A locally financed run of river hydropower scheme on the Nkam River is being proposed to close Menoua’s energy gap while driving agriculture, industry and eco tourism through a participatory green economy model.
An integrated hydropower project proposed for the Menoua Division in Cameroon could generate up to 77 gigawatt hours of electricity annually and deliver an estimated FCFA 134 billion in net profits over 25 years, according to project outlines made public by its promoters.
The project, designed around a small scale run of river hydropower plant on the Nkam River, seeks to address Menoua’s chronic electricity deficit while stimulating agricultural production, industrial growth and tourism through a community driven and environmentally sustainable model.
Menoua, which covers about 1,380 square kilometres with an estimated population of over 370,000 inhabitants and Dschang as its administrative centre, currently faces an energy shortfall of between 15 and 20 megawatts. Total electricity demand is estimated at 45 megawatts, with urban areas accounting for 35 megawatts and rural communities around 10 megawatts. Rural electrification stands at roughly 55 percent, forcing households and businesses to rely heavily on diesel generators.
The proposed solution is the construction of a 10 megawatt hydropower plant complemented by a 3 megawatt solar facility to support production during the dry season. Annual output is projected at 65 GWh from hydropower and 12 GWh from solar energy, bringing total production to 77 GWh, equivalent to about 60 percent of Menoua’s current electricity needs.
Central to the project is the rehabilitation and optimisation of the Ntsinkop substation. Plans indicate an increase in distribution capacity from 15 to 25 megawatts through the installation of high efficiency 33 kV transformers and a ring network designed to reduce technical losses to about eight percent. This upgrade would extend electricity supply to 10 additional villages, bringing the total number of connected villages to 30.
Financial projections are based on a guaranteed purchase tariff of 60 FCFA per kilowatt hour under a power purchase agreement with ENEO or the State, alongside an assumed annual demand growth of three percent driven by urbanisation and industrialisation. With operating costs estimated at 25 percent of revenues, annual income in the first year is projected at about FCFA 4.62 billion. Over 25 years, total revenues could reach FCFA 178 billion, with net profits estimated at FCFA 134 billion. The return on investment period is projected at between nine and 12 years, depending on the level of community participation.
The project relies heavily on participatory financing. Local communities are expected to contribute 30 percent of the capital through land contributions or local labour valued as shares, with entry set at 10,000 FCFA per share and a cap of five shares per person. The Menoua diaspora is expected to provide 40 percent through an online investment platform, with incentives including electricity bill discounts for family members. Private investors, including local agro industrial firms and international green funds, would contribute the remaining 30 percent, with a minimum ticket of FCFA 5 million.
Returns for investors are structured to balance financial gains and social impact. Private investors are promised a guaranteed annual return of seven to eight percent over nine to 12 years, indexed to electricity production. Communities would receive a mix of cash returns, electricity credits and priority access to jobs, while diaspora investors would benefit from cash returns and partial tax exemptions. Ten percent of profits would be set aside in a reserve fund for maintenance and future expansion.
Governance arrangements include the creation of a local steering committee bringing together village representatives, councils, traditional authorities, cooperatives and decentralised State services, as well as a community monitoring committee to track employment, electrification outcomes and environmental protection. Social and productive tariffs are also planned to support artisans, small businesses and agro processing units.
Beyond electricity supply, the project outlines significant economic spillovers. In agriculture, electrified irrigation could open up an additional 500 hectares for cultivation, reduce post harvest losses by 40 percent through cold storage, and boost productivity through electric mills, creating an estimated 1,200 seasonal jobs. Industrial benefits include cutting energy costs by half for about 50 small and medium sized enterprises and attracting new agro processing units. Tourism plans focus on eco tourism around the Nkam waterfalls, rural lodges powered by green energy and cultural festivals supported by reliable public lighting.
Public institutions are expected to play a supporting role. The Rural Electrification Agency would subsidise up to 30 percent of rural connection costs and train local technicians, while FEICOM could provide loan guarantees for agricultural cooperatives and finance access roads. The Ministry of Energy would be responsible for simplifying authorisation procedures and guaranteeing the electricity tariff over a minimum period.
Project promoters acknowledge potential challenges, including climate variability, land disputes and mobilising diaspora financing. Proposed mitigation measures include water retention basins, hybrid solar systems, mediation through traditional authorities and compensation in project shares.
If implemented as planned, the initiative could position Menoua as a reference for decentralised green energy and inclusive local development in Central Africa, provided public authorities and communities fully commit to the model.
By Sob Amyn Fouejeu
Project summary
| Area | Key Details |
|---|---|
| Project Name | Integrated Menoua Hydropower Project (Nkam–Ntsinkop) |
| Location | Menoua Division, West Region, Cameroon |
| Objective | Close the energy deficit while boosting agriculture, industry and tourism through a participatory and sustainable model |
| Installed Capacity | 10 MW hydropower + 3 MW solar (dry season support) |
| Annual Energy Production | 77 GWh per year (65 GWh hydro, 12 GWh solar) |
| Current Energy Demand | 45 MW total demand with a deficit of 15–20 MW |
| Coverage Impact | Supplies about 60 percent of current Menoua electricity needs |
| Infrastructure Upgrade | Ntsinkop substation upgraded from 15 MW to 25 MW distribution capacity |
| Rural Electrification | Expansion from 20 to 30 villages connected |
| Tariff Assumption | 60 FCFA per kWh (guaranteed purchase agreement) |
| Annual Revenue (Year 1) | Approximately FCFA 4.62 billion |
| Total Revenue (25 years) | Approximately FCFA 178 billion |
| Net Profit (25 years) | Approximately FCFA 134 billion |
| Return on Investment | Estimated 9–12 years |
| Financing Structure | Communities 30%, Diaspora 40%, Private investors 30% |
| Investor Returns | 5–8% annually depending on investor category |
| Governance Model | Local steering committee and community monitoring bodies |
| Agricultural Impact | 500 ha irrigated, 40% reduction in post harvest losses, 1,200 seasonal jobs |
| Industrial Impact | 50 SMEs benefit from 50% energy cost reduction |
| Tourism Impact | Eco tourism around Nkam waterfalls, 20 rural lodges, festivals attracting 5,000 visitors annually |
| Public Sector Support | AER subsidies, FEICOM guarantees, Ministry of Energy tariff and regulatory backing |
| Key Risks | Climate variability, land disputes, diaspora mobilisation |
| Mitigation Measures | Hybrid solar systems, traditional mediation, share based compensation |
