The solution
Many West African utilities depended on small fuel-fired systems while nearby countries had cheaper hydropower or other surplus generation. The bottleneck was not only generation; it was the lack of lines, contracts and trust to trade.
World Bank-supported WAPP projects built more than 4,000 km of high-voltage transmission lines linking 15 countries. The work combined interconnectors such as CLSG and OMVG with standard power contracts, regional grid codes, operator agreements and transmission pricing.
By 2026, about 8 percent of regional electricity was traded. More than 3 million people gained electricity service from 2019 to 2025 through transmission and distribution upgrades.
The OMVG loop let Guinea-Bissau and The Gambia import Guinea's hydropower. EAGB's generation cost fell from 25 to 11 US cents per kWh, and NAWEC cut costs by 42 percent, bringing both utilities back to profitability.
What it achieved
Trade electricity before building more plants
Why it worked
It solved a scale problem by pooling demand and supply across borders.
Rules and information systems were built alongside wires, so trade could actually settle.
Cheaper imports improved utility finances without waiting for every country to build new generation.
The planned day-ahead market lets utilities buy for tomorrow's need instead of relying on emergency power.
What can be applied
When each national market is too small, connect the dispatch problem. A shared grid and market rules can turn another country's surplus into your cheapest capacity.
Aftermath
World Bank reporting said regulators validated day-ahead-market tariffs in late 2025 and WAPP completed a synchronization trial across twelve countries. The next phase adds a liquidity enhancement fund to reduce payment risk in regional trade.
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