No user image
Monica_55905 Jul 15

Country Spotlight: Ghana

Country Spotlight: Ghana image
This important Country Spotlight explored the current state of play in Ghana, the future of energy developments and the Ghanaian response to COVID-19.
We were privileged to have Jonathan Amoako-Baah, CEO, GRIDCo and Kwame Agyeman-Budu, Managing Director, Electricity Company of Ghana enlighten us and Paul Biggs, Senior Partner, Trinity moderate the discussion.

Mr Agyeman-Budu highlighted that  COVID-19 has not significantly impacted demand in Ghana, peak demand dropping marginally but transmission revenues remaining the same. There has been a shift from industrial & commercial consumers to domestic, resulting in the Government of Ghana implementing an excellent programme to provide free power to those considered lifeline customers, those who use 0-50KWhours.

When we consider Energy developments in Ghana, the conversation often turns to the ongoing discussions around energy surplus and the reform of the IPP programme in Ghana. It is well documented that the current model has had issues and will need reforming before private sector stakeholders can consider energy projects in the country. Our panellists discussed the opportunity for the private sector in Ghana going forward. 

Interestingly Mr Agyeman-Budu set forth the country's interest in Electric Vehicles partnerships in Ghana to utilise excess capacity, and the Government suggestions to discontinue the take-or-pay scheme, removing this burden and looking toward a take-and-pay model.

Mr Amoako-Baah recognises the potential for Ghana to play a significant role on a regional level being integrated into the WAPP network, turning oversupply into opportunity. Perhaps most interest is Mr Amoako-Baah’s view of Ghana’s future energy demand requiring the procurement of 225MW’s to be commissioned by January 2024 and an additional 200MW’s by 2025 to preserve security of the Ghana supply. Mr Amoako-Baah also welcomes the participation of the private sector in transmission and distribution, as an asset owner in Ghana. 

Through the conversation the narrative was positive, with the honest appraisal of issues to be overcome leading towards a promising future, welcoming the private sector investors and service providers to support in increasing the energy capacity in Ghana.

Takeaways:

 
  • The Government of Ghana is committed to assessing options as they look to discontinue the take-or-pay model and move to a take-and-pay model.
  • Alongside a potential increased regional role through WAPP, future energy demand in Ghana will increase domestically, creating a need to increase capacity. Energy forecasts outline the need for the procurement of 225MW’s to be commissioned by January 2024 and an additional 200MW’s by 2025.
  • Ghana remains open for business for private sector stakeholders across energy generation, transmission and distribution, e-mobility, and energy efficiency.