Policies and Initiatives For Renewable Energy Development and Investment in Ghana

Transcription

1 AFRICAN RENEWABLE ENERGY FORUM CASABLANCA, 2017 Policies and Initiatives For Renewable Energy Development and Investment in Ghana By Dr. Robert Sogbadji Deputy Director, Clean Energy Ministry of Energy, Ghana November, 2017

2 OVERVIEW OF GHANA Land Area: 238,500 km 2 Population: 27,409,893 (2015 estimate) Electricity Access: 83.5% (June 2017) Rural Access: 59% (2017 Estimate) Consumption/Capita: 345.3KWh (July 2017)) Ave. GDP Growth Rate: 6% (2015) Major Export: Cocoa, Gold, Timber, Bauxite, Oil and Electricity 2

3 Medium Term Policy Focus for the Energy Sector Increase access to adequate, reliable and economically priced modern forms of energy supply Diversify the national energy mix including the use of environmentally friendly indigenous sources of energy Ensure efficient production, management and use of energy Promote Private Sector Participation in the energy sector Ensure productive and efficient use of energy 3

4 EXISTING POWER GENERATION PLANTS IN GHANA Energy Resource No. of Plants % Installed Capacity Hydro 3 60% VRE 3 <1% Thermal 23 39%

5 Renewable Energy Resource Potential Ghana has high potential for energy crops, forest and crop reside for electricity generation High solar irradiation 4-6kWh/m²/day to support grid and off-grid electrification Ghana has over 14 potential hydro sites with total capacity of 740MW yet to be exploited. MEDIUM AND LARGE HYDRO POWER SITES IN GHANA Koulbi (68MW) Ntereso (64MW) Lanka (95MW) Bui (400MW) Asuoso (25MW) Sodukrom (17MW) Akosombo High Wind power (1020MW) Kojokrom (30MW) Kpong potential along coast. (160MW) Jumoro (20MW) Data collection at Tanoso (56MW) 60m & 80m height Abatumesu (50MW) Hemang underway in 13 sites. 5 (90MW) Source: W.Togobo & L.Sowah, 2010 Pwalugu (50MW) Kulpawn (40MW) Daboya (40MW) Juale (90MW) Jambito (55MW) Awisam (50MW) EXISTING UNDER FEASIBILITY POTENTIAL

6 Renewable Energy Policy Focus To contribute to climate change mitigation and reduce cost of energy delivery to off-grid remote locations. Support Policy to Diversify Energy Sources. Strategies: Increase the contribution of RE source (including hydro, solar, biomass and wind) by 10% for grid, mini grid and off-grid applications; by Reduce the dependence on wood fuels for thermal energy (cooking and heating) Use of clean cooking fuel alternatives (LPG etc.) and efficient woodfuel cook stoves.

7 Priority Areas for Renewable Energy Investments (Grid Connected) Programme Feasibility study and the development of medium hydro potential sites Utility Scale Biomass & W2E (Waste to Energy) Power Plants Utility Scale Wind Park Preliminary Target by 2020/ potential sites (100/300MW) 75/500MW 275/800MW Distributed grid connected RE generation through Net-metering (solar, wind, biomass, hydro) Utility Scale Solar Farms Tidal Wave & other Clean technologies???? 20/200MW 200 / 1000 MW 7

8 Utility Scale Renewable Electrification (USRE) Progress Since Passage of RE Law Grid Code for utility scale RE grid interconnection Net metering Code Draft Standardized Power Purchase Agreement (PPA) Guidelines on Renewable Energy Purchase Obligation Licensing framework and procedure for IPP investment in the Sector developed Feed-in-Tariff Methodology developed and currently under implementation Ongoing activities Wind resource assessment in 13 potential sites at 60m and 80m height. Feasibility studies for three potential hydro sites with total estimated capacity of 200MW Biomass resource assessment for power generation.

9 Ghana s largest Solar farm - 20MW Near Winneba Central Region 2.5MW Solar Farm at Navorongo

10 ONGOING IPP INITIATIVES IN ADVANCED STAGE Total committed PPAs (Solar & Wind) is about 1,100.5MW with solar accounting for 740MW. Tariffs for PPAs for solar at the time were above 20USCents/KWh Meanwhile recent study of the national grid suggest that unless grid network is strengthen, it could only accommodate a maximum of 250MW of variable Solar by A draft Master Plan has therefore been developed to clearly outline the targets in line with the capacity of the grid networks as they improve. The approach moving forward is to encourage competitive bidding in the procurement of PPA for renewables to bring down cost of energy.

11 MoEn in 2016 facilitated tendering process for 20MW Solar. Tariffs of 11.4 USCents/KWh recorded. BPA followed with a 50MW solar Tender. Tariff of 9.8USc/KWh attained. ECG re-negotiate tariffs for all signed PPA downwards to reflect current market offers.

12 Distributed Renewable Energy Generation (DREG) Provide policy support for 200,000 Solar Roof Top programme being implemented by the Energy Commission. 2,010 Applications received out of which 1,474 have been approved to benefit from the capital subsidy 355 Completed installation for which invoices have been submitted Number of Licenced Companies - 95

13 Distributed Renewable Energy Generation (DREG) 50KWp Solar Park at the Ghana Ministry of Energy 500x100Wp Solar panels 7x8kW SMA Invertors System currently account for only 15-20% of consumption. Average monthly consumption from ECG 28,480KWh (USD 11,724.30) Average monthly generation from Solar 4,680KWh Annual contribution from Solar Park GHs 91, USD 23, Investment cost for 50KWp without battery backup USD60,000 -USD70,000 Pay Back (2-3 yrs)

14 Priority Areas for Mini & Off Grid Renewable Energy Investments Programme Mini Grid Renewable Energy based electrification in isolated communities Deploy Solar Home Systems (SHS) in off-grid households & public facilities (schools, clinics, security outposts) Deploy Solar Lanterns (SL) with mobile phone charging facilities through local assembling and partial subsidy Solar Community Lighting Systems (Solar Street lights) for isolated communities Pilot Wind & solar water pumps, Biogas, Solar crop dryers etc to support SMEs in Agric Preliminary Target by 2020/ units (4MW)/ 500Units (20MW) 7,000Units (7MW) / 47,000 (14MW) 200,000units/ 2,000,000 Units 10,000Units (7MW))/ 40,000(25MW) 20,000units / 135,000 Units 14

15 Objective is to promote mini-grid electricity in remote isolated / island communities with populations above 1000 inhabitants that cannot be immediately connected to grid electricity P3. Mini-Grid RE Electrification Program UPPER WEST 67% BRONG AHAFO 72% UPPER EAST 51% NORTHER N 50% ASHANTI 85% VOLTA EASTERN 73% WESTERN 70% 68% 97% GREATER CENTRAL 83% ACCRA SENE DISTRICT More than 70% of the population of about 58,000 in the Sene District leave along the lake with no access to electricity. Atigagome Minigrid Project site

16 P3. Mini-Grid RE Electrification Program Policy to mainstream Mini-grids into National Electrification Programme developed and operationalised Public sector led investment with VRA and ECG/NEDCo responsible for generation and distribution respectively. Uniform prizing tariff, zero connection fee for mini grid customers Hybrid Mini-grids developed in 5 island communities on the Volta lake to provide electricity services for over 6000 inhabitants. Launched socio-economic studies for 3 additional mini-grids under SECO grant financing for Island Communities in the Ada East District. Funding secured for additional 55 mini-grids under the SREP/CIF (Scale Up Renewable Energy Program/ Climate Investment Fund)

17 P3. Mini Grid RE Electrification Program KUDORKOPE ATIGAGORME Wayokorpe AGLAKOPE PEDIATORKOPE There are over 2,000 communities along the Volta lake in 23 Districts with populations above 1000 inhabitants that are not likely to be immediately connected to national grid.

18 Potential Mini-Grid Communities in Ghana Krachi East District Afram Plains District Aglakope Minigrid Project site

19 Solar Lantern Promotion Program (SLAPP) The goal of this program is to promote the use of solar lanterns as the main source of lighting to replace kerosene lanterns in poor and vulnerable off-grid rural households. Remove subsidy on kerosene and redirect resource to deseminate two million (2,000,000) solar lanterns in off-grid rural homes over a period of 8 years ( ). First 20,000 units (with phone charging functionality) procured sold out on pilot phase in , and additional 55,000 units of portable solar lanterns procured in 2014 and sold under 70% subsidy to replace kerosene lanterns in remote communities. The 3 rd phase of another 70,000 units were procured in 2016 for distribution at a subsidy of 70%.

20 Kerosene Lantern Replacement Program Private sector has taken up the challenge to deploy both solar and battery operated lanterns to power LED lamps. Subsidy on Kerosene has been removed and kerosene consumption for lighting has drastically reduced.

21 Multilateral/Bilatrial Support to RE World Bank / SECO Ghana energy Development and Access Project GEDAP, ) Climate Investment Fund (CIF/AfDB) Scale Up-Renewable Energy Programme (SREP, ) Germany GIZ Capacity for Sustainable Implementation of the RE Law C-SIREA ( ) Germany GIZ Energizing Development - PUE ( ) Spain Elecnor, Off-Grid Electrification of Public Institutions Denmark - UNDP-China/Ghana Renewable Energy Technology Transfer Project. (RETT) UN Foundation Electrification of Remote Health Facilities ( ) USAID Power Africa (IRRP) China Reform Commission support to UENR/MOE.

22 Climate Investment Fund Scale-Up Renewable Energy Programme (SREP) Developed and obtained approval for $230m Ghana SREP Investment Plan 4 projects under SREP 55 Mini-Grid & 38,000 SHS 15,000 Net-metering 20-30MW utility scale Solar/wind Project Technical Assistance Secure $40m financing from the Climate Investment Fund of which $30m is grant to finance the above 4 projects. Additional $1.5m project preparation Grant has been approved by CIF to develop the above project. Counterpart funding is required over the period by GoG to access the grant financing for the implementation of the program

23 Ghana s Energy Policy Direction Reducing indoor air pollution Achieve universal access to electricity by 2030 Modernize Transport

24 THANK YOU FOR YOUR ATTENTION