IEEJ：August 2016 © IEEJ2016

IEEJ:August 2016

GHANA COUNTRY REPORTON ENERGYGIFTY JOYCE OTENG-BOSOMPRAHMINISTRY OF POWER
GHANA
ENERGY POLICY COURSE - JICAIEEJ：August 2016 © IEEJ2016

GHANA STATISTICS
Ghana is a west Africa country bounded by Burkina Faso on theNorth, on the East by Togo and the West by Cote d’ Ivoire and on thesouth of the Atlantic Ocean. Ghana which was formerly Gold Coast
was a British colony. Ghana Means “Warrior King”. Ghana’s capital
city is Accra.
Population:

25.9 million

Population growth Rate:

2.1% Annual changeRegions:

10Land Area:

238, 535 km square

Coast line:

560 km square

Water :

11,000 km squareGDP:$38.61 bn

unemployment rate:

5.2%

IEEJ：August 2016 © IEEJ2016

ADMINISTRATIVE MAP AND THE FLAG OFGHANAIEEJ：August 2016 © IEEJ2016

ACCRA CITYIEEJ：August 2016 © IEEJ2016

MINISTRY OF POWER

MandateThe Ministry of Power by Executive decision(November2014) and in line with Sections 11 and 13 of the Civil
Service Law (PNDCL 327) is mandated to initiate andformulate policies to ensure the effective and efficient
generation and supply of power, as well as coordinate
and evaluate the efficiency and effectiveness of theperformance of the sector.

IEEJ：August 2016 © IEEJ2016

MINISTRY OF POWER
Vision Global top-notch Ministry with reliable, sustainable,export-oriented power to the Nation
Mission Ministry of Power exist to ensure effective and efficientgeneration and supply of reliable, sustainable, exportoriented power for Ghanaians, through the initiation,
formulation, co-ordination, monitoring and evaluation ofinnovative policies and programmes for the sector. We
are committed to being resourceful, innovative,industrious, competitive, client-centered, gendersensitive and disciplined, in the delivery of our policies,
programmes and services.

IEEJ：August 2016 © IEEJ2016

POWER SECTOR AGENCIESAGENCYRESPONSIBILITIESPOWER SUB-SECTOR:

Power generation (Thermal, Hydro &RE)
•Development of Bui Hydro Dam•Power Transmission•Power distribution in Southern
Ghana•Power distribution in Northern
Ghana•Volta River Authority (VRA)•Bui Power Authority (BPA)•Ghana Grid Company (GRIDCO) •Electricity
Company of Ghana (ECG) •Northern Electricity
Development Company (NEDCo)

REGULATORY AGENCIES:•Public Utilities Regulatory• Electricitytariffs approval, monitoring quality
Commission (PURC) of service and consumer
protection•Energy Commission (EC)
•Licensing ofoperators in the power sector,
setting technical standards , sector planning &policy advice

Electricity tariffs approval,monitoring quality
Commission (PURC)of service
and consumer protection•Energy Commission (EC)
•Licensing of operators inthe power sector,
setting technical standards , sector
planning & policy advice

IEEJ：August 2016 © IEEJ2016

SECTOR POLICIES AND PLANS
 National Energy Policy (2010)
 Strategic National Energy Plan (SNEP)
 GSGDA IIIEEJ：August 2016 © IEEJ2016

NATIONAL ENERGY POLICY- 2010
 Background Developedin 2010 to provide a concise outline ofGovernment’s policy direction to contribute to a better
understanding of Ghana’s energy policy framework

 Objective
 Decision-making platform for the effective managementand development of Ghana’s Energy Sector;
 Guide to key stakeholders and institutions in the energy
sector highlighting the definition and implementation ofkey activities in respect of their mandates; Guidefor coordinating the implementation andmonitoring of energy sector policies; and Platform for dialogue on investment opportunities with
Ghana’s development partners and the private sector.

IEEJ：August 2016 © IEEJ2016

POLICY GOALS -1
 Ensure adequate, reliable and improved supply ofelectricity to meet national requirement and forexport through consolidation: rehabilitation andexpansion of electricity- generation, transmission
and distribution infrastructure; Increase access to electricity from 66% to, atleast, 80% by 2015;

 Secure sources of cost-effective and sustainable

fuel supply for electricity generation;

 Increase financing for electricity supply

infrastructure development from Government
sources, Development Partners and the private
sector;IEEJ：August 2016 © IEEJ2016

POLICY GOALS-2
 Strengthen institutional and management capacity

as well as regulatory regime for the smoothdevelopment and operation of the power subsector, and Achieve 10% contribution of modern renewables(excluding large hydro and wood fuels) in theelectricity generation mix by 2020.

 Reduce the demand on woodfuels from 72% to

50% by 2020.
 Promote development and use of other biomass
technologies including biogas, biofuels, gasification
and waste-to-energy.

IEEJ：August 2016 © IEEJ2016

POLICY OBJECTIVES-1
Increase generation capacity to 5,000 MW by 2020:
 Achieve gas-based generation for, at least, 50% of thermal
power plant production by 2015;
 Reduce LCO based generation by at least 50% by 2016
 Increase participation of IPPs in the Power Sector throughtransparent procurement; Improve and modernize electricity distribution
infrastructure to reduce system losses from 25% to 18%by 2016;
 Develop a non-congested electricity transmission networkby 2016, and Strengthen Regulatory Agencies to perform their functions
effectively.
 Achieve universal access by extending electricity to allcommunities by 2020, and Increase access to, at least, 80% by 2016.
 Achieve economically efficient tariffs by 2016.
IEEJ：August 2016 © IEEJ2016

SREP - PROJECTTHE SCALABLE RENEWABLE ENERGY
PROJECT
GHANA SECURED FUNDS OF $40M
FOR FOUR KEY PROJECT UNDER THE
SREP




Mini grids and stand alone solar PV
systemSolar PV based net metering withstorage
Utility scale solar PV/wind power
generation andTechnical assistance projectIEEJ：August 2016 © IEEJ2016

THE AKOSOMBO DAMIEEJ：August 2016 © IEEJ2016THE BUI DAMSUPPLIES 400 MW TO THE MIDDLEBELT AND NORTHERN PART OF
GHANA NAMELY:SAWLATECHIMANKINTAMPOSUNYANIIEEJ：August 2016 © IEEJ2016

ELECTRICITY SUPPLY INFRASTRUCTURE
Generation Sources

Q

Hydropower

Akosombo-1,020MW
Kpong-160MW
Bui-400MW

ThermalTAPCO (Takoradi I) - 330 MW
TICO (Takoradi II) –330
MW
Mines Reserve Plant - 80
MW
Osagyefo Barge - 125
MW
Tema 2 Plant-50MW
Kpone Thermal - 160
Takoradi III Plant - 132
MW CENIT- 110
Asorgli Power - 200 MW

IEEJ：August 2016 © IEEJ2016

GENERATION CAPACITY

PlantsInstalled
Capacity

Effective
Capacity MWType

Fuel

Akosombo
Hydro Station

1,020

1,001

Hydro

Water

Kpong Hydro
Station160

120

Hydro

Water

Bui Hydro Dam

400

133

Hydro

Water

Takoradi Power
Company(Tapco TI)

330

350

ThermalLCO/GasTakoradi Int.
Co. (Tico TII)

220

220

ThermalLCO/GasTakoradi
Thermal Plant

132

132

ThermalLCO/GasTema Thermal
Plant

50

50

Thermal

DFO/GasIEEJ：August 2016 © IEEJ2016

GENERATION CAPACITY CONT.
PlantsInstalled
Capacity

Effective
Capacity
MWTypeFuelMines
80
Reserve
Plant (MRP)

80

ThermalDFO

Sunon
Asogli200200ThermalGas

CENIT

110110

ThermalLCO/GasNavrongo
Solar Farm

22Renewable

SolarTotal

2,814

2,942

IEEJ：August 2016 © IEEJ2016

NATIONAL ELECTRIFICATION SCHEME
 A National Electrification Planning Study (NEPS) wasdone with a grant from Canadian Government; The Study was carried out by Acres International ofCanada for the establishment of the National
Electrification Master Plan; Study considered alternative sources of providing power

to communities i.e. solar, wind, biomass, small hydroetc.

 Implementation of National Electrification Programme : Six

5-year phases spanning the 30 years ofimplementation.

IEEJ：August 2016 © IEEJ2016

IMPLEMENTATION STRATEGY OF NES
 Phasing of the NES: The first phase covered the connection of all

District Capitals and all towns/villages en-route tothe District Capitals;

 To ensure efficient Government businessProvide electricity for local industry, commercial
activities and domestic use

 The subsequent phases of the electrification ofcommunities was based on most economically
viable projects.

IEEJ：August 2016 © IEEJ2016

RATIONALE FOR THE SHEP
 Accelerate grid connection for communities

which felt their proposed projects on theprogramme ofimplementation were too far into the future; Reduce overall cost on Government;

Introduce community ownership.

IEEJ：August 2016 © IEEJ2016

CRITERIA FOR JOINING THE SHEP Community must be within 20km of an existing

11kV/33kV network; Interested Communities must apply to be includedin the programme; Community must be willing and able to procure
anderect all the Low Voltage distribution poles
required
for the works;
 A minimum of one-third of houses in the community should be wired and ready to be serviced as soon as electricity supply is connectedto the communities.

IEEJ：August 2016 © IEEJ2016

ISSUES FACING RURAL ELECTRIFICATION& RE UTILIZATION IN GHANA •High cost of energy delivery from RE incl.

solar, wind, biomass-based RET •The negative effect of subsidies on gridpower •Ineffectiveness of tariff collection in remoteand dispersed rural houses.

IEEJ：August 2016 © IEEJ2016

POLICY GOALS-ELECTRICITY SUB SECTOR
 Increase Renewable Energy in the Supply-

mix to 10% by 2020
 Promote exploitation and use of mini-hydro,solar, biomass and wind

IEEJ：August 2016 © IEEJ2016

STRATEGIES TO ACHIEVE 10% CONTRIBUTION OF
RENEWABLE ENERGY BY 2020Provide the regulatory framework and fiscal incentives for thedevelopment and promotion of renewable energies by the private
sector-Independent Power
Producers (IPPs)
Renewable Energy Bill which has the following main contents iscurrently in parliament for consideration and enactment into law.
Feed-in-Tariff
Obligatory purchase
Renewable Energy Fund
Support renewable energy sector agencies to undertake detailed
assessment of renewable energy resources with potential forelectricity generation.
Support for the research, development and demonstration ofeconomic viable renewable energy technological options for gridconnected, mini-grid and off-grid applications.

REQUIRED INVESTMENT IN RENEWABLE ENERGY SUBSECTOR (SOLAR, BIOMASS, MINI-HYDRO AND WIND)TARGETS TO ATTAIN 10% RE BY 2020

IEEJ：August 2016 © IEEJ2016

Energy Source

Exploitable Targets Investment(MW)
Requirement
US$ (million)Wind

200-300

250-400

Solar

20

100-150

Medium - small
Hydro

150

200-300

Modern Biomass/waste toenergy90

90-150Total

500 MW

640-900

IEEJ：August 2016 © IEEJ2016

FINANCING THE STRATEGY Private Sector Participation and Investment
 Public Private Partnership Arrangements

 Multilateral & Bilateral Sources from DevelopmentPartners
 Public Sector - Budget & Concessional LoanFacilities
for “Special” Infrastructure Programmes (e.g Rural
Electrification & Renewable Energy Programme) Internally Generated Funds from Energy Sector
 Companies - (VRA, ECG, TOR, etc) - CostRecovery
Pricing Commercial Loan Facilities to Support FinanciallyViable Projects by Energy Sector Companies (TOR, VRA,ECG)
 Listing on Ghana Stock Market

IEEJ：August 2016 © IEEJ2016

INVESTMENT CLIMATE Political Stability

 Legal and Institutional Framework for Players

in theEnergy Sector
 The Rule of Law
 Free and Independent Press
 Transparency and Accountability Commitment to fight Corruption and Crime
Vibrant Private Sector
 Strong Civil Society
 Attractive Incentives to All Investors (GIPCAct)IEEJ：August 2016 © IEEJ2016

CHALLENGES AND STRATEGIESKey Sector Challenges
Inadequate funding for Rural Electrification Projects

Mitigation Strategy Employed
Increased budgetary allocation for Rural Electrification
Programme
Poor financial Health of Power Utilities
Implementation of cost reflective tariff for the utilities andincrease the collection rate of utility bills
Inadequate power supply to meet growing demand and low Promoted private sector participation in the provision of energy
investment in the sector
infrastructure
Increasing demand for electricity for household and industry
Promoted private sector participation in the power sector
Low Staff strength and inadequate office accommodation for Arrangements made to increase staff strength and create office
staff
space for staff
Poor hydrology of Volta River
Reduced number of turbines in operation to prevent total
depletion of reservoir
Non-adherence to mandatory inspection and routine Schedule for maintenance of generating equipment adhered
maintenance plans causing loss of generating units throughfaultsNon-payment of utility bills by some MDAs
Institutions with outstanding bills disconnected from electricity
supply to ensure their timely payment of debt owed
Ageing equipment in the Power Sector (Generation, Routine programme in place for the replacement of old andTransmission and Distribution)
obsolete equipment
Absence of a reserve margin
Increased the existing generation capacity with the Emergency
Power Projects to meet the demand
Insufficient GoG budgetary allocation/releases
Programmes and projects of Directorates and Units developed
within the approved budget
Non availability of fuel for thermal plants
An emergency LNG Agreement signed to provide 120mmscf
To settle outstanding debt with West African Gas Pipeline

IEEJ：August 2016 © IEEJ2016

CHALLENGES AND MITIGATION STRATEGY CONT’D
Power Distribution
Activity/ProjectReduce system losses

Extension of electricity toun-electrified communities;
Self-Help Electrification
Project (SHEP)
Self-Help Electrification
Project (SHEP 4) Turnkey
Project

Challenges
Obsolete equipment

Mitigation Strategy

Replacement of equipment
Injection & Monitoring ofHigh Commercial losses
prepayment metering
Performance of Contractors Monitor progress of work
greatly impacts on thethrough regular site
successful implementation of inspections.
To involve top management
the project.
Late submission of Customer to impress upon utilities(ECG) to submit Customer
Service data from utilities
Service data on time.
(ECG) thereby delaying
To get MMDAs to step tocompletion of project anddenying residents access to provide resolution on rightof-way issues
electricity.
Right-of-way issues delaying
progress

IEEJ：August 2016 © IEEJ2016

CHALLENGES AND MITIGATION STRATEGY CONT’D
Renewable Energy
Activity/ProjectCommunity
Lighting Project

Basic Schools ICT
Pilot ProjectChallenges
1. Inability ofcustomers to pay forthe energy service(mobile phonecharging, etc.)
2. Difficulty inaccessing community
during raining season
1. Low staff strength
to conduct beneficiary
assessment
2. Difficulty inaccessing community
during raining season

Mitigation Strategy
1. Ensure fullcompliance with thesigned MOU
2. Conduct bulk ofmonitoring in the dry
season1. Engage a consultant
to carry out theassessment
2. Conduct bulk ofassessment in the dryseasonIEEJ：August 2016 © IEEJ2016

CHALLENGES AND MITIGATION STRATEGY CONT’D
Renewable Energy
Challenges
Activity/Project
Mini-grid electrification
system project

1. Transportation ofheavy materials andequipment from thevarious river banks to theislands,

Mitigation Strategy

1. Quick arrangementswith VLTC/VRA totransport all materials,
equipment to islands on
upstream of the Volta
Lake
2. Land related issues for 2. Secure land release
the siting of power plants agreement with theand right of way to string Nananum and educate
distribution lines
communities on the needto cooperate and grantright of way as theircontribution to project.

IEEJ：August 2016 © IEEJ2016

CHALLENGES AND MITIGATION STRATEGY CONT’D
Renewable Energy
Activity/Project
Scaling up
Renewable Energy
Program (SREP)

Challenges
1. Raising leveraging
finance by GoG andother stakeholders(private, DPs, MDBs,etc)
2. Capacity to implement
project

Mitigation Strategy
1. Engage all potential
funding stakeholders’right from program
preparatory stage toensure interventions arefocused on priority areas
2. Leverage on GEDAP
to create formidable teamand SREP PIU for theimplementation ofprogramIEEJ：August 2016 © IEEJ2016CHALLENGES AND MITIGATION STRATEGY CONT’D
Renewable Energy
Activity/ProjectChallenges
Mitigation Strategy
1. Climatic change and 1. Carefully prioritize
Hydropowerhydropower projects
Feasibility Studies & environmental
2. Fence projects forDevelopment Project degradation around
conducive financing
catchment areas
arrangements
2. Financing forhydropower
development

IEEJ：August 2016 © IEEJ2016

THE WAY FORWARD
 Address Security Concerns over Power

Enclaves Diversification of generation sources Rapid Diversification of Fuel Supply sources toinclude coal, LNG and nuclear
 Energy Efficiency & Conservation
 Intensify non-utility based Renewable Energy(200,000 roof top) Creation of indigenous jobs in the Electricity
Supply Industry – Local Content in the ESIIEEJ：August 2016 © IEEJ2016

DEMAND FORECASTIEEJ：August 2016 © IEEJ2016

GRAPH OF DEMAND AND SUPPLYIEEJ：August 2016 © IEEJ2016

COURSES IN ORDER OF PRIORITY
 Energy Policies in Japan

 International Energy situation

 Energy demand forecast in the World/Asia Subsidy system for Energy Field in Japan Energy Balance Sheet Observation: Mini Hydro Power Generation

IEEJ：August 2016 © IEEJ2016

Thank YouContact : report@tky.ieej.or.jp