The Nigerian power sector operates well below its estimated capacity, with power outages being a frequent occurrence. According to Power Holding Company of Nigeria (PHCN), the countrys peak electric demand in February 2006 was 7,600 megawatts (MW), but actual generation capability was 3,600 MW. The discrepancy between electricity demand and actual generation is mostly due to low water levels and inadequate plant maintenance. During 2005, electricity generation capacity fluctuated between 2,600 MW and 3,600 MW. The hydropower stations Kainji, Jebba, and Shiroro have seen generation affected by insufficient water, and the Lagos Egbin, Delta, and Port Harcourt Afam plants are also operating at below capacity due to poor maintenance. Only 40 percent of Nigerians have access to electricity, the majority of whom are concentrated in urban areas. Despite endemic blackouts, customers are billed for services rendered, partially explaining Nigerias widespread vandalism, power theft and PHCNs problems with payment collection. Nigerias Bureau of Public Enterprises (BPE) hopes to see increased stability in Nigerias electricity sector once the definite privatization of PHCN takes place.

Hydroelectricity is the primary source of Ghanas power. Ghanas current hydroelectric capacity of 1.2 GW is located at Akosombo (912 MW) and Kpong (160 MW). In 2005, the turbines of the Akosombo generation station underwent retrofitting to increase its installed capacity by about 108 MW. The Ghanaian government is considering additional hydroelectric projects to be built on a Build Operate Transfer (BOT) financing scheme. One of these proposed projects is the $700-million, Bui hydroelectric project, which would be located on the Black Volta and have a generation capacity of 400 MW. In addition to increasing the domestic electricity supply, power generated from Bui could be exported to Burkina Faso, Mali and CÔte dIvoire. An investment decision on the Bui hydroelectric project is to be made by the end of 2006, and a maximum of five years would be needed to complete the project. Additional hydroelectric projects include the Hemang and Juale hydroelectric power dams (operational by 2015) and the Pwalugu hydroelectric power dam (operational by 2020). The generation capacity of Hemang, Juale and Pwalugu would be developed to 93 MW, 87 MW, and 48 MW respectively. In addition to increasing hydroelectric output, Ghana plans to increase and expand thermal generating capacity. Current thermal facilities are located at Tema and Takoradi. Additional capacity is planned at Tano (gas-fired barges) and at Tema. Volta River Authority (VRA) and GNPC have constructed transmission lines and substations at Essiama and Elubo in the Western Region to feed the power generated at Tano into the national grid. The WAGP, which will transport natural gas from Nigeria to the Takoradi power plant in Ghana, is expected to deliver the first natural gas in December 2006. The transmission pipeline will provide Ghana (in addition to Benin and Togo) with a reliable energy infrastructure and competitively priced natural gas. In March 2006, the minister for energy of Ghana announced that the International Finance Corporation (IFC) of the World Bank Group had given approval for negotiations on financing the expansion of the Aboadze thermal power plant at Takoradi. The cost of the expansion project is estimated at $215 million. The upgrade would convert the plant from burning crude oil to natural gas, which it would receive from Nigeria through the WAGP. CMS Energy, a US-based company, has a 90 percent stake in the Takoradi facility, and the VRA holds the remaining 10 percent. The Electric Company of Ghana (ECG) is responsible for electricity distribution to the Ashanti, Western, Central, Eastern, Greater Accra and Volta regions. VRA is responsible for generation and for the distribution of electricity in the Brong Ahafo, Northern, Upper East and Upper West regions. When the WAGP is completed, VRA plans to convert oil-fired facilities at Takoradi and Tema to natural gas.

Due to the fuel shortages, massive blackouts have recently affected Senegals capital, Dakar. In April 2006, Moroccos Samir oil refinery agreed to ship fuel to Senegals power company, the Societe Nationale dElectricite (SENELEC) in order to return electricity generation to normal in the country. Samir has also agreed to help construct fuel storage facilities and to examine the possibility of building a new oil terminal in Senegal. In June 2005, the African Development Bank (ADB) approved a $10 million loan to finance the development of the Kounoune thermal power project. The project consists of three components: construction and operation of a 67.5 MW heavy diesel-fuel plant based on a Build-Own-Operate contrac, the construction of a fuel supply pipeline (heavy fuel) connecting the plant to the fuel source, and a substation linking the plant to the SENELEC power grid. Senegal and the ADB hope the project will help meet the countys growing demand for electricity.

Liberia plans to rebuild electricity generation and distribution infrastructure that was damaged or destroyed during the civil war. The first electrification goal is at the minimum to bring electricity to central Monrovia by July 26, 2006. President Johnson-Sirleaf also has long-term plans to privatize the Liberia Electricity Corporation (LEC) to facilitate in making it more functional and serviceable for Liberians. In June 2005, the government of Sierra Leone, with the support of the World Bank, ADB and Italy decided to undertake the completion of the Bumbuna hydroelectric project. The project had been nearly complete (85 percent) when civil war disrupted the construction in 1997. The Bumbuna project includes construction of a dam, water intake structures, spillways, and two 25 MW turbo-generators. To date, only the power house has yet to be constructed, and completion of the project is expected in 2008. The total project cost is estimated to be $53.8 million. Guinea is the source of several major West African rivers (including the Gambia and Niger Rivers) and has a hydroelectric potential (technically feasible) estimated at 19,400 Gigawatthours per year (Gwh/yr). Only about 1 percent of Guineas technically feasible potential has so far been developed. The 75-MW Garafiri hydroelectric facility, on the Konkoure River, was commissioned in 1999; and an 80-MW project is planned 60 miles downstream at Kaleta. A 975 MW dam in Souapiti Kaleta has also been proposed, but the displacement of 50,000 inhabitants in the area has deterred international organizations from financing the project. In Niger, the Islamic Development Bank (IDB) has taken the lead for funding the construction of the Kandadji hydroelectric project. To date, 80 percent of the funding is available. In 2005, Moroccan engineering and design firm Conseil, Ingenierie et Developpement won the $550,000 technical studies contract for the Kandadji dam. Kandadji, first conceived in the mid-1970s, will be located on the Niger River approximately 120 miles upstream of Niamey. The 165-MW facility (originally proposed to be 230 MW) is expected to cost $270 million.