ghana energy report

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Ghana Country Report

By

MAHU Seth & Obed Essandoh….

Ministry of Energy, Ghana

June 23, 2011

GHANAINVESTMENT OPPORTUNITIES INTHE ENERGY SECTOR



- Land Area: 238,500 sq km

- Population: 24,791,073 (July

2011 est.)

-Electricity Access: 72% (2011)

-Consumption/Capita: 400kwh

- Av. GDP Growth Rate: 6.0%/yr

Major Export: Cocoa, Gold,

Timber, Bauxite,

Petroleum, etc

Overview of Ghana



Cont’d



• Renewable Energy (biomass and hydro) accounts for78% of total energy consumption in Ghana.

More than 60% of electricity generated is from hydropower - Akosombo & Kpong

• The share of modern RETs (Wind, Solar PV, small-hydro, Bio-fuel) for electricity is however very negligible(<0.1%).

Biomass

72%

Hydro

6%

Petroluem

22%

Energy Consumption-2009

TOTAL ENERGY CONSUMPTION - 2010



Generation Sources

Hydropower Thermal Power

Akosombo –1,020 MW

Kpong – 160 MW

TAPCO (Takoradi I) – 330 MW

TICO (Takoradi II) – 220 MW

Mines Reserve Plant – 80 MW

VRA Tema – 126 MW

Imports – up to 250 MW

Bui –

400 MW

Osonor Power –

126 MWAsorgli Power – 200 MW

Osagyefo Barge –

125 MWTema 2 Plant – 49.5 MW

Kpone Thermal – 223.4 MW

Takoradi III Plant – 132 MW

Electricity Supply Infrastructure



Natural Resources in Ghana

• Mineral resources (Gold, diamond, Bauxite,

Manganese, iron ore)

• Fresh water bodies and the sea

• Arable lands for agriculture

• Forest resources (biomass, timber, game)

• Energy resources (biomass, wind, solar, hydro-power, oil & gas)



Ghana-China Relationship

• Development of;

– Bui Hydro Electric Dam,

– The National Theatre,

– Ministry of Defense Complex

– Capacity building in SHP, etc are ample evidence of the

strong tie that exist between Ghana & China.



Solar Resource Potential

• Daily solar irradiationlevel ranging from 4-

6kWh/m²

• Highest in the northern

half of the country• Annual sunshine

duration of 1800-3000

hours.

• Very high potential foroff-grid and grid-

connected applications.



Wind Resource Potential

• Good to moderate potential

along the eastern costal beltof Ghana.

• Wind speed of over 6m/s

estimated at 50m.

• Wind energy potential is

estimated to be 10,406MW

(EC)

• Suitable for water pumping,

grid-connection and off-grid

applications



Kpong

(160MW)

Akosombo(1080MW)

• Potential is about

2,420MW

• Akosombo & Kpong.(1,180MW) provide 60-

70% of electricityrequirement

• Bui (400MW) under

construction

• Remaining sites (21) withtotal capacity of about840MW are yet to bedeveloped.

Hydro Power



ENERGY SECTOR VISION

11

Woodfuels

66%

OtherPetroleumProducts25%

LPG

1%

Electricity

8%

Energy Consumption byType in 2010

Achieve Universal Access to modern energy forms by 2020

•Ghana is predom inant ly a

woodfuel-based Energy

economy

Woodfuel30%

Other

PetroleumProducts25%

LPG

25%

Electricity

20%

Energy Consumption by Type by2020

Universal access to electr ic i ty and

high p enetrat ion of LPG to

subs t i tute for wood fuels



• Increase access to adequate, reliable andeconomically priced modern forms of energy supply

• Diversify the national energy mix including the use

of environmentally friendly indigenous sources of

energy such as SHPs

• Ensure efficient management of the energy sector

• Ensure productive and efficient use of energy

• Promote Private Sector Participation in the energysector

• Ensure security of energy installations and

operations12

Medium Term Policy Focus for the Energy

Sector



Energy Sector Policy Targets

• Increase power generation capacity from the current level of

2,000MW to 5,000MW and develop a non-constrainedtransmission network by 2015.

• Achieve 80% national access by 2015 and universal access by

2020

• Achieve 10% contribution of modern Renewable Energy inthe electricity-mix by 2020

• Reduce demand on woodfuel from current 66% to 30% by

2020.

• Ensure the effective & transparent management of oil andgas revenues for the benefit of present and future generation

of Ghanaians.

• Achieve 90% of local content within 10 years from the

commencement of specific energy project



Strategies to attain 10% RE in the Electricity

Generation Mix by 2020

Energy Source ExploitablePotential(MW)

InvestmentRequirementUS$ (million)

Wind 200-300 250-400

Solar 20 100-150

Medium –

small Hydro 150 200-300Modern Biomass /waste to

energy

90 90-150

TOTAL 500MW 640-900



Strategies for 10% RE in the Electricity

Generation mix by 2020

• Enact a Renewable Energy Law to provide the

necessary fiscal incentives for renewable energy

development by the private sector (IPP)

– Legal and regulatory framework – Feed-in-Tariff

– Obligatory purchase

– Renewable Energy Fund

• Bill has been approved by Cabinet and under

consideration by parliament



– Support for resource assessment and feasibilitystudies for grid-connected RE systems based on

wind, biomass, small hydro and solar.

–Support for the development of RE regulatory and

pricing frameworks for grid connected RE systems

– Support for estate developer to integrate RE in real

estate buildings.

– Support for use of decentralized mini-grid and off-grid RE systems for remote communities and

Islands that cannot be connected to grid electricity

within the next 5-10 yrs

Strategies to attain 10% RE in the

Electricity Generation Mix by 2020

PROCEDURES FOR AN IPP ENTRY INTO THE GHANA ELECTRICITY



PROCEDURES FOR AN IPP ENTRY INTO THE GHANA ELECTRICITY

MARKETIPP Undertakes Pre -feasibility study

Detailed feasibility studies to ascertain Technical Feasibility and Financial Viability of Project.

IPP interacts with relevant Regulatory Agencies, such as the Energy Commission – EC

(Licensing and Technical Regulations) and the PURC (Pricing Regulation)

IPP Identifies a Buyer or an Off-Taker ( e.g ECG or any other Bulk Customers).

IPP obtains Site clearance by Environmental Protection Agency (EPA) & EC.

IPP Obtains Environmental Permit from EPA

Concluding a Memorandum of Understanding between IPP and Off-Taker after securing

PURC’s No-Objection in principle.

IPP obtains relevant approvals of identified relief’s from Governmental Agencies such as

(GIPC), Ministry of Energy (Renewable Energy Law) and Ministry of Finance & Economic

Planning etc.

Obtaining License from the Energy Commission

IPP concludes PPA with Off-Taker



Significant Achievements

• National access to electricity hasincreased from about 15% in 1990 to 72%

as at Dec, 2010

• Established a separate transmissioncompany and regulatory institutions in

the power sector.

• Over 5,000 off-grid rural households and

public institutions provided with solar

electricity



• Political Stability

• Legal and Institutional Framework for Players in

the Energy 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 (GIPC Act) 19

Conclusion



Ministry of Energy, Ghana

Thank You

ghana energy report

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