1,800megawatt emergency plant wasteful; electricity cost to go up by 40%- ACEP

The Executive Director of the African Center for Energy Policy, (ACEP) has described as "wasteful" emergency power plants being procured by government to solve the current power crisis.

According to Dr Mohammed Amin Adam, the 1800megawatts emergency power plants would not only lead to a financial loss to the state but also a 40 per cent hike in cost of electricity.

The country has been plunged into a three year power crisis which has led to a load shedding exercise across the country.

There is currently a 400megawatt deficit as a result of the shortage of gas, high cost of crude, breakdown of plants etc.

But ACEP has been encouraged by plans government has put in place in the mid-year budget to resolve the crisis at least by the end of the year.

Dr Amin Adam named the Kpone Thermal Plant which would produce 220 megawatts of power when completed, the Tico expansion project, 110 megawatts, Asogli Phase 2, 120 megawatts and the Tema Thermal plant 38 megawatts all of which will produce over 500 megawatts.

He told Myjoyonline.com when these projects are brought on stream, the power crisis would have been solved and it will be totally unnecessary to procure another 1,800 megawatts emergency plants.

According to him, there are three more emergency plants government is considering bringing on board which will be redundant in terms of power supply but would prove costly to the national purse and to consumers.

He said the country will be paying a capacity charge of over ¢350 million which government would have to pay.

The agreements for these emergency plants currently before Parliament at various stages of preparation, approval or commissioning, include the 225MW Powership-IPP project; 250MW Ameri in Takoradi (under Build, Own, Operate and Transfer arrangement110 gei project, the 370MW AKSA; 110MW TEI; and 300 GE Early.

According Dr Amin Adam, electricity consumers will have to, in addition to the 51 per cent electricity tariff hikes which has suspended for the time being, pay another 40 per cent hike if the contracts for these emergency plants are carried through.