-Ministry of Energy- RED

Transcription

1 Ministry of Energy ACCESS TO SUSTAINABLE ENERGY IN GHANA ROLL OF RENEWABLE ENERGY AS PREREQUISITE FOR THE MDGs AREA Conference at the Rockyfeller bellagiocentre, italy May 22-26, 26, 2012 By Wisdom Ahiataku -Togobo Director, Renewable Energy Ministry of Energy, Ghana May Ministry of Energy- RED

2 Overview of Ghana - Land Area: km2 - Population: 24,256,000 (2010 Census - Provisional). -Electricity Access: 72% (2010) - Consumption/Capita: 374.3kWh - GDP: $74.77 billion (2011) - Av. GDP Growth Rate: 4.7% (2009) to 13.7% (2011) Major Export: Cocoa, Gold, Timber, Bauxite, Manganese & Oil

3 National Energy Needs Households/commercial/Service Thermal Energy for food processing: Cooking, Baking, grilling, smoking, heating etc Electricity for: Lighting, refrigeration, cooling, heating etc ICT (TV, radio, phone charging, entertainment), Motive Power for Transport family and goods, small scale industry Water and woodfuel supply 6/6/2012

4 National Energy Needs Agricultural /Industrial sectors Energy for Mechanization Ploughing, tilling, irrigation, thrashing, harvesting etc Transport of agricultural products for processing Marine transport for fishing Energy for processing agriculture products: Grinding, milling, vegetable oil extraction, soap making, Pito brewing, Alcohol distillation etc Energy for assembling, manufacturing and for construction:

5 Avaliable Energy Options Petroleum Products Shaft power: transport, ploughing, mining, fishing, milling Lighting, cooking, heating and electricity generation Electricity Lighting, ICT, entertainment, Storage, cooling, shaft power milling Product assembling and manufacturing Bio-energy Direct combustion: Food processing, tobacco drying, oil extraction process, brewing, distillation, grilling/ fish smoking Man-power / Animal-power Water supply, woodfuel supply, grinding, transport Farming: Ploughing, irrigation, harvesting, fishing, Carpentry, construction, weaving, sawing, mining etc

6 Share of Available Energy Mix Bioenergy 38% Challenge is how to reduce dependence on biomass and manpower in favour of Petroleum 4% Electricity 3% Manpower 55% modern energy For direct combustion, electricity and Shaft power

7 Primary Energy Supply Petroluem 22% Hydro 6% Biomass 72% Renewable Energy (biomass and hydro) accounts for 78% of total energy consumption in Ghana. More than 65% of electricity generated is from hydro power - Akosombo & Kpong Remaining 35% is from fossil fuel (Diesel, LCO & Gas) Installed electricity capacity 2000MW expected to reach 5000MW by 2015 The share of small scale RETs (Wind, Solar PV, Minihydro, Bio-fuel) for electricity is however very negligible (<0.1%) expected to increase to 10% by 2020

8 National Electrification Scheme (NES) Initiated in National policy to electrify all communities with population above 500 and to achieve universal access by the year 2020 Objective To stimulate economic activities at the rural level through productive use of electricity Reduce rural urban migration Improved social livelihood of rural people Women and children in particular.

9 NES Strategy Ensured Electrification is a Priority on Government Infrastructural Agenda Set up National Electrification Scheme (NES) Prepared 30yrs National Electrification Master Plan (NEMP) Implemented NEMP in phases Instituted Self Help Electrification Programme (SHEP) Used both Grid Extension and Renewable Technologies Utilized Local Consultants and Contractors Secured Funding from sll sources (Internal & External)

10 Financing Rural Electrification Internal Sources External Sources Funding Sources Consolidated funds (GoG Budget) Levy on electricity consumers (NES Levy) Contribution from electricity Utility Agencies, Local government sources (District Assemblies & MP s Common Fund) Communities and Local Content ( Industrial Players eg. Pole & Cable Manufacturers) Grants Export Credits and Concessionary loans from Multilateral & Bilateral Funding Agencies Suppliers Credit (Guarantee Eximbank)

11 Progress and Status of NES 15% electricity access at the time (1989) 43% by % by % by 2010 Target 80% by % by 2020 (Universal Access)

12 Productive Use of Electricity

13 Access To Electricity Based on Population (2010) REGION ACCESS RATE GREATER ACCRA 97% UPPER WEST 40% UPPER EAST 44% ASHANTI 82% CENTRAL 81% BRONG AHAFO 68% EASTERN 70% WESTERN 68% VOLTA 65% NORTHERN 50% UPPER WEST 40% UPPER EAST 44% NATIONAL 72% WESTERN 68% BRONG AHAFO 68% ASHANTI 82% NORTHERN 50% CENTRAL 81% EASTERN 70% VOLTA 65% 97% GREATER ACCRA

14 On going projects to be completed by 2013 Type/Name of Project No. Of Towns Region China Exim Bank funded electrification 419 Volta US Exim Bank funded electrification project 1,200 Country-wide ChinaEximBankfundedelectrification 500 Northern New Electrification project for communities 400 Upper West CITI Bank funded electrification 500 Upper East Extension of grid to selected rural towns 250 SEVERAL ECOWAS Bank for Investment and Development (EBID) Electrification Project 110 Brong Ahafo and Ashanti Eltel Phase II electrification of communities 140 Eastern Total no. of Towns 3,515

15 GENERATION OPTIONS Cheap hydro power from Akosombo and kpong Plants (60-70% of total generation) 2-3$Cents/kWh Diesel & LCO are very expensive generation sources that cannot support rural electrification. Cost range from 15-20$Cent/kWh Policy Explore cheaper alternatives such as Natural gas. Gas cost range from 8-10$cents/kWh Retrofit oil power plants to use gas from the WAGP (unreliable gas supply) Gas from newly found Jubilee Field to be used primary for power generation. Explore other potential grid tied Renewable Energy options.

16 Bui (400MW) currently under construction and expected to be completed by 2015 Feasibility studies Feasibility studies currently ongoing for Juale (90MW), Pwalugu (50MW) and Hemang (90MW)

17 Renewable Energy Ghana is well endowed in other renewable energy resources such as wind, solar and biomass that could add to generation mix. Policy of Government is to increase the share of meso-scale renewable energies (below 100MW/plant) in the generation mix to 10% by Attract private sector investment in the RE sector

18 Investment Opportunities in Renewable Energy Sub-sector (solar, biomass, mini-hydro and wind) Target is to attain 10% RE by 2020 Energy Source Exploitable Potential (MW) Investment Requirement US$ (million) Medium small Hydro Wind Solar Modern Biomass /waste to energy TOTAL MW

19 Electricity Generation Cost USc/kWh and % Share BIOMASS WIND SOLAR HYDRO (SMALL) GEOTHERMAL HYDRO (LARGE) NUCLEAR NATURAL GAS OIL (PETROLEUM) COAL (IGCC) 16.2% 13.4% 21.4% 40.6% 5.1% 3.3% 0,0 5,0 10,0 15,0 20,0 25,0 30,0 Clearly the energy cost for RETs are higher than most conversional options and therefore requires A regulatory framework Fiscal incentives Donor funding support If it should attract private investments.

20 Renewable Energy Law (Act 832) Enacted a Renewable Energy Law (Act 832) in Dec 2011 to provide the necessary fiscal incentives for renewable energy development by the private sector (IPP) Legal and regulatory framework Feed-in-Tariff Obligatory purchase Renewable Energy Fund

21 PROCEDURES FOR AN IPP ENTRY INTO THE ELECTRICITY MARKET IPP Undertakes Pre -feasibility study IPP Identifies a Buyer or an Off-Taker ( e.g ECG or any other Bulk Customers). Detailed feasibility studies to ascertain Technical Feasibility and Financial Viability of Project. IPP interacts with relevant Regulatory Agencies, such as the Energy Commission EC (Licensing and Technical Regulations) and the PURC (Pricing Regulation) IPP obtains Site clearance by Environmental Protection Agency (EPA) & EC. IPP Obtains Environmental Permit from EPA Concluding a Memorandum of Understanding between IPP and Off-Taker after securing PURC s No-Objection in principle. Obtaining License from the Energy Commission IPP obtains relevant approvals of identified relief s from Governmental Agencies such as (GIPC), Ministry of Energy (Renewable Energy Law) and Ministry of Finance & Economic Planning etc. IPP concludes PPA with Off-Taker

22 KEY CHALLENGIES Poverty level of the Rural People life line tariff High cost of connection to communities with low population and no access road High cost of power generation from renewable source There exist over 2000 lakeside and island communities not likely to be connected to the national grid in the foreseeable future. Provide decentralized energy options with renewable energy Off-grid Mini-grid

23 SENE DISTRICT

24 SOLAR HOME SYSTEMS Over 6,300 solar systems supplied and installed since October 2009 in 11 Districts through loans and grant facilities (ARB Apex Bank/GEDAP). Renewable Energy - Ministry of Energy

25 Solar PV Systems for Remote Schools Renewable Energy - Ministry of Energy

26 Solar Systems in Remote Health Facilities Renewable Energy - Ministry of Energy

27 Community Charging Centre at Tomefa Installed in Dec 2009 Min. of Energy/JICA Renewable Energy - Ministry of Energy

28 Solar Mobile Phone Charging Centre October 2009 Renewable Energy - Ministry of Energy

29 GRID TIED SOLAR PV SYSTEM Energy Commission Presby Women Training Center Abokobi Valley View University, Oyibi

30 Wind & Biogas Application

31 Conclusion Ghana stands as an example for the development of its energy resources to ensure equitable distribution for the benefit of all. Political stability and good governance; Strong and independent institutions; The rule of law; Free and independent press; Transparency and accountability; Commitment to fight corruption and crime; Vibrant private sector; and A strong civil society.

32 Conclusion The Government of Ghana is committed to universal access to electricity by Political will to achieve this goal before 2020 The right policy framework is put in place to ensure private sector participation in the electricity market including the Renewable Energy. Welcome donor supports and private investment for the implementation of key projects The support of the industrialized countries is paramount for Ghana to help mitigate the effect of climate change and also take advantage of increasing access to energy services through RE It is a win-win situation.

33 THANK YOU For more information, please contact: