logo #CWCGhana 21–22 November 2018

Speech by the Deputy Minister of Power

Hon John A. Jinapor, Deputy Minister of Power at the Ghana Summit – Oil & Gas and Power, in Accra 20 – 21 April 2016 Delivered by Ing. A. T. Barfour

 

Madam Chairperson, Chief Executives of the Power and Oil and Gas Sectors, Organisers, Distinguished Guests, Ladies and Gentlemen,

I wish to apologize on behalf of the Deputy Minister of Power who have to travel outside on an equally important assignment at the last minute and therefore ordered me to read his speech.

It is with great pleasure that I join you to participate in this year’s Ghana Summit on Oil, Gas and Power Summit.

Madam Chairperson, “Driving Ghana’s Oil, Gas and Power potential forward” as the theme for this summit is appropriate and timely, having gone through a debilitating energy crisis popularly called “Dumsor”.

Madam chairperson, Following the recent challenges that we faced as a country, with respect to power supply, any increase in installed generation capacity that is realised in this country provides a great relief and impetus in this government’s pursuit towards fixing the energy challenge comprehensively.

As you may be aware, the Reasons for Recent Power Supply Challenges were

  • Poor hydrology, The non-availability of some generating units through faults,
  • Mandatory inspection and routine maintenance, Fuel supply challenges, Absence of a reserve margin, Non-investment in the sector over the past years amongst others.

To address the above challenges, the Ministry of Power and its agencies took the following measures;

Short-term Projects

  • Restoration of shut down existing plants

Completion of the following projects:

  • 110MW Tico Expansion Project (COD – October, 2015), 225MW Karpower Project (COD – December, 2015), 250MW AMERI Project (COD – February, 2016), 25MW Trojan Project   ( COD in 2015), 20MW BXC Solar Project ( COD – February, 2016)

Other short term measures include the following projects:

  • 220MW KTPP – currently being commissioned, 360MW Asogli Phase 2 – 1st 180MW is commissioned; 2ndUnit to be ready  by June 2016, 38 MW VRA TT2PP expansion project – being commissioned, 40MW Trojan project – being commissioned

Other short term planned projects expected in 2016:

  •  370MW AKSA fast-track project -Parliamentary Approval Obtained, 107MW GPGC fast-track project- Parliamentary Approval Obtained, 344MW Early Power project- Cabinet Approval Currently Being Sought

Madam Chairperson, the Government of Ghana as far back as 1994 took a decision to reform the Power Sector owing to challenges the country faced in respect of investments in the sector for the provision of our power supply requirements as a nation. Subsequently, the Government in 1995 initiated a programme to transform the power sector in order to provide adequate, reliable and affordable supply of power to support its socio-economic development agenda. The Reform allowed the entry of Independent Power Producers (IPPs) into the power market of Ghana, to complement Government efforts in power generation.

Madam Chairperson, for the power sub-sector, the policy goal of Government is to ensure adequate, secure, reliable and sustainable energy for Ghana and beyond. The aim is to achieve:

  • Universal access by 2020 from the current level of 80.5%.
  • Power generation capacity of 5000MW by 2016 from current level of 3500MW plus including the recently commissioned Sunon-Asogli plant.

Beyond the capacity additions, the Government is also implementing the following strategies:

  • Develop a non-congested transmission network;, Strengthen transmission infrastructure for power evacuation;, Improve and modernize distribution infrastructure to reduce system losses from 25% to 18% by 2018;, Strengthen Regulatory Agencies to perform their functions effectively, Promote Energy Conservation and Efficiency, Promote competition in the generation of electricity through the development of a Wholesale Electricity Market (WEM);, Create the environment for retail competition in the electricity market;, Facilitate the entry of Independent Power Producers; and Ensure improved performance of electricity utility companies by encouraging Private Sector Participation in the Distribution Sector.

As a government, it is our responsibility to make the investment atmosphere attractive to the private sector by providing the requisite regulations and legal regimes in a conducive environment.

For the reason of attracting private sector participation into the power sector is key going forward in our generation and distribution sectors.

In the generation sector, the government wish to acknowledge the entry of TICO and Sunon Asogli, other private sector players who have found their way into doing business in the area of power generation in Ghana. Whilst Cenit Energy Limited (CEL) is currently operating in Ghana, Cenpower has recently commenced construction works for a 350MW plant, which is expected to commence commercial operations in the last quarter of 2017.

It is important to note that several Independent Power Projects are currently going through the necessary processes and will come on board in line with the electricity demand projections of the country.

Madam Chairperson, let me state that Government will continue to work with the private sector to ensure that reliable power is supplied sustainably for the development of this country.

Ladies and Gentlemen, with new global developments in respect of financing, I wish to use this medium to urge investors in the industry to fashion out other innovative ways of project financing that would provide the same comfort that lenders would require, to expedite the implementation of power projects involving the private sector.

We intend to diversify the power generation sources in order to achieve the needed reliability for the socio-economic development of the country.

The Ministry of Power is therefore, considering other power supply options apart from hydro, whose contribution to the generation mix would be significant and would contribute to the reliability of the Ghana power system. For this reason, Feasibility Studies are currently on-going for the establishment of a “clean-coal” power generation facility in Ghana by the Shenzhen Energy Group in collaboration with the Volta River Authority. The long term effect of the clean coal addition is to improve the generation mix and also to accelerate growth in the industrial sector.

Madam Chairperson, one serious challenge that the Power Sector faces is the supply of fuel for the running of thermal plants. Irregular supply of gas from the West Africa Gas Pipeline tends to affect the operation of thermal plants, particularly in the Tema enclave. Furthermore, there are firm plans to increase the number of thermal plants in the Tema enclave and therefore, the provision of a more reliable and adequate source of gas to address the fuel challenge in the Tema enclave is paramount. We have therefore, started discussions with private investors for the provision of a Liquefied Natural Gas (LNG) re-gasification facility in Tema to effectively address the fuel reliability challenge.

Madam Chairperson, following the completion of the Gas Processing Plant at Atuabo, which has been supplying gas to power plants in the Aboadze Thermal Enclave, other gas discoveries such as TEN  and Sankofa are expected to come on stream from 2018. The availability of gas from the TEN and Sankofa fields will effectively augment the provision of adequate indigenous gas volumes, secure the needed gas supply reliability and ensure that the use of Gas within the Tema and Aboadze enclaves for power production is maximised.

The passage of the Renewable Energy Act, 2011, has resulted in a surge by investors to exploit the country’s renewable energy potential. A number of projects have already been completed, including the Volta River Authority’s 2.5 MW grid-connected solar PV system at Navrongo in 2013, and the 20MW solar Plant constructed by a private power producer, BXC of China, at Gomoa Onyaadze in the Central Region. Additionally, a 12MW Solar Plant in the Upper West Region by VRA is expected to commence soon following Cabinet and Parliamentary approvals, just to name a few. Another intervention being pursued is the 200,000 solar rooftop project. This project, which is aimed at contributing about two hundred megawatts (200 MW) to reduce the national peak demand has commenced, with some installations already implemented for some micro enterprises. The project execution agency is the Energy Commission and, after a successful pilot installations phase, is intensifying the implementation of the solar rooftop project nationwide in order to achieve the projected target. This facility is available for every Ghanaian and I will urge interested persons to contact the Energy Commission or visit their web site for guidance.

Madam Chairperson, in order to achieve a reliable power system, we are also building a robust transmission network to allow for the smooth evacuation of the upcoming additional power to be generated. Following the completion of the 330kV Coastal Backbone Transmission line from Takoradi to Tema under the West African Power Pool (WAPP) Project, the Tema-Tornu (at Ghana-Togo border) component has also been completed. Furthermore, the Aboadze-Prestea, Prestea-Kumasi, Kumasi-Bolgatanga and Kpando-Kadjebi transmission line projects have all commenced. Studies have been finalised for the implementation of the Ghana-Burkina Faso-Mali transmission line and the reinforcement of the Ghana-Cote D’Ivoire line to facilitate power exports to our neighbours in the sub-region.

Madam Chairperson, the weakest link in the power sector chain is the distribution sector. It is the source of revenue to the transmission, generation and the fuel suppliers. It is therefore imperative that the distribution sector is strengthened to perform efficiently and effectively. It is on this note that the Government in collaboration with the MCC is arranging for a private sector participation in ECG. Prior to the PSP program, several distribution system improvement projects are also on-going in both the ECG and NEDCo areas of operation.

In conclusion, let me urge all stakeholders in the Power Sector to collaborate effectively in order to achieve the desired results and also to be efficient in their delivery. We as a government are committed to this cause and wholeheartedly support all players in the power sector.

We believe a robust and financially strong power sector agencies is the way forward for our economic and industrial growth.

God bless us all.

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