Energy Sector

An Expert's View about Energy in Ghana

Posted on: 19 Jan 2012

The majority of power generation in Ghana is through the state owned Volta River Authority (VRA), who operate the hydro stations at Akosombo and Kpong and a thermal power plant at Aboadze, near Takora

Energy sector in Ghana Ghana, with an attractive emerging economy, is looking for more IPPs to boost national electricity production. Opportunities are also available in renewable energy. Market overview The majority of power generation in Ghana is through the state owned Volta River Authority (VRA), who operate the hydro stations at Akosombo and Kpong and a thermal power plant at Aboadze, near Takoradi. Demand for power is currently at 1400MW and is growing 10% annually. Ghana has embarked on an expansion programme targeting state owned capacity (a new dam, the Bui Dam is set to come on line in 2013) but also encouraging independent power producers. More than 1500 MW of new electricity capacity is set to come on line over the next 5 years, with 952 MW overseen by the VRA and the remainder by IPPs. Although Ghana currently gets about 70% of its electricity from hydro power stations it aims to supply 10% of its domestic demand through modern renewable technologies by 2020. The current national access to electricity supply is about 43 % of the population yet over 80 % of the domestic electricity supply is consumed in cities and towns. There is potential for electricity generation from renewable energy sources such as solar, wind, biomass and small hydro to connect communities off grid. These sources have not yet been exploited to any significant degree for electricity generation. Supply and regulation in Ghana - the national transmission system (NITS) for electricity is owned and operated by the state owned Ghana Grid Company (GRIDCO). The distribution of electricity is done by the Electricity Company of Ghana (ECG), a state-owned company, and the Northern Electricity Department (NED), a subsidiary of the Volta River Authority (VRA). The Energy Commission (EC) and the Public Utilities and Regulatory Commission (PURC) regulate the electricity supply industry. The Energy Commission, in addition to being responsible for technical regulations in the power sector, also advises the Minister for Energy on matters relating to energy planning and policy. Key opportunities ξ Low carbon options for thermal power plants - can be supplied with Nigerian gas through the West African Gas Pipeline and in the future (when the infrastructure is in place) gas from Ghana’s offshore fields. ξ Renewables – Government aims to reach 10% of domestic demand by modern renewable technology by 2020. ξ VRA is embarking on a $40m renewable energy project, some of which will be invested in solar energy plants in the north of Ghana. ξ Wind and solar farms in the Northern region, to alleviate the need to connect remote regions to the national grid. ξ Coastal wind turbines. Wind power is expected to eventually comprise two thirds of alternative energy supply. ξ Bioenergy – the EU funded $2.7m Jatropha project in northern Ghana.. Latest export opportunities – Energy Latest export opportunities - Ghana Getting into the market All foreign companies are required to register with the Ghana Investment Promotion Centre (GIPC) who can assist with guidance on the bureaucratic procedures for investment. Guidance available at Energy planning & policy is managed through the Ministry of Energy, Regulation of the Energy Sector is through the Energy Commission, Regulation (independent) of electricity rates, standards and competition is through the Public Utilities Regulatory Commission, More about doing business in Ghana Contacts Market intelligence is critical when doing business overseas, and UKTI can provide bespoke market research and support during overseas visits though our chargeable Overseas Market Introduction Service (OMIS). To commission research or for general advice about the market, get in touch with our specialists in country - or contact your local international trade team. •Alasdair Hamilton, British High Commission, Ghana. Tel: +233 (0)302 213 231 or email: •UKTI Ghana Trade Team, British High Commission, Ghana. Tel: +233 (0)302 213 200 or email: Contact your local international trade team UKTI Events UKTI runs a range of events for exporters, including seminars in the UK, trade missions to overseas markets and support for attendance at overseas trade shows. Latest events – Energy Major Events Solar West Africa 2012 Date: 4 to 5 April 2012 Useful links More about OMIS and other UKTI services for exporters
Posted: 19 January 2012

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