|
|
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| {| cellspacing="1" cellpadding="5" border="0" align="right" style="width: 400px; font-size: 14px" | | {| cellspacing="1" cellpadding="5" border="0" align="right" style="width: 400px; font-size: 14px" |
| |- | | |- |
− | ! scope="col" colspan="4" style="width: 602px; text-align: center; background-color: rgb(79, 129, 189)" | <font color="#ffffff" class="Apple-style-span"><span style="line-height: 20px" class="Apple-style-span">Republic of Ghana</span></font> | + | ! style="width: 602px; text-align: center; background-color: rgb(79, 129, 189)" colspan="4" scope="col" | <font color="#ffffff" class="Apple-style-span"><span class="Apple-style-span" style="line-height: 20px">Republic of Ghana</span></font> |
| |- | | |- |
− | | colspan="3" rowspan="1" style="width: 250px; text-align: center; background-color: rgb(219, 229, 241)" | [[File:Ghana new map.png|center|180px|Flag of Ghana|alt=Flag of _____.png]] | + | | style="width: 250px; text-align: center; background-color: rgb(219, 229, 241)" rowspan="1" colspan="3" | [[File:Ghana new map.png|center|180px|Flag of Ghana|alt=Flag of _____.png]] |
| | style="width: 250px; text-align: center; background-color: rgb(219, 229, 241)" | [[File:800px-LocationGhana.svg.png|center|180px|Ghana Location|alt=Location _______.png]] | | | style="width: 250px; text-align: center; background-color: rgb(219, 229, 241)" | [[File:800px-LocationGhana.svg.png|center|180px|Ghana Location|alt=Location _______.png]] |
| |- | | |- |
− | | colspan="3" style="width: 250px; background-color: rgb(219, 229, 241)" | '''Capital''' | + | | style="width: 250px; background-color: rgb(219, 229, 241)" colspan="3" | '''Capital''' |
| | style="width: 250px; background-color: rgb(219, 229, 241)" | Accra (5° 33′ 0″ N, 0° 15′ 0″ W) | | | style="width: 250px; background-color: rgb(219, 229, 241)" | Accra (5° 33′ 0″ N, 0° 15′ 0″ W) |
| |- | | |- |
− | | colspan="3" style="width: 250px; background-color: rgb(219, 229, 241)" | '''Official Languages(s)''' | + | | style="width: 250px; background-color: rgb(219, 229, 241)" colspan="3" | '''Official Languages(s)''' |
| | style="width: 250px; background-color: rgb(219, 229, 241)" | | | | style="width: 250px; background-color: rgb(219, 229, 241)" | |
| English | | English |
| | | |
| |- | | |- |
− | | colspan="3" style="width: 250px; background-color: rgb(219, 229, 241)" | '''Government''' | + | | style="width: 250px; background-color: rgb(219, 229, 241)" colspan="3" | '''Government''' |
| | style="width: 250px; background-color: rgb(219, 229, 241)" | Constitutional Presidential Republic | | | style="width: 250px; background-color: rgb(219, 229, 241)" | Constitutional Presidential Republic |
| |- | | |- |
− | | colspan="3" style="width: 250px; background-color: rgb(219, 229, 241)" | '''President''' | + | | style="width: 250px; background-color: rgb(219, 229, 241)" colspan="3" | '''President''' |
| | style="width: 250px; background-color: rgb(219, 229, 241)" | Dr. John Dramani Mahama | | | style="width: 250px; background-color: rgb(219, 229, 241)" | Dr. John Dramani Mahama |
| |- | | |- |
− | | colspan="3" style="width: 250px; background-color: rgb(219, 229, 241)" | '''Total Area ''''''<span style="line-height: 21px">( </span>km²<span style="line-height: 21px">)</span>''' | + | | style="width: 250px; background-color: rgb(219, 229, 241)" colspan="3" | '''Total Area ''''''<span style="line-height: 21px">( </span>km²<span style="line-height: 21px">)</span>''' |
| | style="width: 250px; background-color: rgb(219, 229, 241)" | 238,535 | | | style="width: 250px; background-color: rgb(219, 229, 241)" | 238,535 |
| |- | | |- |
− | | colspan="3" style="width: 250px; background-color: rgb(219, 229, 241)" | '''Population''' | + | | style="width: 250px; background-color: rgb(219, 229, 241)" colspan="3" | '''Population''' |
| | style="width: 250px; background-color: rgb(219, 229, 241)" | 24,233,431 (2010 estimate) | | | style="width: 250px; background-color: rgb(219, 229, 241)" | 24,233,431 (2010 estimate) |
| |- | | |- |
− | | colspan="3" style="width: 250px; background-color: rgb(219, 229, 241)" | '''Rural Population''' | + | | style="width: 250px; background-color: rgb(219, 229, 241)" colspan="3" | '''Rural Population''' |
| | style="width: 250px; background-color: rgb(219, 229, 241)" | (year) | | | style="width: 250px; background-color: rgb(219, 229, 241)" | (year) |
| |- | | |- |
− | | colspan="3" style="width: 250px; background-color: rgb(219, 229, 241)" | '''GDP (Nominal)''' | + | | style="width: 250px; background-color: rgb(219, 229, 241)" colspan="3" | '''GDP (Nominal)''' |
| | style="width: 250px; background-color: rgb(219, 229, 241)" | $50 billion (2014 estimate)<ref>IMF, retrieved 19 February 2014 at: http://www.imf.org/external/pubs/ft/weo/2013/02/weodata/weorept.aspx?pr.x=53&pr.y=6&sy=2011&ey=2018&scsm=1&ssd=1&sort=country&ds=.&br=1&c=652&s=NGDPD%2CNGDPDPC%2CPPPGDP%2CPPPPC&grp=0&a=</ref> | | | style="width: 250px; background-color: rgb(219, 229, 241)" | $50 billion (2014 estimate)<ref>IMF, retrieved 19 February 2014 at: http://www.imf.org/external/pubs/ft/weo/2013/02/weodata/weorept.aspx?pr.x=53&pr.y=6&sy=2011&ey=2018&scsm=1&ssd=1&sort=country&ds=.&br=1&c=652&s=NGDPD%2CNGDPDPC%2CPPPGDP%2CPPPPC&grp=0&a=</ref> |
| |- | | |- |
− | | colspan="3" style="width: 250px; background-color: rgb(219, 229, 241)" | '''GDP Per Capita''' | + | | style="width: 250px; background-color: rgb(219, 229, 241)" colspan="3" | '''GDP Per Capita''' |
| | style="width: 250px; background-color: rgb(219, 229, 241)" | $1,902.9<ref>IMF, retrieved 19 February 2014 at http://www.imf.org/external/pubs/ft/weo/2013/02/weodata/weorept.aspx?pr.x=53&pr.y=6&sy=2011&ey=2018&scsm=1&ssd=1&sort=country&ds=.&br=1&c=652&s=NGDPD%2CNGDPDPC%2CPPPGDP%2CPPPPC&grp=0&a=</ref> | | | style="width: 250px; background-color: rgb(219, 229, 241)" | $1,902.9<ref>IMF, retrieved 19 February 2014 at http://www.imf.org/external/pubs/ft/weo/2013/02/weodata/weorept.aspx?pr.x=53&pr.y=6&sy=2011&ey=2018&scsm=1&ssd=1&sort=country&ds=.&br=1&c=652&s=NGDPD%2CNGDPDPC%2CPPPGDP%2CPPPPC&grp=0&a=</ref> |
| |- | | |- |
− | | colspan="3" style="width: 250px; background-color: rgb(219, 229, 241)" | '''Currency''' | + | | style="width: 250px; background-color: rgb(219, 229, 241)" colspan="3" | '''Currency''' |
| | style="width: 250px; background-color: rgb(219, 229, 241)" | Ghana cedi (GH₵) (GHS) | | | style="width: 250px; background-color: rgb(219, 229, 241)" | Ghana cedi (GH₵) (GHS) |
| |- | | |- |
− | | colspan="3" style="width: 250px; background-color: rgb(219, 229, 241)" | '''Time Zone''' | + | | style="width: 250px; background-color: rgb(219, 229, 241)" colspan="3" | '''Time Zone''' |
− | | style="width: 250px; background-color: rgb(219, 229, 241)" | <font size="2" face="Helvetica, Arial, sans-serif" color="#454545" class="Apple-style-span"><span style="line-height: 19px" class="Apple-style-span"><font size="2" face="Helvetica, Arial, sans-serif" color="#454545" class="Apple-style-span">GMT (UTC0)<br/>Summer (DST) GMT (UTC0)</font></span></font> | + | | style="width: 250px; background-color: rgb(219, 229, 241)" | <font size="2" face="Helvetica, Arial, sans-serif" color="#454545" class="Apple-style-span"><span class="Apple-style-span" style="line-height: 19px"><font size="2" face="Helvetica, Arial, sans-serif" color="#454545" class="Apple-style-span">GMT (UTC0)<br/>Summer (DST) GMT (UTC0)</font></span></font> |
| |- | | |- |
− | | colspan="3" style="width: 250px; background-color: rgb(219, 229, 241)" | '''Calling Code''' | + | | style="width: 250px; background-color: rgb(219, 229, 241)" colspan="3" | '''Calling Code''' |
| | style="width: 250px; background-color: rgb(219, 229, 241)" | +233 | | | style="width: 250px; background-color: rgb(219, 229, 241)" | +233 |
| |- | | |- |
− | | colspan="3" style="width: 250px; background-color: rgb(219, 229, 241)" | '''Electricity Generation''' | + | | style="width: 250px; background-color: rgb(219, 229, 241)" colspan="3" | '''Electricity Generation''' |
− | | style="width: 250px; background-color: rgb(219, 229, 241)" | 12,164 <span data-scaytid="5" data-scayt_word="twh">GWh</span>/year (2012)<ref>Energy Commission, Ghana: 2013 Energy Outlook for Ghana. Accessed on 25 February 2014 at http://www.energycom.gov.gh/files/Energy%20Commission%20-%202013%20Energy%20Outlook%20for%20Ghana.pdf</ref><br/> | + | | style="width: 250px; background-color: rgb(219, 229, 241)" | 12,164 <span data-scayt_word="twh" data-scaytid="5">GWh</span>/year (2012)<ref>Energy Commission, Ghana: 2013 Energy Outlook for Ghana. Accessed on 25 February 2014 at http://www.energycom.gov.gh/files/Energy%20Commission%20-%202013%20Energy%20Outlook%20for%20Ghana.pdf</ref><br/> |
| |- | | |- |
− | | colspan="3" style="width: 250px; background-color: rgb(219, 229, 241)" | '''Access to Electricity''' | + | | style="width: 250px; background-color: rgb(219, 229, 241)" colspan="3" | '''Access to Electricity''' |
| | style="width: 250px; background-color: rgb(219, 229, 241)" | 75 percent<br/> | | | style="width: 250px; background-color: rgb(219, 229, 241)" | 75 percent<br/> |
| |- | | |- |
− | | colspan="3" style="width: 250px; background-color: rgb(219, 229, 241)" | '''Wind energy (installed capacity)''' | + | | style="width: 250px; background-color: rgb(219, 229, 241)" colspan="3" | '''Wind energy (installed capacity)''' |
| | style="width: 250px; background-color: rgb(219, 229, 241)" | MW (year)<br/> | | | style="width: 250px; background-color: rgb(219, 229, 241)" | MW (year)<br/> |
| |- | | |- |
− | | colspan="3" style="width: 250px; background-color: rgb(219, 229, 241)" | '''Solar Energy (installed capacity)''' | + | | style="width: 250px; background-color: rgb(219, 229, 241)" colspan="3" | '''Solar Energy (installed capacity)''' |
| | style="width: 250px; background-color: rgb(219, 229, 241)" | 2.5 MW (2013)<br/> | | | style="width: 250px; background-color: rgb(219, 229, 241)" | 2.5 MW (2013)<br/> |
| |} | | |} |
| | | |
− | {| cellspacing="1" cellpadding="1" border="0" align="left" style="width: 350px" class="FCK__ShowTableBorders" | + | {| cellspacing="1" cellpadding="1" border="0" align="left" class="FCK__ShowTableBorders" style="width: 350px" |
| |- | | |- |
| | __TOC__ | | | __TOC__ |
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| *'''The distribution companies do not recover costs through tariffs'''—as a result the distribution companies are not able to pay transmission and generation companies, limiting funds available for investment. | | *'''The distribution companies do not recover costs through tariffs'''—as a result the distribution companies are not able to pay transmission and generation companies, limiting funds available for investment. |
| | | |
− | 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. <br/> | + | 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.<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.[[#_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.[[#_ftn2|[2]]]<br/> |
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| [[#_ftnref1|[1]]] “Investment Opportunities in the Power Sector.” Ghana Ministry of Energy, January 2012 | | [[#_ftnref1|[1]]] “Investment Opportunities in the Power Sector.” Ghana Ministry of Energy, January 2012 |
| </div><div id="ftn2"> | | </div><div id="ftn2"> |
− | [[#_ftnref2|[2]]] “Energizing Economic Growth: Making the Power and Petroleum Sectors Rise to the Challenge.” World Bank, June 2013 <br/> | + | [[#_ftnref2|[2]]] “Energizing Economic Growth: Making the Power and Petroleum Sectors Rise to the Challenge.” World Bank, June 2013<br/> |
| </div></div> | | </div></div> |
| == Demand is outstripping electricity supply<br/> == | | == Demand is outstripping electricity supply<br/> == |
| | | |
− | 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. | + | 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.[[#_ftn1|[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.[[#_ftn2|[2]]] Absent significant investments, the shortfalls will continue and become more severe.<br/> | | 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.[[#_ftn1|[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.[[#_ftn2|[2]]] Absent significant investments, the shortfalls will continue and become more severe.<br/> |
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| [[#_ftnref1|[1]]] Speech by the Minister of Energy in 2008 | | [[#_ftnref1|[1]]] Speech by the Minister of Energy in 2008 |
| </div><div id="ftn2"> | | </div><div id="ftn2"> |
− | [[#_ftnref2|[2]]] “Energizing Economic Growth: Making the Power and Petroleum Sectors Rise to the Challenge.” World Bank, June 2013 <br/> | + | [[#_ftnref2|[2]]] “Energizing Economic Growth: Making the Power and Petroleum Sectors Rise to the Challenge.” World Bank, June 2013<br/> |
| | | |
| == The transmission and distribution system are in poor condition<br/> == | | == The transmission and distribution system are in poor condition<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 |
− | *Supervising state-owned public electric utilities—VRA, GRIDCo, ECG, and BPA | + | *Supervising state-owned public electric utilities—VRA, GRIDCo, ECG, and BPA |
| *Managing power related programs, including the National Electrification Scheme | | *Managing power related programs, including the National Electrification Scheme |
| *Liaising with other agencies such as the EC and the PURC on power related matters. | | *Liaising with other agencies such as the EC and the PURC on power related matters. |
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| *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 |
| *Recommends using waste to energy to generate low-cost electricity, as well as sustainable waste management | | *Recommends using waste to energy to generate low-cost electricity, as well as sustainable waste management |
− | *Outlines Government’s attempt to encourage energy efficiency, including fiscal incentives, awareness creation, institutional and human resource capacity development, and financial intermediation | + | *Outlines Government’s attempt to encourage energy efficiency, including fiscal incentives, awareness creation, institutional and human resource capacity development, and financial intermediation |
| *Mainstreams gender concerns in the energy sector with a particular focus on improving cookstoves. | | *Mainstreams gender concerns in the energy sector with a particular focus on improving cookstoves. |
| | | |
− | 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 |
Line 567: |
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| | | |
| Collectively, the Policy aims to achieve its vision of Ghana becoming a net electricity exporter by 2015.[[#_ftn1|[1]]]<br/> | | Collectively, the Policy aims to achieve its vision of Ghana becoming a net electricity exporter by 2015.[[#_ftn1|[1]]]<br/> |
| + | <div><br/><div id="ftn1"> |
| + | [[#_ftnref1|[1]]] “National Energy Policy.” Ghanaian Ministry of Energy. February 2010<br/> |
| + | |
| + | |
| | | |
− | {| cellspacing="0" cellpadding="0" border="1" align="center" | + | {| cellspacing="0" cellpadding="0" border="1" align="left" |
| |- | | |- |
| | nowrap="nowrap" style="width:529px" | | | | nowrap="nowrap" style="width:529px" | |
− | Box 4.1: Electrification Programs | + | ==== Box: 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: | | In line with the National Energy Policy’s objective of achieving universal access by 2020 the Government of Ghana is operating two electrification programs: |
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| *'''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. |
| | | |
− | The Government also welcomes private sector initiatives to connect to the grid provided that they can finance it.[[#_ftn1|[1]]]<br/> | + | The Government also welcomes private sector initiatives to connect to the grid provided that they can finance it.[[#_ftn1|[1]]] |
| | | |
| |} | | |} |
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| ---- | | ---- |
| <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 |
− | </div></div><div><br/><div id="ftn1"> | + | </div></div> |
− | [[#_ftnref1|[1]]] “National Energy Policy.” Ghanaian Ministry of Energy. February 2010<br/>
| + | |
| </div></div> | | </div></div> |
| === 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 |
− | *Petroleum Sub-sector | + | *Petroleum Sub-sector |
− | *Renewable Energy Sub-sector | + | *Renewable Energy Sub-sector |
− | *Waste-to-Energy | + | *Waste-to-Energy |
| *Energy and Gender. | | *Energy and Gender. |
| | | |
| A key objective stated in this document is to have renewable energy (not including hydro above 100MW) represent ten percent of installed capacity by 2020. | | A key objective stated in this document is to have renewable energy (not including hydro above 100MW) represent ten percent of installed capacity by 2020. |
− | The document also contains funding sources and verifiable indicators to facilitate effective monitoring and evaluation of the programs and projects.[[#_ftn1|[1]]]<div><br/> | + | |
| + | The document also contains funding sources and verifiable indicators to facilitate effective monitoring and evaluation of the programs and projects.[[#_ftn1|[1]]] |
| + | <div><br/> |
| ---- | | ---- |
| <div id="ftn1"> | | <div id="ftn1"> |
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| ---- | | ---- |
| <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> | | </div></div> |
| <br/> | | <br/> |
Line 633: |
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| === Electricity Sector Legal Framework === | | === Electricity Sector Legal Framework === |
| | | |
− | Ghana does not have a single source of law for its power sector, such as an electricity law. Instead, the existing legal framework for the power sector has gradually developed over time as the government established the institutions and state-owned electricity companies described in Sections 2 and 3. | + | Ghana does not have a single source of law for its power sector, such as an electricity law. Instead, the existing legal framework for the power sector has gradually developed over time as the government established the institutions and state-owned electricity companies described in Sections 2 and 3. |
| | | |
| Shortly after the Volta River Development Act established VRA, the Electricity Corporation Decree (NLCD 125, 1967) repealed the existing Electricity Act and established ECG.[[#_ftn1|[1]]] The Electricity Corporation Decree made ECG responsible for all electricity distribution in Ghana, complementing VRA’s role generating and transmitting all electricity in the country. As discussed above, the Government created GridCo, BPA, and NEDCo to complement VRA and ECG in subsequent years. In addition, the Energy Commission Act created the legal framework for allowing IPPs to participate in the power sector and establishing performance standards for all entities operating in the power sector. Finally, the PURC Act established the legal jurisdiction of the electricity sector regulator. | | Shortly after the Volta River Development Act established VRA, the Electricity Corporation Decree (NLCD 125, 1967) repealed the existing Electricity Act and established ECG.[[#_ftn1|[1]]] The Electricity Corporation Decree made ECG responsible for all electricity distribution in Ghana, complementing VRA’s role generating and transmitting all electricity in the country. As discussed above, the Government created GridCo, BPA, and NEDCo to complement VRA and ECG in subsequent years. In addition, the Energy Commission Act created the legal framework for allowing IPPs to participate in the power sector and establishing performance standards for all entities operating in the power sector. Finally, the PURC Act established the legal jurisdiction of the electricity sector regulator. |
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| ---- | | ---- |
| <div id="ftn1"> | | <div id="ftn1"> |
− | [[#_ftnref1|[1]]] “Electricity Company of Ghana,” Institute of Developong Economies Japan External Trade Organization. Accessed January 15, 2014 at: http://www.ide.go.jp/English/Data/Africa_file/Company/ghana02.html | + | [[#_ftnref1|[1]]] “Electricity Company of Ghana,” Institute of Developong Economies Japan External Trade Organization. Accessed January 15, 2014 at: [http://www.ide.go.jp/English/Data/Africa_file/Company/ghana02.html http://www.ide.go.jp/English/Data/Africa_file/Company/ghana02.html] |
| | | |
| === Renewable Energy Act (2011) === | | === Renewable Energy Act (2011) === |
| | | |
− | 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 |
Line 692: |
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| [[#_ftnref1|[1]]] “Electricity Rate Setting Guidelines.” PURC. December, 1999 | | [[#_ftnref1|[1]]] “Electricity Rate Setting Guidelines.” PURC. December, 1999 |
| | | |
− | | + | <br/> |
| </div></div></div></div></div></div> | | </div></div></div></div></div></div> |
| = Donors and Donor Activities<br/> = | | = Donors and Donor Activities<br/> = |
Line 768: |
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| <references /><br/> | | <references /><br/> |
| | | |
− | [[Category:Country_Energy_Situation]]
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| [[Category:Ghana]] | | [[Category:Ghana]] |
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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 include demand outstripping supply, poor state of transmission and distribution, and tariffs that have not covered costs.
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]
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]
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.
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]
The Energy Sector Strategy and Development Plan (Plan) covers the Government’s strategies, program, and projects for developing:
A key objective stated in this document is to have renewable energy (not including hydro above 100MW) represent ten percent of installed capacity by 2020.
The document also contains funding sources and verifiable indicators to facilitate effective monitoring and evaluation of the programs and projects.[1]
Law provides the basis for Government intervention in the energy sector. Energy law must come directly from Parliament. The Ghanaian parliament has created the legal framework of the power sector by passing laws that specify the role that each institution will play in the sector. Additionally, it has passed the Renewable Energy Act to cover all elements of the RE component of the power sector.
Ghana does not have a single source of law for its power sector, such as an electricity law. Instead, the existing legal framework for the power sector has gradually developed over time as the government established the institutions and state-owned electricity companies described in Sections 2 and 3.
Shortly after the Volta River Development Act established VRA, the Electricity Corporation Decree (NLCD 125, 1967) repealed the existing Electricity Act and established ECG.[1] The Electricity Corporation Decree made ECG responsible for all electricity distribution in Ghana, complementing VRA’s role generating and transmitting all electricity in the country. As discussed above, the Government created GridCo, BPA, and NEDCo to complement VRA and ECG in subsequent years. In addition, the Energy Commission Act created the legal framework for allowing IPPs to participate in the power sector and establishing performance standards for all entities operating in the power sector. Finally, the PURC Act established the legal jurisdiction of the electricity sector regulator.
Regulation provides specific of policy and law implementation. Regulation is developed primarily by the PURC and the EC.
The National Electricity Grid Code (Grid Code) of Ghana establishes the requirements, procedures, practices, and standards for developing, operating, maintaining and using the National Interconnected Transmission System (NITS). The Grid Code also describes the responsibilities and obligations of each entity involved in the supply, transmission and delivery of bulk electric power over the NITS. The purpose of the Grid Code is to ensure that the NITS provides fair, transparent, non-discriminatory, safe, reliable, secure and cost efficient delivery of electrical energy.[1]
A number of donors are providing financial and technical support to the Government of Ghana through her implementing agencies. These include the World Bank (IDA), African Development Bank (AfDB), Global Environmental Fund (GEF), Switzerland, Japan, France, Spain, India and China. The biggest energy sector project which is running currently is the Ghana Energy Access and Development Project (GEDAP) which consolidates funding from Multilateral, Bilateral and Government.
Within this framework, the participating donors are providing support in the areas of
(1) national level institutional, policy development, organisation and capacity building;
(2) Generation sub-sector organisation, capacity building and upgrading of facilities;
(3) Transmission sub-sector organisation, capacity building and upgrading of facilities;
(4) rural electrification and renewable energy development, institution, policy, organisation, business model and new facilities.
The coordination of donor support takes place within the framework of the Donor Sector Group, established under the Multi Donor Budget Support (MDBS) framework. The Energy Sector group meets every other month to coordinate activities within the sector. Donors that are very active in the sector group include: The World Bank (Sector Lead), France (AFD), Switzerland, African Development Bank, Japan (JICA). To a very large extent there is division of labour. The EnDev Team in Ghana attends the Sector Group Meetings as observers to share information and to ensure that interventions are in line with current policy and programmes of the MoE. The EnDev Team will continue to participate in the Sector Group Meetings and will coordinate activities with donor colleagues and policy makers at the MoE with regard to the Productive Uses of Energy.
Short explanation to which degree EnDev will be in line with capacity development needs of the partner
Apart from EnDev, neither Germany, nor the Netherlands are supporting the Energy Sector in Ghana.
Within these focal areas, EnDev Ghana is closely co-operating with the BMZ financed Programme for Sustainable Economic Development (PSED). EnDev is part of PSED‘s activities in the field of local and regional economic development.