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 .
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