GHANA SCIENCE ASSOCIATION 29TH BIENNIAL CONFERENCE, TAMALE

ENERGY FOR ECONOMIC DEVELOPMENT

BY WISDOM AHIATAKU-TOGOBO* & ROBERT SOGBADJI**watogobo@gmail.com* robertmawuko@gmail.com **

MINISTRY OF POWER, GHANA

ENERGY FOR ECONOMIC DEVELOPMENT

• No country can develop economically without access to modern, reliable, affordable and clean energy

• Access to cheap and reliable electricity is a necessary resource for industrialization and economic development

• Backbone of any industrialized country is the availability of cheap electrical power.

• What is the energy mix for the World and industrialized countries vis-a-vis Africa and Ghana?

http://www.tsp-data-portal.org/Breakdown-of-Electricity-Generation-by-Energy-Source#tspQvChart

• 2000 => 7,223GWh; Hydro 92% • 2011 => 11,200GWh. Hydro 67.5%• Rest from thermal (Natural Gas, Diesel and Light Crude oil).

• Cheap power is needed to support industry for economic development• Estimated that Ghana has about 2 billion Tons of Iron ore• 700millon Tons of Bauxite • Value addition to natural resource - Gold, Cocoa, oil etc.• Most industrialized countries (Germany, Japan) have no natural resource. They use cheap power to add

value to primary products imported from developing countries and export back.

• Ghana is one of the few countries where the commercial and industrial sector pay higher tariff than the residential sector.

• There is no way industries in Ghana can compete with their counterparts

• Result is illegal connections – high commercial losses

• Consumption by the residential and non-residential class increased by 100% during the period 2000 -2011.

• Consumption by the industrial class saw no increase during the period.

• Industries were more affected by the power rationing.

• Refrigeration accounts for more than 54% of electricity consumption in the household sector

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 -

1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000

10,000 Primary Energy Supply in Ghana (ktoe)

Wood

Hydro

Oil

Natural Gas

Source: EC Energy statistics 2015

• Woodfuel and A significant share of primary energy often not factored in computing our energy balance is the use of human /animal power.

• More than 56% of final energy is used for cooking and heating. • Electricity accounts for only 8.4% of final energy consumption

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 20140

2,000

4,000

6,000

8,000

10,000

12,000

14,000

ANNUAL ELECTRICITY GENERATION TREND 2000-2014VRA Solar

Takoradi T3

Bui

CEL

SAPP

TT2PP

TT1PP

MRP

KRPP

ERPP

TRPP

TICO

TAPCO

Kpong

Akosombo

Data Source: Energy Commission. Graph by: W. A. Togobo 2015

Electricity Supply Inadequacy• Today Ghana is forced to shed as much as 650MW at peak periods

and 440MW during off-peak periods• This situation is further worsened by the poor rainfall we have had

over the last two years and the impact on the Volta basin and our hydropower generation.

• The impact of the power outages most of which were unplanned have significantly affected and reduced the pace of the rather fast socio-economic growth in the country.

• Load shedding sometimes is as worse as 12 hour on, 24 hours off.

Electricity Demand Trend 1967-2015• Available generation in 1967 Akosombo Dam – 600MW. • Peak demand 1967 - 100MW• Demand has since kept increasing to 1,366.50MW in 2008 • Demand further increased to 1,729MW in 2012 • As at Dec. 2013, suppressed demand was 1,943MW (12% annual

growth rate)• Current suppressed peak demand for 2015 is about - 2,300MW.

ELECTRICITY CONSUMPTION

YearECG GWh

NEDCOGWh

TOTALGWh

2000

2,910

239

3,149

2010

4,952

473

5,425

UPPER EAST

UPPER WEST

NORTHERN

BRONG AHAFO

ASHANTI

WESTERN

CENTRAL GREATER ACCRA

EASTERN VOLTA

NED

COEC

G

More than 90% of Electricity is consumed through ECG in the southern Sector

Power Generation Trend in Ghana• Generation capacity has been increased to match up with the increasing

demand; • Installed capacity has increased from 600MW in 1967 to 1,810MW in 2008• Current installed capacity (2015) - 2,845.5MW.• Unfortunately total available generation capacity is only 1,494 MW (peak)

and 1,238 MW (off-peak) • Deficit of more than 750MW in generation capacity. • Mainly due to the non-availability of some generating units as a result of

faults, fuel supply challenges especially from the source of the West African Gas Pipeline amongst others.

Electricity Demand and Available Generation Capacity

https://upload.wikimedia.org/wikipedia/commons/e/e2/Ghana_Economy_%E2%80%93_GDP.jpg

Impact of Electricity on GDP

Conclusion• Ghana need Cheap Power to stimulate economic development as it is

in the industrialized countries• Brazil, China, USA, France etc

• Available cheap energy sources include Hydro, Coal, Gas and Nuclear.• Ghana has the potential to utilize these energy resources to stimulate

economic development.• Modern renewable energies (solar, wind, wave, Biomass) though

expensive have a very important role to play in decentralize electrification WHERE GRID ACCESS IS A CHALLENGE.

• Reducing indoor air pollution (BIOGAS)

• Improvement in social wellbeing (SOLAR, WIND)

• Transport Fuel (BIOFUELS)

Energy Policy Target

THANK YOU