Chapter 2. Current Status of Energy in Cameroon
2.4 Legal and Institutional Structure for RE
2.4.3 Summary and considerations
This paper examined various schemes from different countries to identify legal frameworks and organizations related to RE suitable to Cameroon. For this investigation, the countries are divided into three groups based on economic status, namely, high-income (South Korea, the United States, Japan, and France), upper-middle income (Azerbaijan), and lower-middle income (Nigeria, Ghana, and Senegal). In addition, the differences in economic viability between the countries, depending on the potential and quality of RE, were taken into consideration. There are economic differences, depending on the RE potential and the quality of RE of these countries. However, examining the organizations and regulations of these countries related to RE shows several similarities, suggesting several considerations required for Cameroon to expand its RE supply.
First, most of these countries have directly or indirectly passed laws on RE. The Act on the Promotion of the Development, Use and Deployment of New and Renewable Energy of Korea or the Special Decree on Encouraging New Energy Use of Japan can be regarded as independent laws on RE. However, Energy Transition for Green Growth Act (la Transition Énergétique pour la Croissance Verte) of France or the American Recovery and Reinvestment Act of 2009 and the Energy Independence and Security Act, as well as Korea’s Framework Act on Low Carbon and Green Growth can be regarded as laws intended to utilize RE as methods to achieve key objectives, such as climate change, green growth, or economic development.
Ghana and Senegal have enacted their laws on RE. In Nigeria and Azerbaijan, there has been no RE law, but both countries are developing a wide range of programs and strategies to expand the RE deployment.
Currently, legal aspects of RE in Cameroon is included in the Law on the Electricity only and covered only electricity sector of RE; therefore, the country needs a separate regulatory structure for RE.
Second, these countries all have institutions in charge of policy planning and execution of RE deployment. Institutions that provide planning for policies related to RE usually take the form of a department under a central energy-related ministry, with RE as a lower-level objective. While this can be compared with the MINEE of Cameroon that has the Department of Renewable Energy and Energy Management (DREEM), there is a significant difference between Cameroon and other countries, where the central energy-related ministries are supported by separate institutions that is responsible solely for policy execution, such as the Alternative Energies and Atomic Energy Commission of France and Korea New and Renewable Energy Center (KNREC) of Korea. Obviously, these countries have such separate organizations
Accordingly, creating an organization that supports implementation of RE deployment policies of MINEE could facilitate its works.
Third, the above-mentioned countries have all formulated deployment targets of RE or have established methods to facilitate deployment. As an example, Korea has annual goals under the Basic Plan on Energy and the Basic Plan on New and Renewable Energy. France supports goals for RE through its regulations.
Moreover, these nations introduced various policy measures and programs customized for them to achieve the RE deployment targets. For example, Korea introduced the Renewable Energy Portfolio Standard (RPS) and the US has state-specific RPS or Feed-in-Tariff (FiT) programs, as well as federal-level investment tax credits (ITC) and production tax credits (PTC). Japan, France, and Nigeria have FiT programs. Cameroon has set a target for RE deployment as part of its INDC pledge, submitted during the signing of the Paris Agreement on Climate Change. However, Cameroon still needs to develop comprehensive strategies with specific policy measures and programs customized for Cameroon’s own conditions to achieve the target.
Fourth, many of the above-mentioned countries have institutions tasked with the research and development for RE. Korea Institute of Energy Research (KIER) of Korea, National Renewable Energy Laboratory (NREL) of the US, New Energy and Industrial Technology Development Organization (NEDO) of Japan, Alternative Energies and Atomic Energy Commission (CEA) of France are examples of such entities. Cameroon has the Institute of Energy Research. Focusing research on non-conventional energy sources, including RE, could be a sound investment strategy for Cameroon.
[Figure 2-18] Countries with renewable energy polices and target, early 2015
Source: REN21, 2015, Renewable 2015 Global Status Report
To derive strategies for renewable energy expansion in Cameroon, it is very important to understand the endogenous and external factors related to renewable energy expansion. The endogenous factors are classified to two strengths and three weaknesses. The first strength is MINEE's strong will to achieve renewable energy expansion goals and political stability in Cameroon. The other is REMP which is scheduled to be established. The first weakness is lack of renewable energy laws, institutions and dedicated agencies. The second one is the lack of renewable energy manpower and technology. The other is a lack of government budgets and investment funds needed to expand renewable energy.
Opportunity is an external factor which influences the expansion of renewable energy. The first one is expansion of international cooperation for countering climate change. The second one is that the LCOE of renewable energy has declined and such trend is continuing. The Last one is that the high economic growth rate of Cameroon is expected.
As an external factor, there are two threats on expansion of renewable energy and the first one is the obligation of INDC according to the Paris Agreement. Like other countries, Cameroon should comply with the INDC goal, and it will militate against economic growth if preparation and progress are not sufficient. The other is the increase in the government budget due to the high population growth.
❙ Table 2-29 ❙ SWOT analysis for RE deployment in Cameroon
Source: Written by the author
Based on these strengths, weaknesses, opportunities, and threats, the following strategies were derived
Factors Contents
Endogenous Factor
Strength • MINEE's strong will and political stability
• REMP is scheduled to be established Weakness
• Lack of renewable energy laws, institutions, and agencies
• Lack of renewable energy manpower and technology
• Insufficient government budget and investment resources
External Factor
Opportunity
• Expanding international cooperation to cope with climate change
• Decline trend of renewable energy LCOE
• High economic growth forecast
Threat • Observance of INDC according to Paris agreement
• Increase in government budget demand due to high population growth
international cooperation and cooperation by providing legislation, systems, and dedicated agencies related to renewable energy. Secondly, achieve high economic growth through accumulation of renewable energy related manpower and technology. Lastly, expand international cooperation and cooperation to raise funds for expanding renewable energy sources. In the ST strategy, the central government leads the establishment of renewable energy deployment strategy to comply INDC. Finally, we suggest WT strategy that the government should secure tax revenue by industrialization through the accumulation of manpower and technology related to renewable energy.
❙ Table 2-30 ❙ SWOT strategy analysis for RE deployment in Cameroon
Source: Written by the author
Strength Weakness
Opportunity
SO strategy
• Attract investment of international private capital based on political stability and high economic growth rate
• Attract investment on low-LCOE renewable energy based on REMP
WO strategy
• Expanding international cooperation and cooperation by providing legislation, systems, and dedicated agencies related to renewable energy
• Achieve high economic growth through accumulation of renewable energy related manpower and technology
• Expand international cooperation and cooperation to raise funds for expanding renewable energy sources
Threat
ST strategy
• Establishing renewable energy deployment strategy to comply INDC through central government leading
WT strategy
• Securing tax revenue by industrialization through accumulation of renewable energy related manpower and technology