TRANSCOCLSG transcoclsg
The General Manager of TRANSCO CLSG has underscored increased utilization of the CLSG transmission line to ensure the company’s financial viability. In an official statement delivered at the 33rd meeting of the company’s Board of Directors, Mr. Mohammed M. Sherif disclosed that the overall progress rate in the landmark CLSG project implementation stands at 99.5% as of June 2024.
“Since the launch of commercial operations on the CLSG line in December 2021, we have injected a total of 685 GWh into the CLSG network. However, the most critical challenge we face is the generation shortfalls in Côte d’Ivoire and Guinea, with CI-ENERGIES reducing power allocations and export capacities,” Mr. Sherif informed the Board.
He disclosed that the growing energy demands in Liberia, Sierra Leone, and Guinea are expected to exceed 200MW in the next two to three years. To address this, “we encourage CI-ENERGIES to honor its commitment to supply at least 81MW as initially agreed.”
Mr. Sherif emphasized that securing new power generation sources from the sub-region is imperative to bridge the gap between demand and available capacity. He said CI Energies as the hub of power supply from zone A to zone B is highly encouraged to facilitate power exchanges between these two zones so that Liberia, Sierra Leone, and Guinea can benefit from the available capacity or any available capacity.
In this regard, Mr. Sherif informed the Board that TRANSCO CLSG Management initiated an exploratory mission to Accra to discuss with the Electricity Company of Ghana (ECG), which culminated in a signed Letter of Intent with ECG, reflecting the Ghanaian company’s willingness and capacity to supply 100 MW of energy to the CLSG countries in 2024, provided that the technical and commercial arrangements can be agreed upon.
“The outlook is favorable, as reflected in the rising demand for capacity by potentially large customers, notably Arcelor Mittal (AML) in Liberia and Leone Rock Mining Group (LRMG) in Sierra Leone,” General Manager said, adding that following successful negotiations between LEC and AML, facilitated by TRANSCO CLSG, all parties have signed an MoU for the connection of two major AML sites to the CLSG Line to supply power to the mining giant over the next eighteen months.
Mr. Sherif stressed that increasing the utilization of the CLSG Line is crucial for the financial viability of TRANSCO CLSG. He said currently, only 40 percent of the line is utilized, which presents both technical and financial challenges. “By fostering intra-CLSG trade and bringing large customers onboard, we can enhance revenue generation and ensure the line’s optimal operation,” Mr. Sherif told the Board.
The General Manager disclosed that TRANSCO CLSG successfully synchronized the OMVG and CLSG Networks in April 2024 and that despite numerous challenges, efforts are ongoing to complete and commission the main SCADA at the Nzerekore substation in Guinea by September 2024. “Our foundation is strong,” Mr. Sherif declared.
“These emerging opportunities will significantly impact TRANSCO CLSG’s sustainability and align with our strategic objectives,” the General Manager noted and added that the support of the Board is crucial at this juncture to ensure TRANSCO CLSG is well-positioned to harness these opportunities.
Mr. Sherif said despite numerous external threats, there is a real opportunity for significant growth in revenue through increased trading on the CLSG transmission line. “Our collective effort and collaboration are essential to tackle these threats, secure firm power commitments, and demonstrate strong payment discipline. By forging dynamic partnerships and embracing innovation, we can create a brighter future for our region.”
The General Manager recognized the unwavering commitment of the Board to delivering affordable and reliable electricity through the CLSG model. He also lauded the TRANSCO team for their hard work and resilience in achieving critical milestones.
