3.1. Review of Hydrogen-Related Laws and Policies in ECOWAS
In the coming years, hydrogen, produced with renewable electricity, is projected to grow rapidly. Many ongoing and planned projects across the world point in this direction. Hydrogen from renewable power is already technically important and is rapidly becoming economically relevant for the global energy transition. For Africa to be part of this global movement towards green hydrogen, it is important to create legislative frameworks that facilitate hydrogen-based sector coupling. However, in common with many jurisdictions, the fifteen ECOWAS members do not yet have official hydrogen policies fully in place. The lack of a legislative framework creates many gaps and uncertainties, which need to be addressed before the hydrogen economy can start to flourish in the region. ECOWAS members need a dedicated new legislative framework for renewable hydrogen production which may facilitate its deployment and the related economic benefits. Although in many ECOWAS countries there exist specific laws that deal with renewable energy, the level of intervention and implementation remains a challenge and varies from country to country.
Benin. Law No. 2020-05 of 1 April 2020 guides the energy policy in Benin. It describes new-generation capacity regulations with the aims of promoting renewable energy sectors and increasing their share in the energy mix in order to improve the rate of national energy independence. The idea behind this law is for the government to promote all sources of renewable energies and, in particular, the promotion of technologies for the enhancement of local energy resources. This is based on in-depth knowledge of the real potential of renewable energies and on the existence of adequate human resources in setting up an environmental regulation policy conducive to its implementation. This law grants subsidies, tax advantages, or guarantees to companies, enterprises, and establishments that undertake to produce or promote the production of electricity from renewable energies. Therefore, the import, purchase, or acquisition of materials and equipment intended for the production and exploitation of electricity based on renewable energies and those intended for research and development in the field of renewable energies benefit from a total exemption of taxes except for road taxes, statistical tax, and community taxes (LOI No 2020-05, 2020). On these, an indicative program is adopted every five (05) years by the Council of Ministers in charge of energy. In addition, this law gives greater allocation to the development of energy efficiency and renewable energy but gives no explicit allocation for green hydrogen technology.
Burkina Faso: In Burkina Faso, Law No. 014-2017/AN of 20 April 2017 and Law no. 058-2017/AN of 20 December 2017 were established for renewable energy promotion and regulations. These laws fixed the conditions of eligibility to the exemption from tax on imports and sales of solar equipment and materials. The innovation under these laws is to achieve 50% renewable energy in the electricity mix by 2030 and increase the share in urban and rural electrification rates by 95% and 50% for 2030, respectively. For this, the share of renewable energies, excluding biomass for cooking needs, will reach 50% of the electricity mix in 2030 in terms of capacity. Therefore, the installed PV capacities would increase from 65 MW in 2015/16 to 205 MW in 2030 [
25]. However, concerning hydrogen-based energy, Burkina Faso lacks a clear act or policy framework on hydrogen energy strategy.
Cape Verde: In Cape Verde the government established Decree-Law No. 14/2006 of 20 February and Law no. 39/2019 of 8 April, to guide the renewable energy policy framework. This law aimed to boost and target electricity production from renewable energy sources by 2025 and 2030, and set commitments for wind and solar energy use, promotion of energy efficiency, and combating energy losses. Furthermore, the government has decided on the inclusion of 50% renewable energy in the energy mix as a target for 2030 [
26].
Côte d’Ivoire: In Côte d’Ivoire, Decree No. 2016-862 of 03 November 2016 was enacted to grant tax and customs benefits on renewable energy equipment, and projects that contribute to the improvement of energy efficiency. For the implementation of these laws, the Ivorian state has decided to double the rate of improvement of energy efficiency by 2030. By 2030, national objectives have been set to improve access to energy by the population, to improve the level of renewable energies, and to increase energy efficiency. To achieve this, indicators have been identified to assess the actions to be taken.. This is a 42% increase in the energy mix from renewable energies to meet electricity consumption, as well as a 26% increase for large and medium hydraulics, and 16% for various other renewable energy sources by 2030
The Gambia. The renewable energy sector in the Gambia is governed by the Bill/Act of 2013, which establishes a legal, economic, and institutional basis to promote the use of renewable energy resources and for connected matters. Furthermore, the Ministry of Energy has developed an energy strategy that facilitates the use of renewable energy resources for both power and non-power applications from import duty. The Act guides all renewable energy equipment that fulfills the eligibility to be exempted from value-added and any other retail tax for fifteen years from commissioning, and all proceeds from the sale of carbon emission credits shall be exempt from sales taxes [
27]. Nevertheless, Gambia lacks a clear Decree/Act/Bill on renewable energy.
Ghana. Act 832 in Ghana provides for the development, management, and utilization of renewable energy sources for energy production in an efficient and environmentally sustainable manner. The Act was legislated in light of the policy direction and with the specific objective of accelerating the development and utilization of renewable energy technologies to achieve a 10% penetration of national electricity by 2020. Electricity generation capacity from renewables is projected to reach 1353.63 MW by 2030 which will contribute to the creation of 220,000 jobs, and carbon savings of about 11 million tonnes of CO
2 by 2030 [
28]. Act 832 stipulates that fossil fuel-based wholesale electricity suppliers, fossil fuel producers, and any other companies that contribute to greenhouse gas emission shall invest in non-utility scale renewable energy to offset greenhouse gas emissions and mitigate the impact of climate change [
29].
Guinea. Guinea has adopted law No 2014/30/1/6/1/2/N on the appropriate fiscal policy for the implementation of energy-saving measures for the promotion of renewable energies. For this, the state grants bonuses, subsidies, or loans at subsidized rates on renewable energy equipment by reducing customs duties to minimum rates and exemption from import VAT [
30]. Nevertheless, the country lacks a clear Decree/Act on renewable energy.
Guinea Bissau. In Guinea Bissau, the legislative framework is composed of two laws that regulate the energy and electricity sector, namely Decree-Laws No. 2/2007 and 3/2007. Decree-Law No. 2/2007 defines the structure of the energy sector, its organization, and the provisions that apply to the different forms of energy. Decree-Law No. 3/2007 regulates the production, transport, distribution, import, and export of electrical energy within the country. However, no specific fiscal and investment frameworks or provisions exist for the energy sector currently. As the country disposes of several renewable energy resources such as solar, hydropower, and biomass, the exploitation of these resources will enable the country to reach its ambitious targets of installing more than 70 MW of renewable capacity by 2030. According to the government off-grid systems, with 80% penetration of renewable energy, this will contribute to meeting 100% of the demand by 2030 [
31].
Liberia. On July 6, 2015, the Liberian government established a wholly autonomous Rural and Renewable Energy Agency (RREA). The RREA aims at addressing the challenges faced by the energy supply in rural areas. The RREA operates to ensure universal access to modern energy services in an affordable, sustainable, and environmentally- friendly manner in order to foster the economic, political, and social development of Liberia.
Mali. The development of renewable energies (RE) appears to be a priority in Malian public policy and strategic framework for growth and poverty reduction. Mali has several strategies, policies, acts, and regulations governing renewable energy. These include the following:
The Malian Agency for the Development of Domestic Energy and Rural Electrification (AMADER), established by Law No. 03-006 of 21 May 2003. The vision is to implement the policy and regulatory framework of rural electrification and domestic energy.
Mali Renewable Energy Agency (AER-Mali), established by Decree No 2015-0049/P-RM of 6 February 2015. AER is mandated for the popularization and promotion of clean energies in Mali. It works to enable an ecological transition and also to expand the use of renewable energies by facilitating its access to a large majority of the Malian population [
32].
Regulation, Electricity, and Water Commission (CREE), created by Law No 00-185/P-RM of 14 April. 2000 is responsible for regulating the electricity sector and the public drinking water service in urban centers. The Act mandates CREE to issue licenses to support the development of the public electricity and water service; defend the interests of users and the quality of public service; promote and organize a competition between operators [
33].
National Directorate of Energy (DNE), created by Law No 99- 0 1 3 IP-RM OF 01 April. 1999′s mission is to develop the elements of national energy policy. It vision is to increase the national electrification rate to 87% by 2030 (42% in 2017, source: DNE); and the share of renewable energies connected to the grid would be 977.4 MW or 52.5% by 2030 (including 538 MW of solar; 389 MW of hydroelectricity; 20 MW of wind; and 30 MW of bioelectricity [
34]).
National Energy Policy (PEN), adopted in 2006, with the aim to balance energy availability and national socio-economic development needs, foster synergy between the major energy sector stakeholders, and guide their interventions.
National Strategy for Renewable Energy Development, adopted in 2006, aims to promote the widespread use of renewable energy technologies and equipment. It is intended to increase the share of renewable energy in national electricity generation and also to develop biofuel, and create better conditions to sustain renewable energy services. It further aims to search for sustainable and suitable financing mechanisms for renewable energy in Mali.
Niger. In Niger, the energy sector is governed by the Electricity Law No. 2016-05 of 17 May 2016, implemented by the Minister in charge of Energy. This law ensures the implementation of the entire energy policy framework and regulations, as well as increased financing for the country’s energy and economic growth. The law established a fund that domiciles in an account at the Banque Centrale des États de l’Afrique de l’Ouest (BCEAO) for the financing of renewable energies and the control of electrical energy. These funds, for instance, consist in particular of state subsidies; the contribution of the carbon tax; and part of the cost of controlling renewable energy equipment. Therefore, due to the importance of renewable energy, the government of Niger is projecting an increase in the national electrification rate to 65% by 2030 (currently at 10%). This includes targets for 30% renewables in the national energy mix by 2030 (150 MW from grid solar; 100 MW from off-grid solar; 20 MW from wind) [
35].
Nigeria. The Nigerian Electricity Regulatory Commission, through Act No. 6 of 2005, made the Regulations on Feed-In-Tariff for Renewable-Energy-Sourced Electricity to develop, promote, and harness the Renewable Energy (RE) resources of the country and incorporate all viable ones into the national energy mix. The commission is also intended to enhance the attainment of the national targets on renewable-energy-sourced electricity. Due to the restricted access to electricity supply in the largely off-grid rural areas of Nigeria, the Federal Government developed the Nigerian Renewable Energy and Energy Efficiency Policy (NREEEP) to facilitate its plan to utilize renewable energy as an alternative source of electricity for off-grid rural areas. The NREEEP therefore generally aims to set out a framework for action to address Nigeria’s challenge of inclusive access to modern and clean energy resources, improved energy security, and climate objectives. Nigeria has several national policies and action plans on renewable energy and energy efficiency. These include:
National Energy Policy (NEP) created in 2003 (revised 2006 and 2013). It covers all aspects of the energy sector, including renewable energy, energy efficiency, and rural electrification. It defines, among other aims, a national target for 75% electrification rate by 2020 and a reduction in electricity generation, transmission, and distribution losses from 15–40% in 2013 to less than 10% by 2020 [
36].
National Renewable Energy Master Plan (REMP) created in 2005 (revised 2012). The REMP was developed by the Energy Commission of Nigeria (ECN) in collaboration with the United Nations Development Programme (UNDP) and was later revised in 2012. The REMP sets out Nigeria’s roadmap for increasing the national deployment of renewable energy and promoting sustainable development [
37].
Rural Electrification Strategy & Implementation Plan (RESIP) created in 2006 (revised 2014). It aims to expand electricity access in a cost-effective way, for both off-grid and on-grid electricity supply. One tool for achieving this is to focus subsidies on expanding access rather than on electricity consumption. The RESIP includes targets for 75% and 90% electricity access by 2020 and 2030, respectively, with at least a 10% renewable power share by 2025 [
38].
National Energy Master Plan (NEMP) created in 2007 (revised 2014). It covers all energy sources, energy consumption, capacity development, energy financing, energy databases, and the project cycle (planning, implementation, and monitoring and evaluation). The NEMP sets targets for a share of renewable energy (excluding large hydro) in the national energy sector of 10.6% in the long term (2016–2030) [
39].
National Biofuel Policy and Incentives created in 2007. This policy is aimed at creating a viable biofuels industry, reducing the nation’s dependency on gasoline, and reducing pollution of the environment [
40].
Sustainable Energy for All (SEforAll) Action Agenda developed by the Federal Ministry of Power. The document provides useful information on energy access and energy efficiency as well as the renewable energy potential and market in Nigeria and relevant policies and barriers to be overcome [
41].
National Energy Efficiency Action Plan (NEEAP) created in 2016. It sets targets for energy savings and proposes actions for meeting the set targets. The NEEAP targeted 40% and 100% efficient lightening in households by 2020 and 2030, respectively; and efficient energy increase by 20% and 50% in the transport, power, and industrial sectors by 2020 and 2030, respectively [
42].
Intended Nationally Determined Contribution (INDC) approved in 2015. The INDC set conditional and unconditional objectives as 20% and 45%, respectively, and targeted 13 GW solar PV off-grid in the Nigeria electricity mix by 2030, with an annual increase in energy efficiency from 2% to reach 30% by 2030. [
43].
Senegal. For the promotion and development of renewable energies, Senegal has put in place an appropriate legal framework, and sufficient incentive to allow the production in sufficient quantity, storage, and transport, as well as the marketing of these products throughout the national territory. Thus, Law No. 2010-21 on the Orientation of Renewable Energies emphasizes the promotion of renewable energies by granting a total exemption on the acquisition of materials and equipment intended for production of renewable energy for domestic self-consumption, and also tax incentives for the acquisition of materials and equipment intended for production, operation, and research and development in the field of renewable energies (Loi No 2010-21, 2010).
Sierra Leone. In Sierra Leone, the electricity sector and water regulatory commission are governed by the National Electricity Act (2011). This was established on the basis of furthering renewable energy development to attract private investments, extending electricity to rural and remote areas, increasing the percentage contribution of solar energy to the total energy mix, improving healthcare, and enhancing other human services. In addition, the law commits the government to take numerous enabling measures to ensure that renewable energy becomes a significant part of its energy portfolio over the next fifteen years.
Togo. In Togo, Law No 2018-010 establishes the legal framework governing the equipment/materials, installations, and other necessary infrastructure for the production, storage, transport, distribution, marketing, and consumption of electricity based on renewable energy sources. For instance, Law No. 2018-010 in its Title II, articles 16 and 17 highlights this in the three (3) legal regimes for electricity production projects based on renewable energy sources. However, the system of declaration and freedom is applied to the activities of production of electrical energy based on renewable energy sources intended for the needs of clean consumption without injection into the national electricity grid. The Togolese government also grants tax and customs exemptions of up to 10 years for projects to build power plants and infrastructure based on renewable energy sources used for their own needs or the sale of electricity [
44].