Benin
With a cumulative score of 1.56, Benin ranks number 41 among emerging markets and number 70 in the global ranking.
- Emerging markets
- Middle East & Africa
1.97 / 5
Power score
0.62 / 5
Transport score
Buildings score
Only 56 markets (28 emerging markets) are scored on the Buildings sector. See the full list on the methodology page.
Low-carbon strategy
Net-zero goal and strategy
Benin does not have a net zero goal or strategy.
Nationally Determined Contributions (NDC)
Benin has a “business as usual” based Nationally Determined Contribution (NDC) as its official plan to cut emissions under the Paris Agreement. It aims to decrease emissions 20.15% by 2030 from the base year of 2018. The targeted sectors are energy, agriculture, waste and industrial processes. Benin is one of the only developing markets to submit a long-term strategy for the Paris Agreement. In its long-term strategy, Benin commits to sustainable development.
Fossil fuel phase-out policy
Benin does not have a fossil fuel phase-out plan.
Power
Power policy
The 2020 Energy Law clarified many rules in Benin, such as for interconnection, energy access and grid expansion. Benin aims to reach 95% energy access in urban zones and 65% in rural zones by 2025. There are clear rules for developing mini-grids. All projects under 500kW require an authorization, while larger projects need a concession. There is a clear way to secure concessions for larger mini-grid projects. There is also a process to integrate off-grid projects onto the main grid.
Power policies
Power prices and costs
Benin has implemented time-based tariffs for customers using the medium tension segment. Off-grid tariff prices result from a negotiation and agreement between the power producer and the off-taker. Benin recently reassessed its tariffs and increased all three usage categories by at least 10,000 West African CFA francs per MWh. Benin does not have any subsidy for retail power but does continue to subsidize fossil fuels.
Power market
Benin has a national electrification rate of 41%. The majority of that is urban at 66%, while rural electrification is only 18%. Peak demand is 563MWp. The low electrification creates a strong environment for increasing capacity. However, the grid requires modernization. The government is working on projects to import some power from Nigeria while building new plants, improving the transmission network to reduce waste and modernizing power plants. Benin also has a fund for off-grid electrification.
Benin’s power market is dominated by non-renewable energy, namely oil. There is marginal contribution from small hydro and solar. The country is attempting to expand renewable energy usage through power purchase contracts awarded via auctions and a new net-metering policy. The power purchase agreements (PPAs) are denominated in US dollars. There have been nine PPAs awarded to date with a total contracted capacity of 63.4MW. However, the country still has not standardized PPAs.
Benin’s retail market is dominated by the Societe Beninoise d’Energies Electrique (SBEE). Under the 2020 Energy law, Independent Power Producers (IPPs) can sell power to customers other than the offtaker, such as a household consumer, but only if a PPA has been concluded, and very few PPAs have been concluded to date. The Communaute Electrique du Benin (CEB) accounts for 85% of total generation.
Installed Capacity (in MW)
Electricity Generation (in GWh)
Utility privatisation
Which segments of the power sector are open to private participation?
Wholesale power market
Does the country have a wholesale power market?
Doing business and barriers
There is no project development infrastructure. Benin has significant offtaker risk but is working on restructuring SBEE’s financial and operational management. Additionally, there is very little information on PPA renegotiation or if there will be delays in payments because PPAs are so new in the country. Benin has the legal right to renegotiate PPAs, but there is no history of this to date.
Currency of PPAs
Are PPAs (eg. corporate PPAs and all other types) signed in or indexed to U.S. Dollars or Euro?
Bilateral power contracts
Can a C&I (Commercial and Industrial) customer sign a long-term contract (PPA) for clean energy?
Fossil fuel price distortions - Subsidies
Does the government influence the wholesale price of fossil fuel (used by thermal power plants) down through subsidies?
Fossil fuel price distortions - Taxes
Does the government influence the wholesale price of fossil fuel (used by thermal power plants) up through taxes or carbon prices?
Transport
EV market
The government has yet to implement any substantive policy support in this sector.
EV policy
The government has yet to implement any substantive policy support in this sector.
Transport policies
Fuel economy standards
Does the country have a fuel economy standard in place?
Buildings
Buildings market
Benin implemented an energy efficiency plan in 2015. The plan primarily focuses on decreasing energy consumption through more efficient light bulbs, refrigerators and air conditioners within public buildings and businesses. In 2020, Benin expanded the policy to include businesses.
Energy efficiency policy
Does the country have a national energy efficiency plan?
Energy efficiency policy
Are there minimum energy performance standards for buildings?
Energy efficiency incentives
Is there access to loans or grants for energy efficiency measures (i.e. Wall or loft insulation or double glazing)?
Buildings policy
There are no specific laws.
Buildings policies
Additional insights
from BNEF
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