New York, New York
[Remarks as Prepared]
DEPUTY ADMINISTRATOR ISOBEL COLEMAN: Good afternoon, everyone. And, thank you all for joining this discussion about the transformative role of energy in driving economic growth – in West Africa and around the world.
A recent study from Our World in Data, a reputable nonprofit research consortium, reinforces the direct positive correlation between electricity and income. Most notably, the data shows that high-income, low-energy countries simply do not exist. Economic growth requires available, affordable, and reliable electricity. Access to energy goes hand in hand with economic development. And, when we invest in expanding access to energy, we create the conditions for transformative economic growth.
African-led approaches are indispensable to achieve this transformation.
Just this week, Power Africa signed a Memorandum of Understanding with the African Union Development Agency in support of their Continental Power System Master Plan, which lays out a framework for the creation of an African Single Electricity Market, and ultimately, achieving universal electrification across the African continent. This plan is the culmination of years of analysis, and reflects African ingenuity, creativity, and leadership. And, the plan prioritizes the creation of strong, reliable, and interconnected transmission networks, and of promoting the effective governance of regional power pools.
The West Africa Power Pool is a shining example of efficient energy trading that lowers overall costs. West Africa is uniquely positioned to meet its energy demands. The region boasts vast natural resources and has made significant investments in the infrastructure necessary to facilitate cross-border energy trade.
In 2023, twelve West African countries achieved a monumental milestone by uniting their national power grids. This historic achievement is expected to generate up to $32 billion in trade benefits for ECOWAS countries over the next decade.
The U.S. government has been a strong supporter of the West Africa Power Pool since its inception over two decades ago. In particular, Power Africa has been deeply involved, providing critical support to advance cross-border transmission lines, facilitate regional power purchase agreements, and enhance bilateral power trade. Over the past five years, our shared efforts have helped boost regional electricity trade by roughly ten percent a year, totaling four terawatt-hours of additional regional power trade.
The synchronized electricity networks of Benin, Burkina Faso, Côte d’Ivoire, Ghana, Guinea, Liberia, Mali, Mauritania, Senegal, Sierra Leone, The Gambia, and Togo have laid the foundation for a regional energy market. This synchronization allows cleaner, more cost-effective energy to be traded across borders, reducing dependency on expensive, polluting sources like diesel generators, while expanding access to reliable electricity.
We are enthusiastic about the positive impact the West Africa Power Pool is poised to create as it bolsters the region’s energy security, reliability, and affordability.
Power pools like this help lower electricity costs, reduce losses by evacuating excess energy to areas of need, and strengthen regional collaboration. Studies show that when compared to domestic-generation, instituting regional power markets is associated with a 20 percent drop in the average cost of electricity – freeing up significant resources to address other pressing global needs. Regional cooperation, cross-border energy trade, and public-private partnerships in infrastructure will be precursors to meeting West Africa’s energy needs and driving the broad economic growth the continent deserves.
USAID looks forward to continuing to collaborate with all of you in pursuit of that goal.
We have an exciting discussion ahead, so without further ado, I’m honored to introduce the CEO of the Millennium Challenge Corporation, Alice Albright.
Thank you.
USAID at UNGA 2024
