Bio-energy Policy Tool -Defining the WHO:

The Case of Ghana

By Wisdom Ahiataku-Togobo

Director, Renewable Energy Ministry of Energy

ECOWAS ECREEE-GBEP REGIONAL FORUM ON BIOENERGY, BAMAKO

19-22 MARCH, 2012

Bio-energy • Key energy resources in Africa and of the

future (Cheap and can be sustainable).

• Accounts for over 80% of domestic energy use

• Wide range of resources including

– natural forests,

– short-rotation plantations,

– wood processing,

– agricultural residues and

– Municipal and industrial organic waste.

– energy crops,

4/5/2012

Bio-energy Policy Issues • Energy Security.

– Growing imbalance in woodfuel consumption and yield due to inefficient production and utilization -(Food processing and heating).

– Weak regulatory enforcement for the production, transport and export (charcoal)

• Climate Change Mitigation – Environmental threat due to bush fires, land

degradation among others

Bio-energy Policy Issues

• Employment and Social Welfare – Wood fuel (firewood and charcoal) production are

the main source of income for the poor majority in the dry seasons.

– It is also the main source of revenue for most deprive districts.

– Policy to regulate and licence this activity has direct impact on the social livelihood of the poor.

• Health and Sanitation – Smoke and indoor air pollution from inefficient

woodfuel use – Improper disposal of wood and agricultural

residues; municipal liquid and organic solid waste (High BOD content ) pollute rivers and underground water – (main source for drinking). Aquatic life destroyed

Bio-energy Policy Issues

• Agricultural sector

– ECOWAS sub region has good climatic conditions for the cultivation of energy crops, short rotation plantation and food.

– Bioenergy has potential to strengthen the agric sector and promote rural development (mechanised farming)

– Also has potential to threaten food security (competition for land use for Food production).

– Large scale energy crop production has impact on water resource and water pollution.

Bioenergy Policy & Strategy • Development of a comprehensive bioenergy policy and

strategy is key to maximising the potential benefits from bioenergy.

• However, this is very complex – decisions on trade-offs between conflicting goals – need to ensure that interests and concerns are adequately

considered.

• The active involvement , commitment and cooperation across relevant Ministries and their Agencies is critical. – Energy, Environment, Food & Agric, Lands & Forestry, Health,

Trade & Industries, Employment & Social welfare, local Gov. etc.

• A committed agency to drive the policy is critical. In the case of Ghana – Energy Commission is the driving agency under the directives of

its sector Ministry - Ministry of Energy , Ghana

Bioenergy Policy & Strategy

• Synergy between the State and citizens is also essential to move from policy on paper to policy on the ground. – Policy should satisfy local needs, and contribute to

poverty reduction at the grass root. – Involvement of Civil Society Organisations, Community

Base Organizations, NGO, Cooperatives, Industrial associations, among others is critical.

– Usually follows an iterative path, and takes time.

• Above all, good governance is critical to ensure accountability – government should be responsive to citizen demands, – decision makers should be enabled to get things done

Lessons with Modern Bio-Energy Applications

• Improved cookstoves (firewood & Charcoal)

• Improved charcoal production technologies

• Briquetting (sawdust, charcoal dust etc)

• Co-generation (sawmill / palm residues )

• Biogas (municipal/farm waste, animal dung)

• Gasification (feasibility study/research)

• Biofuel – Jathropha, oil palm, soya bean oil, sunflower oil, etc.

• Energy crops and short rotation plantations.

Framework for RE Policy Development in Ghana

• Technical committee inaugurated by the Minister for Energy. 2005 – Representative from Research Institution – Relevant agencies from the concerned Ministries

• Energy Commission, Environmental Protection Agency, Forestry Commission, Crop Services Department; Ghana Revenue Authority, Ghana Police Service etc.

– Representative of the RE Industry, civil society and NGO

– Representative from the Academia. • KNUST, UG–Legon, Cape Coast University, Valley View

University

Mandates

• Undertake technical and economic assessment of bioenergy: – Analyse potential of bioenergy with emphasis on risks

and opportunities of available bioenergy resources

– Evaluate the most economic application sector • Household/Institutional cooking

• Heat and power for industries

• Transport fuel

• Export

– Land and water resource assessment for bioenergy feedstock

Mandates

• Identify existing legal and regulatory issues from the different sectors relating to renewable energy including bioenergy.

• Harmonise all into a common legal instrument taking into consideration all interests and concerns.

• Develop policy strategy for implementation – Bioenergy policy strategy

• Stakeholder consultation is key at all stages. – Community level (follows an iterative path, which takes time). – National levels (professionals and industry players) – Ministerial level (cabinet) – Parliamentary level (political parties)

Outcomes • Harmonized legal instrument - Renewable Energy Act 2011 (Act 832).

– The policy encourages the production of biofuel for local consumption and for export.

– The acquisition of relevant permit from the Min. of Food & Agriculture and the EPA for the production of energy crops for biofuel.

– The designation of biofuel blend as a petroleum product and the pricing of the blend will be done in accordance with the National Petroleum

Authority Act, 2005 (Act 691). • It also prescribes:

– A ban on biofuel imports to protect the local industry; – An exemption of locally consumed biofuel from levies and taxes; and – Imposition of levies and taxes on biofuel exports.

• The RE Act also has provision for: – Feed-in-tariff to give preferential and guaranteed tariff for electricity

generated from the renewable energy resources including bioenergy. – Mandatory purchase of electricity generated from renewable energy

sources (including Bioenergy) by the power distribution utilities and bulk consumers.

Outcomes – Min of Food & Agric

• S1 Highly suitable for mechanized cultivation of export and food crops, (cashew nut, sunflower pineapples, maize corn, guinea corn, cassava etc ) .

• S3a poorly drained soils good for mechanized irrigation of rice, sugarcane, vegetables etc.

• S3c shallow soils. Could be hand cultivated vegetables and maize.

• N1 Unsuitable areas for upland arable and tree crops.

• D Very unsuitable areas for crop production. Soils are very saline and may be utilized for mining of edible salt.

Outcomes

• Comprehensive document of bioenergy technology catalogue.

• Draft Bioenergy Policy Strategy document. – Stakeholder consultations at the community, regional and

national level – Draft document is currently subjected to Strategic

Environmental Impact Assessment after which it will be subjected to ministerial consideration, and then for parliamentary approval.

• Legislative Instruments for the smooth implementation of the RE Act is also under development for parliamentary approval. – The continuous consultation is to ensure full involvement

of all stakeholder including political parties.

Conclusion • Bio-energy plays a very important role in Africa.

– Direct combustion: • Food processing, oil extraction process, brewing,

distillation, grilling, smoking etc.

– Food for Man-power / Animal-power: • Water supply, woodfuel supply, grinding, transport

• Ploughing, harvesting, fishing, Carpentry, construction, sewing, weaving, mining etc.

– All these productive works require food - BIOENERGY

• Development of an effective policy and strategic framework requires the active involvement of all concerned stakeholder.

Conclusion

• Ghana is committed to develop all the relevant policies, regulatory frameworks and strategies for the development and promotion of RE and Bioenergy

• Without the right policies and implementation strategy, it will be difficult to attract investment in the RE and bioenergy subsector in particular for sustainable development.

• Investors want security, stable government among others to guarantee return on their investments.

Danida, UNDP, WB, REEEP, FAO, GBEP and ECREEE are some of the Development Partners credited for their

support to Ghana’s RE policy development.

THANK

YOU

WISDOM AHIATAKU-TOGOBO DIRECTOR, RENEWABLE ENERGY MINISTRY OF ENERGY, GHANA

wtogobo@gmail.com, wtogobo@energymin.gov.gh www.energymin.gov.gh