Invest in energy sector - GNCCI’s CEO urges UK investors
The Chief Executive Officer (CEO) of the Ghana National Chamber of Commerce and Industry (GNCCI), Mr Mark Badu Aboagye, has called on private investors to extend their investments to the energy sector.
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According to him, although Ghana’s power sector has seen relative stability in 2016, this does not mean the country is out of its energy challenges, hence the need for private sector participation in a drive to improve the energy capacity of the country.
“Although now our energy deficit has gone down tremendously, as businesses, we think there is still room for improvement and, therefore, we urge you to extend your investment to our energy sector,” Mr Aboagye told a business delegation from the United Kingdom (UK) who paid a courtesy call on the GNCCI in Accra.
Energy sector
Presently, with production levels hovering around 1,900 Megawatts (MW) and peak demand at 1,700 MW, there is enough power for both domestic consumers and businesses.
The challenge, however, is that with an expected increase in demand in 2016, the absence of a reserve margin implies that in the event of a breakdown of any of the power plants, there will be no cushioning for the sector and the energy crisis will resurface.
The Energy Commission has estimated that peak demand for power will reach 2,600MW in 2016, up from the 2,100MW in 2015.
This means that with current production around 1,900 and the expected generation in 2016 at 580MW comprising 220MW KTPP and 360 MW Asogli Phase two, total available generation will be less than the projected peak demand of 2,600MW and the absence of a reserve margin would complicate issues.
Power generation
The main source of hydro-power generation is the Akosombo Dam with an installed capacity of 1,020 MW, Kpone with 160MW and Bui with 400 MW.
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The thermal sources, which run on either Light Crude Oil or gas, include TAPCO (TI) with a general capacity of 330 MW, TICO (T2) with 220 MW, T3 (132 MW), TT1PP (110 MW), TT2PP (50MW), MRP (80 MW), Sunon Asogli (200 MW) and CENIT with 126 MW.
Renewable sources, consisting primarily of solar, have an installed capacity of 2.5 MW. All these power plants, when operating at full capacity, are expected to produce 2,831 MW.
In the face of the growing challenges in 2015, some short-term and emergency power solutions were lined up to help in power generation, comprising the 220MW Kpone Thermal Power Project (KTPP), 110MW TICO Expansion Project, 180MW first half of Asogli 360MW Phase 2 Project, VRA TT2PP (38 MW) expansion project, and the 225MW Karpower ship and 250MW Ameri Project in Takoradi.
Additions to the grid out of these projects, however, was 585 MW which covers the 225MW Karpower ship, 250MW Ameri plant and 110MW TICO Expansion. The 220MW KTPP and Asogli phase two have been completed but are yet to deliver power to the grid.
The CEO of the Chamber commended the effort made by the government to ensure that the energy challenges were resolved, but going forward, he said the government needed support from investors to complement its effort.
UK delegation
The UK business delegation was made up of representatives from energy, infrastructure, education and training companies that participated in the Department for International Trade (DIT) London trade mission to Nigeria and Ghana.
This year’s mission was led by the International Trade Adviser of the Department for International Trade, London Region, Mr Carl Woolf.
Mr Woolf said the mission of the delegation was to find business opportunities for companies in the United Kingdom.
He explained that the opportunities would enable them to establish long-term relations with other Ghanaian companies and also bring a wide range of their products, services and expertise.
Mr Woolf said Ghana's economy had been less stable as compared to the last four years; a condition the UK companies may consider as a challenge. He, however, expressed optimism that the situation would stabilise.