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The Electricity Situation in Ghana: Challenges and Opportunities

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CGD Policy Paper 109
September 2017
The Electricity Situation in Ghana:
Challenges and Opportunities
In the past decade, Ghana has experienced
severe electricity supply challenges costing
the nation an average of US $2.1 million in
loss of production daily. This situation has
developed even though installed generation
capacity has more than doubled over the
period; increasing from 1,730 MW in 2006
to 3,795 MW in 2016. The peak electricity
demand only increased by 50 percent during
this same period, increasing from 1,393 MW
in 2006 to 2,087 MW in 2016. The electricity
supply challenges can be attributed to a
number of factors, including a high level
of losses in the distribution system, which
is mainly due to the obsolete nature of
distribution equipment, as well as non-
payment of revenue by consumers. Other
factors are overdependence on thermal
and hydro sources for electricity generation
and a poor tariff structure, which makes it
difcult for the utility companies to recover
the cost of electricity production.
In the face of these challenges, however,
Ghana could achieve universal access by
the year 2020 with an annual electrication
rate of about 4.38 percent. 82.5 percent
of Ghana’s population had access to
electricity by 2016. Solving Ghana’s
electricity challenges would require measures
including, but not limited to, diversifying
the electricity generation mix through the
development of other hydro power and
renewable energy sources for which the
country has huge potential, expanding the
prepaid metering system to include all public
and private institutions, restructuring the
tariff regime to ensure utilities can recover
their cost of generation, and promoting
energy efciency programs.
www.cgdev.org
Ebenezer Nyarko Kumi1
Center for Global Development
2055 L Street NW
Fifth Floor
Washington DC 20036
202-416-4000
www.cgdev.org
This work is made available under
the terms of the Creative Commons
Attribution-NonCommercial 4.0
license.
Abstract
Ebenezer Nyarko Kumi. 2017. “The Electricity Situation in Ghana: Challenges and Opportunities.”
CGD Policy Paper. Washington, DC: Center for Global Development. https://www.cgdev.org/
publication/electricity-situation-ghana-challenges-and-opportunities
1 University of Energy and Natural Resources, Sunyani, Ghana
CGD is grateful for contributions from the Nathan Cummings Foundation and Pritzker Innovation
Fund in support of this work.
Contents
Preface ................................................................................................................................................ 1
Executive Summary ......................................................................................................................... 2
Abbreviations .................................................................................................................................... 3
Introduction ...................................................................................................................................... 5
Ghana's Electricity Situation .......................................................................................................... 6
The Electricity Access Situation ................................................................................................ 6
The Electricity Demand and Supply Nexus ............................................................................ 8
The Electricity Generation Mix ............................................................................................... 11
The Structure of Ghana’s Power Sector ..................................................................................... 14
National Stakeholders ............................................................................................................... 14
Regional Stakeholders ............................................................................................................... 16
International Agencies .............................................................................................................. 16
Challenges and Opportunities in Ghana’s Electricity Sector .................................................. 17
Losses in the Electricity Distribution System ....................................................................... 18
Tariff Structure ........................................................................................................................... 19
Diversity in the Electricity Generation Mix .......................................................................... 20
Energy Efficiency Measures ..................................................................................................... 25
Conclusions ..................................................................................................................................... 25
References........................................................................................................................................ 27
1
Preface
CGD’s work on energy has focused principally on definitions of energy access, data analysis,
and the efficacy of international tools available to spur investment in the power sector in
developing countries. Ghana has been, since independence in 1957, a bellwether country for
development trends and this is also true with energy. As one of the first African countries to
aggressively pursue electrification, Ghana has among the highest access rates on the
continent. Yet, the country also suffers from chronic power shortages and has struggled to
expand capacity to meet growing demand. To better understand Ghana’s context and the
role of international actors, we commissioned this paper from Ebenezer Nyarko Kumi from
the Mechanical and Manufacturing Engineering Department at the University of Energy and
Natural Resources in Sunyani, Ghana. Kumi outlines the web of challenges that Ghana faces
in expanding its power sector and some of the opportunities for national and international
actors to contribute toward greater progress.
Todd Moss
Senior Fellow
Center for Global Development
2
Executive Summary
Ghana’s electricity sector dates back to the Gold Coast era where electricity supply was
mainly from diesel generators owned by industrial establishments including factories and
mines as well as other institutions such as hospitals and schools. The sector was
revolutionised with the completion of the Akosombo Hydroelectric Power Station which
also saw the export of electricity to neighbouring countries including Togo, Burkina Faso
and Benin. Electricity demand has since grown significantly to the point where supply is not
enough to meet the demand, resulting in severe power crises over the last decade. In a bid to
solve the crisis, a power sector reform was implemented in the late 1990s to open up the
electricity market for private sector participation to help deal with the power crises.
Ghana committed to universal access to electricity as far back as 1989 when only 1520
percent of the population had access to electricity. The National Electrification Scheme was
established to oversee and implement the National Electrification Master Plan which sought
to extend electricity to every part of the country by the year 2020. Through programmes like
the Self-Help Electrification Program (SHEP), the scheme has been able to extend electricity
to about 82.5 percent of the population as of the end of 2016. However, more efforts will be
needed to ensure universal access is attained by the year 2020.
Demand for electricity in Ghana has increased by about 52 percent over the last decade
(20062016) whiles installed generation capacity has more than doubled over the same
period. In spite of this, the country still suffers from persistent power supply challenges. This
situation can be attributed to the fact that most of the installed generation facilities are not
available for generation due to fuel supply challenges. Ghana’s electricity sector has been
heavily dependent on the Akosombo Dam which has seen water levels drop consistently
below acceptable operational levels. In recent times however, significant amounts of thermal
generation sources running on mostly natural gas have been introduced into the sector. The
problem with these sources is that supply of natural gas by the West African Gas Pipeline
(WAGP) has been very unreliable.
Other challenges plaguing the sector include high levels of distribution losses, lack of
revenue due to the non-payment of bills and also poor tariff structure, which makes it
difficult for the power utilities to make significant investments to improve the sector due to
financial constraints. Opportunities, however, remain in the sector for the introduction of
renewable energy sources into the generation mix, seeing that the country has potential for
solar power generation and other renewable energy sources. In light of this, the necessary
regulatory frameworks have been provided notable among these is the passage of the
Renewable Energy Act in 2011.
3
Abbreviations
ACEP African Center for Energy Policy
AfDB African Development Bank Group
BPA Bui Power Authority
CIDA Canadian International Development Agency
CSO Civil Society Organisation
DFO Distillate Fuel Oil
EC Energy Commission
ECG Electricity Company of Ghana
ECREEE ECOWAS Centre for Renewable Energy and Energy Efficiency
ERERA ECOWAS Regional Electricity Regulatory Authority
GDP Gross Domestic Product
GEDAP Ghana Energy Development and Access Programme
GEF Global Environment Facility
GHG Green House Gas
GoG Government of Ghana
GRIDCo Ghana Grid Company
GWh Giga Watt Hour
HFO Heavy Fuel Oil
IEA International Energy Agency
IPP Independent Power Producer
IRENA International Renewable Energy Agency
ISSER Institute of Statistical, Social and Economic Research
kV Kilo Volt
kWh Kilo Watt Hour
LCO Light Crude Oil
LNG Liquified Natural Gas
MCC Millenium Challenge Corporation
MOFEP Ministry of Finance and Economic Planning
MOP Ministry of Power
Mscf Million Standard Cubic Feet
MW Mega Watt
NED Northern Electricity Department
NEDCo Northern Electricity Distribution Company
NES National Electrification Scheme
NG Natural Gas
NITS National Interconnected Transmission System
PURC Public Utilities Regulatory Commission
PWD Public Works Department
SHEP Self Help Electrification Programme
T & D Transmission and Distribution
UNEP United Nations Environment Programme
USAID United States Agency for International Development
VALCO Volta Aluminum Company
4
VRA Volta River Authority
WAGP West African Gas Pipeline
WAGP Co West African Gas Pipeline Company
WAPP West Africa Power Pool
5
Introduction
Electricity is one of the major determinants of the economic prosperity of any country. It
plays a significant role in undertaking daily activities from cooking, lighting, heating to
powering machines in the industrial sector. Electricity is also essential for quality healthcare
delivery, education, transport, effective communication, mineral exploration and many more;
serving as the building block on which every sector of a nation’s economy thrives. This
emphasizes how crucial and indispensable electricity is for human existence in the 21st
century.
Ghana’s electricity sector dates back to the colonial days of the Gold Coast, where electricity
supply was mostly from isolated diesel generator plants dispersed across the country.
Industrial establishments such as mines and factories, municipalities and other institutions
including hospitals and schools owned most of these systems. The Gold Coast Railway
Administration established the first public electricity generation system in 1914, to supply
electricity for the operations of the railway sector in Sekondi (ISSER, 2005). This was
extended to Takoradi in 1928. By the year 1955, electricity had been extended to some major
cities in Ghana including Kumasi, Tema, Accra, Nsawam, Tamale and Bolgatanga under the
auspices of the Public Works Department (PWD). However, in 1947, an Electricity
Department was established within the Ministry of Works and Housing to take over
electricity supplies from the Public Works Department and the Railways Administration.
The major electricity source during this period was Diesel Generator Plants.
The completion of the Akosombo Dam Project over the Volta River in 1972 provided a
total installed capacity of 912 MW for electricity generation. Although the primary aim of the
project was to provide electricity for the aluminium industry, it also made it possible for
most of the major electricity consumed to be switched from diesel generators to
hydroelectricity. The major consumers of electricity during this period were the Volta
Aluminum Company (VALCO) and the National Electricity Distribution Company. The
completion of the Akosombo Dam also saw the Volta River Authority (VRA), managers of
the Akosombo Hydroelectric Power Station, commence supply of electricity to neighbouring
Togo and Benin. In 1982, the Kpong Hydroelectric Power Station was commissioned,
increasing the installed generation capacity by 160 MW.
Ghana, in spite of the increase in generation capacity, experienced its first electricity crisis in
1984. This was a result of a severe drought that occurred between 1982 and 1984, during
which the total inflow into the Akosombo Dam was less than 15 percent of the long term
expected total. The crisis led to the introduction of Thermal Power Plants into Ghana’s
generation mix. The first of these thermal plants was a 550 MW facility (Tapco and Tico) at
the Takoradi Thermal Plant managed by VRA. The total installed capacity of thermal power
plants in Ghana has increased to 2,053 MW as at the end of 2015 (Energy Commission of
Ghana, 2016a). Electricity crisis has become a household phenomenon in Ghana leading to
the adoption of the local word “Dumsor” to describe the situation. In December 2013, the
400 MW Bui Hydroelectric Power Station was commissioned to provide electricity to
support the peak load of the country, which has been on an ever-increasing trajectory.
6
This paper presents the state of the electricity sector in Ghana and discusses the roles of the
various stakeholders in the sector. It also discusses pertinent issues relating to demand and
supply of electricity including unfulfilled and future demand for electricity. The paper
concludes with a discussion of the challenges plaguing the electricity sector and the
opportunities available in sector.
Ghana's Electricity Situation
Ghana’s power sector has, over the past decade, been plagued with power supply challenges
resulting in considerable impact on the economic situation of the country. The World Bank
ranked electricity as the second most important constraint to business activities in the
country and estimated that Ghana lost about 1.8 percent of GDP during the 2007 power
crisis (Mathrani, et al., 2013). Also, the Institute of Statistical, Social and Economic Research
(ISSER) at the University of Ghana estimated in a 2014 study that Ghana, on the average,
lost production worth about US $2.1 million per day (or, US $55.8 million per month)
through the power crisis alone (ISSER, 2015). This means that the country lost about US
$680 million (2 percent of GDP) in 2014 due to the power crisis.
The Electricity Access Situation
The International Energy Agency (IEA) reports in the 2016 World Energy Outlook that as
at 2014, only 35 percent of the population of sub-Saharan Africa had access to electricity
(IEA, 2016). Table 1 presents global electricity access rates as at the end of 2014.
Table 1: Global electricity access rates in 2014Regional aggregates
Region
Population
without
electricity
(millions)
Electrification
rate
%
Urban
electrification
rate
%
Rural
electrification
rate
%
Developing countries
1,185
79
67
Africa
634
45
28
- North Africa
1
99
99
- Sub-Saharan Africa
632
35
19
Developing Asia
512
86
79
- China
0
100
100
- India
244
81
74
Latin America
22
95
85
Middle East
18
92
78
Transition economies
& OECD
1 100 100 100
WORLD
1,186
84
71
Source: (IEA, 2016)
7
Ghana’s committment to achieving universal access to electricity by the year 2020, started in
1989 with the establishment of the National Electrification Scheme (Ministry of Energy,
2010). The National Electrification Scheme (NES), which is one of Ghana’s flagship
projects, serves as the principal instrument leading the efforts to extend electricity to all parts
of the country over a thirty-year period from 19902020. At the start of the scheme, only 15-
20 percent of Ghana’s population had access to electricity (Ministry of Power, 2016). Recent
electricity access reviews have put access rates at 66.7 percent in 2009, 80.51 percent in 2015
and 82.5 percent in 2016 (Ministry of Power, 2016). The trend shown in Figure 1 indicates
an annual increase in electricity access rate of 2.60 percent. At this rate, Ghana is likely to
miss its target of attaining universal access to electricity by the year 2020 by a 5 percent
margin. Universal access can, however, be attained by the year 2022, unless measures are put
in place to accelerate the process; in which case the target could be achieved by 2020 with an
annual increase of 4.38 percent in electrification rate.
Figure 1: Trend for electricity access rates for Ghana
Source: (Ministry of Power, 2016)
The high electricity access rate is the result of the combined efforts of the National
Electrification Scheme (NES) and the Ghana Energy Development and Access Project
(GEDAP). Under the NES, the National Electrification Master Plan was developed which
laid out strategies to extend electricity access to cover the entire country by 2020. During the
first phase of the NES, all District Capitals and towns/villages enroute to the district capitals
were connected to the grid. The scheme has been a significant driver of electricity access
through discrete programs including the Self-Help Electrification Scheme (SHEP). Under
the SHEP, communities seeking to be connected to the national grid ealier than scheduled in
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
100.0
1985 1990 1995 2000 2005 2010 2015 2020 2025
Access Rate (%)
Business as Usual (BAU) Accelerated Rate to 2020
8
the National Electrification Master Plan were expected to contribute some of the logistics
required to complement government’s efforts. These communities had to provide low
voltage electricity poles and electricity meters in addition to ensuring that at least 30 percent
of households in the community were wired (Kemausuor & Ackom, 2016). This made
electricity extension to some communities take place earlier than it would have, if the
government alone were to bare the full cost.
The objective of the Ghana Energy Development and Access Project (GEDAP), which
commenced in 2007 and funded by the World Bank, is to improve the operational efficiency
of the electricity distribution system and increase the population’s access to electricity
through improving the distribution network to reduce losses, enhancing the capacity of the
managers of the distribution system and introducing renewable energy as a means of
improving access to electricity.
It is, however, important to note that electricity access does not only mean having a house
connected to the electricity grid but also ensuring the reliable supply of affordable electricity
to the household (Mensah, Kemausuor, & Brew-Hammond, 2014). Unfortunately, Ghana’s
power sector seems to be suffering the curse of unreliable power supply, which could
negatively impact the achievements made towards universal access. Ghana suffered severe
power rationing/load shedding in the years 19831984, 19971998, 2003, 20062007, 2011
date; a situation that could be largely attributed to fuel supply challenges including the low
levels of water in the Akosombo dam and natural gas shortages.
The Electricity Demand and Supply Nexus
Ghana has experienced an increase of 49.8 percent in peak load over the last 10 years;
increasing from 1,393 MW in 2006 to 2,087 MW in 2016 (Energy Commission of Ghana,
2016a; VRA, 2015; Energy Commission of Ghana, 2017). This translates into an annual
increase of 4.29 percent in peak load over the period shown in Figure 2. Generation capacity
on the other hand has more than doubled over the same period; from 1,730 MW in 2006 to
3,759 MW in the year 2016, an average annual increase of 8.60 percent. In addition, the
installed generation capacity saw a 29.14 percent increase in 2015 over the 2014 figure of
2,831 MW and a further 3.79 percent increase in 2016; whereas demand decreased by 1.88
percent in 2015 before increasing by 7.97 percent in 2016. In spite of this, the country is still
confronted with power supply shortage, which has been the case over the last decade.
9
Figure 2: Peak electricity demand versus installed generation capacity from 2006 to
2016
Source: (Energy Commission of Ghana, 2016a; VRA, 2015; Energy Commission of Ghana, 2017)
Gross electricity consumption in Ghana took a rather sharp decline from 9,059 GWh in
2006 to 7,413 GWh in 2007 (a reduction of 18.2 percent of the 2006 figure) before rising
steadily by an annual average of 10.8 percent till 2014. This trend, however, declined by 11.3
percent from 2014 to 2015 before increasing by 15.3 percent in 2016, as shown in Figure 3
(Energy Commission of Ghana, 2016a; Energy Commission of Ghana, 2017).
Electricity consumers in Ghana are classified into industrial, residential, non-residential and
street lighting by the Energy Commission of Ghana. Industrial, sometimes referred to as
Special Load Tarrif (SLT), consumers are those who use electricity for industrial purposes
including VALCO, the mining companies and other production and manufacturing facilities.
Residential consumers refer to homes in both rural and urban sectors of the country whereas
non-residential consumers are mostly commercial facilities. The electricity consumed by
street lights across the country is captured under the street lighting class. The electricity
consumption trend shown in Figure 3 indicates that, the past decade has seen the industrial
sector, the residential sector, and non-residential sector emerge as the three top consumers
of the electricity in the country. Export and street lighting account for the least in terms of
electricity consumption. It is interesting to note that the amount of electricity lost in
transmission and distribution (including commercial losses) was higher than the
consumption for the non-residential sector. On average, transmission and distribution losses
account for 21.9 percent of total electricity comsumption annually.
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
MW
Peak Electricity Demand Installed Generation Capacity
10
Figure 3: Electricity consumption pattern for Ghana from 2006 to 2016
Source: (Energy Commission of Ghana, 2016a; Energy Commission of Ghana, 2017)
One of the major problems plaguing Ghana’s electricity sector is the amount of electricity
not accounted for in terms of transmission and distribution losses. The historic trend of
these losses are presented in Figure 4. Transmission losses account for only 3.9 percent.
However, distribution and commercial losses by the Electricity Company of Ghana account
for as much as 16.2 percent of the gross electricity supply.
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Electricity (GWh)
Industrial Residential Non-residential
Street lighting Export T & D Losses
11
Figure 4: Transmission and distribution losses as a percentage of gross electricity
supply
Source: (Energy Commission of Ghana, 2016a; Energy Commission of Ghana, 2017)
The electricity consumption pattern for Ghana has been heavily impacted by the challenges
that the Volta Aluminium Company (VALCO) has been facing over the past 2 decades.
VALCO has, since its establishment, been the largest individual consumer of electricity in
Ghana. As of 2001, the peak power demand for VALCO was 27 percent of total peak
demand in Ghana whereas its energy demand was 33 percent of the total energy demand for
Ghana (Power Systems Energy Consulting (PSEC) & Ghana Grid Company (GRIDCo),
2010). Following the electricity crises, the operations of VALCO were severely hampered
resulting in the complete shutdown in 2004. VALCO, however, resumed operations in 2011
at 20 percent capacity (1 potline), accounting for 3.5 percent of total electricity consumption
of Ghana (VALCO, 2017).
The Electricity Generation Mix
The electricity generation mix in Ghana has mainly been from hydro and thermal sources,
with the country taking steps to introduce significant amounts of renewable electricity to
diversify the mix. At the end of 2016, the generation mix stood at approximately 57.21
percent of thermal against 42.79 percent of hydro sources as shown in Figure 5. Renewable
generation sources haven’t played any major role in the generation mix, contributing only 0.2
percent to the generation mix in 2016. Prior to 2016, the only renewable facility feeding
directly into the national grid being the 2.5 MW solar photovoltaic plant owned by the Volta
River Authority in Navrongo. A 20 MW solar plant owned by BXC Ghana was completed in
2016 to boost the amount of renewable energy sources in the generation mix. Also, a 100
0%
5%
10%
15%
20%
25%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Losses (%)
Transmission Losses ECG Losses NEDCo Losses
12
kW biogas electricity generation facility was connected to the national grid in 2016. The
Energy Commission of Ghana reports a total of 500 kW of installed solar PV systems (both
grid connected and with battery backup) owned by individuals and institutions (EADTF,
2014). Figure 5 shows a clear drift from heavy dependence on hydro sources to thermal
sources with the details of the generating facilities outlined in Table 2.
Figure 5: Historic electricity generation mix from 2006 to 2016
Source: (Energy Commission of Ghana, 2016a; Energy Commission of Ghana, 2017)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Generation Mix (%)
Hydro Thermal Renewable
13
Table 2: Installed generation facilities in Ghana as of 2016
Plant
Installed
Capacity
(MW)
Dependable
Capacity
(MW)
% of Installed
Capacity
Hydro
41.6%
Akosombo
1,020
1,000
Bui
400
360
Kpong
160
148
Sub-Total
1,580
1,508
Thermal
57.8%
Takoradi Power Company (TAPCO) 330 300
Takoradi International Company
(TICO)
340 320
Sunon Asogli Power (Ghana) Limited
(SAPP) - IPP 200 180
Sunon Asogli Power (Ghana) Limited
(SAPP2) - IPP 180 170
Cenit Energy Ltd (CEL) - IPP 126 100
Tema Thermal 1 Power Plant
(TT1PP)
126 110
Tema Thermal 2 Power Plant
(TT2PP)
50 45
Mines Reserve Plant (MRP)
80
70
Kpone Thermal Power Plant (KTPP) 220 200
Karpowership
235
220
Ameri Plant
250
240
Trojan
25
22
Genser
30
18
Sub-Total
2,192
1,995
Renewables
0.6%
Safisana Biogas
0.1
0.1
VRA Solar
2.5
2
BXC Solar
20
20
Sub-Total
22.6
22.1
Total
3,795
3,525
100.0%
Source: (VRA, 2015; Energy Commission of Ghana, 2016b; Energy Commission of Ghana, 2017)
14
The Structure of Ghanas Power Sector
Ghana’s power sector, before the late 1990s, was a vertically integrated monopoly, which
had the Volta River Authority (VRA), generating and transmitting electricity to every region
of the country while also distributing to the Northern Sector through its subsidiary the
Northern Electricity Department (NED). The Electricity Company of Ghana was
responsible for electricity distribution in the southern sector of the country. Power sector
reform in the late 1990s saw the Volta River Authority (VRA), split into a separate
generation and transmission system operations which also made it possible for other
Independent Power Producers (IPP) to enter the market. Edjekumhene, Amadu and Brew-
Hammond (2001) identify power supply constraints vis-à-vis growing electricity demand as
well as the difficulties associated with securing financial support from the traditional
financiers of the sector, including the World Bank, as the major drivers of the power sector
reform in Ghana. Stakeholders in Ghana’s power sector cut across national, regional and
international institutions as demonstrated in Figure 6. They include policy making and
implemention institutions, regulatory agencies, generation, transmission and distribution
companies, consumers, research and advocacy groups as well as financial institutions.
National Stakeholders
The Ministry of Energy is responsible for formulating, monitoring and evaluating policies,
programmes and projects for the power sector in Ghana with financial support from the
Ministry of Finance and Economic Planning (MOFEP). The Ministry is also directly
responsible for the implementation of the National Electrification Scheme in various parts
of the country.
The Energy Commission (EC) and the Public Utilities Regulatory Commission (PURC) are
responsible for regulating the activities of the power sector. The EC is responsible for
technical regulation of the power sector, including licensing of operators and also advising
the Minister of Energy on matters relating to energy policy and planning. The PURC, on the
other hand, is an independent regulatory agency responsible for economic regulation of the
power sector, specifically approving rates for electricity sold by distribution utilities to the
public. PURC is also responsible for monitoring the quality of electricity services delivered
to consumers.
15
Figure 6: Stakeholders in Ghana’s power sector
Northern Electricity
Distribution Company
(NEDCo)
Volta River
Authority
Independent Power
Producers
Ghana Grid Company (GRIDCo)
Electricity Company
of Ghana (ECG)
Exports
Bulk Customers
Residential, Non-Residential &
Industrial Customers
Imports
Bui Power
Authority
Non-Governmental Organizations, Civil Society Organizations (CSO) & Research
Institutions
Development Partners & Intergovernmental Agencies (Including World Bank,
International Renewable Energy Agency (IRENA), Global Environment Facility
(GEF), United Nations Environment Programme (UNEP), Etc.
Regional
Regulators
Generators
Transmitters
Consumers
Distributors
National
International
Policy Makers
&
Implementers
Energy
Commission
Ministry of
Energy
Public Utilities Regulatory
Commission
ECOWAS Regional
Electricity
Regulatory
Authority (ERERA)
West African
Power Pool
(WAPP)
Ministry of Finance &
Economic Planning
ECOWAS Centre for
Renewable Energy and
Energy Efficiency
(ECREEE)
16
Power generation in Ghana is carried out by three major groups; the Volta River Authority
(VRA), Bui Power Authority (BPA) and Independent Power Producers (IPP). The sources
of generation include hydro power plants, thermal power plants and solar photovoltaic
power plants. The Volta River Authority, a state-owned company, is the largest electricity
generation company in Ghana with a total installed capacity of 2,435 MW as at the end of
2015 , which makes up 66.1 percent of the country’s total installed capacity (VRA, 2015;
Energy Commission of Ghana, 2016b). VRA also owns what used to be the largest solar
photovoltaic plant in the country, a 2.5 MW plant situated in Navrongo. The Bui Power
Authority manages the Bui Hydro Power Plant whose installed capacity is 400 MW. The
Independent Power producers together contribute a total installed capacity of 850 MW to
the generation mix including a newly installed 20 MW solar photovoltaic plant owned by
BXC Ghana. In 2016, a 100 kW biogas electricity generation facility was connected to the
grid (Energy Commission of Ghana, 2017).
The transmission of electricity from the generation companies to the distribution companies
is done through the National Interconnected Transmission System (NITS) owned and
operated by the state-owned Ghana Grid Company Ltd (GRIDCo).
Distribution of electricity to final consumers is the responsibility of two state owned
companies, the Electricity Company of Ghana (ECG) and the Northern Electricity
Distribution Company (NEDCo). ECG distributes electricity to the southern sector of
Ghana whiles NEDCo distributes electricity to the northern sector.
KITE, Energy Foundation (EF), The Energy Center KNUST and other non-
governmental organizations including the African Center for Energy Policy (ACEP) in
Ghana provide different kinds of support to the power sector including research, advocacy
and the promotion of energy efficiency and renewable energy solutions.
Regional Stakeholders
Regional bodies like the West African Power Pool (WAPP) and the ECOWAS Regional
Electricity Regulatory Authority (ERERA) promote interstate electricity trade in the West
African sub-region. Whereas WAPP supports the development of power generation and
transmission facilities, ERERA provides the regulations for these interstate electricity
exchanges. ECOWAS Centre for Renewable Energy & Energy Efficiency (ECREEE) on the
other hand contributes to improving access to modern, reliable and affordable energy
services, energy security as well as the reduction of energy related externalities such as GHG
emissions and local pollution.
International Agencies
Ghana’s power sector has received enormous support from international agencies. The
support ranges from technical assistance in developing power infrastructure to financing
power infrastructure projects. There has also been support towards the development of the
renewable energy sector from these international agencies.
17
International Development Partners and Intergovernmental Agencies including the World
Bank Group, the African Development Bank (AfDB), USAID and CIDA have been the
bedrock of financial support for the development of various power projects in Ghana
including the financing of the Akosombo and Kpong hydropower plants as well as
investments towards the achievement of universal access to electricity by the year 2020
(Edjekumhene, Amadu, & and Brew-Hammond, 2001). The United States Power Africa
Initiative launched in 2013 aims at increasing electricity access in sub-Saharan Africa by
adding more than 30,000 megawatts of cleaner, more efficient electricity generation capacity
and 60 million new homes and business connections. The technical assistance provided by
Power Africa to the Ghana government helped to bring the CenPower (348 MW) IPP
transaction to a financial closure. The initiative also facilitated the development of Ghana’s
first offshore natural gas field, the Jubilee fields (USAID, 2017). Other projects currently
benefiting from the Power Africa support include Bridge power (400 MW), Ghana 1000
(375 + 375 MW), Amandi (192 MW), Globaleq (450 MW) and Jacobsen (400 MW), as well
as a number of renewable energy projects (USAID, 2017). The Millenium Challenge
Corporation (MCC) and the GoG signed a US $498.2 million “Compact II” whose keystone
project aims to improve the creditworthiness of the Electricity Company of Ghana (ECG)
and the management of the Northern Electricity Distribution Company, the nation’s off-
takers and distributors of electric power, by supporting the transformation of their
management and operation to private sector principals (USAID, 2017).
The international community has not only provided financial support to Ghana’s power
sector but also support the sector with technical know-how. The construction of the various
power sector infrasture have been carried out by international companies. Impregillo-Recchi
constructed the Akosombo and Kpong hydropower plants. Sinohydro Corporation Limited
constructed the Bui hydropower plant with financial support from the Exim Bank of China
and GoG. Other projects include Sunon Asogli Power (Ghana) Limited and the BXC Ghana
solar project which were all carried out by the Chinese.
The International Renewable Energy Agency (IRENA), United Nations Environments
Programme (UNEP) and Global Environment Facility (GEF) have provided supports
leading to the promotion and development of renewable energy and energy efficiency
programmes in the country. These efforts resulted in the passage of the Renewable Energy
Act and also the implementation of various programmes aimed at improving energy
efficiency in the country.
Challenges and Opportunities in Ghana’s Electricity Sector
The Ministry of Energy and the Energy Commission developed various policy and
regulatory instruments to guide the operation of the electricity sector, following the
implementation of the power sector reform in the late 1990s. These include the National
Electrification Scheme aimed at spearheading the achievement of universal access to all
Ghanaians by the year 2020; the National Energy Policy and its accompanying National
Energy Stratey which outlines GoG’s policy directions towards addressing the challenges
facing the energy sector; the Renewable Energy Act 2011, the Feed-in Tariff and Net
Metering Schemes to help promote the development and implementation of renewable
18
energy for electricity generation and other energy uses. The Public Utilities Regulatory
Commission (PURC) established to ensure equity and fairness in the pricing of electricity in
the country provides various levels of support towards the development and implementation
of these instruments. It is however unfortunate that, in spite of these measures, the sector
has not been able to provide satisfactory service to consumers over the past decade owing to
a number of challenges including lack of diversity in the electricity generation mix, high
levels of losses plaguing the distribution systems, and a poor tariff structure impacting on the
financial stability of the utility companies. Addressing these challenges in addition to
implementing demand side management (DSM) measures to help promote efficient use of
electricity and the adoption of renewable energy sources such as solar, wind and mini-hydro
could help improve the present situation.
Losses in the Electricity Distribution System
Ghana’s electricity distribution system has suffered lots of setbacks over the past decade. It
has been reported in Figure 4 of this report that, about 21.7 percent of gross electricity
generated over the last decade has been lost annually through transmission and distribution.
Whereas transmission losses for this period only averaged 3.9 percent, distribution losses
which also includes commercial losses accounted for 16.2 percent annually by the nation’s
biggest distribution company ECG. These losses can be associated with inefficiency of some
equipment in the distribution systems due to their obsolete nature and also the loss of
revenue for electricity consumed due to non payment of bills and power theft. It is reported
that at the end of 2015, the Government of Ghana owed ECG to the tune of GH¢ 950
million in subsidies and non-payment of bills by state institutions incuding ministries,
departments, and agencies (MMDAs) (Bokpe, 2016). The private sector and individuals also
owed ECG some GH¢ 610 million (Bokpe, 2016). These debts have made it difficult for the
distribution companies and the other institutions they owe including the VRA to meet their
obligations to their suppliers including WAPGCo.
The nationwide implementation of prepaid electricity metering systems for both the private
sector and government agencies holds the potential of helping the utility companies properly
account for the electricity consumed. Whiles prepaid meters are been implemented among
some in the private sector, those in the government sector are still on credit meters, hence
the huge debt levels. The state owned utility companies are not autonomous since the
government appoints the board members and some top management officials. This
interference makes it difficult for the utilities to fully hold government institution
accountable for the electricity they consume. One challenge to the implementation of the
prepaid metering system in the private sector is the lack of education on the part of the
utility companies to the consumers. A successful implementation of the prepaid metering
system in both the private and public sector will ensure funds are available for the effective
operation of the sector including the replacement of obsolete transmission and distribution
equipment to help improve on the technical losses.
19
Tariff Structure
The Public Utilities Regulatory Commission (PURC) incorporated the Automatic
Adjustment Formula (AAF) with the aim of sustaining the real value of the tariffs by
adjusting it, based on variations in factors such as fuel price (light crude oil, natural gas, etc),
foreign exchange, inflation and generation Mix. PURC has also instituted the lifeline tariff
for low income consumers with significantly low consumption levels at tariffs below the cost
of electricity provision, in consonance with the Government of Ghana’s Poverty Reduction
Strategy (GPRS). Figure 7 presents the trend in the average end user tariff for Ghana over
the past decade. The figure also shows the impact the exchange rate has on the tariff paid by
the consumers and the amount available to the utility companies. The weak state of the local
currency against the United States dollar significantly affects the revenue available to the
utilites because of foreign exchange losses.
Figure 7: Trend in average end user electricity tariff for Ghana from 2006 to 2015
Source: (Energy Commission of Ghana, 2016a; Energy Commission of Ghana, 2017)
The African Development Bank group reports the average end user electricity tariff across
Africa in 2010 to be US $0.14 per kWh and was produced at an average cost of US $0.18 per
kWh (AfDB, 2013). The case of Ghana, as shown in Figure 7, is no different from the rest
of the continent. This makes it difficult for the electricity utility companies to recover their
cost of operation. This phenomenon coupled with debts owed the utilities in subsidies and
unpaid bills by the government and other agencies goes to affect their ability to provide
reliable electricity to consumers.
Electricity tariffs are grouped into six (6) categories; residential, non-residential, special load
tariff (SLT) low voltage, special load tariff (SLT) medium voltage, special load tariff
(SLT) high voltage and special load tariff (SLT) high voltage mines (Energy
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
0
0.05
0.1
0.15
0.2
0.25
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Exchange Rate (US$/GH¢)
Average Electricity Tariff (US$/kWh)
Average Electricity Tariff (US$/kWh)
Exchange Rate (US$/GH¢)
20
Commission of Ghana, 2016b). The residential and non-residential categories are classified
into consumer below 50 kWh, 51300 kWh, 301600 kWh and those above 600 kWh
(Energy Commission of Ghana, 2017). All residential consumers enjoy some form of
government subsidy for the first 50 kWh of electricity a priviledge which should have been
given to only consumers whose total monthly consumption is less than 50 kWh. This means
the residential sector tariffs are unrealistic, making it difficult for the utility companies to
fully recover the cost of providing elerctricity. This situation also encourages the inefficient
use of electricity in the residential sector; putting more pressure on the power utilities.
Restructuring the tariff regime to ensure that subsidies are directed to only the poor in the
society would go a long way to help save the utility companies from financial crises.
The PURC, in taking steps to review the tariff structure, undertook a major tariff review in
2013 where the state owned utitlity companies, VRA, GRIDCo, ECG and NEDCo
presented proposals seeking upward adjustment of tariffs. This exercise resulted in an
upward review of tariffs although not up to the levels requested by the utility companies.
The government also introduced the energy sector levies to help repay the debts owed by the
utitlity companies.
Diversity in the Electricity Generation Mix
Ghana has been heavily dependent on hydro sources, mainly from the Akosombo dam, for
electricity generation as demonstrated in Figure 5 and Table 2. This has been because hydro
sources are known to provide the cheapest source of electricity as compared to thermal and
renewable energy sources. It is therefore not surprising that for 2006/2007, the period the
Akosombo dam experienced its lowest water levels, the country recorded the lowest amount
of electricity generation. Figure 8 shows the relationship between average water levels
recorded for the Akosombo dam and annual electricity generation.
21
Figure 8: Average water levels vs. electricity generation
Source: (Energy Commission of Ghana, 2016a; Energy Commission of Ghana, 2017)
The total installed generation capacity at the end of 2016 was 3,795 MW with proportions as
follows; 57.8 percent thermal, 41.6 percent hydro and 0.6 percent renewable. All the thermal
facilities presented in Table 2 run on natural gas (a cheaper fuel source compared to liquid
fuels) as the primary fuel source, with the exception of the CENIT Power Plant and the
Karpowership power plant, which depend solely on liquid fuels (LCO/DFO and HFO
respectively). This makes natural gas supply very crucial for the effective operation of
Ghana’s electricity sector.
The West African Gas Pipeline, transporting natural gas from Nigeri desktop-j06n6jv@ad a,
has been the major supplier of natural gas for electricity generation until the commissioning
of the Atuabo gas processing facility owned by the Ghana Gas Company in 2015 (Boadu &
Aklorbortu, 2015). Gas supply from Nigeria has, however, not been reliable with the
Nigerians citing non-payment of debt as one of the major reasons. Figure 9 shows the total
natural gas imports through the West African Gas Pipeline between 2009 and 2015. The
Atuabo gas processing facility is capable of supplying up to 150 Mscf per day to the western
power generation enclave at the Aboadze thermal facility with supplies from the Jubilee oil
fields. Plans are underway to process natural gas from the Tweneboa, Enyenra, Ntomme
(TEN) oil fields to augment supplies from the Jubilee fields and make Ghana self sufficient.
However, the Tema thermal power enclave still depends on natural gas supply through the
WAGP. The key challenges that have been experienced in the reliability of gas supply
include: Inadequate supply; planned and unplanned supply interruptions; and domestic and
international payment deficits. The Ghana National Petroleum Corporation (GNPC), in a
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
225
230
235
240
245
250
255
260
265
270
275
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Electricity Generated (GWh)
Water Level (ft)
Average Water Level at Akosombo Total Electricity Generation
Akosombo Power Generation
22
bid to diversify natural gas supply, signed an agreement in 2015 for the development of an
LNG facility which has the capacity to receive, store regasify and deliver at steady state an
equivalent of 500 Mscf of natural gas per day at Tema (GNPC, 2015).
Figure 9: Natural gas imports via WAGP
Source: (Energy Commission of Ghana, 2016a; Energy Commission of Ghana, 2017)
Crude oil prices have had significant impact on crude oil imports for electricity generation.
Figure 10 shows the relationship between average crude oil prices and the crude oil imports
for electricity generation in Ghana. It is worth noting that crude oil imports were lowest
when prices were highest in 2011, a situation that resulted in the highest natural gas import
levels as shown in Figure 9.
Figure 10: Average crude oil prices
Source: (Energy Commission of Ghana, 2016a; Energy Commission of Ghana, 2017)
0
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
2009 2010 2011 2012 2013 2014 2015 2016
Natural Gas Import (Mscf)
0
100
200
300
400
500
600
700
800
900
1000
0
20
40
60
80
100
120
2004 2006 2008 2010 2012 2014 2016 2018
Crude Oil Import (kilotonnes)
Average Crude Oil Prices
(US$/barrel)
Average crude oil prices Crude oil for electricity generation
23
Ghana has potential for alternative sources of electricity including medium-sized
hydropower, mini hydropower and other renewable energy sources mainly solar and wind
energy. Developing these potential sources will reduce the burden on the traditional
electricity generation facilities, help reduce the losses in transmitting electricity over long
distances from generation centres (mostly located in the south) to the consumption centres
in the middle and northern part of the country. These sources will, in the long run, help
reduce the import of crude oil and natural gas and could go a long way to impact positively
on the cost of electricity to both generators and consumers alike.Renewable Energy Options
Renewable energy provides viable alternatives to the power crises, seeing that the country is
endowed with abundant renewable energy resources particularly solar. The Renewable
Energy Act was therefore passed into law in 2011 to provide the legal framework for the
adoption of renewable energy sources into the generation mix. Following the passage of the
Renewable Energy Act, the Energy Commission has developed regulations for the sub-
sector including the renewable energy grid code and together with the PURC developed
feed-in tariffs for investment in the sector. The Act provides for the establishment of a
Renewable Energy fund to provide financial resources for the promotion, development,
sustainable management and utilization of renewable energy sources. The fund also provides
financial incentives for the development of mini grid and off grid renewable power systems
for remote areas and island communities. Under the feed-in tariff scheme the PURC is
mandated to set the feed-in tariff rates for the sector based on which developer could sign
power purchase agreements with the distribution companies following a written approval
from the PURC.
Ghana receives between 4.55.6 kWh/m2/day of solar radiation annually as presented in
Figure 11. Although this puts Ghana in a good position for solar electricity projects, a
UNEP report launch in 2015 estimates the solar electricity pontential for Ghana at 150 MW
taking into account the capacity of the grid transmit intermittent generation sources (UNEP,
2015). 22.5 MW of this potential has been exploited in two grid connected facililties; 20 MW
BXC plant at Mankoadze and 2.5 MW VRA plant in Navrongo. About 500 kW has also
been installed with or without battery storage by individual homes and institutions. This still
leaves over 100 MW of potential untapped. The Energy Commission under the auspicies of
the Ministry of Energy has introduced the National Rooftop Solar PV Programme as a
means of providing capital subsidy for the development of rooftop solar PV systems to
residential facilities. The programme seeks to help reduce the burden on the conventional
power generation facilities. Under the programme, the client after purchasing the balance of
systems including the inverter, battery and charge controller can receive a maximum of 500
Wp solar panels from the programme (Energy Commission of Ghana, 2016c). Also, about
76 private institutions have been given provisional licences by the Energy Commision to
undertake grid connected solar projects (UNEP, 2016).
24
Figure 11: Solar radiation map for Ghana
Source: (EADTF, 2014)
Ghana’s total hydro power potential is estimated at 2,480 MW but only 1,580 MW has been
exploited in the form of the Akosombo, Kpong and Bui power stations leaving about 900
MW untapped (IHA, 2015). The Energy Commission has identified potential sites for
medium-sized and mini-hydro sites in Figure 12. Five of these medium-sized potential sites
including Juale (87 MW), Pwalugu (48 MW), Daboya (43 MW), Hemang (93 MW), and
Kulpawn (36 MW) are undergoing feasibility studies (IHA, 2015). Nine other potential mini-
hydro sites have been estimated to provide a total of 2.64 MW in various locations accros
the country (Ahiataku-Togobo & Amankwa, 2006). Exploration and development of the
other potential sites could impact greatly on the electricity situation in the country in the near
future.
Figure 12: Potential hydro and wind power sites in Ghana
Source: (EADTF, 2014)
25
Wind speeds measures at various locations across the country range from 6 m/s to 9 m/s
(EADTF, 2014). Whiles there are no existing wind power facilities presently operating in the
country, Figure 12 presents potential wind power sites indentified by the Energy
Commission. The Volta River Authority, as part of its diversification programme, plans to
implement upto 150 MW of wind energy projects of 74 MW capacity each along the cost of
Keta in the Volta Region and Ada in the Greater Accra Region (VRA, 2016).
Energy Efficiency Measures
The easiest approach GoG has adopted to dealing with the power crises has been to build
new power plants, an approach that requires high capital investments. The Energy
Commission has developed rules and regulations that feed into the national policy of energy
efficiency and conservation. The Commission has since 2007 implemented programmes that
have saved Ghana a lot of investments which would have otherwise gone into building of
power plants. One of such programmes is the energy efficiency standards and labellings for
air conditioners under which every air conditioner imported into the country is required to
meet a certain minimum energy efficiency standard set by the Energy Commission and
verified by the Ghana Standards Authority. This projected was estimated to offset the
national peak demand by about 250 MW (Gyamfi, Amankwa Diawuo, Kumi, Sika, &
Modjinou, 2017) The commission carried out another programme to replace all incandescent
bulbs with compact fluorescent lamps (CFL), a project which ended up saving 200240 MW
of generation capacity (Gyamfi, Amankwa Diawuo, Kumi, Sika, & Modjinou, 2017). In a
refrigerator rebate scheme, the commission sought to replace all second-hand inefficient
refrigerators with new and more efficient ones that bare energy efficiency labels similar to
that of the air conditioners. These programmes have helped to reduce the burden on the
generation facilities and more could be achieved if the citizenry are educated to practice
energy saving measures.
Conclusions
Ghana has been committed to providing universal access to electricity by the year 2020. This
has seen the establishment of the National Electrification Scheme, in which programmes
such as the SHEP has extended electricity to about 82.5 percent of the population of Ghana
as of the end of 2016. This pace of electrification, however, cannot guarantee the country
universal access to electricity by the year 2020 unless the annual average electrification rate is
increased from 2.6 percent to 4.4 percent.
The electricity sector in Ghana has been plagued with severe power supply challenges,
characterised by persistent load shedding over the last decade. These challenges are not as a
result of lack of installed generation capacity since the total installed generation capacity is
far above the peak power demand for the country. The challenges can however be attributed
to the unavailability of adequate generation capacity due to fuel supply challenges, inefficient
distribution systems leading to high distribution losses and loss of revenue resulting from
non payment of bills as well as a poor tariff structure; making it difficult for electricity utility
companies to recover their investments in the sector.
26
Efforts aimed at addressing some of these challenges include the MCC Compact II which
seeks to provide financing for the enhancement of the grid infrastructure to mitigate some
of the distribution losses and also provide technical as well as managerial capacity to the
country’s distribution companies. The government is also developing the other gas resources
from the country’s oil fields to provide stability in supply of natural gas to the nation’s
thermal generation facilities. There has also been proposals to establish an LNG
regasification unit to augment local gas supply.
The country has potential in smaller hydro power and renewable energy sources which when
fully exploited, would bring diversity into the country’s generation mix thereby curbing the
heavy dependence on the Akosombo dam and the major thermal generation facilities. The
role of renewable energy in helping achieve electricity self sufficiency cannot be over
emphasized. The introduction of the Renewable Energy Act has provided the impetus for
development of the sector. However, the government needs to strengthen the enforcement
of the of the Act and the various sub regulations as well as introducing more incentives to
attract investments into the renewable energy space.
27
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Ghana is experiencing an increase in energy demand as a result of increased industrialization activities. Nonrenewable energy sources, such as combustible fuels like petroleum, are the primary source of energy. Nonrenewable energy resources are associated with a number of issues, including environmental pollution. Renewable energy is a sustainable source of energy that is critical to the energy sector and the economy’s progress. Hydropower, biomass, solar energy, and wind energy are among the renewable energy resources available in Ghana. In Ghana, key institutions are responsible for the management and development of energy sources in the renewable energy sector. Among these institutions is the Ministry of Energy, which is responsible for the formulation and implementation of laws and policies, for instance, the Renewable Energy Act of 2011. Volta River Authority (VRA), Ghana Grid Company (GGC), and Electricity Company of Ghana (ECG) are among the institutions under the Ministry of Energy. There are also regulatory agencies established by parliamentary act to ensure that all actors in the sector are working properly. Among these are the Energy Commission, the Public Utilities Regulatory Commission (PUR), and the National Petroleum Authority. Active nongovernmental organisations (NGOs), research institutes and universities, and industry are also involved in renewable energy activities.
... GSGDA outline power as the key constraint that binds constraint to accelerated growth and development of the economy [30,43,77,78] . GSGDA illustrates that "In the medium-term, Government policy will focus on increasing the proportion of renewable and other energy sources in the supply mix, particularly solar, wind, mini-hydro and waste-to-energy. ...
... As opined by Nunoo [68] and Amos-Abanyie et al [36] consumers put up wasteful practices due to lack of knowledge or awareness on the use of energy and its related negative implications. Poortinga et al [52], Wang et al [53] and Kumi [69] collaborates this assertion as they scientifically prove that consumer education has significant level of influence on energy saving practice. ...
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This paper assessed energy conservation and efficiency awareness practices of households in the Cape Coast Metropolis of Ghana. It examined the level and variability in energy conservation practices and the level of energy-savings awareness education among households. The findings reveal that years spent in school by household heads, income levels, expenditure, age of households, and the number of times electricity power triples off daily were among the key factors influencing an individual’s choice of energy-efficient appliances. There was significant variability between existing social strata in terms of income and use of electrical appliances among households. Based on the findings, this study recommends a robust energy literacy program to improve households’ energy efficiency practices awareness, and in order to ensure energy cost savings, environmental protection, and climate change mitigation that will enhance the drive towards achieving sustainable development goals seven (SDG 7).
... In Ghana and Kenya, the electricity access rate as of 2019 was almost 85%. Grid connections have accounted for most progress in Africa over the last decade, but off-grid systems have rapidly increased deployment to augment grid extension challenges (International Energy Agency, 2020; Kumi, 2017b;USAID, 2020;World Bank, 2019). There are, however, unelectrified areas due to the high cost of grid extension and remoteness. ...
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Telecommunication services have continued to evolve to meet the ever-changing bandwidth demand requirements. The electricity grid network of Ghana is faced with challenges, including low voltages, a lack of quick fault response teams, and the proximity to specific locations. Using diesel generators to address the shortfall in grid supply is expensive and has implications for greenhouse gas emissions. This study evaluated the technical and economic benefits of using a standalone solar photovoltaic (PV) system, hybrid (Solar PV/diesel), conventional diesel generators (DG), and grid extension to power an off-grid outdoor telecommunication site. Power solutions configurations were simulated using hybrid optimization of multiple electric renewables (HOMER). The study found the optimum design to be a standalone solar PV/battery system with 56.3 kW solar PV array and Sixty (60) pieces of 12 V SAGM batteries of 135 Ah. The optimum design had a net present cost (NPC) of US$ 88,176.00 and a cost of energy (COE) of US$ 0.321/kWh. The COE and the NPC of the optimum system were approximately 50% less than the design with DG only, which could significantly impact service tariff and improve access to digital connectivity. The COE from the solar PV/battery system is not competitive with the grid power supply (COE = US$0.12). However, considering the electric distance limit or breakeven distance of 4.51km for grid extension, the solar PV/battery is preferred. Therefore, the stakeholders in providing power solutions to off-grid locations should consider solar PV technology.
... In Ghana and Kenya, the electricity access rate as of 2019 was almost 85%. Grid connections have accounted for most progress in Africa over the last decade, but off-grid systems have rapidly increased deployment to augment grid extension challenges (International Energy Agency, 2020; Kumi, 2017b;USAID, 2020;World Bank, 2019). There are, however, unelectrified areas due to the high cost of grid extension and remoteness. ...
Article
Full-text available
Telecommunication services have continued to evolve to meet the ever-changing bandwidth demand requirements. The electricity grid network of Ghana is faced with challenges, including low voltages, a lack of quick fault response teams, and the proximity to specific locations. Using diesel generators to address the shortfall in grid supply is expensive and has implications for greenhouse gas emissions. This study evaluated the technical and economic benefits of using a standalone solar photovoltaic (PV) system, hybrid (Solar PV/diesel), conventional diesel generators (DG), and grid extension to power an off-grid outdoor telecommunication site. Power solutions configurations were simulated using hybrid optimization of multiple electric renewables (HOMER). The study found the optimum design to be a standalone solar PV/battery system with 56.3 kW solar PV array and Sixty (60) pieces of 12 V SAGM batteries of 135 Ah. The optimum design had a net present cost (NPC) of US$ 88,176.00 and a cost of energy (COE) of US$ 0.321/kWh. The COE and the NPC of the optimum system were approximately 50% less than the design with DG only, which could significantly impact service tariff and improve access to digital connectivity. The COE from the solar PV/battery system is not competitive with the grid power supply (COE = US$0.12). However, considering the electric distance limit or breakeven distance of 4.51km for grid extension, the solar PV/battery is preferred. Therefore, the stakeholders in providing power solutions to off-grid locations should consider solar PV technology.
... In Africa, about 600 million people in the Sub-Saharan region still live without access to electricity [28] . Fortunately, Ghana is amongst a few Sub-Saharan African countries with a significant electricity access rate [37] . The country's electricity access has improved over the years, with the proportion of the population with electricity access in urban and rural areas being about 100% and 72%, respectively [17] . ...
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Presently, about 28% of the populace living in rural communities lack access to electricity to meet their basic needs in Ghana. Biomass is gaining importance globally as a sustainable alternative to fossil fuels due to rising energy demand, the high cost of fossil fuels, depleting fossil fuel reserves, and the greenhouse gas emissions from fossil fuel combustion. This study examined the technical bioenergy potential available from crop residues. The economic feasibility of electricity generation via biomass combustion and gasification technologies is also investigated. The Bioenergy Food Security Rapid Appraisal (BEFS RA) Excel-based tool was used to perform a techno-economic analysis of crop residues compatible with combustion and gasification pathways. Based on the selected crops and assumptions used in this study, it was estimated that about 35 million tonnes of gross residue potential were assessable for energy generation in Ghana. Nonetheless, about 29 million tonnes of surplus residue potential are accessible for bioenergy production. The total bioenergy potential from surplus crop residues is approximately 401 PJ/yr. Also, the cost of energy (COE) generation from the gasification and combustion plants is between US$0.29/kWh and US$0.34/kWh, which is expensive compared to the tariffs paid by residential consumers in Ghana. Notwithstanding, utilising crop residues for electricity generation might be a feasible option for rural electrification in Ghana with appropriate financial support.
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Most commercial entities depend on the availability, and reliability of electricity supply for their business ventures. Poor energy security, unreliability, and high cost of electricity characterize the utility grid of Ghana, forcing most of these facilities to resort to using diesel generators to supplement their energy needs. This study, therefore, proposes the development of a Microgrid (MG) to provide electricity to the Zipline facility in Sefwi-Wiawso, Ghana. The optimally designed MG is achieved using the HOMER software and consists of 94.8 kW Sunpower solar panels, 231 kWh Samsung M8068 Li-ion batteries, 56.31 kW ABB MGS inverter, 158 kW CAT-C7 diesel generator, and an infinite distribution grid. The proposed design with a lifespan of 25 years has an initial capital cost of US$ 45,929.17 and a nominal discounted payback period of 2.11yrs making a total savings of US$ 322,563.21.
Article
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In 1989, the government of Ghana set in motion an electrification plan that aims to provide universal access to electricity within a 30-year period, from 1990 to 2020. About 25 years down the line, Ghana seems to be inching closer toward universal electrification. However, a number of challenges remain. As is the case in many other countries, urban communities have greater access to the national electricity grid than rural communities. Also, electricity generation in the country has not matched demand. This has resulted in load shedding/power rationing that has become the bane of the power sector in Ghana, negatively impacting all sectors of the economy and leading to economic losses. The low generation capacity is partly due to poor fuel supply to existing thermal power plants meaning that installed capacity is often not available for use. This is coupled with low investment in transmission and distribution systems’ infrastructure. Going forward, the government of Ghana would have to explore alternative ways of obtaining fuel, such as regasification, to solve the chronic issue of poor fuel supply for electricity generation. Distributed generation systems, using community mini-grid and off-grid systems are other alternatives that could be explored within the framework of the access agenda in order to reach the unserved poor located in remote rural communities.
Article
Ghana's electricity sector has long been saddled with challenges regarding supply security and power quality. The existing power plants are not able to attain full generation capacity due to fuel supply constraints, as well as the uncertainty of rainfall and water inflows into the hydroelectric power plants. There has been an imbalance between demand and supply in the country with a shortage of 25% of peak power reported in year 2014–2015. In dealing with the energy crises, the focus of the country’s energy sector has been on the installation of additional thermal power plants. However, capacity additions face a number of obstacles such as the requirement for high capital investments, timely approvals to build new power plants, and there has been increasing inflation problem. Therefore, securing adequate supplies to meet rapidly growing demand remains a challenge, at least in the short-term. Coupled with this is the country's electrical appliance market, which has been flooded with imports of used low-efficiency appliances from overseas. As the country achieves middle-income status the number of households that can afford major household appliances is expected to increase, with the prospect of many consumers buying inefficient appliances; thereby unnecessarily burdening the national grid. While energy efficiency (EE) is internationally recognised as a low-cost, readily available resource that could help improve electricity supply security, its implementation in Ghana has, only recently, been given serious attention. This paper provides a review of energy efficiency initiatives undertaken by the regulating agencies responsible for energy issues. It provides a comprehensive overview of the current energy efficiency status of three household appliances, namely refrigerators, air conditioners and lighting systems. The review indicates that EE measures carried out especially in the replacement of incandescent lamp with compact fluorescent light (CFL) made significant savings that offset the national electricity peak demand by 200–240 MW.
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Providing access to modern energy services for development is a daunting task which requires rigorous planning based on robust information. Energy access indicators enable measurement and monitoring of the progress of energy access expansion efforts, thus informing corrective efforts and efforts worth replicating. This paper reviews what has been proposed to constitute energy access and energy access indicators. The paper further reviews briefly the different types of energy access indicators and analyses access to modern energy in Ghana as measured using the energy access indicators employed in Ghana. The paper concludes that Ghana has achieved commendable access to modern energy services compared to her sub-Saharan peers but recommends further efforts to achieve the set targets of universal access to electricity by 2020 and 50% access to LPG by 2020. The paper finally recommends further work on the different types of indicators which are relevant for tracking energy access progress but are not currently employed in the country.
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