Development of Renewable Energy in Ghana

Transcription

1 0 0 Development of Renewable Energy in Ghana A P R E S E N TAT I O N TO A G E R M A N T R A D E M I S S I O N TO G H A N A, O N T H E T H E M E : R E N E WA B L E E N E R GY S O LU T I O N S F O R M A N U FA C T U R I N G I N D U S T R I E S I N G H A N A ENOCH YEBOAH AGYEPONG 1 4 N O V E M B E R S W I S S S P I R I T A L I S A H OT E L, A C C R A, G H A N A

2 Presentation Outline Source: Global Wind Day 2016/ 1 drawing from more than 1000 students from 20 schools invited to submit their drawings on the topic Wind Energy for Ghana 2

3 In-Brief Source: Castalia for GZ & GoG (2015) 3

4 Ghana s Power Sector Source: 4

5 Regulatory Functions Influencing RE Source: Sanford Berg, Regulatory Functions Affecting Renewable Energy in Developing Countries, the Electricity Journal,

6 Feed In Tariff (FIT) Scheme Source:PURC [Note the approved rates indicated in the schedule above are based on the average interbank selling rates as of 30th September 2014 obtained from the Ghana Association of Bankers which was GHS to USD 1.00] 6

7 Feed In Tariff (FIT) Scheme SN Electricity Generated from Renewable Energy Technologies/Sources 1 Wind with grid stability systems Wind without grid stability systems 2 Solar PV with grid stability systems/storage systems 3 Solar PV without grid stability systems/storage systems FIT (GHp/KWh) Effective 10th Nov Maximum Capacity (MW) MW MW MW 4 Hydro 10MW Without limit 5 Hydro (10 MW > 100MW) Without limit 6 Biomass Without limit 7 Biomass (Enhanced Technology) Without limit 8 Biomass (plantations as feedstock) Without limit Source: PURC [Approved rates uses current currency exchange rates -10th November GHS to USD 1.00] 7

8 RE Resources Source: Ministry of Power, Ghana (2015) document in REAG Archives 8

9 Other Stakeholders / Initiatives Subsidies and tax Incentives Public Information Building Codes Appliance labeling and industry standards for products using electricity Training Programs for technical workers Demonstration projects (that can then be scaled up) Energy end-use efficiency in the public sector (for example, schools and hospitals, public lightning) Promotion of Energy Service Companies (ESCOs) that assist end-users in identifying, financing and implementing energy savings projects. 9

10 Pre-requisites for IPPs Success Political commitment Transparency in award Involving local stakeholders at all stages Design Award Implementation Independent regulator Government expertise Effective Project Appraisal and Selection Power Purchase Agreements (PPAs) Source: 10

11 USAID IRRP Integrated Resource Plan (IRP) Primary energy Conversion technology Demand Source: 11

12 *This map is for illustrative purposes and is without prejudice to the status of or sovereignty over any territory covered by this map. The Exchange of Tax Information Portal is an initiative of the Global Forum on Transparency and Exchange of Information for Tax Purposes. The Global Forum conducts peer reviews of its member jurisdictions' ability to cooperate with other tax administrations in accordance with the internationally agreed standard. 12

13 Double Taxation Agreement 13

14 Agreement between the Federal Republic of Germany and the Republic of Ghana for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income, on Capital and on Capital Gains (EIF: 14 Dec 2007) Double Taxation Agreement Convention between the Kingdom of Denmark and the Republic of Ghana for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and Capital gains (EIF: 3 Dec 2015) 14

15 Africa Power Pool 15

16 West Africa Power Pool (WAPP) 16

17 The 2012 Harmonised System and Customs Tariff Schedule (HS Code) for Ghana ceased to be applicable, effective 1st February, It was replaced by the ECOWAS Regional Common External Tariff (CET), (HARMONISED SYSTEM; ECOWAS COMMON EXTERNAL TARIFF AND OTHER SCHEDULES). Potential Areas for Solar PV Investment CET has no separate classification for solar batteries so its treated the same as any other battery.[gsa, EC] Solar Powered Lamps HS Code: which existed in the previous tariff book, has been deleted from the current tariff schedule, so anyone who brings in solar powered lamps pay the tariff applicable to any other lamp (20% & 17.5%). Room available for subjective charges 17

18 Ref. CET schedules Rate before Rate from February 2016 February 2016 Commodity Description HS Code Duty Vat/NHIL Duty Vat/NHIL Solar Powered Generator % 0.0% 5.0% 0.0% Wind Powered Generator % 0.0% 5.0% 0.0% Gas Powered Generator % 0.0% 5.0% 0.0% Solar Panels % 17.5% 0.0% 0.0% Solar powered Lamps % 0.0% HS Code Deleted from Tariff guide LED Lamps % 0.0% 20.0% 17.5% CFL Lamps % 0.0% 20.0% 17.5% Solar Water Heater % 17.5% 5.0% 17.5% Solar Inverters 0.0% 0.0% 5.0% 0.0% 18

19 RE components of the CET 19

20 Wind Energy in Ghana *September 7, Upwind is pleased to announce that it has signed an investment agreement with the Irish company Mainstream Renewable Power Ltd. in order to sell the 225 MW Ayitepa Wind Farm, located 50 kilometres from Accra on the east coast of Ghana. 225MW Wind Ayitepa (Ningo Prampram) ~70KM from Accra (mbd, regulators) & 40KM from Tema (ports & substation) 20

21 Energy projections for the Residential Sector Electricity demand for the residential Sector is expected to exceed: 24,000 Gigawatt-hours for high economic growth, by 2020; The sectoral demand growth rate could be between percent per annum if adequate electricity is made available. Government has indicated: Additional generation will come primarily from Independent Power Producers (IPPs); Investing in Renewable Energy is critical in order to provide access to some of the remote communities and make it more sustainable in the medium-long term; Focus shall include investments in off-grid solutions for decentralized access. Source: Renewable Energy Act

22 Strategic Plan for the Demand Sectors Residential Sector National goal is to achieve 100% universal electrification by 2020; Sixty (60) percent access is estimated for now; largely by grid. Strategic Targets To achieve 15% penetration of rural electrification by decentralised renewable energy complementation by 2015; expanding to 30% by 2020; To reduce the average electricity intensity per urban household by 50% by 2020; Decentralised renewable energy penetration is less than 1% at present. Source: Renewable Energy Act

23 Strategic Plan for the Demand Sectors Commercial and Service Sector The objective is to reduce the energy consumption in general and wood fuel consumption in particular, by introducing energy efficiency programmes and cleaner energy alternatives. Strategic Targets To reduce electricity consumption of military and police barracks, residential; Halls and hostels of public tertiary institutions by 50% by 2015; To achieve 1% penetration of solar energy in hotels, restaurants and institutional kitchens using solar water heaters by 2015 and 5% penetration by Source: Renewable Energy Act

24 Regulatory Environment Policies & Incentives Favourable Energy Policy (2010); - includes the 10% target for the contribution of modern renewable energy to the country s energy sector by 2020 (adjusted to 2030*) The Energy Sector Strategy & Development Plan (2012) articulates the vision of Ghana s energy sector: -ensure universal access to energy services and export of energy by 2016; -The development and subsequent use of decentralized electricity generation sources (including renewables) for remote off-grid communities. Source: * 24

25 Regulatory Environment Policies & Incentives Source: Renewable Energy Act 2011 Feed-in-tariff scheme offer guaranteed prices for electricity generated from renewable energy sources; Licensing regime for commercial RE service providers; Purchase obligation under which power distribution utilities & bulk electricity consumers would be obliged to purchase a certain percentage of their energy required from electricity generated from RE sources; Off-grid electrification promote mini-grid and standalone renewable energy systems for remote off-grid locations. RE Business Fund to promote public private partnerships 25

26 Open Market for IPPs Takoradi International Company (TICo) owned by the Abu Dhabi National Energy Company (TAQA); Sunon Asogli Power Plant owned by the Shenzhen Group of China; CENIT owned by CENIT Energy Limited, a special purpose vehicle created to develop the IPP; Cenpower Government Consent and Support Agreement for a fourth IPP, Cenpower, received Parliamentary approval in October

27 Potential Areas for Solar PV Investment According to the Energy Commision of Ghana, it is cost competitive to encourage mass deployment of solar electricity for commercial applications like: -lighting in stores; -water pumping; -shaving off consumption in the commercial and services sector during peak hours; -as an energy conservation measure. 27

28 PROJECT FACTS: Period: Sept 2014 Aug 2018; Funded by the Danish Government to the tune of $2,720,000 (including $1,764,000 for Ghana; $956,000 for China); Stakeholders include: UNDP China Energy Commission in Ghana Ministry of Science and Technology in China UNDP country offices in Ghana and China. China-Ghana South-South Corporation on RE Tech Transfer The project is part of Denmark s focus on South- South corporation to enable coherent corporation between China and countries in Africa; Promotion of the UN s Sustainable Energy for All (SE4ALL) Initiative; Aim Project aims to effect off-grid community-based electrification; Increase the share of renewable energy and promote the productive use of energy. RE Master Plan Source: 28

29 The following institutional and economic challenges are applicable to the Renewable Energy industry in Ghana: Challenges of Ghana s RE Sector Although a license has been provided for one tidal and wave power company in 2013, there is still no feed-in tariff specifically for tidal and wave power to electricity; Higher request for Grid-Connection versus uptake of decentralized RE technologies (Education on competitive advantages, poor understanding of the advantages); No Policy for EE, *although there are some policy measures, eg. promotion of LED and CFLs lights, Standards & Labels, Energy Managers, ; T&C of financing in Ghana not favourable for RE investments. 29

30 One of the new frontiers of economics is the analysis of growth from a microeconomic perspective. This puts the focus on the firm as the lever of growth, instead of the broad aggregate numbers that are the stuff of macroeconomics. Examining the investment climate and how firms thrive and create jobs gives economists a new perspective on the dynamics of development and poverty reduction. After all, firms create over 90% of jobs, supply most of the goods and services necessary to improve living standards, and provide the bulk of the tax base needed to fund public services. 30

31 31

32 About REAG The Association, named and called Renewable Energy Association of Ghana, appropriately abbreviated as REAG has a mission of serving as an organised platform for all Renewable Energy (RE) & Energy Efficiency (EE) related matters. REAG was established by industry actors in mid 2015 to drive and achieve sustained impacts and effectively channel the Private Sector s contribution towards National Development. Source: REAG brochure 32

33 MORE INFORMATION: > Location: Mezzanine Floor, World Trade Centre, Accra > Contact: / +(233) REAG s Commitment i. Raise the awareness and profile of Renewable Energy & Energy Efficiency. ii. Improve and sustain quality of information/design/installation/maintenance & service in the RE & EE industry. iii. Administer a membership accreditation/certification programme and a code of ethics for best practices. iv. Promote the development of standards and compliance measures within the industry. v. Identify and seek funding opportunities for and in the interest of the Association and its members. vi. Arrange training/capacity building & professional development programmes. vii. Ensure effective communication within the membership of the Association to enhance synergies and satisfy mutual interests. viii. Ensure high level of service delivery, maintenance & support, quality and high standards in the entire RE & EE value chain. ix. Serve as the official linkage between all stakeholders in the RE/EE sector and related groups and as an active advocate platform for Industry & Government for legislative, quality control & sustainability of the sector. x. Facilitate the development of RE & EE projects. xi. Perform all other functions and obligations in best practices, with ethics, in integrity and proficiency as desired by all stakeholders of the association. Source: 33

34 Out-brief Ghana has a conducive environment for business in the Renewable Energy (RE), albeit challenges that can be surmounted and need for harmonization of policies required. Generally, there is an enabling policy environment and the experiences/investment during the load-shedding period to counter seems to have increased the possibilities for investments in renewable energy. Climate Investment Funds/Financial instruments and commitments/actions from the SDGs could Moreover, if designed well, such investments could benefit from subsidies provided by donors and/or climate financing instruments. Opportunities for investment and trade relate to hardware and software; consultancy, advisory services, project development, import, manufacturing, distribution, sales. The market exists, is growing and there is plenty of scope for new players. Is Ghana ready for business, ie: RE investments & trade? Yes! 34

35 CONTACT: > Location: Mezzanine Floor, World Trade Centre, Accra > Contact: / +(233) Resources RENEWABLE ENERGY POLICY REVIEW, IDENTIFICATION OF GAPS AND SOLUTIONS IN GHANA %20Gap%20%20%20%20%20Analysis%20Final(2015).pdf IDENTIFICATION OF BARRIERS TO RENEWABLE ENERGY TECHNOLOGY TRANSFER TO GHANA 0energy%20technology%20transfer%20to%20Ghana_spread.pdf SCALING-UP RENEWABLE ENERGY PROGRAMME IN GHANA (SREP): INESTMENT PLAN ng%20mission_final.pdf (Aide Memoire) LINKING ENERGY POLICY TO GROWTH, PROSPECTS AND LIMITATIONS FOR RENEWABLE ENERGY (RE) TECHNOLOGIES, AS POTENTIAL SOLUTION FOR ENERGY: SPECIAL EMPHASIS ON BATTERIES Limi.aspx Source: REAG Archives 35

36 Mit freundlichen Grüßen A Presentation to A German Trade Mission to Ghana, on the theme: Renewable Energy Solutions for Manufacturing Industries in Ghana. November,