Nuclear has potential but comes with high capital cost – Mr Wahab

Mr. Abdul Noor Wahab, Manager Generations and Systems Planning, Volta River Authority has stated that nuclear has the potential to play an important role in the nation’s energy sector, but has high capital cost which was likely to affect its quantity in the future generation mix.

He noted that with the generation potential of power sources, thermal generation would dominate stating that by 2040 thermal components would be about 88 percent of the mix.

Speaking on the topic: “Ghana’s Energy Generation Mix and the Future Outlook,” at Gas Accountants Business Summit organized by Energy Sector Recovery Programme (ESRP) which was monitored by the Communication for Development and Advocacy Consult (CDA Consult) Mr Wahab said the potential of hydro was limited.

He said Ghana has moved from 100 percent hydro capacity to a mix that was currently dominated by thermal sources of 63 percent, stressing that Ghana’s generation at the end of 2021 was dominated by natural gas followed by hydro, liquid fuel, and others adding that the country’s major cost driver remained natural gas.

He explained that after Pwalugo’s 60 megawatts, Juale-90MW, and Western River’s about 340MW, available hydro potential in the country was limited.

He said there was potential for solar in almost every part of the country adding that its potential on average was at 15 to 18 percent capacity factor without battery storage.

Mr Wahab noted, however, that the cost of generation would increase significantly when four to six hours of battery storage is added.

He again said wind potential was limited as the best wind speeds was along the cost, noting that cost of generation from wind could be 10 US cents/kWh if funding at five percent or lower were available.

Mr Wahab indicated that thermal has the highest prospect, easy to deploy, has combined cycles that required water for cooling and can now be cooled by air, in addition to it having competitive cost.

The Gas Accountants’ Business Summit was organized to discuss the natural gas business in Ghana and its related issues to achieve a financially sustainable energy sector.

The summit was on the theme; “The Role of Natural Gas on Ghana’s Sustainable Future,” brought together accountants, lawyers, commercial experts, and other professionals within the energy sector.

Other presentations during the summit covered the Cash Waterfall Mechanism’s concept, accounting and implementation, Public Utility Regulatory Commission (PURC), natural gas prospects for economic transformation, the future of Africa Gas in the global economy, and the outlook of ECG’s billing processes, and many others.