Centro International Conferencias Joaqium Chissano, Maputo...
Transcript of Centro International Conferencias Joaqium Chissano, Maputo...
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Centro International Conferencias Joaqium Chissano,
Maputo, MozambiqueJune 9th - 12th, 2009
BY
Ing A. T. Barfour FGhIE, FID
Project Coordinator - GEDAP
Ministry of Energy – GhanaJune 2009
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PRESENTATION OUTLINE
• Overview of the Ghana / Power Sector
• Electricity Generation in Ghana
• Historical Background
• National Electrification Scheme
• Implementation Strategy & Schemes
• Financing RE
• Key Challenges
• Way Forward and Conclusion
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GHANA
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- Land Area: 238.5 km2
- Population: 18,845,265
(2000 Census)
-Electricity Access: 60%
-Consumption/Capita: 386kwh
- Av. GDP Growth Rate: 6.0%
Major Export: Cocoa, Gold,
Timber, Bauxite, Electricity
(Togo & Benin)
Oil & Gas
Overview of Ghana
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STAKEHOLDERS IN THE POWER
SECTOR
Ministry of
Energy
Energy Commission
• Advice MoE• Tech. Policy
• Tech. Standard• Prepare Grid Code
• Policy FormulationAnd Direction
VRA ECG
NED
• Produce• Distribute
• Distribute
PURC• BGT • DSC
• DSC
• Regulates Economic tariff• Cust. Serv. Quality
GRIDCO • Transmit
• TSC
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Generation Sources
Hydropower Thermal Power
Akosombo–1,012 MW
Kpong – 160 MW
TAPCO (Takoradi I) – 330 MW
TICO (Takoradi II) – 220 MW
Mines Reserve Plant – 80 MW
VRA Tema – 126 MW
ELECTRICITY SUPPLY INFRASTRUCTURE
Bui – 400 MW
Osonor Power – 126 MW
Asorgli Power – 220 MW
Power Barge – 125 MW
Tema 2 Plant – 49.5 MW
Kpone Thermal – 223.4 MW
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HISTORICAL BACKGROUNDThe Rural Electrification Committee of 1970 –
Objectives & Recommendations
• Objective was to establish how to bring
electrification to rural areas, as a means of
reducing the urban-rural inequalities and
increase economic activity in the rural areas
Recommendations:
• Rural electrification could not be economically
self supporting at the time
• A rural electrification fund to be set up from ECG
dividends to the government and part of VRA's
surplus to be used for financing the running and
maintenance of electricity systems
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Objectives &
Recommendations - Cont• A rural electricity department to be set up within
ECG
• A rural electrification commission under the
ministerial control of the prime minister
• Government to provide subsidy for the supply of
electricity to all towns/villages with population
between 1,000 and 5,000
• To reduce cost, local materials should be used
• Interest on foreign loans for power projects should
be paid into a rural electrification fund
• Communities were to contribute 1% capital cost
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Rural Electrification-
The National Electrification Scheme
• National Electrification Policy instituted in 1989to replace the 1970 policy.
• National electrification access was then about25%.
• 46 out of the 110 district capitals existing thenwere connected to the grid.
• Less than 5% rural coverage estimated at thetime.
• National Electrification Levy was instituted andthe levies collected were paid into a NationalElectrification Fund established to supportimplementation of the rural electrificationprogramme.
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National Electrification Scheme –Goal and Aims
• Goal of NES is to extend reliable electricity
supplies to all communities over a 30-year
period.
• Aims:
- to enhance socio-economic development
nationwide; and
- to reduce level of poverty nationwide,
particularly in the rural areas.
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National Electrification Scheme –Specific Objectives
• Promote use of local and indigenous resources for a cost effective implementation of rural electrification.
• Create employment and increase productivity and wealth.
• Promote growth of agro-based & small scale industries.
• Reduce the rate of rural-urban migration.
• Improve information access and communication services nationwide.
• Improve the quality of life of rural folks.
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National Electrification Scheme –Implementation Strategy
• Comprehensive National Electrification Planning Study undertaken between 1989-1991 by Acres International of Canada and Asare-Tsibu & Partners of Ghana.
• Developed a comprehensive National Electrification Master Plan for 4,221 communities.
• All possible options of electrification considered including grid extension and off-grid renewable energy-based solutions such as biomass, solar, wind & small hydro.
• 69 grid-based electrification project packages identified and prioritized for implementation over six 5-year phases major output of NEMP.
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National Electrification Scheme –Implementation Strategy (Contd.)
• Connection of district capitals given first priority(64 district capitals in total) and completion ofalready ongoing projects - Phase One
• Subsequent phases prioritized based on:economic, political, traditional & historical factors:
- potential for small-scale industry activity;
- status as commercial market center;
- tourism potential;
- political dispensation; and
- historical importance of area.
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National Electrification Scheme –Self-Help Electrification Programme
(SHEP)• SHEP is complementary electrification programme
instituted to support the main NES.
• Rationale: To accelerate the connection ofcommunities to the national electricity grid.
• Introduced by government to encourage (ratherthan dampen) the self-help developmental initiativesof communities.
• Communities that initiate their townshipelectrification projects receive government supportfor completion of the projects earlier than thescheduled date of connection under the NEMP.
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SHEP Criteria for joining SHEP
• Community must be within 20 km of an
existing 11kV or 33kV network suitable for
further extension.
• Community must procure and erect all the
low voltage electricity poles required for the
local network.
• Evidence of a minimum of one-third of
houses in the community wired and ready to
receive electricity supply on arrival.
• Community must apply to join SHEP.
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FINANCING RE
Name Role
Government of Ghana Consolidated Fund
Levy on consumers
Through Utilities/Agencies
Suppliers Credit
Local Government
Direct through provision of wood poles
MP’s Common Fund
Communities Provision of LV poles & communal labour
Development Partners Bilateral
Multilateral
RE Projects are financed through a mixture of Local
and External Sources (grants and soft loans from a
consortium of financing institutions including the DFIs &
bilateral funding agencies).
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Government of Ghana / ECG /
VRA Contributions
Project Cost
(Million)Area Base Period Remarks
Grid Extension to Keta I ¢2192 Volta 11 1990 – 91
Grid Extension to Keta II ¢ 800 15 1992
Juabeso Bia
Electrification Western 41 1992 – 96
Electrification of Volta
Lake Resettlement
Townships
USD 32.8 Volta 144 2002 -2003
Suppliers
Credit from
Chinese Ex-
Im Bank
Bobikuma Electrification ¢ 1178 Central 11 1993 – 95
Agomeda – Kordiabe
Electrification ¢ 77.6 Gt. Accra 8 1993 – 95
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Government of Ghana / ECG /
VRA Contributions
Project Cost
(Million)Area Base Period Remarks
Self Help Electrification
Project (SHEP)
SHEP 2 ¢ 2610 National 42 1992 – 94
Emergency SHEP ¢ 4520
Ashanti,
Central &
Volta
50 1994 – 96
SHEP 3 phase 1
USD 130
+ ¢900,000National
170 1996 – 98
phase 2 480 1998 – 2000
phase 3 700 2000 – 2005
SHEP 4 phase 1 & 2USD 45.0
+ ¢270,000National 193 2005 - 2008
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MultilateralsProject Donors Area Period
National Electrification Project
- Rural
IDA
USD 77.8M
Western – 97
Eastern – 42
Volta – 56
Gt. Accra – 15
Ashanti – 15
Central – 66
NED/VRA - 155
1993 – 98
Dutch Government
USD 31.0M(40% Grant & 60%
concessionary loan)
Norwegian (Nordic Fund)
USD 6.88M
Swedish SIDA
SEK 68MDanish Govt (DANIDA).
USD 24.35M
GoG(Counterpart fund)
¢2,804M
Western Region Electrification EU €10.0M Western – 108 2002 – 2005
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Project Cost
(Million)Area
Beneficiary
Communities Period Remarks
JICA I ¥ 780
Ashanti,
Central &
Gt. Accra
37 1989 – 90
GoG
contribution
¢50M
Lower Volta
Electrification JICA II¥ 1,876
Volta & Gt.
Accra19 1994 – 95
GoG
¢ 561M
Electrification of
Asesewa & Yeji Area
JICA III
¥ 826
Eastern &
Brong
Ahafo
44 1996 – 97 GoG
¢ 503.20M
Electrification of
Nyinahin and
Amansie West
District JICA IV
¥ 890 Ashanti 34 2003 -2004GoG
¢ 7,500M
JICA V Upper
Denkyira & West
Akim
¥1,088Central &
Eastern47 2006 - 2009
GoG
¢ 29,300M
Bilateral
-Japanese Government through JICA
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Project Cost
(Mill)Area
Beneficiary
Communities Period Remarks
Volta Electrification
phase 1DM 7.7 Volta 44 1982 – 84
Residual Works Volta
Electrification Phase 1DM 1.0 Volta 16/9
1982 – 84 GoG
¢ 246M
Bilateral
- German Government through KfW
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Project Cost
(Mill)Area
Beneficiary
Communities Period Remarks
Eastern Region District
Capital Electrification SEK 52.5 Eastern 22 1994 – 95 GoG
¢465.7M
Ashanti Region District
Capital Electrification US$ 9.98(Finish Gov’t)
Ashanti 52 1993 – 95 GoG
¢ 530.33M
BilateralSwedish/Finish Government through SIDA
Spanish Government
Project Cost
(Mill)Area
Beneficiary
Communities Period Remarks
Upper East
Electrification Project USD10.0
Upper
East 51
1999 –
2000
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Project Cost
(Mill)Area
Beneficiary
Communities Period Remarks
Upper East
Electrification Project USD10.0
Upper
East 51 1999 – 2000
BilateralSpanish Government
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Project Cost
(Mill)Area Base
Beneficiary
Communities Remarks
Electrification of Jasikan
Kadjebi & othersCAD10 Volta 38 1991 – 92
GoG
¢ 869M
BilateralCanadian Government through CIDA
Project Cost (Mill) AreaBeneficiary
Communities Period Remarks
SHEP I Rp10 National 150 1989 – 93
Government
bears local
expenses
Indian Government
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Source of
funding
Beneficiary
Communities
Foreign
(million)
Local
(million)
Bilateral 422 USD 102.58 ¢40,025.23
Multilateral 554 USD 163.03 ¢2,804.00
Government of
Ghana1,865 USD 207.80 ¢1,181,377.6
TOTAL 2,841 USD 473.41¢1,224,206.83
(USD 122.42)
Summary
Capital Cost/ Communities Electrified
•All local currencies were funded by the Government of Ghana
USD 1.00 = ¢10,000.00
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Summary
- Capital Cost
Bilateral 18%
Multilateral 27%
Government of Ghana55%
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Financing Ongoing RE Projects
Project 2Cost
(Million)Source Area
Beneficiary
Communitie
s
Period
GEDAP Grid
ExtensionUSD 58.40
IDA
ACGF
SECO
ECG
operational
Area
420 2007 – 12
GEDAP
IntensificationUSD 24.60 IDA National 570 2007 – 12
SHEP - 4USD 90
CIWE -1
(Suppliers
Credit)
National 580 2007 – 09
SHEP - 4USD 170
US17(GOG)
CIWE -2
(Suppliers
Credit)
National830
2009 – 12
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Financing Ongoing RE Projects
Project 2Cost
(Million)Source Area
Beneficiary
CommunitiesPeriod
SHEP - 4 USD 30 EBIDAshanti,
BA106 2009 – 12
SHEP - 4 EURO 10Eltel Network
(Finland)
Ashanti,
Eastern79 2009 – 12
SHEP - 4USD 5.5
MCA National 45 2008 – 12
SHEP - 4
USD 350
US50(GOG)Suppliers Credit:
US ExIm BankNational 1200 2009 -13
TOTALUSD
7423830
Next 5
Years
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KEY CHALLENGIES
• Poverty level of the Rural People
• Inadequate RE levy (0.017 cent/kwh)
• Government Budget Support – inadequate &
not reliable
• Strict conditionalities of Development
Partners
• Lack of Private Capital
• Lack of commitment of the Utilities
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WAY FORWARD / CONCLUSION
• Financing RE Projects is a daunting task for
developing countries
• Government Policy Towards Poverty
Alleviation/Wealth Creation in Rural Areas
must be pursued vigorously
• REA and REF must be established
• Local Government, Communities and
Consumers should continue to contribute to
the RE Fund
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WAY FORWARD / CONCLUSION
• The RE Levy should be made a percentage
of Energy Consumption
• Government Budgetary Allocation should be
adequate and released timely
• A portion of Utilities profit must be channeled
to the RE Fund
• Development Partners should continue to
assist RE with lesser conditionalities
• Private Investors should be encouraged to
fund RE Projects through franchise/
concession
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