Captive Power Projects: A summary of the Western Africa regulatory environment | Page 5

Benin

OVERVIEW
Degree of favourability
Existing opportunities. Benin has adopted a new Electricity Code which provides for freedom of energy production, transmission and distribution. The legal framework for electricity in Benin is mainly defined by the Electricity Code, which sets out the rules for the production, transmission, distribution and sale of electricity. It put an end to the monopoly of the national electricity supply company, allowing independent producers to participate in the market. In addition, a specific framework for off-grid electrification was put in place to encourage private investment and improve access to energy.
Presence of a monopoly company
Société Béninoise d ' Energie Electrique( the SBEE) is no longer in a monopoly position but the transport and distribution of energy remains under control of the national utility company. On the other hand, Société Béninoise de Production de l ' Electricité( SBPE) has a monopoly on the wholesale purchase of electricity from both national and international operators.
LEGAL FRAMEWORK
Types of authorisation required and associated thresholds( if applicable)
Granting modalities( decree, order...) Applicable Law( s)
Selfproduction
Authorisation required for electricity projects with an installed capacity equal to or greater than the one set by decree. We have not been able to identify such threshold. This needs to be further investigated with the administration.
Self-production of electricity with sale of surplus is authorised but cannot exceed 50 % of its installed power capacity. The sale of surplus production to an Eligible Client is subject to the authorisation regime regardless of the installed power capacity. 1
Authorisations and declarations granted by the Autorité de Régulation de l ' Électricité( ARE) upon demand of the interested party.
Law No. 2020-50 of 1 April 2020( Electricity Code)
Regulation No. 2023-001 / CNR / ARE relative aux conditions et modalités de déclaration et d ' octroi d ' autorisation pour les installations d ' autoproduction d ' électricité en République du Bénin
Declaration required for self-generated renewable energy facilities with a nominal power output of more than 10 KW and less than 100 KW. These thresholds may be too small in practice for captive power projects.
Authorization required for self-generated thermal power generation facilities with a site installation capacity greater than 500 kVA.
Authorization required for self-generating renewable energy facilities with a rated power output of 100KW or more.
bracewell. com 5