RENEWABLE ENERGY IN GHANA: POLICY AND POTENTIAL HON. EMMANUEL ARMAH KOFI BUAH MINISTER FOR ENERGY & PETROLEUM, GHANA. Presented by: Wisdom Ahiataku-Togobo, Director, Renewable Energy - Ghana
OVERVIEW OF GHANA Land Area: 238,500 km 2 Population: 24,658,823 (2010 Census) Electricity Access: 76% (2013) Rural Access: 48% (2013) Consumption/Capita: 451.5KWh (2013)) Ave. GDP Growth Rate: 7% (2013) Major Export: Cocoa, Gold, Timber, Bauxite, Oil and Electricity 2
GWh 14.000 12.000 10.000 8.000 6.000 4.000 2.000 0 ANNUAL ELECTRICITY GENERATION TREND 2000-2013 Data Source: Energy Commission. Graph by: W. A. Togobo 2014 TT3PP Bui Solar1 CEL TT2PP MRP KRPP ERPP TRPP SAPP TT1PP TICO TAPCO Kpong Akosombo 3
ELECTRICITY GENERATION PLANTS IN GHANA (2013) PLANT TYPE QTY TOTAL CAPACITY % (MW) THERMAL POWER PLANT 8 1,168 42.4% LARGE HYDRO POWER PLANTS 3 1,580 57.4% GRID CONNECTED SOLAR 20 3.0 0.1% OFF GRID SOLAR 41,820 0.8 0.0% OTHER RENEWABLES (Biomass) 4 2.0 0.1% TOTAL INSTALLED CAPACITY 2,754 CONTRIBUTION OF MODERN RE 5.8 0.21% EXCLUDES STANDBY DIESEL/PETROL GENERATORS AND INDIVIDUAL SOLAR HOME SYSTEMS 4
Current Electricity Supply Situation - 2014 Annual peak demand from electricity increased from 1,729MW in 2012 to 1,943MW in 2013 Annual Growth rate is 12% Current average Forecast Demand - 1,980MW Installed generation capacity 2,846MW Available Peak Generation Capacity 1,712MW Electricity supply inadequacy due to expansion and maintenance works, erratic supply of natural gas from Nigeria and low water levels in the hydro dams. 5
Electricity Demand Vs Available Generation Capacity Nov. 17, 2014 Situation is becoming worse with decreasing level of water in the reservoir for Bui, Kpong and Akosombo Hydro Power Plants resulting in nationwide load shedding.
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 7
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. High Wind power potential along coast. Data collection at 60m & 80m height underway in 13 sites. 8
Renewable Energy Policy Strategy Increase the contribution of RE source (including hydro, solar, biomass and wind) by 10% for grid, mini grid and off-grid applications; by 2020. Reduce share of combustible renewables (woodfuel) in total energy mix to levels below 50% Use of clean cooking fuel alternatives e.g. LPG and efficient woodfuel cookstoves. 9
The Renewable Energy Act 2011 (Act 832) Provides the fiscal incentives and regulatory framework to encourage private sector investment. Key Provisions includes: Feed-in-Tariff Scheme under which electricity generated from renewable energy sources would be offered a guaranteed price. Purchase Obligation under which power distribution utilities and bulk electricity consumers would be obliged to purchase a certain percentage of their energy required from electricity generated from renewable energy sources Net Metering (distributed generation) under which RE generated on site may be delivered to the local utility to offset the cost of electricity provided by the utility. 10
Key Provisions in Act 832 Off-grid Electrification promote Mini-grid and stand-alone RE systems for remote off-grid locations Woodfuels Promote efficient production and utilization of woodfuel use for cooking, Renewable Energy Fund to provide incentives for the promotion, development and utilization of renewable energy resources. Establishment of Renewable Energy Authority to own, implement and manage renewable energy assets on behalf of the State. (particularly for off grid electrification) 11
Institutional Framework in Place with Clear Roles and Mandates Energy Commission: Technical regulation and licensing for RE electricity generation, transmission and distribution PURC: Economic regulation and setting tariffs for electricity including the Renewable Energy Feed-in- Tariff Environmental Protection Agency: environmental regulation and permitting Ghana Investment Promotion Centre: Assist and facilitate incentive for private sector investments (IPPs) 12
Feed-in-Tariff for Utility Scale Renewable Energy Inter-connection in Ghana (2014) Hydro <10MW: Ghp53.62/KWh (US$c16.76) Hydro >10MW: Ghp53.88/KWh (US$c16.85) Biomass: Ghp56.01/KWh (US$c17.51) Waste-to-Energy: Ghp59.03/KWh(US$c18.46) Biomass (plantation as feedstock): Ghp63.29/KWh (US$c19.79) Wind (without grid stability system): Ghp51.43/kWh (US$c16.01) Wind (with grid stability system): Ghp53.74/kWh (US$c17.42) Solar (without grid stability/storage system): Solar (with grid stability/storage system): Ghp58.36/KWh (US$c18.25) Ghp58.36/KWh (US$c20.01) Index at exchange rate of Ghs3.1986/US$ (Sept 30, 2014) 13
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 Installed Capacity by 2020 3-6 potential sites (200-300MW) 50-100MW 150-300MW Distributed grid connected RE generation through Net-metering (solar, wind, biomass, hydro) Utility Scale Solar Farms 30-100MW 150 MW 14
Expression of Interest in RE to Date RE Technologies # of Applications issued with PL Total Capacity Solar 29 2,155 MW Wind 4 676 MW Biomass 2 60 MW Waste-to-Energy 3 271 MW Hydro 3 195 MW Wave 1 1,000 MW 15
New Regulations for Utility Scale Solar Power Plants (Oct. 2014) In order to maintain the integrity of the national grid, A total nation-wide capacity for Solar PV Plants without grid stability/storage is limited to 150MWp. Maximum of 20MWp per Solar plant without grid stability/storage shall be allowed to be connected to 161KV or330kv at any solar PV generation site. Maximum of 10MWp per plant without grid stability/storage shall be allowed to be connected to the Distribution System at any solar PV generation site. 16
GRID CONNECTED SOLAR PV SYSTEM Non Residential tariff above 600KWh/month is GHs0.93/KWh (US$0.31/KWh) Compared to FIT for Solar US$0.18 Huge opportunities for investment in distributed generation through Netmetering 19 Solar PV plants (distributed generation) Net-metering systems. 50kWp solar park at the Ministry of Energy for instance accounts for 12-15% energy consumption. 700 kwp at Noguchi Legon Presby Women Training Center Abokobi Valley View University, Oyibi 17
Priority Areas for Mini & Off Grid Renewable Energy Investments Programme Target by 2020 Mini Grid Renewable Energy based electrification in isolated communities Deploy Solar Home Systems (SHS) in isolated off-grid households Deploy Solar Lanterns (SL) with mobile phone charging facilities through local assembling and partial subsidy Solar electrification in off-grid public facilities (schools, clinics, security outposts) 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 20 50 communities (2MW) 50,000 SHS (5MW) 2 million lanterns (20MW) 6,000 Public facilities (1.5MW) 12,000 systems (1.5MW) 200 systems 18
Investment Requirements It is estimated that an investment of USD1.0billion will be required for utility scale grid connected and off-grid the renewable energy interventions in Ghana 19
Conclusions Ghana is committed to the development and promotion of renewable energy. The RE Law 2011 (Act 832) presents unique opportunities for the private sector to harness the benefits of renewable energy in Ghana. Ghana has the right enabling environment for attracting private sector investment in sustainable energy solutions. Political stability and good governance; Strong and independent institutions; The rule of law; Free and independent press; Transparency and accountability; and A strong civil society 20
Thank You For more information, please contact: The Director, Renewable Energy Ministry of Energy & Petroluem, Ghana. www.energymin.gov.gh renewable@energymin.gov.gh wtogobo@energymin.gov.gh watogobo@gmail.com 21