São Tomé and Príncipe's energy consumption

Official Name: Democratic Republic of São Tomé and Príncipe.

Summary: São Tomé and Príncipe is a small African country that may become relevant in the oil sphere.

São Tomé and Príncipe is the second-smallest country in Africa and consists of two main islands, São Tomé and Príncipe. It is located in the Gulf of Guinea, 186 miles (300 kilometers) from the West African mainland, and is crossed by the equator. As of 2024, it had a population of about 223,561 people. São Tomé and Príncipe became independent of Portugal in 1975, and the imprint of colonization is still visible on the islands. However, its form of government is a multiparty democratic republic.

Cocoa beans are the most important product for export, although both their production and their price have declined in recent years. Economic diversification is being encouraged in order to diminish the country’s dependence on cocoa bean crops, and there is some potential for the development of a petroleum industry.

Currently, São Tomé and Príncipe is a net energy-importing country, importing all its fuels. There are no refineries, and oil consumption, equivalent to the importation of oil products (from Angola), was around 1,000 barrels per day in 2022.

Candles, Kerosene, and Biomass

Many households in São Tomé and Príncipe rely on candles and kerosene for lighting, as well as biomass for cooking. It is estimated that as of 2022, about 78 percent of the population had access to electricity. Supply is unreliable, with frequent blackouts. The total installed capacity was about 30 megawatts, from both diesel and hydroelectric plants. It is important to note, however, that the total production is significantly less than the correspondent capacity, given the breakdowns of the system and the poor condition of transmission lines.

Although much of the electricity is provided by the state-owned company Empresa de Agua e Electricidade (EMAE), there are some isolated supply systems. As in the case of other island economies, generation costs are high because fuel used in thermal plants must be imported and transported. Also, power transmission is subject to illegal connections.

Several initiatives are being taken in São Tomé and Príncipe to prepare the way for managing a future oil industry, including laws to prevent oil-inspired corruption. For instance, in 2004, the Abuja Joint Declaration Regarding Transparency and Governance in the JDZ was signed. It was designed to avoid certain opaque practices that frequently occur in oil negotiations and licensing. Another example corresponds to the Oil Revenue Management Law, also enacted in 2004, which, among other things, requires the creation of a future fund to ensure that the São Toméan people will continue to benefit from oil revenues even after the oil resources are depleted and requires that two audits be conducted annually with the participation of a reputable international audit firm. In 2021, São Tomé and Príncipe submitted a revised version of its 2015 Nationally Determined Contributions (NDC) agreement to the United Nations. As part of this updated NDC, the country raised its conditional emissions target, pledging to reduce emissions by nearly doubling renewable energy generation, improving energy efficiency, and reducing the carbon footprint of its transportation sector with the aim of cutting domestic greenhouse gas emissions by 27 percent by 2030. However, there are those who believe that such initiatives will not be enough to secure the islands’ economic future and that oil exploration will pose serious challenges to São Tomé and Príncipe on the road to sustainable development.

Bibliography

Ritchie, Hannah and Max Roser. “São Tomé and Príncipé: Energy Country Profile.” Our World in Data, 2020, ourworldindata.org/energy/country/sao-tome-and-principe. Accessed 6 Aug. 2024.

"São Tomé and Príncipé." CIAWorld Factbook, 30 July 2024, https://www.cia.gov/the-world-factbook/countries/sao-tome-and-principe. Accessed 6 Aug. 2024.

“São Tomé and Príncipé.” United Nations Development Programme, 2024, climatepromise.undp.org/what-we-do/where-we-work/sao-tome-and-principe. Accessed 6 Aug. 2024.