Power policy

Mauritania’s government has rolled out little in the way of incentives to deploy clean energy. Nevertheless, renewable energy currently accounts for 25% of total installed capacity, so the country has comfortably overshot its 20% goal by 2020. A public procurement system is in place, with national utility Somelec issuing bids for renewable energy-related projects since 2013. However, there are persistent problems with the irregularity of tender announcements and procedures. A law on public-private partnerships was issued in July 2017, in an effort to promote independent power production, but its implementation remains incomplete.

The government has overseen a steady increase in clean-energy capacity since 2013 and has heavily relied on concessional funding, often from Persian Gulf donors. Highlights include the completion of several large PV projects, such as the 50MW Toujounine PV plant commissioned in November 2017, for which the Arab Fund for Economic and Social Development (AFESD) provided the majority of the project’s $53 million total cost. Similarly, the AFESD is financing the development of the 100MW Boulenouar wind farm. Donors such as the French Development Agency and the EU are also active in clean energy through their efforts to improve electrification, notably the five-year RIM DIR program, which has a total cost of $13.4 million.

Power prices and costs

Generous subsidies have kept retail tariffs stable over the past few years. Compared to neighboring countries, Somelec’s power tariffs are low, at an average retail price of $127.01/MWh. However, the vast majority of citizens pay discounted ‘social’ rates bankrolled by the state, while rural consumers are faced with steeper bills levied by microgrid operators. There is little regulatory clarity concerning how tariffs are determined and adjusted. The latter falls under the remit of regulatory agency ARE.

Power market

Thermal plants account for the majority of Mauritania’s installed capacity. Since 2013, however, clean-energy capacity has steadily increased, with a handful of solar PV and wind plants in the pipeline. The power sector is not yet liberalized, with all segments remaining under Somelec’s control. In rural areas, operators with a concession may participate in power generation, distribution and retail. Solar PV-diesel hybrid projects are increasing in popularity, with a number of 2-6MW projects having been brought online, most recently at Kiffa and Néma. The expansion of renewable energy capacity and the discovery of offshore gas have made the government eager to begin selling energy to its neighbors.

Doing business and barriers

Power demand has been increasing slowly but surely since 2010. Officials foresee that coming years could see a tripling of demand with the completion of three large transmission projects connecting large urban centers. There is strong potential for clean-energy development, due to ample solar and wind resources in addition to single-digit rural electrification rates. Investment in renewables is set to continue despite imported hydropower and the attraction of offshore gas. Mauritania's Ministry of Petroleum, Energy and Mines is planning to cover 100% of urban electrification and 40% of rural electrification by 2020. This goal was not met and no updated goal has been formulated.

Licensing and approval procedures in Mauritania are typically encumbered by strict bureaucracy, according to international agencies. Regulations can prove difficult to navigate, and there is no clear delineation between the remits of various relevant public bodies. Similarly, international donors have highlighted a lack of transparency regarding forthcoming legislation, which increases uncertainty about reforms. Other issues include the lack of an effective electrification agency, which slows down the implementation of a coherent regulatory framework to encompass private and off-grid generation. Finally, the country’s huge area and sparse population can make larger-scale project development challenging.

EV market

The government has yet to implement any substantive policy support in this sector and the EV market remains at an early stage.

EV policy

The government has yet to implement any substantive policy support in this sector and the EV market remains at an early stage.

Buildings market

The government has yet to implement any substantive policy support in this sector and the low-carbon heat market remains at an early stage.

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.