Energy transition to gas power, way to go

The Minister of Energy and Green Transition, John Abdulai Jinapor, has emphasised the need for the country to transition from liquid fuels to a gas-to-power system.  

The shift is expected to reduce costs, improve efficiency and eliminate financial leakages within the energy sector.

The minister argues that the solution lies in transitioning to a gas-to-power system, which promises to reduce costs, improve efficiency and mitigate the environmental impact of power generation.

The numbers are stark and the country is projected to spend over $800 million on liquid fuel in 2025 to power its thermal plants.

The dependence on expensive imports not only drains the country's financial resources but also fosters corruption and wastefulness. In contrast, natural gas offers a cleaner, cheaper alternative, with Ghana's domestic fields providing about 85 per cent of the country's gas needs.

The country's reliance on liquid fuels has been financially unsustainable, contributing to high government expenditure, corruption and inefficiencies in the energy supply chain.

The importation of liquid fuels drains foreign exchange reserves and escalates energy production costs, which in turn affects the price of electricity for consumers.  

In contrast, natural gas offers a cleaner and cheaper alternative as Ghana possesses substantial untapped gas reserves.

Ghana boasts substantial untapped gas reserves yet it relies on expensive liquid fuel imports.

Transitioning to gas-to-power can save the country approximately $500 million per annum. Gas-fired power plants can tap into our natural gas reserves, reducing reliance on expensive imported fuels.

A diversified fuel mix, including natural gas and nuclear energy, can ensure a stable supply.

The government has committed to increasing natural gas availability, allowing fuel to switch from liquid to gas.

However, the limited capacity of the existing gas processing facility hinders the full commercialisation of the gas supply.

Electricity generation capacity is insufficient, making power outages common.

Natural gas is a crucial fuel source, but the country has flared large volumes of gas that could have been used for power generation.

We are aware that the government has taken steps to address these challenges, but execution has been problematic.

Deliberate reforms in sector governance are needed to address fundamental challenges in power generation, transmission and distribution.

Policy distortions threaten a financially sustainable power sector, encouraging state intervention to address revenue shortfalls. 

It is the view of the Daily Graphic that given its affordability and lower carbon emissions, natural gas will remain crucial in meeting the country’s growing power demand.

The government's choice to optimise gas supply is pivotal in mitigating the effects of costly fuels on electricity consumers.

Ghana possesses the potential for sustainable power supply, but achieving this requires reforms in sector governance to address fundamental challenges.

Natural gas offers a cleaner, cheaper alternative to liquid fuels. Ghana must seize this opportunity to transition to a gas-to-power system, unlocking a brighter energy future.

The status quo is unsustainable, and bold action is needed to ensure a reliable, efficient and sustainable energy sector.

We are confident that a transition to a gas-to-power system offers significant benefits, including reduced costs, improved efficiency and enhanced energy security.

Addressing the challenges and seizing the opportunities in this transition will be critical to unlocking a sustainable energy future for Ghana.

The government's commitment to increasing natural gas availability is a step in the right direction. However, more needs to be done to address the fundamental challenges facing the energy sector.

This includes investing in gas infrastructure, promoting private sector participation, and ensuring transparency and accountability in the energy supply chain.

Ghana’s energy future is at a crossroads, and the choices made today will determine its energy trajectory for generations to come.

With the right policies and investments, our country can unlock a sustainable energy future, drive economic growth and improve the lives of its citizens.