Ghana’s Electricity: The Future Is Brighter

It is easy for all persons to project into the future based on prevalent current energy shortfalls, after all, the past or present is a beacon for the future. However debilitating our energy shortfalls have been in recent past and even more critically now, there are staggering facts to indicate that, the future looks brighter for the energy sector of Ghana in particular.

These energy challenges have not just been uncomforting for individuals' usage of electricity to light up homes, but even far reaching on the economy has been its adverse effects on the economic fortunes of Ghana.

The lack of electricity to power industry directly translates into shortfalls in productivity, with its attendant problem of promised labour retrenchment and general lower taxes. The other challenges associated with these energy challenges are best articulated by the finance experts and economists in the country.

One key fact worth nothing is that, when the energy challenges are met head on by providing solutions to them, it offers multi-sectorial progress that goes a long way to boost the nations' general developmental plans. Below are some of the reasons why Ghana's energy future looks brighter and help power industry for national progress and development.

Ongoing projects by VRA
Currently, there are projects been undertaken by the Volta River Authority (VRA) which seeks to increase Ghana's national grid. Mention can be made of Kpone Thermal Power Plant (KTPP)and the VRA planned Wind Power Projects.

The Kpone Thermal Power Plant (KTPP) is a Government of Ghana and Volta River Authority (VRA) 230MW Simple Cycle Thermal Power Project which is being developed. The plant is made up of 2 Alstom units of 115 MW capacities each. The gas turbines are already in the country at the Kpone Site, near Tema. The plant is expected to be commissioned by 2015.

With reference to VRA Wind Power Projects, this project seeks to develop between 100 MW - 150 MW of wind farm capacity. The approach is to develop this through Joint-Venture Partnership. Currently two reputable companies have been identified who are working with VRA to undertake the wind measurement after which the project could be developed. Wind measurements will be undertaken at 8 sites, 4 coastal sites and 4 inland sites. It is anticipated that two of these sites would be developed. The project is expected to be commissioned by 2015.

All these measures will within the short to medium term, fetch Ghana enough megawatts to help offset the shortfall challenges that has occasionally led to the load shedding programmes in Ghana. Also, mention should be made of the Takoradi 2 Thermal Power Project (T2) Expansion, which is an Independent Power Producer (IPP) jointly owned by VRA and TAQA Energy of Abu Dhabi. The project seeks to expand the 220 MW T2 plant from a Simple Cycle Power plant to a combined cycle power plant. The project would increase the installed capacity of the plant by 110 MW. Constructionhas already started and the project is expected to be commissioned by 2015.

Foreign direct investments (FDI)
American multinational conglomerate General Electric (GE) in 2013, signed a memorandum of understanding (MoU) with the Ghana government to build a 1,000 megawatts power plant in Ghana.

The power plant, which is expected to be completed over the next five years, will enhance the country's current power generating capacity.Under this memorandum of understanding(MoU), GE will be facilitating the development, financing and technical partnership required for the implementation of an incremental 1,000MW of power in collaboration with the government of Ghana.

The “Ghana 1,000MW Project” will introduce the Power Park Concept to enable lower cost of power and faster implementation.

This investment is so vital that, it will provide an exponential leap in the nations' grid capabilities and help provide excess beyond the critical national demand, thereby providing excess power that can be dedicated to feeding the annual increasing demand by industry in Ghana. This investment is indicative of other investments of IPP's that are sure to come on board in the production of power, as Ghana gradually inches closer to cost-reflective tariff charges to its consumers.

US AID's Power Africa Initiative

In June of 2013, US President Barack Obama launched US AID's Power Africa Initiative. The program proposes to spend US$7 billion in the form of loan guarantees, financial assistance and consultation over the next five years to help with unmet energy demand across the African continent through various strategic partnerships with private sector developers along with several other international agencies.

The overarching goal of this adventurous project of powering Africa is to double the number of people who have regular and consistent access to electricity in Sub-Saharan Africa.Ghana together with Ethiopia, Kenya, Liberia, Nigeria and Tanzania are the six countries to benefit from this Power Africa project.

The benefits of this project to Ghana includes; electrification of schools, so that students might study at night past darkness; electrification of hospitals, so that vital equipment might be able to run throughout the day; electrification of businesses so that they might ensure consistent quality of product and provide employment opportunities and of course; electrification of the home, to allow for basic lighting through to the charging of mobile phones and for other electricity uses.

The provision of energy is an essential tool for empowering the growing middle class and improving the lives of millions across Africa, hence this offers great prospects for Ghana and Africa in general. It must be noted that, the General Electric investment falls under this project though.

Right policy framework in place

Government of Ghana following the passage of the RE Act, 2011 (Act 832) aimed at stimulating massive investment into the renewable energy sectorhas succeeded in creating the enabling environment to ensure the attainment of a 10 percent Renewable Energy (RE) target in the energy sector by 2020.

Mention should also be mentioned of the Renewable Energy Fund which has been established under the RE Act, 2011 (Act 832) to provide financial resources for the promotion, development and utilisation of renewable energy resources. Money from the fund shall be applied for the provision of financial incentives, FIT, capital subsidies and for the promotion of scientific, technological and innovative research into renewable energy.This is a major boast for the implementation of this policy.

This policy therefore ensures that, a welcoming atmosphere for investment in renewable energy production exist and hence, a right incentive for both indigenous and foreign investors to come on board.

Energy conservation been vigorously pursued

Appliance standards and labellingregime has proven to be the most effective tool in achieving energy efficient economy around the world. Major stakeholders led by the Energy Commission has sought over the years to prevent Ghana from being a dumping ground for energy inefficient appliances and also, to offer consumers incentives to purchase energy-efficient products.

Ghana is therefore operating a Mandatory Appliance Standards and Labelling regime under which importers and retailers of Room Air Conditioners and Compact Fluorescent Lamps (CFL) are required to import and sell ONLY products that meet minimum efficiency and performance standards approved by the Ghana Standards Board.

The Energy Efficiency Standards and Labels Programme is designed to ensure that only appliances that meet minimum energy efficiency standards enter the Ghanaian market. In accordance with the provisions of the Energy Efficiency Standards and Labelling (Non-ducted Air Conditioners and Self Ballasted Fluorescent Lamps)Regulations, 2005 (LI1815) appliance manufacturers who export to Ghana and retailers who sell in Ghana are obliged to display a label which indicates the energy efficiency rating of the product before the first retail sale.

It is an offence under LI1815 to import, display for sale or sell Air Conditioners and Compact Fluorescent Lamps in Ghana unless they meet the minimum performance standards and are properly labelled. Worth noting is the phenomenal achievements this campaign has made, one just have to look around to see if any incandescent lamp exist in households or not?

Significant progress has been made in strengthening of regulatory and institutional framework, design of certification, labeling and enforcement systems,training and public outreach, establishment of refrigerating appliance test facility, used appliance collection and disposal facilities and the conduct of refrigeration appliance rebate and exchange program by the Energy Commission and its major partner organisations.

This initiative, together with on-going Demand Side Management ensures that, wastage of produced energy is reduced and hence, helping Ghana to save energy which can be dedicated for a more useful purpose.

Conclusions

Energy has far reaching effects on health provision, business productivity, individual's comfortability, and other sectors of the nation. Hence, the following discussed measures been undertaken are some of the measures that will help stabilize our nations' energy security.

Inasmuch as these measures should inspire hope in industry and individuals and the country in general, government, international development partners, present and potential energy producers and all industry players and all other stakeholders must not relent in their efforts to correct our energy challenges through these measures in the medium to long term.

There is the need for all to go beyond their comfort zones to contribute to these grandeur plans of anchoring our nations' energy security.

Tommy O'Dell Doku,

Is An Energy Communications Practitioner

And Senior Convener, Ghanaian Students' Energy Summit

[email protected]