Ghana Energy Situation - Revision history

Johanna: /* Electricity Situation */

2020-03-10T10:43:25Z

‎Electricity Situation

Johanna: /* Electricity Situation */

2020-03-10T10:38:00Z

‎Electricity Situation

Johanna: /* Electricity Situation */

2020-03-10T10:10:39Z

‎Electricity Situation

Show changes

Ahmed El-Sherbini: /* Further Information */

2020-03-09T14:17:52Z

‎Further Information

Ahmed El-Sherbini: /* Further Information */

2020-03-09T14:16:34Z

‎Further Information

Ahmed El-Sherbini at 14:15, 9 March 2020

2020-03-09T14:15:33Z

Ahmed El-Sherbini: /* Electricity Situation */

2020-03-09T14:10:53Z

‎Electricity Situation

Ahmed El-Sherbini at 14:12, 21 January 2020

2020-01-21T14:12:24Z

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Ranisha at 19:56, 10 July 2018

2018-07-10T19:56:14Z

Ranisha at 19:55, 10 July 2018

2018-07-10T19:55:19Z

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 = Electricity Situation<br/> =
-The Ghanaian electricity sector is in a period of transition. The Government is attempting to attract more private sector participation in the sector. Independent Power Producers (IPPs) have begun to enter the electricity generation market, previously dominated by the public sector. <span style="color:#FF0000">The state still owns both electricity distribution companies, as well as the electricity transmission company. </span>Key problems in the sector included demand outstripping supply, poor state of transmission and distribution, and tariffs that have not covered costs.<br/>
+The Ghanaian electricity sector is in a period of transition. The Government is attempting to attract more private sector participation in the sector. Independent Power Producers (IPPs) have begun to enter the electricity generation market, previously dominated by the public sector. The state still owns both electricity distribution companies, as well as the electricity transmission company. Key problems in the sector included demand outstripping supply, poor state of transmission and distribution, and tariffs that have not covered costs.<ref name="https://www.cgdev.org/sites/default/files/electricity-situation-ghana-challenges-and-opportunities.pdf p. 16">https://www.cgdev.org/sites/default/files/electricity-situation-ghana-challenges-and-opportunities.pdf p. 16ff</ref>
 In 2016-17, severe electricity rationing, so-called "[https://en.wikipedia.org/wiki/Dumsor dumsor]", were necessary. The government over-reacted, and let several generation licences&nbsp;to IPPs with a long-term commitment to high prices (43 power purchasing agreements!). Most of the power purchased based on these agreements were take-or-pay based contracts, Ghana has to pay even for power not <span style="font-size: 10pt;  line-height: 107%;  font-family: Arial, sans-serif;  background: white">consumed</span>. This led to an over-supply, and an inability to charge the market for the cost of generation. Within five years, Ghana turned from a country struggling with producing enough power to meet demand, to a country struggling with excess power production at a high price: Producing almost double the needed demand, Ghana pays annually over 500 million USD for power not even used. Lessons learnt include: flexible contracts, currency risks protection, corruption, transparency, political expediency.<ref name="Sarkodie, S.A. (2019). Lessons to be learnt from Ghana's excess electricity shambles. Retrieved from: https://theconversation.com/lessons-to-be-learnt-from-ghanas-excess-electricity-shambles-121257">Sarkodie, S.A. (2019). Lessons to be learnt from Ghana's excess electricity shambles. Retrieved from: https://theconversation.com/lessons-to-be-learnt-from-ghanas-excess-electricity-shambles-121257</ref>&nbsp;(for more information, [https://theconversation.com/lessons-to-be-learnt-from-ghanas-excess-electricity-shambles-121257 please refer to this article: "Lessons to be learnt from Ghana’s excess electricity shambles", August 5, 2019]...).
 [[Ghana Energy Situation#toc|►Go to Top]]

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 <br/>
 = Electricity Situation<br/> =
-The Ghanaian electricity sector is in a period of transition. The Government is attempting to attract more private sector participation in the sector. Independent Power Producers (IPPs) have begun to enter the electricity generation market, previously dominated by the public sector. The state still owns both electricity distribution companies, as well as the electricity transmission company. Key problems in the sector include demand outstripping supply, poor state of transmission and distribution, and tariffs that have not covered costs.<br/>
+The Ghanaian electricity sector is in a period of transition. The Government is attempting to attract more private sector participation in the sector. Independent Power Producers (IPPs) have begun to enter the electricity generation market, previously dominated by the public sector. <span style="color:#FF0000">The state still owns both electricity distribution companies, as well as the electricity transmission company. </span>Key problems in the sector included demand outstripping supply, poor state of transmission and distribution, and tariffs that have not covered costs.<br/>
-Due to such issues in Ghana's energy sector, during the period 2014-2017, the country contracted three emergency power producers, and the government signed 43 power purchasing agreements. Most of the power purchased based on these agreements were take-or-pay based <span style="font-size: 10pt;  line-height: 107%;  font-family: Arial, sans-serif;  background: white">contracts</span>, which obligates Ghana to pay money for whatever amount of power produced, even if not <span style="font-size: 10pt;  line-height: 107%;  font-family: Arial, sans-serif;  background: white">consumed</span>. Consequently, within five years, Ghana turned from a country struggling with producing enough power to meet demand, to a country struggling with excess power production (for almost double the needed demand!), and a heavy bill to pay for this un-consumed power (annually over 500 million USD!).<ref name="Sarkodie, S.A. (2019). Lessons to be learnt from Ghana's excess electricity shambles. Retrieved from: https://theconversation.com/lessons-to-be-learnt-from-ghanas-excess-electricity-shambles-121257">Sarkodie, S.A. (2019). Lessons to be learnt from Ghana's excess electricity shambles. Retrieved from: https://theconversation.com/lessons-to-be-learnt-from-ghanas-excess-electricity-shambles-121257</ref>&nbsp;(for more information, [https://theconversation.com/lessons-to-be-learnt-from-ghanas-excess-electricity-shambles-121257 please refer to this article: "Lessons to be learnt from Ghana’s excess electricity shambles", August 5, 2019]...).
+In 2016-17, severe electricity rationing, so-called "[https://en.wikipedia.org/wiki/Dumsor dumsor]", were necessary. The government over-reacted, and let several generation licences&nbsp;to IPPs with a long-term commitment to high prices (43 power purchasing agreements!). Most of the power purchased based on these agreements were take-or-pay based contracts, Ghana has to pay even for power not <span style="font-size: 10pt;  line-height: 107%;  font-family: Arial, sans-serif;  background: white">consumed</span>. This led to an over-supply, and an inability to charge the market for the cost of generation. Within five years, Ghana turned from a country struggling with producing enough power to meet demand, to a country struggling with excess power production at a high price: Producing almost double the needed demand, Ghana pays annually over 500 million USD for power not even used. Lessons learnt include: flexible contracts, currency risks protection, corruption, transparency, political expediency.<ref name="Sarkodie, S.A. (2019). Lessons to be learnt from Ghana's excess electricity shambles. Retrieved from: https://theconversation.com/lessons-to-be-learnt-from-ghanas-excess-electricity-shambles-121257">Sarkodie, S.A. (2019). Lessons to be learnt from Ghana's excess electricity shambles. Retrieved from: https://theconversation.com/lessons-to-be-learnt-from-ghanas-excess-electricity-shambles-121257</ref>&nbsp;(for more information, [https://theconversation.com/lessons-to-be-learnt-from-ghanas-excess-electricity-shambles-121257 please refer to this article: "Lessons to be learnt from Ghana’s excess electricity shambles", August 5, 2019]...).
 [[Ghana Energy Situation#toc|►Go to Top]]

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 *[[Ghana - Information Sources|Ghana - Information Sources]]
 *USAID Power Africa: [https://www.usaid.gov/sites/default/files/documents/1860/Ghana_-_November_2018_Country_Fact_Sheet.pdf Ghana Factsheet]
-*[https://theconversation.com/lessons-to-be-learnt-from-ghanas-excess-electricity-shambles-121257 Lessons to be learnt from Ghana’s excess electricity shambles]
+*[https://theconversation.com/lessons-to-be-learnt-from-ghanas-excess-electricity-shambles-121257 Lessons to be learnt from Ghana’s excess electricity shambles]&nbsp;(2019)
-*[http://documents.worldbank.org/curated/en/293271531711852754/pdf/GHANA-ENERGY-PAD-06252018.pdf Project Appraisal Document on a Proposed Credit in the Amount of SDR 14.2 Million (US$20.0 Million Equivalent) to the Republic of Ghana for the Ghana Energy Sector Transformation Initiative Project]
+*[http://documents.worldbank.org/curated/en/293271531711852754/pdf/GHANA-ENERGY-PAD-06252018.pdf Project Appraisal Document on a Proposed Credit in the Amount of SDR 14.2 Million (US$20.0 Million Equivalent) to the Republic of Ghana for the Ghana Energy Sector Transformation Initiative Project]&nbsp;(2018)
-*[https://openknowledge.worldbank.org/bitstream/handle/10986/23970/9781464808005.pdf?sequence=2&isAllowed=y Independent Power Projects in Sub-Saharan Africa: Lessons from Five Key Countries]
+*[https://openknowledge.worldbank.org/bitstream/handle/10986/23970/9781464808005.pdf?sequence=2&isAllowed=y Independent Power Projects in Sub-Saharan Africa: Lessons from Five Key Countries]&nbsp;(2016)
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 = Further Information =
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 *[[Ghana - Information Sources|Ghana - Information Sources]]
 *USAID Power Africa: [https://www.usaid.gov/sites/default/files/documents/1860/Ghana_-_November_2018_Country_Fact_Sheet.pdf Ghana Factsheet]
 *[https://theconversation.com/lessons-to-be-learnt-from-ghanas-excess-electricity-shambles-121257 Lessons to be learnt from Ghana’s excess electricity shambles]
-[https://theconversation.com/lessons-to-be-learnt-from-ghanas-excess-electricity-shambles-121257 Lessons to be learnt from Ghana’s excess electricity shambles]
+*[http://documents.worldbank.org/curated/en/293271531711852754/pdf/GHANA-ENERGY-PAD-06252018.pdf Project Appraisal Document on a Proposed Credit in the Amount of SDR 14.2 Million (US$20.0 Million Equivalent) to the Republic of Ghana for the Ghana Energy Sector Transformation Initiative Project]
 *[https://openknowledge.worldbank.org/bitstream/handle/10986/23970/9781464808005.pdf?sequence=2&isAllowed=y Independent Power Projects in Sub-Saharan Africa: Lessons from Five Key Countries]
-−
-[http://documents.worldbank.org/curated/en/293271531711852754/pdf/GHANA-ENERGY-PAD-06252018.pdf Project Appraisal Document on a Proposed Credit in the Amount of SDR 14.2 Million (US$20.0 Million Equivalent) to the Republic of Ghana for the Ghana Energy Sector Transformation Initiative Project]<br/>
-−
-−
-[https://openknowledge.worldbank.org/bitstream/handle/10986/23970/9781464808005.pdf?sequence=2&isAllowed=y Independent Power Projects in Sub-Saharan Africa: Lessons from Five Key Countries]<br/>
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 = References<br/> =

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 = Electricity Situation<br/> =
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 = Key Challenges in the Energy Sector =
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 *[[Ghana - Information Sources|Ghana - Information Sources]]
 *USAID Power Africa: [https://www.usaid.gov/sites/default/files/documents/1860/Ghana_-_November_2018_Country_Fact_Sheet.pdf Ghana Factsheet]
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 </div></div></div></div></div></div>
 [[Category:Africa]]

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 |CES Country Name=Ghana
 |CES Country Capital=Accra
-|CES Country Region Sub-Saharan Africa = Sub-Saharan Africa
+|CES Country Region Africa = Sub-Saharan Africa
 |CES Country Coordinates=5.5500° N, 0.2000° W
 }}
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 [[Category:Ghana]]