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Yaoundé - 28 October 2020 -
Energy

Eneo will save XAF7.8 bln in production costs over 20 years of operation on the Mbakaou small hydropower plant (AER)

Eneo will save XAF7.8 bln in production costs over 20 years of operation on the Mbakaou small hydropower plant (AER)
  • Comments   -   Friday, 10 April 2020 10:23

(Business in Cameroon) - Thanks to the Mbakaou small hydropower plant (1.4 MW extensible to 2.8MW), energy utility company Eneo could save XAF7.8 billion in production costs over 20 years. This is an estimate made by Moussa Ousmanou, chief executive of the rural electrification agency AER in the briefing note published by his agency.

With the power plant, "Eneo will reduce production costs since generators will only operate during peak hours,” he indicates. “Without taking into account the increase in fuel prices or tariff indexation that will inevitably occur during the small hydro plant’s 20 years of operation, annual profits will amount to XAF275 million in the first year (for the sales of 3.4 GWh per year) and will rise to XAF430 million at the end of the period. The cumulated profit will be XAF7.8 billion over the 20 years," Moussa Ousmanou explains in the note.

The Mbakaou small hydropower plant is being built by IED Invest Cameroon, an independent producer. According to the official chronogram, the XAF4.5 billion investment (including the construction of transmission lines) should be commissioned in 2020. In its first year of operation, it will provide electricity to 1,900 new users and at the end of the 20 years, the number of beneficiaries should rise to 5,000.

S.A.

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