Ghana
Overview
Ghana’s power supply comes from hydropower, crude oil, natural gas, and solar energy. Ghana has a robust power generation ground, with players from the public and private sectors. The country exports electric power to Togo, Benin, and Burkina Faso. As a result of the reformation of the power sector in the 1980s, obstacles were removed and this created a base for independent power producers. The current national access to electricity is at an average of 83 per cent, with 50 per cent of rural residents and 91 per cent of urban residents connected to the national grid.
Generation
Ghana’s electricity generation has a total installed capacity of 4,132MW made up of 38 per cent hydro, 61 per cent thermal, and less than 1 per cent solar. The main electricity producer, Volta River Authority (VRA) is a state-owned electricity utility that owns and operates thermal and hydropower plants.
Transmission
The transmission of electricity in Ghana is carried out by the Ghana Grid Company (GRIDCo) which was created in 2006, and Volta River Development which oversees the operation of the National Interconnected Transmission System. Energy generated at the generation stations is evacuated through an interconnected transmission network of 485kV.
Distribution
The distribution of electricity in Ghana is carried out by three utilities: two state-owned and one privately operated. The Electricity Company of Ghana (ECG) is the largest distribution company, owned wholly by the government, and is responsible for the supply of electricity in six political regions in southern Ghana. The Northern Electricity Department (NED) is charged with the distribution of electricity to the northern regions, upper east, and upper west region of Ghana. Enclave power company Ltd (EPC), the privately-owned distribution company, operates in the Tema Free Zones Enclave in the Greater Accra Region.
Renewable Energy
Ghana is blessed with renewable energy resources that are yet to be fully exploited. These include hydropower potentials, biomass, high solar irradiations, and wind potentials along the coast. Renewable energy currently contributes 1 per cent to the energy mix. The total installed renewable energy generation capacity in Ghana in 2020 is projected at 42.6MWp.
Electricity Tariff
The price of electricity in Ghana is 0.063 USD per kWh for households and 0.136 USD for businesses which includes all components of the electricity bill as the cost of power, distribution, and taxes.
Industry Prospects
It is estimated that by January 2024, an additional generation capacity of 225MW would be procured, and by 2025, 200MW will be added to preserve the security of supply in Ghana. With the desire to create cleaner energy sources, the generation mix is set to include more renewable sources that will come with incentives to attract investors in this sector. The major opportunities available in this sub-sector include setting up local producers and assemblers of renewable energy technology.