The Ghana Renewable Energy Act 2011: Technical Regulation

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1 USAID/ERERA/PURC/EC/NARUC Using the Principles of Regulating Clean Energy to Advance Renewable Energy in the ECOWAS Region The Ghana Renewable Energy Act 2011: Technical Regulation JULIUS NKANSAH-NYARKO ENERGY COMMISSION April 24-25, 2014

2 Presentation Outline Brief description of Ghana Overview of Ghana s Energy Situation Renewable Energy Resources National Renewable Energy Policy Target Regulatory Framework Current development Conclusion

3 BRIEF OF DESCRIPTION OF GHANA Location Latitudes 4 o 44 N and 11 o 11 N and Longitude 3 o 15W and 1 o 2 E. Area (Land: Water) 238,539 km 2 ( km 2 : 3,275 km 2 ) Climate (Average Temperature: Average Rainfall) Tropical with 2 major seasons dry and wet (30 o C: 807mm) Population (2010): 24,658,823. Growth rate (2010): 1.9%. Type of Government: Democracy Economy Real GDP (2012): $30.09 billion. Real GDP growth rate (2012): 7.9%. Inflation (March 2014): 14.5%

4 OVERVIEW OF GHANA S ENERGY SITUATION Electricity Access (Sept 2012) 74% Electricity Installed capacity (2013) 2,851.5MW Electricity generation (2013) 12,870 GWh Crude oil production (2013 ave.) 83,126b/day Energy Resources: Solar energy kWh/m 2 /day Wind energy (along coast) 5.0 m/s at 12 metres height Hydro 2,500MW (1,580 exploited) Bui hydro power 400MW completed

5 Solar Resource

6 Wind Resource Atiteti (Dzita), Volta Region

7 Monthly Average Wind Speeds at 60m 8 Monthly Average Wind Speed for Existing Wind 60m Height 7 6 Average Wind Speed (m/s) Sege/Ningo (Old Site) Atiteti (Old Site) Anloga (New Site) Mankoadze (New Site) Denu (New Site)

8 Hydro Resource

9 Small and Medium Hydro Power Development Pwalugu: 50MW proposed Hydro Power Plant Feasibility Studies being conducted by VRA with support from AfDB Juale: 50-90MW integrated Hydro Power Plant under consideration Joint Implementation Committee between Ghana and Togo established Pre-feasibility study being undertaken Hermang: 93MW proposed capacity BPA, China Water and GOG Pre-feasibility study being undertaken

10 REGULATORY FRAMEWORK Renewable Energy Act, 2011 (Act 832) To stimulate massive investment into the renewable energy sector.

11 SOME PROVISIONS OF THE RE ACT The FIT Scheme consists of: FIT rate Renewable energy purchase obligation Connection to the distribution and transmission systems Renewable Energy Fund Biofuel promotion

12 RENEWABLE ENERGY PURCHASE OBLIGATION 3 Power Distribution Utilities ECG and NEDCO state owned companies Enclave Power private company 33 Bulk Electricity Customers In specifying the percentage level of electricity the Public Utilities Regulatory Commission (PURC) shall take into account the: technology being used to generate electricity from the RE source. net effect of the cost of renewable energy on the end user tariff.

13 RENEWABLE ENERGY PURCHASE OBLIGATION - PENALTY An electricity distribution utility or a bulk customer that fails to purchase electricity for RE source shall pay a premium. Where an obligated entity fails to pay the premium: the permit obtained by the bulk customer to purchase electricity from a wholesale supplier shall be suspended. A fine of 5,000 penalty units shall be imposed on the bulk customer.

14 CONNECTION TO TRANSMISSION AND DISTRIBUTION SYSTEMS An operator of a transmission or distribution system shall connect a generator of electricity from RE sources within the coverage area of the transmission or distribution system where a generator of electricity from RE source so requests. An operator of a transmission or distribution system shall: upgrade the transmission or distribution system at reasonable economic expense to feed in electricity from the RE source. upgrade the system as soon as practicable if so requested by a generator interested in feeding- in electricity from the RE source.

15 CONNECTION TO TRANSMISSION AND DISTRIBUTION SYSTEMS The cost associated with connecting installations to the metering point of the grid shall be borne by the generator of electricity from RE sources. An operator of a transmission or distribution system shall enter into a connection agreement with a generator of electricity from RE sources. An operator of a transmission or distribution system that commits an offence under his section is liable on summary conviction to a fine not exceeding 10,000 penalty units.

16 RENEWABLE ENERGY FUND The RE Fund has been established under the Act to provide financial resources for the promotion, development and utilisation of renewable energy resources. Moneys from the Fund shall be applied For provision of financial incentives, capital subsidies and equity participation for: Grid interactive renewable electricity. Mini-grid and off-grid renewable power systems for remote areas and islands. RE projects for non-electricity purposes. For the promotion of: Scientific, technological and innovative research into renewable energy. research into the establishment of standards for the utilisation of renewable energy. the production or fabrication of equipment for the development and utilisation of renewable energy in the country. For Capacity building

17 RENEWABLE ENERGY FUND Sources of money of the RE Fund: Moneys approved by Parliament Premiums Donors Moneys approved EC Board from the Energy Fund Levy from the export of biofuel Moneys provided by the Minister responsible for Finance.

18 CURRENT DEVELOPMENT A 2.5MW solar plant has been installed in Navrongo, Upper East of Ghana. A 315kW solar plant has also been installed at Noguchi Memorial Research Institute at the University of Ghana, Accra. 37 companies have been granted provisional licences for wholesale Renewable Energy electricity generation with a proposed capacity of 3,913MW. 4 companies are currently in the process of securing their Siting Permit. Standardised PPA has been developed. Draft Guidelines for Renewable Energy Purchase Obligation has been prepared. Draft Guidelines for net metering has been prepared. Guidelines for connecting RE plant to the distribution and transmission systems are being prepared.

19 THANK you!!! merci!!!