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| | {{CES Country | | {{CES Country |
| | |CES Country Name=Ghana | | |CES Country Name=Ghana |
| | |CES Country Capital=Accra | | |CES Country Capital=Accra |
| − | |CES Country Region=Africa | + | |CES Country Region Africa = Sub-Saharan Africa |
| | |CES Country Coordinates=5.5500° N, 0.2000° W | | |CES Country Coordinates=5.5500° N, 0.2000° W |
| | }} | | }} |
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| | = Introduction<br/> = | | = Introduction<br/> = |
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| | The sections below provide an overview of the following: | | The sections below provide an overview of the following: |
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| | *State of the electricity sector (2)<br/> | | *State of the electricity sector (2)<br/> |
| | *Institutions that govern the electricity sector (3) | | *Institutions that govern the electricity sector (3) |
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| | </div></div> | | </div></div> |
| | [[Ghana Energy Situation#toc|►Go to Top]] | | [[Ghana Energy Situation#toc|►Go to Top]] |
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| | = Electricity Situation<br/> = | | = Electricity Situation<br/> = |
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| − | 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. 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> |
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| | + | 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 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> (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]...). |
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| | [[Ghana Energy Situation#toc|►Go to Top]] | | [[Ghana Energy Situation#toc|►Go to Top]] |
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| | == Installed Generation Capacity<br/> == | | == Installed Generation Capacity<br/> == |
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| | <br/><u>'''Table 1: Installed Capacity in Ghana'''</u><br/> | | <br/><u>'''Table 1: Installed Capacity in Ghana'''</u><br/> |
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| − | {| cellspacing="0" cellpadding="0" border="0" align="center" style="width: 805px" | + | {| style="width: 805px" cellspacing="0" cellpadding="0" border="0" align="center" |
| | |- | | |- |
| − | | style="white-space: nowrap; width:142px" | | + | | style="white-space: nowrap; width:142px" | |
| | '''Name''' | | '''Name''' |
| | | | |
| − | | style="white-space: nowrap; width:69px" | | + | | style="white-space: nowrap; width:69px" | |
| | '''Owner''' | | '''Owner''' |
| | | | |
| − | | style="white-space: nowrap; width:69px" | | + | | style="white-space: nowrap; width:69px" | |
| | '''Phase Out (Year)''' | | '''Phase Out (Year)''' |
| | | | |
| − | | style="white-space: nowrap; width:95px" | | + | | style="white-space: nowrap; width:95px" | |
| | '''Installed Capacity (MW)''' | | '''Installed Capacity (MW)''' |
| | | | |
| − | | style="white-space: nowrap; width:99px" | | + | | style="white-space: nowrap; width:99px" | |
| | '''Reliable Capacity (MW)''' | | '''Reliable Capacity (MW)''' |
| | | | |
| − | | style="white-space: nowrap; width:60px" | | + | | style="white-space: nowrap; width:60px" | |
| | '''Fuel 1''' | | '''Fuel 1''' |
| | | | |
| − | | style="white-space: nowrap; width:54px" | | + | | style="white-space: nowrap; width:54px" | |
| | '''Fuel 2''' | | '''Fuel 2''' |
| | | | |
| | |- | | |- |
| − | | style="white-space: nowrap; width:142px" | | + | | style="white-space: nowrap; width:142px" | |
| | Akosombo<br/> | | Akosombo<br/> |
| | | | |
| − | | style="white-space: nowrap; width:69px" | | + | | style="white-space: nowrap; width:69px" | |
| | VRA | | VRA |
| | | | |
| − | | style="white-space: nowrap; width:69px" | | + | | style="white-space: nowrap; width:69px" | |
| | 2065 | | 2065 |
| | | | |
| − | | style="white-space: nowrap; width:95px" | | + | | style="white-space: nowrap; width:95px" | |
| | 1020 | | 1020 |
| | | | |
| − | | style="white-space: nowrap; width:99px" | | + | | style="white-space: nowrap; width:99px" | |
| | 900 | | 900 |
| | | | |
| − | | style="white-space: nowrap; width:60px" | | + | | style="white-space: nowrap; width:60px" | |
| | Hydro | | Hydro |
| | | | |
| − | | style="white-space: nowrap; width:54px" | | + | | style="white-space: nowrap; width:54px" | |
| | <br/> | | <br/> |
| | | | |
| | |- | | |- |
| − | | style="white-space: nowrap; width:142px" | | + | | style="white-space: nowrap; width:142px" | |
| | Kpong | | Kpong |
| | | | |
| − | | style="white-space: nowrap; width:69px" | | + | | style="white-space: nowrap; width:69px" | |
| | VRA | | VRA |
| | | | |
| − | | style="white-space: nowrap; width:69px" | | + | | style="white-space: nowrap; width:69px" | |
| | 2042 | | 2042 |
| | | | |
| − | | style="white-space: nowrap; width:95px" | | + | | style="white-space: nowrap; width:95px" | |
| | 160 | | 160 |
| | | | |
| − | | style="white-space: nowrap; width:99px" | | + | | style="white-space: nowrap; width:99px" | |
| | 140 | | 140 |
| | | | |
| − | | style="white-space: nowrap; width:60px" | | + | | style="white-space: nowrap; width:60px" | |
| | Hydro | | Hydro |
| | | | |
| − | | style="white-space: nowrap; width:54px" | | + | | style="white-space: nowrap; width:54px" | |
| | <br/> | | <br/> |
| | | | |
| | |- | | |- |
| − | | style="white-space: nowrap; width:142px" | | + | | style="white-space: nowrap; width:142px" | |
| | BUI | | BUI |
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| − | | style="white-space: nowrap; width:69px" | | + | | style="white-space: nowrap; width:69px" | |
| | BPA | | BPA |
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| − | | style="white-space: nowrap; width:69px" | | + | | style="white-space: nowrap; width:69px" | |
| | 2065 | | 2065 |
| | | | |
| − | | style="white-space: nowrap; width:95px" | | + | | style="white-space: nowrap; width:95px" | |
| | 260 | | 260 |
| | | | |
| − | | style="white-space: nowrap; width:99px" | | + | | style="white-space: nowrap; width:99px" | |
| | 120 | | 120 |
| | | | |
| − | | style="white-space: nowrap; width:60px" | | + | | style="white-space: nowrap; width:60px" | |
| | Hydro | | Hydro |
| | | | |
| − | | style="white-space: nowrap; width:54px" | | + | | style="white-space: nowrap; width:54px" | |
| | <br/> | | <br/> |
| | | | |
| | |- | | |- |
| − | | style="white-space: nowrap; width:142px" | | + | | style="white-space: nowrap; width:142px" | |
| | Aboadze T1 | | Aboadze T1 |
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| − | | style="white-space: nowrap; width:69px" | | + | | style="white-space: nowrap; width:69px" | |
| | VRA | | VRA |
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| − | | style="white-space: nowrap; width:69px" | | + | | style="white-space: nowrap; width:69px" | |
| | 2011 | | 2011 |
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| − | | style="white-space: nowrap; width:95px" | | + | | style="white-space: nowrap; width:95px" | |
| | 330 | | 330 |
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| − | | style="white-space: nowrap; width:99px" | | + | | style="white-space: nowrap; width:99px" | |
| | 300 | | 300 |
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| − | | style="white-space: nowrap; width:60px" | | + | | style="white-space: nowrap; width:60px" | |
| | NG | | NG |
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| − | | style="white-space: nowrap; width:54px" | | + | | style="white-space: nowrap; width:54px" | |
| | LCO | | LCO |
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| | |- | | |- |
| − | | style="white-space: nowrap; width:142px" | | + | | style="white-space: nowrap; width:142px" | |
| | Aboadze T2 (TICo) | | Aboadze T2 (TICo) |
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| − | | style="white-space: nowrap; width:69px" | | + | | style="white-space: nowrap; width:69px" | |
| | IPP<ref>Operated by VRA</ref><br/> | | IPP<ref>Operated by VRA</ref><br/> |
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| − | | style="white-space: nowrap; width:69px" | | + | | style="white-space: nowrap; width:69px" | |
| | 2013 | | 2013 |
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| − | | style="white-space: nowrap; width:95px" | | + | | style="white-space: nowrap; width:95px" | |
| | 220 | | 220 |
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| − | | style="white-space: nowrap; width:99px" | | + | | style="white-space: nowrap; width:99px" | |
| | 220 | | 220 |
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| − | | style="white-space: nowrap; width:60px" | | + | | style="white-space: nowrap; width:60px" | |
| | NG | | NG |
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| − | | style="white-space: nowrap; width:54px" | | + | | style="white-space: nowrap; width:54px" | |
| | LCO | | LCO |
| | | | |
| | |- | | |- |
| − | | style="white-space: nowrap; width:142px" | | + | | style="white-space: nowrap; width:142px" | |
| | Tema TT1PP | | Tema TT1PP |
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| − | | style="white-space: nowrap; width:69px" | | + | | style="white-space: nowrap; width:69px" | |
| | VRA | | VRA |
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| − | | style="white-space: nowrap; width:69px" | | + | | style="white-space: nowrap; width:69px" | |
| | 2014 | | 2014 |
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| − | | style="white-space: nowrap; width:95px" | | + | | style="white-space: nowrap; width:95px" | |
| | 126 | | 126 |
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| − | | style="white-space: nowrap; width:99px" | | + | | style="white-space: nowrap; width:99px" | |
| | 110 | | 110 |
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| − | | style="white-space: nowrap; width:60px" | | + | | style="white-space: nowrap; width:60px" | |
| | NG | | NG |
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| − | | style="white-space: nowrap; width:54px" | | + | | style="white-space: nowrap; width:54px" | |
| | LCO | | LCO |
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| | |- | | |- |
| − | | style="white-space: nowrap; width:142px" | | + | | style="white-space: nowrap; width:142px" | |
| | TEMA TT2PP | | TEMA TT2PP |
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| − | | style="white-space: nowrap; width:69px" | | + | | style="white-space: nowrap; width:69px" | |
| | IPP<ref>VRA has a ten percent stake in Aboadze 2</ref> | | IPP<ref>VRA has a ten percent stake in Aboadze 2</ref> |
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| − | | style="white-space: nowrap; width:69px" | | + | | style="white-space: nowrap; width:69px" | |
| | 2035 | | 2035 |
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| − | | style="white-space: nowrap; width:95px" | | + | | style="white-space: nowrap; width:95px" | |
| | 49.5 | | 49.5 |
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| − | | style="white-space: nowrap; width:99px" | | + | | style="white-space: nowrap; width:99px" | |
| | 45 | | 45 |
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| − | | style="white-space: nowrap; width:60px" | | + | | style="white-space: nowrap; width:60px" | |
| | NG | | NG |
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| − | | style="white-space: nowrap; width:54px" | | + | | style="white-space: nowrap; width:54px" | |
| | Diesel | | Diesel |
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| | |- | | |- |
| − | | style="white-space: nowrap; width:142px" | | + | | style="white-space: nowrap; width:142px" | |
| | OSONOR (CENIT) | | OSONOR (CENIT) |
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| − | | style="white-space: nowrap; width:69px" | | + | | style="white-space: nowrap; width:69px" | |
| | IPP | | IPP |
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| − | | style="white-space: nowrap; width:69px" | | + | | style="white-space: nowrap; width:69px" | |
| | 2037 | | 2037 |
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| − | | style="white-space: nowrap; width:95px" | | + | | style="white-space: nowrap; width:95px" | |
| | 126 | | 126 |
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| − | | style="white-space: nowrap; width:99px" | | + | | style="white-space: nowrap; width:99px" | |
| | 120 | | 120 |
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| − | | style="white-space: nowrap; width:60px" | | + | | style="white-space: nowrap; width:60px" | |
| | NG | | NG |
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| − | | style="white-space: nowrap; width:54px" | | + | | style="white-space: nowrap; width:54px" | |
| | LCO | | LCO |
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| | |- | | |- |
| − | | style="white-space: nowrap; width:142px" | | + | | style="white-space: nowrap; width:142px" | |
| | Tokaradi 3 | | Tokaradi 3 |
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| − | | style="white-space: nowrap; width:69px" | | + | | style="white-space: nowrap; width:69px" | |
| | VRA | | VRA |
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| − | | style="white-space: nowrap; width:69px" | | + | | style="white-space: nowrap; width:69px" | |
| | 2038 | | 2038 |
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| − | | style="white-space: nowrap; width:95px" | | + | | style="white-space: nowrap; width:95px" | |
| | 132 | | 132 |
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| − | | style="white-space: nowrap; width:99px" | | + | | style="white-space: nowrap; width:99px" | |
| | 120 | | 120 |
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| − | | style="white-space: nowrap; width:60px" | | + | | style="white-space: nowrap; width:60px" | |
| | NG | | NG |
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| − | | style="white-space: nowrap; width:54px" | | + | | style="white-space: nowrap; width:54px" | |
| | LCO | | LCO |
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| | |- | | |- |
| − | | style="white-space: nowrap; width:142px" | | + | | style="white-space: nowrap; width:142px" | |
| | Tema Mine Reserve Plant | | Tema Mine Reserve Plant |
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| − | | style="white-space: nowrap; width:69px" | | + | | style="white-space: nowrap; width:69px" | |
| | IPP<ref>VRA has a ten percent stake in Aboadze 2</ref> | | IPP<ref>VRA has a ten percent stake in Aboadze 2</ref> |
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| − | | style="white-space: nowrap; width:69px" | | + | | style="white-space: nowrap; width:69px" | |
| | 2032 | | 2032 |
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| − | | style="white-space: nowrap; width:95px" | | + | | style="white-space: nowrap; width:95px" | |
| | 80 | | 80 |
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| − | | style="white-space: nowrap; width:99px" | | + | | style="white-space: nowrap; width:99px" | |
| | 40 | | 40 |
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| − | | style="white-space: nowrap; width:60px" | | + | | style="white-space: nowrap; width:60px" | |
| | NG | | NG |
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| − | | style="white-space: nowrap; width:54px" | | + | | style="white-space: nowrap; width:54px" | |
| | Diesel | | Diesel |
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| | |- | | |- |
| − | | style="white-space: nowrap; width:142px" | | + | | style="white-space: nowrap; width:142px" | |
| | Sunon Asogli | | Sunon Asogli |
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| − | | style="white-space: nowrap; width:69px" | | + | | style="white-space: nowrap; width:69px" | |
| | IPP | | IPP |
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| − | | style="white-space: nowrap; width:69px" | | + | | style="white-space: nowrap; width:69px" | |
| | 2035 | | 2035 |
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| − | | style="white-space: nowrap; width:95px" | | + | | style="white-space: nowrap; width:95px" | |
| | 200 | | 200 |
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| − | | style="white-space: nowrap; width:99px" | | + | | style="white-space: nowrap; width:99px" | |
| | 180 | | 180 |
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| − | | style="white-space: nowrap; width:60px" | | + | | style="white-space: nowrap; width:60px" | |
| | NG | | NG |
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| − | | style="white-space: nowrap; width:54px" | | + | | style="white-space: nowrap; width:54px" | |
| | <br/> | | <br/> |
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| | Three IPPs have developed conventional generation units in Ghana, and more are planning to do so—including for renewable energy. The three IPPs operating in Ghana are: | | Three IPPs have developed conventional generation units in Ghana, and more are planning to do so—including for renewable energy. The three IPPs operating in Ghana are: |
| | + | |
| | *Takoradi International Company (TICo)—owned by the Abu Dhabi National Energy Company (TAQA) | | *Takoradi International Company (TICo)—owned by the Abu Dhabi National Energy Company (TAQA) |
| | *Sunon Asogli Power Plant—owned by the Shenzhen Group of China | | *Sunon Asogli Power Plant—owned by the Shenzhen Group of China |
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| | GridCo is responsible for the operation and maintenance (O&M) of all transmission lines throughout Ghana. To carry out this responsibility Grid Co is also in charge of: | | GridCo is responsible for the operation and maintenance (O&M) of all transmission lines throughout Ghana. To carry out this responsibility Grid Co is also in charge of: |
| | + | |
| | *Undertaking economic dispatch and transmission of electricity from wholesale suppliers (generating companies) to bulk customers and distribution companies | | *Undertaking economic dispatch and transmission of electricity from wholesale suppliers (generating companies) to bulk customers and distribution companies |
| | *Providing fair and non-discriminatory transmission services to all power market participants | | *Providing fair and non-discriminatory transmission services to all power market participants |
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| | ECG is responsible for distributing electricity in the southern part of Ghana. This includes the Ashanti, Central, Eastern, Greater Accra, Volta, and Western regions. Within those regions, ECG has 1.8 million customers and distributes 90 percent of all electricity sold in Ghana. In 2013, ECG’s customer base consisted of: | | ECG is responsible for distributing electricity in the southern part of Ghana. This includes the Ashanti, Central, Eastern, Greater Accra, Volta, and Western regions. Within those regions, ECG has 1.8 million customers and distributes 90 percent of all electricity sold in Ghana. In 2013, ECG’s customer base consisted of: |
| | + | |
| | *Lifeline consumers that consume less than 50kWh per month—they represent 51 percent of ECG’s customers, 6 percent of consumption, and 1 percent of sales revenue | | *Lifeline consumers that consume less than 50kWh per month—they represent 51 percent of ECG’s customers, 6 percent of consumption, and 1 percent of sales revenue |
| | *Non-residential consumers—these customers represent 12 percent of energy consumption and 56 percent of sales revenue | | *Non-residential consumers—these customers represent 12 percent of energy consumption and 56 percent of sales revenue |
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| | <div><br/><div id="ftn1">[[#_ftnref1|[1]]] “Energizing Economic Growth: Making the Power and Petroleum Sectors Rise to the Challenge.” World Bank, June 2013</div></div> | | <div><br/><div id="ftn1">[[#_ftnref1|[1]]] “Energizing Economic Growth: Making the Power and Petroleum Sectors Rise to the Challenge.” World Bank, June 2013</div></div> |
| | [[Ghana Energy Situation#toc|►Go to Top]] | | [[Ghana Energy Situation#toc|►Go to Top]] |
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| | = Key Challenges in the Energy Sector = | | = Key Challenges in the Energy Sector = |
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| | The electricity infrastructure in Ghana is not developed to its potential because of pressure on both the supply and demand sides. One study concluded that between 2013 and 2023 the Ghanaian power sector requires US$4 billion in investment to upgrade the transmission, distribution, and generation assets of the system.[https://energypedia.info/index.php?title=Ghana_Energy_Situation&action=edit&mode=wysiwyg#_ftn1 [1]] The electricity sector faces several key challenges: | | The electricity infrastructure in Ghana is not developed to its potential because of pressure on both the supply and demand sides. One study concluded that between 2013 and 2023 the Ghanaian power sector requires US$4 billion in investment to upgrade the transmission, distribution, and generation assets of the system.[https://energypedia.info/index.php?title=Ghana_Energy_Situation&action=edit&mode=wysiwyg#_ftn1 [1]] The electricity sector faces several key challenges: |
| | + | |
| | *'''Demand in outstripping electricity supply—'''this results in frequent load shedding and blackouts when demand exceeds available supply | | *'''Demand in outstripping electricity supply—'''this results in frequent load shedding and blackouts when demand exceeds available supply |
| | *'''The transmission system is in poor condition'''—outdated transmission equipment can become overloaded during periods of high demand | | *'''The transmission system is in poor condition'''—outdated transmission equipment can become overloaded during periods of high demand |
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| | Furthermore, the interruption in the WAGP has led to replacing natural gas with expensive light crude oil (LCO) in plants that can burn either NG or LCO. This has increased costs around US$27 million per month. This additional cost is not recovered through tariffs, increasing the distribution companies’ losses. In turn, this limits the funds available for investments in new generation and transmission system upgrades.[https://energypedia.info/index.php?title=Ghana_Energy_Situation&action=edit&mode=wysiwyg#_ftn2 [2]]<br/> | | Furthermore, the interruption in the WAGP has led to replacing natural gas with expensive light crude oil (LCO) in plants that can burn either NG or LCO. This has increased costs around US$27 million per month. This additional cost is not recovered through tariffs, increasing the distribution companies’ losses. In turn, this limits the funds available for investments in new generation and transmission system upgrades.[https://energypedia.info/index.php?title=Ghana_Energy_Situation&action=edit&mode=wysiwyg#_ftn2 [2]]<br/> |
| | + | |
| | + | <br/> |
| | + | |
| | + | Furthermore, Power Africa highlights the following five bottlenecks as the biggest issues facing Ghana's energy sector<ref name="Power Africa. (2018). Ghana Factsheet. Retrieved from: https://www.usaid.gov/sites/default/files/documents/1860/Ghana_-_November_2018_Country_Fact_Sheet.pdf">Power Africa. (2018). Ghana Factsheet. Retrieved from: https://www.usaid.gov/sites/default/files/documents/1860/Ghana_-_November_2018_Country_Fact_Sheet.pdf</ref>: |
| | + | |
| | + | *Poor financial health of the energy sector, and legacy debt <br/> |
| | + | *Limited creditworthiness of utilities<br/> |
| | + | *Excess generation capacity in the short-term, over-contracting of new plants, and a high cost of generation<br/> |
| | + | *Lack of transparent procurement framework<br/> |
| | + | *Lack of strong, transparent regulatory precedents to drive competition<br/> |
| | | | |
| | <br/> | | <br/> |
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| | The Ministry is responsible for the overall development and utilization of energy resources in Ghana. In the power sector the Ministry is charged with: | | The Ministry is responsible for the overall development and utilization of energy resources in Ghana. In the power sector the Ministry is charged with: |
| | + | |
| | *Formulating, implementing, and monitoring power sector policies | | *Formulating, implementing, and monitoring power sector policies |
| | *Providing power related technical and policy advice to the Government | | *Providing power related technical and policy advice to the Government |
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| | The EC was established in 1997 by the Energy Commission Act (Act 541) to provide technical advice to the Ministry on regulating, managing, developing, and utilizing energy resources in Ghana. The EC’s regulatory mandates are: | | The EC was established in 1997 by the Energy Commission Act (Act 541) to provide technical advice to the Ministry on regulating, managing, developing, and utilizing energy resources in Ghana. The EC’s regulatory mandates are: |
| | + | |
| | *Serving as the Government’s energy policy adviser by making national energy policy recommendations to the MoE | | *Serving as the Government’s energy policy adviser by making national energy policy recommendations to the MoE |
| | *Formulating national policies for developing and utilizing indigenous energy resources, in particular solar, wind, and biomass | | *Formulating national policies for developing and utilizing indigenous energy resources, in particular solar, wind, and biomass |
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| | The PURC is a fully independent body established under the Public Utilities Regulation Act (Act 538) responsible for regulating electricity and gas tariffs and enforcing customer service obligations of all public utilities. The PURC’s regulatory responsibilities for public utilities are to: | | The PURC is a fully independent body established under the Public Utilities Regulation Act (Act 538) responsible for regulating electricity and gas tariffs and enforcing customer service obligations of all public utilities. The PURC’s regulatory responsibilities for public utilities are to: |
| | + | |
| | *Provide guidelines on rates chargeable for utility services | | *Provide guidelines on rates chargeable for utility services |
| | *Examine and approve tariffs charged by public utilities | | *Examine and approve tariffs charged by public utilities |
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| | | | |
| | The National Energy Policy (Policy) outlines the Government’s policy direction for the energy sector. In the power sector the Policy: | | The National Energy Policy (Policy) outlines the Government’s policy direction for the energy sector. In the power sector the Policy: |
| | + | |
| | *Provides an overview of existing objectives and priorities, problems, and measures to address the problems | | *Provides an overview of existing objectives and priorities, problems, and measures to address the problems |
| | *Calls for encouraging renewable energy in the national energy mix through pricing and fiscal incentives | | *Calls for encouraging renewable energy in the national energy mix through pricing and fiscal incentives |
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| | The Government intends for the Policy to guide its efforts in achieving its objectives to: | | The Government intends for the Policy to guide its efforts in achieving its objectives to: |
| | + | |
| | *Secure long term fuel supplies | | *Secure long term fuel supplies |
| | *Reduce technical and commercial losses | | *Reduce technical and commercial losses |
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| | [[#_ftnref1|[1]]] “National Energy Policy.” Ghanaian Ministry of Energy. February 2010<br/> | | [[#_ftnref1|[1]]] “National Energy Policy.” Ghanaian Ministry of Energy. February 2010<br/> |
| | <div><br/></div><div> | | <div><br/></div><div> |
| − | {| cellspacing="1" cellpadding="5" border="1" style="width: 500px" | + | {| cellspacing="1" cellpadding="5" border="1" style="width: 800px" |
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| | In line with the National Energy Policy’s objective of achieving universal access by 2020 the Government of Ghana is operating two electrification programs: | | In line with the National Energy Policy’s objective of achieving universal access by 2020 the Government of Ghana is operating two electrification programs: |
| | + | |
| | *'''National Electrification Scheme (NES)'''—the Government’s principal initiative to extend the reach of reliable electricity supply to all parts of the country over a 30-year period from 1990 to 2020. The NES manages funds raised through the National Electrification levy to fund electrification projects | | *'''National Electrification Scheme (NES)'''—the Government’s principal initiative to extend the reach of reliable electricity supply to all parts of the country over a 30-year period from 1990 to 2020. The NES manages funds raised through the National Electrification levy to fund electrification projects |
| | *'''Self-Help Electrification Project (SHEP)'''—complementary electrification programs to support the NES. Under the SHEP, communities that are within 20 km from an existing 33kV or 11kV sub-transmission line can qualify for electrification if they procure all the power poles and have a minimum of 30 percent of the houses within the community wired. Once these conditions are met, the Government provides the conductors, pole-top arrangements, transformers and other installation requirements needed to provide supply to the community. | | *'''Self-Help Electrification Project (SHEP)'''—complementary electrification programs to support the NES. Under the SHEP, communities that are within 20 km from an existing 33kV or 11kV sub-transmission line can qualify for electrification if they procure all the power poles and have a minimum of 30 percent of the houses within the community wired. Once these conditions are met, the Government provides the conductors, pole-top arrangements, transformers and other installation requirements needed to provide supply to the community. |
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| | [https://energypedia.info/index.php?title=Ghana_Energy_Situation&action=edit&mode=wysiwyg#_ftnref1 [1]] “Ghana Country Action Plan for Sustainable Energy for All.” United Nations. June, 2012 | | [https://energypedia.info/index.php?title=Ghana_Energy_Situation&action=edit&mode=wysiwyg#_ftnref1 [1]] “Ghana Country Action Plan for Sustainable Energy for All.” United Nations. June, 2012 |
| | + | |
| | + | In 2018, the government will also distribute 12 million LED lamps throughout the country under a cost-recovery credit programme. This switch is expected to reduce the energy consumption by 50% from the current compact fluorescent bulbs’ usage. This move could help the government to sustain the national grid as also reduce energy cost for the Ghanaian consumers. <ref>https://www.ghanaweb.com/GhanaHomePage/NewsArchive/Light-for-all-Gov-t-to-distribute-12m-LED-lamps-nationwide-623916</ref> |
| | | | |
| | |} | | |} |
| − | <br/><div>[[Ghana_Energy_Situation#toc|►Go To Top]]</div><div><br/></div> | + | |
| | + | <br/>[[Ghana Energy Situation#toc|►Go To Top]] |
| | + | |
| | + | <br/> |
| | + | |
| | === Energy Sector Strategy and Development Plan (2010)<br/> === | | === Energy Sector Strategy and Development Plan (2010)<br/> === |
| | | | |
| | The Energy Sector Strategy and Development Plan (Plan) covers the Government’s strategies, program, and projects for developing: | | The Energy Sector Strategy and Development Plan (Plan) covers the Government’s strategies, program, and projects for developing: |
| | + | |
| | *Energy Sector Institutions | | *Energy Sector Institutions |
| | *Power Sub-sector | | *Power Sub-sector |
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| | [[#_ftnref1|[1]]] “Energy Sector Strategy and Development Plan.” Ministry of Energy. February, 2010<br/> | | [[#_ftnref1|[1]]] “Energy Sector Strategy and Development Plan.” Ministry of Energy. February, 2010<br/> |
| | | | |
| − | [[Ghana_Energy_Situation#toc|►Go to Top]] | + | [[Ghana Energy Situation#toc|►Go to Top]] |
| | | | |
| | === ECOWAS Renewable Energy Policy<br/> === | | === ECOWAS Renewable Energy Policy<br/> === |
| | | | |
| | The renewable energy policy of the Economic Community of Western African States (ECOWAS) is a regional document that calls for achieving renewable energy targets of 19 percent of installed capacity and 12 percent of generation by 2030 excluding large hydro. The Policy includes an implementation plan for achieving the targets based on six steps: | | The renewable energy policy of the Economic Community of Western African States (ECOWAS) is a regional document that calls for achieving renewable energy targets of 19 percent of installed capacity and 12 percent of generation by 2030 excluding large hydro. The Policy includes an implementation plan for achieving the targets based on six steps: |
| | + | |
| | *Securing a regional legal, institutional, and regulatory framework to develop consistency between the regional and the national renewable energy policies | | *Securing a regional legal, institutional, and regulatory framework to develop consistency between the regional and the national renewable energy policies |
| | *Ensuring each Member state has a National Renewable Energy Policy (NREP) with an associated implementation strategy and a five year rolling action plan<br/> | | *Ensuring each Member state has a National Renewable Energy Policy (NREP) with an associated implementation strategy and a five year rolling action plan<br/> |
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| | [[Ghana Energy Situation#toc|►Go to Top]] | | [[Ghana Energy Situation#toc|►Go to Top]] |
| | | | |
| | + | <br/> |
| | | | |
| | === Sustainable Energy for All Policy<br/> === | | === Sustainable Energy for All Policy<br/> === |
| | | | |
| − | The Sustainable Energy for All (SE4All) program works globally to extend energy’s reach in order to combat endemic poverty. In Ghana, the program is focused on improving access to modern fuels for cooking and productive uses of energy. SE4All intends to improve access to modern fuels through investments in LPG infrastructure and [[Inclusive_Energy_Distribution_Strategies_for_Energy_Access_Programmes_and_Companies|subsidizing distribution of LPG cylinders; as well as introducing improved biomass cookstoves]], marketing improved biomass cookstoves, and investing in small and medium sized enterprises that will manufacture improved cookstoves. SE4All will improve productive uses of energy through training on efficient energy use in agro-processing, fisheries, and salt production.[[#_ftn1|[1]]] | + | The Sustainable Energy for All (SE4All) program works globally to extend energy’s reach in order to combat endemic poverty. In Ghana, the program is focused on improving access to modern fuels for cooking and productive uses of energy. SE4All intends to improve access to modern fuels through investments in LPG infrastructure and [[Inclusive Energy Distribution Strategies for Energy Access Programmes and Companies|subsidizing distribution of LPG cylinders; as well as introducing improved biomass cookstoves]], marketing improved biomass cookstoves, and investing in small and medium sized enterprises that will manufacture improved cookstoves. SE4All will improve productive uses of energy through training on efficient energy use in agro-processing, fisheries, and salt production.[[#_ftn1|[1]]] |
| | <div><br/> | | <div><br/> |
| | ---- | | ---- |
| | <div id="ftn1"> | | <div id="ftn1"> |
| | [[#_ftnref1|[1]]] “Ghana Country Action Plan for Sustainable Energy for All.” United Nations. June, 2012<br/> | | [[#_ftnref1|[1]]] “Ghana Country Action Plan for Sustainable Energy for All.” United Nations. June, 2012<br/> |
| − | </div></div>
| |
| − | [[Ghana Energy Situation#toc|►Go to Top]] </div></div></div></div>
| |
| | | | |
| | + | [[Ghana Energy Situation#toc|►Go to Top]] |
| | | | |
| | == Law<br/> == | | == Law<br/> == |
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| | The Renewable Energy Act aims to support the use of renewable energy technologies to: | | The Renewable Energy Act aims to support the use of renewable energy technologies to: |
| | + | |
| | *Increase generation of electricity | | *Increase generation of electricity |
| | *Diversify supply of electricity | | *Diversify supply of electricity |
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| | To achieve these three objectives, the Act assigns responsibility for renewable energy to the Ministry, the EC and the PURC. The Act also includes specific measures to increase the use of renewable energy in Ghana. These measures include: | | To achieve these three objectives, the Act assigns responsibility for renewable energy to the Ministry, the EC and the PURC. The Act also includes specific measures to increase the use of renewable energy in Ghana. These measures include: |
| | + | |
| | *Licensing procedures for commercial activities in the renewable energy industry | | *Licensing procedures for commercial activities in the renewable energy industry |
| | *A feed-in tariff scheme for renewable energy | | *A feed-in tariff scheme for renewable energy |
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| | The PURC has published the Electricity Rate Setting Guidelines (the Guidelines) to clarify its process for setting electricity tariffs in Ghana. The Guidelines explain tariff setting methodology for: | | The PURC has published the Electricity Rate Setting Guidelines (the Guidelines) to clarify its process for setting electricity tariffs in Ghana. The Guidelines explain tariff setting methodology for: |
| | + | |
| | *'''Generation'''—distribution utilities competitively bid for long-term power sale and purchase contracts which are then approved by the PURC. The full cost of these contracts can be passed on to ratepayers. Excess electricity demand can be met in the spot market; however, the distribution company can only pass on a PURC approved spot market price | | *'''Generation'''—distribution utilities competitively bid for long-term power sale and purchase contracts which are then approved by the PURC. The full cost of these contracts can be passed on to ratepayers. Excess electricity demand can be met in the spot market; however, the distribution company can only pass on a PURC approved spot market price |
| | *'''Transmission'''—the PURC will set a transmission service charge (TSC) for electricity transmission services based on standard capital costs, standard O&M cots, and standard ancillary services costs | | *'''Transmission'''—the PURC will set a transmission service charge (TSC) for electricity transmission services based on standard capital costs, standard O&M cots, and standard ancillary services costs |
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| | [[Ghana Energy Situation#toc|►Go to Top]] | | [[Ghana Energy Situation#toc|►Go to Top]] |
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| | + | <br/> |
| | | | |
| | == Donor Coordination<br/> == | | == Donor Coordination<br/> == |
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| | [[Ghana Energy Situation#toc|►Go to Top]] | | [[Ghana Energy Situation#toc|►Go to Top]] |
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| | + | |
| | | | |
| | = Further Information = | | = Further Information = |
| | | | |
| | *[[Ghana - Information Sources|Ghana - Information Sources]] | | *[[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] (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] (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] (2016) |
| | + | |
| | + | <br/> |
| | | | |
| | [[Ghana Energy Situation#toc|►Go to Top]] | | [[Ghana Energy Situation#toc|►Go to Top]] |
| | | | |
| | <br/> | | <br/> |
| | + | |
| | | | |
| | = References<br/> = | | = References<br/> = |
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| | <br/> | | <br/> |
| | + | </div></div></div></div></div></div> |
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| − | [[Category:Ghana]]
| |
| | [[Category:Africa]] | | [[Category:Africa]] |
| | + | [[Category:Ghana]] |
Electricity in Ghana is a key determinant of the country’s continued economic growth, but supply has recently struggled to keep up with demand. Sustained demand growth of over 6 percent per year has strained the already overburdened electricity system. A major power crisis in 2006–7 is estimated to have reduced GDP growth by one percent.[1]
The Government of Ghana, with the help of international donors, has sought to strengthen the electricity sector in response to this challenge. The Government has outlined two key objectives for solving existing problems in the sector and allowing it to power sustainable, inclusive economic growth in the future: (i) double installed generation capacity by 2015; and (ii) extend universal access to electricity by 2020.[2]
The last section summarizes the efforts of donor agencies to improve outcomes in the electricity sector.
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.[1]
Ghana’s electricity generation has traditionally been dominated by hydro assets; however, in recent years hydro has been complemented by fossil fuel generation to meet rapidly growing demand. Total installed capacity to date is about 2,703.5MW. 50 percent of installed capacity comes from hydropower installations, with the rest coming from thermal plants burning Natural Gas (NG), Light Crude Oil (LCO), or diesel. The generating units are owned and operated primarily by the Volta River Authority (VRA); however, some IPPs have begun to enter the market.
The table below shows the mix of thermal generation assets and hydro generation assets in GHana. Each thermal generation unit can use NG, which is less expensive than LCO or diesel. However, due to an ongoing interruption in the West African Gas Pipeline (WAGP), all thermal units are currently operating using diesel or LCO (as listed in column ‘Fuel 2’) except for Sunon Asogli. Sunon Asogli can only run on NG.
VRA = Volta River Authority; BPA = Bui River Authority; IPP = Independent Power Producer
The VRA, established in 1961 by the Volta River Development Act (Act 46), is the state-owned electricity utility responsible for generating electricity in Ghana and supplying electricity in bulk to Ghana Grid Company Limited (GridCo). VRA owns and operates the Akosombo hydro power station, the Kpong hydro power station, the Aboadze T1 plant, the Tema TT1PP plant, and the Takoradi Thermal Power Plant (T3) located at Aboadze. VRA is also a minority joint partner with TAQA, which owns and operates the Takoradi International Power Company (TICO) thermal power plant also located at Aboadze. In addition to the plants that VRA owns, VRA also operates the Tema TT2PP plant and Mine Reserves plant for their respective owners.[1]
In recent years, VRA’s role in the Ghanaian power sector has evolved significantly from generation, transmission, and distribution to focus on generation. In 2006, VRA ceded its transmission responsibilities to GridCo. In May 2012, VRA restructured its distribution department, Northern Electricity Distribution (NED), into a semi-independent, wholly owned subsidiary company of VRA, known as Northern Electricity Distribution Company of Ghana (NEDCo). Finally, VRA’s responsibility for all hydro resources within the Volta Basin—which includes the White Volta, Black Volta, and Red Volta rivers—was curtailed by the Bui Power Authority (BPA). BPA, a state-owned enterprise, was created to develop a hydroelectric plant at Bui, which lies within on the Black Volta.[2]
Three IPPs have developed conventional generation units in Ghana, and more are planning to do so—including for renewable energy. The three IPPs operating in Ghana are:
In addition, a Government Consent and Support Agreement for a fourth IPP, Cenpower, received Parliamentary approval in October 2012.[1]
Over the last two decades the demand for electricity has been growing by 10-15 percent annually. The expanding commercial and industrial sectors are, together with the high population growth, the main drivers of electricity demand. Current demand forecasts project that electricity demand will continue to grow at least seven percent per year.
On the supply side, the power sector has consistently fallen short of capacity targets. In 2008, the Ghanaian Minister of Energy set a target of 3500MW of installed capacity by 2013.[1] At the end of 2013, the Ghanaian grid had 2,703.5MW of installed capacity, 200MW of which is idled due to a shortage of natui, and only 2295MW of dependable power. Assuming a reasonable reserve margin of 20 percent, Ghana would have required 2500MW of installed capacity in 2013.[2] Absent significant investments, the shortfalls will continue and become more severe.
Much of the country’s high voltage transmission system is ageing badly, and is increasingly unreliable. The majority of Ghana’s transmission system was built in the decades ago. The transmission system has not been significantly upgraded since construction. As a result, in recent years the transmission infrastructure has caused several total system collapses.
The electricity distribution sub-sector suffers from poor commercial and operational performance. Ghana’s two distribution companies do not recover their cost of distributing electricity through established electricity tariffs. In addition, high losses due to old and overloaded networks in many areas; and problems with metering, billing, electricity theft, and inadequate revenue collection generate additional losses for the distribution companies. This leads the distribution companies to fall behind on payments to the transmission grid and power generators.[1]
The electricity infrastructure in Ghana is not developed to its potential because of pressure on both the supply and demand sides. One study concluded that between 2013 and 2023 the Ghanaian power sector requires US$4 billion in investment to upgrade the transmission, distribution, and generation assets of the system.[1] The electricity sector faces several key challenges:
At present, the Ghanaian power sector cannot meet demand for electricity. An interruption in the West African Gas Pipeline (WAGP) has contributed to this problem. Poor rainfall in past years has also limited the capacity of Ghana’s large hydro generation units leading to blackouts.
Furthermore, the interruption in the WAGP has led to replacing natural gas with expensive light crude oil (LCO) in plants that can burn either NG or LCO. This has increased costs around US$27 million per month. This additional cost is not recovered through tariffs, increasing the distribution companies’ losses. In turn, this limits the funds available for investments in new generation and transmission system upgrades.[2]
Furthermore, Power Africa highlights the following five bottlenecks as the biggest issues facing Ghana's energy sector[6]:
The electricity sector is overseen by three interrelated institutions. The Ministry of Energy and Petroleum (the Ministry) and the Energy Commission (EC) are government agencies. The Public Utilities Regulatory Commission (PURC) is a government funded independent regulator.
The Ministry is responsible for the overall development and utilization of energy resources in Ghana. In the power sector the Ministry is charged with:
In addition, in 2010 the Ministry established a directorate to focus exclusively on developing and promoting renewable energy generation in Ghana.
The EC was established in 1997 by the Energy Commission Act (Act 541) to provide technical advice to the Ministry on regulating, managing, developing, and utilizing energy resources in Ghana. The EC’s regulatory mandates are:
The desired result of the efforts of the EC is to prepare the power sector for greater private sector participation.[1]
Ghana’s power sector is governed by a well-developed framework of laws, policies, and regulations, which the Government is continuing to develop. In particular, the EC is developing a distribution code as well as several regulations related to integrating renewable energy into the grid.
Energy policy provides the general setting for the Government’s approach to the sector. National policy is issued by the Ministry, with advice and counsel from the EC. Regional policy documents are also relevant to Ghana’s power sector.
The National Energy Policy (Policy) outlines the Government’s policy direction for the energy sector. In the power sector the Policy:
The Government intends for the Policy to guide its efforts in achieving its objectives to:
Collectively, the Policy aims to achieve its vision of Ghana becoming a net electricity exporter by 2015.[1]
