Chapter 2. Current Status of Energy in Cameroon
2.4 Legal and Institutional Structure for RE
2.4.1 Current state of Laws and Regulations in Cameroon
2.4.1.1 Institutions relevant to RE
Organizations related to RE in Cameroon are MINEE, AER, Ministry of Forests and Wildlife (MINFOF), National Forestry Development Agency (ANAFOR), Ministry of Environment, Nature Conservation and Sustainable Development (MINEPED), Energy Management Committee, and the World Energy Council (WEC) Cameroon Committee.
The MINEE is the principal ministry charged with establishing and implementing government policies related to production, transportation, and the supply of water resources and energy, as well as the promotion of RE. This ministry includes the Departments of Renewable Energy and Energy Management to manage the expansion of the RE supply and the implementation of the energy saving policy. Ministry of Forests and Wildlife (MINFOF) and Ministry of Stockbreeding and Fisheries (MINEPIA) are charged with biomass-related services, whereas the Rural Electrification Agency (AER) and Energy Management Committee are tasked with supplying, establishing plans, and managing RE.
Ministry of Environment, Nature Conservation and Sustainable Development (MINEPED) is charged with environmental consideration related to production of sustainable energy, such as solar PV and biogas. Therefore, the work related to RE is dispersed partially among the agencies.
The responsibilities of the MINEE is defined by law, namely, to ① establish government strategies and plans related to the supply of water resources and energy, ② prospect, research, and exploit urban and rural water resources, ③ improve the quantity and quality of water resources and energy production,
④promote investment in water resources and energy in cooperation with the Ministry of Economy, Planning and Regional Development and relevant organizations, ⑤promote RE in cooperation with the Ministry of Scientific Research Innovation (MINRESI), ⑥ regulate water use in the agriculture, industry, and health sectors in cooperation with relevant organizations, ⑦ monitor the management of water basins, ⑧ monitor the management of underground water, ⑨ supervise oil and gas downstream sectors, ⑩ supervise water resources and energy regulation agencies.
❙ Table 2-27 ❙ Organizations relevant to RE deployment in Cameroon
Organization Role
MINEE
• Establish and implement policies related to RE
• Survey and research RE resource potential
• Environmental impact management for large-scale projects
• Promotion of RE in conjunction with the Ministry of Science (Energy Research Laboratory) MINFOF
• Execution, supervision, and coordination of forest development, surveying, afforestation, and regeneration programs
• Responsible for forest biomass MINEPIA • Responsible for organic biomass affairs
MINEPED • Production of sustainable energy, such as solar and biogas (with environmental considerations)
AER • Technical and financial support for businesses/users
• To supply electricity to rural areas by using the RE generation as much as possible ANAFOR • Regeneration, afforestation, and preservation of forest and support soil restoration
ARSEL • Regulations related to energy EMC
• Energy crisis management, and planning, support, and supervision of national energy planning strategies
• Supervision of Cameroon Solar Project 2020*, AER projects approval CC of WEC • Analysis, survey, case studies, strategy studies on all types of energy Source: KEEI (2016), World Energy Market Insight No.16-19
Note: ANAFOR stands for National Forestry Development Agency; ARESEL stands for Electricity Sector Regulatory Agency;
EMC stands for Energy Management Committee; and CC of WEC stands for Cameroon Committee of the World Energy Council
In addition, MINEE manages businesses and organizations related to the production, transportation, distribution, and regulation of water resources, energy, gas, and oil. These entities include the Cameroon Water Utilities Corporation (CAMWATER), Electricity Development Corporation (EDC), AER, ARSEL, Cameroon Petroleum Depot Company (SCDP), Socimeroon Petroleum Depot Co (SONARA), and Hydro Mekin (HYDROMEKIN). There are also energy companies such as ENEO (an electricity company), SONATREL (a power transmission network operator), GAZ DU CAMEROON (a gas utility company), and GLOBELEC (an electricity project developer).
The departments of the MINEE that fall under the responsibility of the minister are the special secretariat, audit office, technical advisor, central administrative organizations, and local districts. The departments of the central administration organization are the general secretariat, research and prediction cooperation, water resource mobilization, water resource administration, electricity, oil and gas, RE and energy management, and general affairs.
The Departments of Renewable Energy and Energy Management of the MINEE is dedicated to RE.
environmental impact management (define necessary activities and supervision) of all large-scale projects related to the energy area, ⑥ apply safety standards for utilization and production facilities of RE.
[Figure 2-14] Organization chart of the MINEE
The intention of conditionally establishing an agency in charge of RE generation was referred to in Act No. 2011/22 on the power sector. However, such a department was eventually established within the MINEE in accordance with Order No. 2012/501 on the Organization of the Ministry of Water Resources and Energy of 7 November 2012. Since the department is responsible for developing and fostering RE, it carries out tasks such as surveying and inspecting applicable resources, technology research and conversion, designing and implementing development programs, establishing and planning pilot projects, status monitoring of the applicable areas, and supplying the best technology for utilizing RE sources. In addition, the department has a research standardization section and a RE development section.
The research institutes in Cameroon related to RE include Laboratory of Energy Research (LRE), a branch of Institute of Geological and Mining Research (IRGM) under MINRESI. LRE focuses on the non-traditional energy sectors including RE and on research related to theories and case studies on RE resource potential evaluation, utilization, and energy consumption reduction.
Even though there are sections promoting RE in the government authorities in charge of electricity, such as the administrative agencies of the government or ARSEL and AER, their focus is on the production of electricity. Overall, the organizational strategies for RE in Cameroon are considered insufficient.
Source: Written by the author of the present study based on the legislation on the organization of the MINEE (Act No. 2012/501),
2.4.1.2 Legal Structures Relating to RE
2.4.1.2.1 Law on the Electrical Sector No. 2011/22
The Act on the Electrical Sector No. 2011/22 of Cameroon makes provision for RE. Article 63 of this law defines solar thermal, solar PV, wind, and hydropower below 5 MW, biomass, geothermal and tidal energy as RE. Article 59 prioritizes providing distributed energy to rural regions by utilizing RE sources.
Furthermore, the excess power generated from RE can be purchased by grid operators or regional power suppliers. Article 66 states that to encourage the use of power from RE, connections would be mandatory upon request by power producers utilizing RE.
Article 65 outlines the regulations related to the promotion and development of RE. According to this article, the state is responsible for promoting and developing RE. The purpose of RE development is to introduce and promote RE processing sub-sector. The article makes provision for state grant tax and tariff benefits on the products, goods, and services related to RE. These benefits are defined in article 128, paragraph 17 of the 2012 Finance Act, with provision being made for the exemption of the apparatus and equipment used in solar energy and wind power from value added tax (VAT).23 “The Finance Act specifies that the special apparatus and equipment used for capturing energy and generating power, limited to solar energy and wind power, shall be exempted from the VAT, however, VAT shall be imposed on the energy that has been produced from these energy sources and that come into the market.”24 Article 67 provides for the creation of a new institution, if required, to develop and promote RE.
It could be argued that the legislation of Cameroon does not support a separate set of regulations on RE but includes them in the regulations that govern the power sector, and that definition of RE is limited to the power sector. Biomass accounts for as much as 77%25 of the main energy source; however, under the current legal system, RE is confined to the electricity sector. Therefore, a separate legal and institutional system for the supply, deployment, and promotion of RE has not been established.
23 January 30, 2012 ‘Finance Act of the Republic of Cameroon 2011/020 enacted on December 14, 2011 ’the established rules of tax law enforcement MINFI/DGI/LC/L, Global Village Cameroon p.57
2.4.1.2.2 Law on the Organization of the Ministry of Water Resources and Energy No. 2012/501
As there are no separate regulations on RE, it follows that there are no separate regulations on institutions responsible for the promotion, development, and extension of RE. Cameroon has introduced the RE and energy administration department responsible in the MINEE under article 7 of the Law on the Organization of the Ministry of Water Resources and Energy No.2012/501. Article 64 defines the responsibilities and authorities of this department. These include the proposal, construction, and execution of strategies and policies related to RE and energy administration; research and studies on RE sources; application and substitution of technologies in the RE sector; energy conservation; and the development of alternative energy. Sub-level organizations include the national energy information system department, RE department, and the energy administration department. The RE department handles the development and promotion of RE, and is therefore responsible for the research and management of applicable resources, technology transfers and application studies, pilot project development, drafting, status monitoring, and supplying the best technologies for utilizing RE resources. This department comprises the research standardization office and the RE development office. Article 85 defines the tasks and authorities of the regional energy administration offices, which are mandated to manage, execute, oversee, and promote RE, and issue regional datasets for energy administration.