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Togo Approves Electricity Reform Bill to Attract Investors

by Iyabode Jane Aluko
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Togo Approves Electricity Reform Bill to Attract Investors

Togo has approved a draft electricity sector reform bill aimed at attracting private investment, increasing power supply and improving the financial sustainability of the industry amid rising electricity demand.

The draft legislation was approved by the Council of Ministers on October 6, 2026, according to the Togolese government.

The proposed law seeks to modernise regulations governing electricity generation, transmission and distribution while creating more opportunities for independent power producers and private investors.

Under the proposed framework, provisions would be introduced for electricity storage, wider access to power networks for eligible consumers and third-party operators, and increased self-generation and consumption.

Renewable energy producers would also be allowed to supply surplus electricity to the national grid, subject to the proposed framework.

The reforms would give businesses operating in special economic zones greater flexibility to obtain electricity through their own generation facilities or direct agreements with domestic and regional power producers.

The government expects the changes to improve supply reliability, manage energy costs and enhance the competitiveness of the country’s industrial zones.

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The initiative comes as electricity demand continues to rise. Projections by national utility Compagnie Énergie Électrique du Togo indicate that consumption could increase from 2,085 gigawatt-hours in 2024 to 2,753 GWh by 2030, representing growth of nearly 32 per cent.

Peak electricity demand reached 360 megawatts in the first quarter of 2026, while annual demand growth is estimated at about 10 per cent, according to Togo First.

To meet the growing demand, Togo is considering additional generation capacity, including a proposed 120 MW dual-fuel thermal power plant.

Renewable energy accounted for 41.24 per cent of the country’s 327 MW installed electricity generation capacity in 2024.

The draft legislation also provides for the gradual integration of isolated electricity networks into the national grid, stronger consumer protection measures, the deployment of smart meters and improved regional electricity trading.

The government says the proposed measures are intended to improve service delivery and support its target of achieving universal electricity access by 2030.

However, the approval of the draft bill is only an initial legislative step. Its implementation will depend on the final law, the accompanying regulations and the willingness of investors to commit funds to new electricity infrastructure.

If implemented effectively, the reforms could help diversify Togo’s electricity supply, strengthen energy security and create investment opportunities for domestic and regional power producers as demand increases.

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