Renewable Energy in Ghana: Current Status of RE Market in Ghana and Opportunities for Solar

and Wind

JULIUS NKANSAH-NYARKOEnergy Commission

Chief Programme Officer

Renewables in Industry Forum

By:

3 July 2019 @ Accra

• Ghana’s Energy Resources

• Status of Ghana’s Power Sector

• Policy and Regulatory Framework

• Current Policies

• Challenges

• Opportunities

Outline

Renewable Energy Resources

Status of Installed Capacity

Electricity Access (March 2018) ≈ 84.5%

Electricity Installed capacity (2019) 4,764MW

Electricity Installed capacity including

embedded capacities (2019) 4,955 MW

Current Peak Demand (2019) 2,781 MW

Electricity generation (est. 2018) 16,210 GWh

RE in generation mix (incl. large hydro) is 1,647MW (≈ 37.06%)

Modern RE in generation mix is ≈ 1.44%

mRE Installed capacity (2018) ≈ 63.81 MW

Large scale solar PV plants - 42.5 MW (0.96%)

Small-scale solar/wind systems ≈ 20.0 MW (0.45%)

(incl. stand-alone & grid-tied

Biogas (W2E) - 0.01MW (0.00%)

Biomass CHP ≈ 1.3 MW (0.03%)

System Load Profile for a Typical Day- Sunday

Renewable Energy Policy Target:

• 10% renewable energy penetration target by 2030; and

• Universal electricity access by 2025.

Policy Target

Policy & Regulatory Framework

▪ The Renewable Energy Act, 2011 (Act 832) was enacted in 2011 toprovide both policy and regulatory frameworks for the developmentof RE in Ghana.

▪ The objectives:

o Establishment of a framework to support RE development & utilization

oCreation of enabling environment to attract investment

oPromotion of the use of RE

oBuilding of indigenous capacity in RETs

oPublic education on RE production & utilization

oRegulation of the RE Industry

Procurement of Power

▪ Tendering replaces Feed-in-Tariffs

▪ Procurement of RE power through Competitive Process

20.14

18.25 18.25

15.14 15.14

11.74

8.8

2013 2014 2015 2016 2017 2018

Feed-In Tariff vrsTendered Prices

FIT ($c/kWh) Tender ($c/kWh)

Net Metering Scheme

• Cost saving mechanism and not income generating activity

▪ Maximum of 500kW of RET

▪ Net Metering Tariff currently being reviewed by Regulators.

• Part of the National Electrification Scheme (NES)

• Public Sector Led

• Meaning: generation, operation, maintenance, revenue collection will be in the hands of public utilities

- Volta River Authority (VRA) - Island Communities on the Volta Lake

- Electricity Company of Ghana (ECG) - Lakeside/Main Land Communities in the ECG Concessional Area

- Northern Electricity Distribution Company (NEDCo) - Lakeside/Main Land Communities in the NEDCo Concessional Area

• Zero Connection Fees

• Uniform Tariff PolicySection 20 of Act 538. Uniform Rates of Tariffs

- The Commission may fix a uniform rate throughout the country, any region or district for any service provided by a public utility.

• Private sector role will be Engineering Procurement and Construction (EPC)

Mini Grid Development

• Public Sector led

• Bui Power Authority (BPA) is charge of thedevelopment of mini hydro on western rivers

• Volta River Authority (VRA) is charge of thedevelopment of mini hydro on volta lake

• Private sector will liaise with BPA/VRA for PPP, EPC,etc arrangement

Mini Hydro Development

Local Content and Local Participation

▪ A Local Content and Local Participation Regulations for Electricity Supply Industry (ESI) (L.I. 2354) have been passed and operational▪ 15% local equity at incorporation and 51% in 10 years (2027)▪ For exiting companies, 15% local equity by 2022 then 51% by years

(2027)▪ Solar PV modules, water heaters, inverter, controllers is 50% from local

producer/manufacturer▪ Special waivers can be obtained from the Local Content Committee (on

case by case basis)

▪ 5 Solar PV panel assembling plants▪ Strategic Security Systems International Limited (3SiL)▪ Halo International▪ GN Power▪ TradeWorks▪ Atlas Business and Energy Systems (ABES)

▪ Deep cycle batteries, Inverters, Charge Controllers??

Renewable Energy Master Plan (REMP)

▪ A REMP has been developed.

▪ 5 year Plan up to 2030.

▪ Set clear targets for the development of the various renewable energy resources in Ghana

▪ Define actions and strategies to be undertaken to achieve the targets

▪ Prioritise the renewable energy technologies

▪ Develop sustainable financing models, incentives and support systems

▪ Define institutional roles for the implementation

▪ It has been submitted officially to the Ministry of Energy.

▪ It will go through Parliamentary endorsement to ensure sustainability.

Addressing Overcapacity/Oversubscription

Due to over-capacity and over-subscription of RE PPA the following are in place:

▪ Moratorium on the signing of PPAs by public DISCOs.

▪ Suspension of issuance of Provisional Licence by the Energy Commission for solar PV and wind energy projects whose potential off-takers are the public DISCOs. ▪ Buyer’s Intent is required for processing and renewals.

▪ Bulk Customers are excluded.

NB: Selling of electricity is a regulated activity and only bulk customers can buy electricity.

Challenges

▪ Over capacity of power plants in the midst of HIGH tariffs

▪ Over subscription of PPAs

▪ Financial health of the Public Utilities which needs innovative business solutions

▪ There are legal/regulatory issues in terms of bundling and unbundling of public utilities which needs attention.

▪ Low level of awareness on the benefits of RES

▪ Perceived high cost of RES

▪ Access to waste as an input for energy production

▪ Mismatch between academia and industry

▪ High cost of energy in remote off-grid communities vis-à-vis their ability to pay

▪ Capacity building

Market Potential/Opportunities

▪ The solar PV market is swinging from;▪ utility scale to distributed generation

▪ Public distribution utilities to private large consumers/Bulk Customers

▪ Net-Metering in the offing

▪ Waste-to-Energy ▪ (30,000 tons/day of waste generated in Ghana)

▪ BioEnergy remains an untapped potential▪ Cookstove and Biogas for institutions

▪ Productive Use of Energy

▪ Woodlot cultivation and carbonization technologies

▪ Local manufacturing/assembling of RE products within the Local Content framework

▪ Projects such as SREP and SUNREF▪ 15,000 net-metered solar PV; 55 mini-grids; 33,000 SHS, etc.

▪ Providing financing scheme to SMEs

Thank You