Benin
With a cumulative score of 1.56, Benin ranks number 43 among emerging markets and number 72 in the global ranking.
- Emerging markets
- Middle East & Africa
1.72 / 5
Power score
1.17 / 5
Transport score
Buildings score
Only 56 markets (28 emerging markets) are scored on the Buildings sector. See the full list on the methodology page.
Low-carbon strategy
Net-zero goal and strategy
Benin does not have a net zero goal or strategy.
Nationally Determined Contributions (NDC)
Benin has a “business as usual” nationally determined contribution as its official plan to cut emissions under the Paris Agreement. It aims to decrease emissions 16.17% from 2021 to 2030 in comparison to their projected 2030 emissions. The targeted sectors are energy, agriculture, waste, and industrial processes. Benin is one of the only developing markets to submit a long-term strategy for the Paris Agreement. In its long-term strategy, Benin commits to sustainable development.
Fossil fuel phase-out policy
Benin does not have a fossil fuel phase-out plan.
Power
Power policy
Benin has implemented time-based tariffs for customers using the medium tension segment. Off-grid tariff prices result from a negotiation and agreement between the power producer and the offtaker. Benin recently reassessed their tariffs and increased the average commercial tariff by XOF 5 per MWh. Benin does not have any subsidy for power prices, but does continue to subsidize fossil fuels.
Power policies
Power prices and costs
Benin has a national electrification rate of 40%. The majority of that is urban at 65%, while rural electrification is only 17%. Peak demand is 563MWp. The low electrification creates a strong environment for increasing capacity. However, the grid requires modernization and the government is working on projects to import some from Nigeria while building new plants, improve the transmission network to reduce waste and modernize power plants. These projects will improve electrification, but there is a lot of work to be done. Benin also has a fund for off-grid electrification.
Power market
Benin’s power market is dominated by non-renewable energy, namely oil. There are small amounts of small hydro and solar. The country is attempting to expand renewable energy usage through power purchase agreements (PPAs) awarded in auctions. These PPAs are denominated in U.S. dollars. There have been nine PPAs awarded to date with a total contracted capacity of 63.4MW. However, the country still has not standardized PPAs.
Benin’s retail market is dominated by the Societe Beninoise d’Energies Electrique (SBEE). Under the 2020 Energy law, Independent Power Producers (IPPs) can sell power to customers other than the offtaker, such as a household consumer, but only if a PPA has been concluded, and very few PPAs have been concluded to date. The Communaute Electrique du Benin (CEB) makes up 85% of total generation.
Installed Capacity (in MW)
Electricity Generation (in GWh)
Utility privatisation
Which segments of the power sector are open to private participation?
Wholesale power market
Does the country have a wholesale power market?
Doing business and barriers
There is no project development infrastructure. Benin has significant offtaker risk but is working on restructuring the SBEE’s financial and operational management. Additionally, there is very little information on PPA renegotiation or if there will be delays in payments because PPAs are so new in the country. Benin has the legal right to renegotiate PPAs, but there is no history of this to date.
Currency of PPAs
Are PPAs signed in or indexed to U.S. Dollars or Euro?
Bilateral power contracts
Can a C&I (Commercial and Industrial) customer sign a long-term contract (PPA) for clean energy?
Bilateral power contracts
Can a C&I (Commercial and Industrial) customer sign a long-term contract (PPA) for clean energy?
Fossil fuel taxes
Does the government influence the wholesale price of fossil fuel (used by thermal power plants) up through taxes?
Bilateral power contracts
Can a C&I (Commercial and Industrial) customer sign a long-term contract (PPA) for clean energy?
Fossil fuel subsidies
Does the government influence the wholesale price of fossil fuel (used by thermal power plants) down through subsidies?
Transport
EV market
The government has yet to implement any substantive policy support in this sector.
EV policy
The government has yet to implement any substantial policy support in the sector and the EV market remains at an early stage.
Transport policies
Fuel economy standards
Does the country have a fuel economy standard in place?
Buildings
Buildings market
Benin implemented an energy efficiency plan in 2015. The plan primarily focuses on decreasing energy consumption through more efficient light bulbs, refrigerators and air conditioners within public buildings and businesses. In 2020, Benin expanded the policy to include businesses.
Energy performance standards
Are there minimum energy performance standards for buildings?
Energy efficiency plan
Does the country have a national energy efficiency plan?
Buildings policy
The government has yet to implement any substantive policy support in this sector and the low-carbon heat market remains at an early stage.
