Distribution
Togo cabinet clears bill to let private investors into power sector
By: OrePulse
Togo's Council of Ministers approved a draft law on October 6 to open the country's electricity market to greater private investment, the government said. The measure is intended to improve the financial viability of the power sector.
The draft legislation would modernize Togo's existing electricity laws and apply across the generation, transmission and distribution segments of the sector, according to the Council of Ministers. Officials said the aim is to create conditions that make it easier for private capital to enter the market.
Among its provisions, the bill establishes a legal framework for electricity storage, a category not previously addressed in Togolese law, the government said. It also introduces a new category of eligible customers and allows third-party operators to gain access to the national electricity grid.
The draft law further strengthens the legal standing of independent power producers operating in Togo, according to the Council of Ministers. It sets out clearer rules covering self-generation and self-consumption of electricity, as well as provisions for feeding surplus renewable power back into the grid.
Under the bill, companies operating within Togo's special economic zones would be permitted to diversify how they source electricity. They could do so either by generating their own power or by entering into direct supply contracts with producers based in Togo or elsewhere in the region, the government said.
Authorities said the changes are designed to improve the availability of electricity, reduce operating costs for businesses, and make Togo's industrial zones more attractive to investors.
The reform comes as the country faces rapidly rising electricity demand. CEET, Togo's state utility, projects that national consumption will increase from 2,085 GWh in 2024 to 2,753 GWh by 2030, a rise of about 32 percent over that period, according to the utility's figures.
CEET also recorded peak electricity demand of 360 MW in the first quarter of 2026. The government estimates that annual demand growth is currently running at roughly 10 percent.
To help meet this rising demand, authorities are evaluating the construction of a 120-MW dual-fuel thermal power plant. The project has attracted support from the World Bank, the government said.
On the generation side, renewable energy sources accounted for 41.24 percent of Togo's total installed electricity generation capacity of 327 MW in 2024, according to official figures.
Officials said that, if adopted, the draft law is expected to help attract private investment into the power sector, strengthen the country's energy security, and support Togo's stated goal of achieving universal access to electricity by 2030. The Council of Ministers presented the legislation as part of a broader effort to modernize the legal and regulatory framework underpinning Togo's electricity sector.