUC International Meetings and Events NRRI Federal Government Collaboratives National Telephone Discount Lifeline Awareness Week Resources POLICY AND ADVOCACY About Policy & Advocacy Resolutions Congressional Advocacy Agency/Administration Advocacy Policy Team COMMITTEES Committees Overview Executive Committee Committee on Water Committee on Telecommunications Committee on International Relations Committee on Gas Committee on Energy Resources and the Environment Committee on Electricity Committee on Critical Infrastructure Committee on Consumers and the Public Interest MEETINGS AND EVENTS Meetings Overview NARUC Future Meetings and Events Rate School Annual Meeting Summer Policy Summit Winter Policy Summit Regionals NARUC-Endorsed Meetings NARUC Past Meetings Event Calendar 2021 Copyright National Association of Regulatory Utility Commissioners 1101 Vermont Avenue, NW, Suite 200, Washington, D.C. 20005 | Phone: 202.898.2200 | Fax: 202.898.2213 Privacy Policy