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Volta River Authorityw w w . v r a . c o m

Through a combination of hydro, thermal and solar sources, VRA generates electricity for both

local and export markets. Locally, VRA is the main supplier to the Electricity Company of Ghana, providing 75% of the country’s 2,846.5MW installed capacity. Local mines and industrial establishments also purchase from VRA directly. Further afield, the power generation company exports to three of Ghana’s bordering countries: the Republics of Togo, Benin, and Burkina Faso.

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Established in 1961 by the Government of

Ghana, Volta River Authority (VRA) is

the country’s primary power generation company, and — more recently — has

become the first arm of the country’s newly restructured electricity, transmission and

distribution chain.

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Energy

Supply and demandLike many West African countries, Ghana relies heavily on hydro generation for its power, but low water levels combined with rising demand mean that powering the country is not without its challenges. Situated on the Volta river in south-eastern Ghana, the country’s largest hydroelectric power plant — Akosombo Dam — has been one of Ghana’s key sources of power for decades, but has recently been generating below capacity due to low water levels. Currently, four of Akosombo’s six turbines are in operation.

Experts believe that climate change can seriously compromise the feasibility of using hydropower as a primary energy source, as changes in rainfall patterns can result in less water and consequently less energy.

This is not good news for Ghana. Historically, hydro power has dominated Ghana’s electricity

Locally, VRA is the main supplier to the Electricity Company of Ghana, providing 75% of the country’s 2,846.5MW installed capacity

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supply industry, and did in fact account for all of its generation until the late nineties, when VRA quite wisely decided to diversify its sources and began importing crude oil and gas to fuel its power plants. For the last five years, thermal energy has been making up almost half of the country’s supply.

Yet this isn’t without its challenges, either. An insufficient gas supply means that current generation meets just 75% of the demand. As is the case in South Africa, load shedding is common in Ghana, causing regular interruption to electricity supply in order to restore some balance to supply and demand.

In addition to a lack of gas, theft and vandalism are also causing difficulties, and the country’s old and obsolete infrastructure lead to frequent interruptions in supply. Nationally, around 66% of Ghanaians have access to electricity, yet in northern regions this figure is much lower, at just 30%. Demand is growing at an estimated 10% per annum, putting further pressure on suppliers.

Importing powerVRA has recently backed calls for tariff increment in the hope it will help the company to sustain its operations. While not all Ghanaians are happy with this proposal, many say they would be happy to accept, providing power supply improves — and, with VRA

set to receive a 250MW plant from Africa and Middle East Resource Investment (AMERI) later this month, it looks like that might happen.

Made up of 10 power units, the AMERI plant has come in from Dubai and will be hooked up to gas provided by Ghana. The units will find home at the Aboadze Thermal Power Enclave, where civil works are nearing completion in anticipation of the arrival. Each

25MW power unit is expected to be installed by December, when they are collectively expected to feed between 230MW and 250MW into the national grid.

The AMERI plant will be followed by two power barges from Turkey, both of which are set to arrive within the next few months. The first — with 225MW on board — was due to arrive in September, but has been subject to delays. The second is due in January 2016 and will bring an additional 175MW to the country.

These floating power plants are un-motorised power ships with power plants installed on deck. Unlike Ghana’s thermal plants, these barges will not operate on crude oil, but will instead burn heavy fuel oil as a much cheaper alternative.

There is also the prospect of significant investment from the US Power Africa initiative, a $7 billion program launched by Washington to help build power generation and transmission facilities in a number of sub-Saharan African nations.

Ghana is experiencing one of its worst power crises yet, and has been for over a year. But with the continued dedication of VRA, and the imported power arriving over the next few months, Ghana’s energy situation can be expected to pick up sometime soon.

Like many West African countries, Ghana relies heavily on hydro generation for its power, but low water levels combined with rising demand mean that powering the country is not without its challenges.

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Volta River Authority Corporate AddressElectro-Volta House28th February RoadP. O. Box MB 77Accra, Ghana

Tel: +233-30-266 4941 -9Fax: +233-30-266 2610Email: corpcomm@vra.com

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©Essential Business Magazine 2015