IMPLEMEMTING THE RENEWABLE ENERGY ACT

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1 1 st GHANA RENEWABLE ENERGY FAIR / 4 th WEST AFRICA CLEAN ENERGY & ENVIRONMENT IMPLEMEMTING THE RENEWABLE ENERGY ACT By: FREDERICK KENNETH APPIAH Energy Commission, Ghana appiahfk@energycom.gov.gh fred.ken.appiah@gmail.com 4 November 2015

2 OUTLINE Background to the Renewable Energy Act Provisions Implementation Status Licensing Framework Conclusion

3 Background Serious institutional development of RE in Ghana started with the establishment of the Ministry of Petroleum and Power in the early 1980s. The National Energy Board (NEB) followed in 1983 through the NEB Law (P.N.D.C.L 62) which clearly articulated the development and utilisation of RE. The Energy Commission Act 1997, Act 541 passed in 1997 gave a promotional role to Energy Commission. 3 Though RE development has been on-going, lack

4 Policy & Regulatory Framework In 2011, the Renewable Energy Act, 2011 (Act 832) was enacted to provide both policy and regulatory frameworks for the development of RE in Ghana. The object of the RE Act is to provide: o a Framework to support the development & utilisation of RE o Creation of enabling environment to attract investment o Promotion of the use of RE o Building of indigenous capacity in RETs o Public education on RE production & utilization 4

5 Key Provisions & Status 1. Feed-in-Tariffs FiTs have been developed since 2013 by PURC. Current rates, effective October 2014, are 5

6 Key Provisions & Status 2. Power Purchase Agreement A draft Standardised Power Purchase Agreement has been developed 6

7 Key Provisions & Status 3. Renewable Energy Purchase Obligation (REPO) Distribution Utlities and Bulk Customers are obliged to procure a specified percentage of its total purchase of electricity from renewable energy sources. A REPO Model has be built (example below) The 1 st REPO will be issued in Reference January Year for our example REPO : Estimate of Oct Sep based on 2013 data from EC 7

8 Key Provisions & Status 4. Open Access to Transmission and Distribution Systems Technical CODES have been developed. 8

9 Key Provisions & Status 5. Renewable Energy Fund The operational framework has been developed. The Account has been opened. Pending We await Parliamentary approval. Setting up of the Fund Management Unit 9

10 Key Provisions & Status 6. Control and Management of Woodfuel BioEnergy Policy Strategy has been drafted for Cabinet approval. Woodlot cultivation programme for Schools has started. Development of Regulation for the Woodfuel Industry is on-going. 10

11 Key Provisions & Status 7. Technical Standards for the use of RE sources Technical Standards have been developed; o Bio-diesel; Bio-ethanol (E20 and E100) o Solar PV panel; Inverter; solar battery; charge controllers o Solar lanterns Technical standards and labels for improved cookstoves are being developed. Solar PV Testing Facility has been established at Ghana Standards Authority A testing and expertise centre for cookstoves has been established at Technology Consultancy Center - KNUST 11

12 Key Provisions & Status 8. Educational Curriculum on Renewable Energy In collaboration with COTVET to develop educational curriculum on efficient use of renewable energy sources and evolve programmes for its mainstreaming on the educational curriculum of educational institutions; Development of a standardised training manual for the installation of RETs has commenced. Certification and accreditation of institutions has started - to be completed by December

13 Key Provisions & Status 9. Creation of Platform for Discussion, Collaboration & Promotion Institutionalisation of Ghana Renewable Energy Fair Workshops and Renewable Energy Week 13

14 Key Provisions & Status 10. Licence Framework The RE Act forbids any entity to engage in any Commercial Activity without a Licence granted by the Board of EC. production; transportation; storage; distribution; sale and marketing; exportation and re-exportation; and installation and maintenance. Commercial activity in these areas: Licence Manual for Service Providers in the Renewable Energy Industry has been developed. A review of the Manual is currently 14 on-going to address challenges and gray areas.

15 RE Resource Assessment Ground Data taken in 2011/15

16 Licensing Process Wholesale Electricity Supply Licence Submit Information Submit Site information Submit EPA, PPA, Grid IS Submit EMP, Commissioning Register Business Provisional Wholesale Electricity Supply Licence Siting Permit Construction Permit Operational Wholesale Electricity Supply Licence Licensing Process Prefeasibility studies with our data or your own data First Stage Second Stage Final Stage Find Licence Document %20Licence.pdf

17 Licensing Process STAGE 1: Provisional Licence (3-8weeks) Getting to know WHO, WHAT and WHERE Conditional DOES NOT approve Site nor ENDORSE Capacity requested for. STAGE 2a: Siting Permit (2-3 weeks) Where site is approve Siting Committee visits and approve site Environmental Protection Agency Environmental issues Wild Life Division/Forest Services Division Reserves/Protected sites Water Resources Commission - Water Use Permit Town & Country Planning of the District Assembly Spatial planning Ghana Civil Aviation Authority Aerial clearance The Grid Company Connection issues Energy Commission Environmental Unit for monitoring of EMP STAGE 2b (Construction Permit) EPA Permit, PPA, Grid Impact Studies, etc.

18 Status of Licences 62 companies have Provisional Wholesale Electricity Licences 1 application for Construction Permit for Wind is currently being assessed Category # of Wholesale Electricity Supply Licences Issued Total Provisional Licences Siting Permits Construction Permits Capacity (MW) Solar ,472 Wind Hydro Biomass Waste-to Energy - June 2015 Wave Total ,091

19 Outstanding Provisions Regulations, Guidelines and Codes of Practice For construction, operation and maintenance of RE systems and facilities For creating, trading and extinguishing of RE certificates Assessment of how much intermittent renewable energy can be integrated (with and without the upgrade of the grid network) is ongoing by GRIDCo. Biofuel development which are being looked into with NPA. Establishment of RENEWABLE 19 ENERGY AUTHORITY to see to the full implementation of RE - Until then, Renewable Energy Directorate & EC are acting.

20 Conclusion A smooth implementation of the Renewable Energy Act is key to the rapid uptake and development of renewable energy in Ghana. The RE Act creates the environment for investment. The Energy Commission in collaboration with the relevant stakeholders is all the key stakeholders is gradually implementing ALL the PROVISIONS of the Renewable Energy Act. Though slow BUT SURE. 20

21 Meda mo ase Akpe Vielen Dank Merci Gracias Obrigado Xiexie