Around Africa, electricity blackouts due to lack of supply and failing infrastructure are all too common. In Equatorial Guinea, the government’s dedication to building power plants and transmission lines has ensured that the lights stay on, and that the country can begin exporting electricity to its neighbors. Investment opportunities are numerous.
The power sector is regulated by the Ministry of Mines, Industry and Energy and managed by SEGESA, the national electricity company. The biggest contributor of power to the national grid is the 120 MW Djibloho dam. Another dam, Sendje, is due for completion in 2017, and with 200 MW capacity will increase the potential for regional exports and raise total generating capacity to 561 MW. A 148 MW gas-fired plant at Punto Europa supplies the oil and gas industry. Recent investment in transmission and distribution, particularly in urban areas of Rio Muni, means that electricity is available in all corners of the country.
On April 30 at the Equatorial Guinea-Asia Economic Forum in Dalian, China, the government signed three deals with Chinese firms to further develop the power sector. Sinohydro, which built the Djibloho dam and infrastructure in Mongomeyen and Bata, will conduct a feasibility study for a new hydro plant on the Wele River. China Machinery Engineering Corporation signed an MoU for a technical and financial viability study for a new 100 MW gas-fired generation plant at Kogo, and another MoU to study the establishment of grid connections with other Central African nations.
The Central Africa region has extremely high hydropower potential, with 52 percent of Africa’s total. Equatorial Guinea has room for growth, with 2.6 GW of untapped and viable hydropower.
Equatorial Guinea’s ambition to extend power availability to all citizens and to export power to neighboring countries in the Central Africa Power Pool provides huge investment opportunity for Chinese firms. Projects exist across all segments of the power industry, and the government is keen to develop diversified sources of power, with a focus on gas and hydro and associated facilities.