Monitoring and Evaluating the Impact Monitoring and Evaluating the Impact of Energy Interventions on Poverty of Energy Interventions on Poverty

Reduction in GhanaReduction in Ghana

MINISTRY OF ENERGYMINISTRY OF ENERGY

Accra. Accra.

National Workshop on Development and Energy in Africa1st September 2005, Nogahil, Accra

PRESENTATION FORMATPRESENTATION FORMATRural Electrification ProgrammeRural Electrification Programme– AchievementsAchievements– ImpactsImpacts– ChallengesChallenges

Solar ElectrificationSolar Electrification– AchievementsAchievements– Impacts Impacts – ChallengesChallenges

Rural Kerosene ProgrammeRural Kerosene Programme– AchievementsAchievements– ImpactsImpacts– ChallengesChallenges

BACKGROUNDBACKGROUNDInstituted in 1989 as Government’s Instituted in 1989 as Government’s principal instrument to achieve its policy of principal instrument to achieve its policy of extending the reach of electricity to all parts extending the reach of electricity to all parts of the country over a 30-year period from of the country over a 30-year period from 1990-20201990-202064 out of 110 District Capitals were without 64 out of 110 District Capitals were without grid electricity supply at the timegrid electricity supply at the timeBy 1996 additional 41 District Capitals had By 1996 additional 41 District Capitals had been connected to the gridbeen connected to the gridLast batch of 23 District Capitals were Last batch of 23 District Capitals were connected between 1996-1998connected between 1996-1998

IMPLEMENTATION STRATEGYIMPLEMENTATION STRATEGY

Grant from Canadian Govt. for the Grant from Canadian Govt. for the

National Electrification Plan Study (NEPS)National Electrification Plan Study (NEPS)

Study was carried out by Acres Study was carried out by Acres

International of Canada …… International of Canada ……

establishment of the National establishment of the National

Electrification Master PlanElectrification Master Plan

Phases of implementation (5-yr phases Phases of implementation (5-yr phases

spanning the 30 yrs)spanning the 30 yrs)

IMPLEMENTATION STRATEGYIMPLEMENTATION STRATEGY

The 1The 1stst phase captured the phase captured the connection of all District Capitals and connection of all District Capitals and towns/villages on-route to the District towns/villages on-route to the District CapitalsCapitals

The subsequent phases entailed the The subsequent phases entailed the electrification of communities in the electrification of communities in the order of most economically viable order of most economically viable projectsprojects

GOALS AND OBJECTIVESGOALS AND OBJECTIVESPoverty reduction, especially in the rural Poverty reduction, especially in the rural areasareasIncreasing the overall socio-economic Increasing the overall socio-economic development of the nationdevelopment of the nationIncreasing people’s standard of living, Increasing people’s standard of living, especially those in the rural areasespecially those in the rural areasCreating small-to-medium-scale industries in Creating small-to-medium-scale industries in rural areasrural areasEnhancing activities in other sectors of the Enhancing activities in other sectors of the economy, such as Agriculture, Health, economy, such as Agriculture, Health, Education, Tourism etcEducation, Tourism etcCreating jobs in the rural areas and thus Creating jobs in the rural areas and thus reducing the rate of rural to urban migrationreducing the rate of rural to urban migration

SELF-HELP ELECTRIFICATION SELF-HELP ELECTRIFICATION PROGRAMME (SHEP)PROGRAMME (SHEP)

THE SELF-HELP ELECTRIFICATION THE SELF-HELP ELECTRIFICATION

PROGRAMME IS A COMPLEMENTARY PROGRAMME IS A COMPLEMENTARY

PROGRAME TO THE NATIONAL PROGRAME TO THE NATIONAL

ELECTRIFICATION SCHEME (NES)ELECTRIFICATION SCHEME (NES)

CRITERIA FOR JOINING THE CRITERIA FOR JOINING THE SHEPSHEP

Community must be within 20km of an Community must be within 20km of an

existing 11kV/33kV networkexisting 11kV/33kV network

Community must be willing to procure and Community must be willing to procure and

erect all the Low Voltage poles required erect all the Low Voltage poles required

for the worksfor the works

Quite a good number of houses in the Quite a good number of houses in the

community should be wiredcommunity should be wired

SUMMARY OF ACHIEVEMENTS SUMMARY OF ACHIEVEMENTS UNDER THE NESUNDER THE NES

Before the commencement of the NES in 1989, 4,175 Before the commencement of the NES in 1989, 4,175 communities were identified as having population of 500 communities were identified as having population of 500 or more. Of this number only 478 were supplied with or more. Of this number only 478 were supplied with electricityelectricity

Completed Projects (1992-2000)Completed Projects (1992-2000)Project packageProject package # of Towns# of TownsNEPNEP 409409Other ProjectsOther Projects 374374SHEP1SHEP1 5050SHEP2SHEP2 250250SHEP3 Phase1SHEP3 Phase1 280280SHEP3 Phase2SHEP3 Phase2 494494

TotalTotal 18571857

SUMMARY OF ACHIEVEMENTSSUMMARY OF ACHIEVEMENTSOn-going Projects (Oct 2000-2005)On-going Projects (Oct 2000-2005) Project PackageProject Package No of TownsNo of Towns # completed# completedSHEP3 Phase3SHEP3 Phase3 700700 501501SHEP4 Phaes1SHEP4 Phaes1 193193 1010Electrification of Volta LakeElectrification of Volta Lake 144144 144144Resettlement TownshipsResettlement TownshipsEU Funded ElectrificationEU Funded Electrification 108108 108108Project (W. Region)Project (W. Region)Electrification of Nyinahin &Electrification of Nyinahin & 2424 242423 other towns23 other townsElectrification in Amansie WestElectrification in Amansie West 1010 1010Other Electrification ProjectsOther Electrification Projects 364364 8888

TotalTotal 14431443 895895

SOME FACTS AND FIGURESSOME FACTS AND FIGURES

# of towns connected before 1989# of towns connected before 1989 478478

# of towns connected to date# of towns connected to date 2,7522,752

# of towns connected thru’ SHEP# of towns connected thru’ SHEP 1,6731,673

Accessibility at commencementAccessibility at commencement 15%15%

% of population using electricity % of population using electricity 43%43%

( as per census)( as per census)

Accessibility at presentAccessibility at present 60%60%

FUNDING OF THE NES & SHEP PROJECTSFUNDING OF THE NES & SHEP PROJECTSProjectProject Funding AgencyFunding Agency Type of fundingType of funding

NESNES JICA, DANIDAJICA, DANIDA GrantGrantNESNES World Bank, DutchWorld Bank, Dutch soft loanssoft loans

Govt.(ORET), SIDA,Govt.(ORET), SIDA,FINIDA, NDFFINIDA, NDF

SHEPSHEP Indian Ex-Im Bank,Indian Ex-Im Bank, soft loanssoft loansUS Ex-Im Bank, SIDA,US Ex-Im Bank, SIDA,FINNIDA & South AfricanFINNIDA & South AfricanGovt.Govt.

Govt. budgetary support of about US$9 m/yr Govt. budgetary support of about US$9 m/yr overover

2001-20042001-2004

PS: About US$130million was used for off-shore electrical materials for the PS: About US$130million was used for off-shore electrical materials for the SHEP-3SHEP-3

(1,400 communities involved)(1,400 communities involved)

About US$350 million would be required for the SHEP-4 ( 2,500 communities About US$350 million would be required for the SHEP-4 ( 2,500 communities involved)involved)

(US$ 15 million have so far been secured from the Indian Ex-Im Bank)(US$ 15 million have so far been secured from the Indian Ex-Im Bank)

ImpactsImpactsImproved standard of living, especially in the rural areasImproved standard of living, especially in the rural areas

EducationEducation-pupils stay for longer hours studying in the evenings, better exam -pupils stay for longer hours studying in the evenings, better exam results than beforeresults than before-Teachers accept postings to the rural areas-Teachers accept postings to the rural areas

Small-to-medium-scale industries in rural areas stimulated.Small-to-medium-scale industries in rural areas stimulated.-springing up of agro businesses e.g. maize, cassava & orange -springing up of agro businesses e.g. maize, cassava & orange processing processing

Activities in other sectors of the economy, such as Agriculture, Health, Activities in other sectors of the economy, such as Agriculture, Health, Education, Tourism etc enhanced Education, Tourism etc enhanced -Health Centre sponsored by the GE at Asesewa, water project -Health Centre sponsored by the GE at Asesewa, water project sponsored by the German Govt.sponsored by the German Govt.Job creationJob creation-stone quarry & orange juice factories in the Central Region; Hair -stone quarry & orange juice factories in the Central Region; Hair dressing salonsdressing salonsReduction in the rate of rural - urban migrationReduction in the rate of rural - urban migration

KEY CHALLENGESKEY CHALLENGES

Availability of funding to support projectsAvailability of funding to support projects

Complementary contribution from Complementary contribution from beneficiaries delays the projectsbeneficiaries delays the projects

Better focus on productive uses of Better focus on productive uses of electricityelectricity

WAY FORWARDWAY FORWARD

Integrate renewables into rural Integrate renewables into rural electrification i.e. solar, wind, small hydro electrification i.e. solar, wind, small hydro etc.etc.

Involve District Assemblies in the provision Involve District Assemblies in the provision of complementary contributionof complementary contribution

Focus on small and medium-scale Focus on small and medium-scale developmentsdevelopments

It is unlikely that all communities in Ghana will It is unlikely that all communities in Ghana will be electrified by 2020 if electricity supply is be electrified by 2020 if electricity supply is

based on grid extension only. based on grid extension only.

Connecting remote and isolated communities to grid is becoming difficult & expensive due to geographic locations and settlement patterns

SOLAR INSTALLATIONS IN GHANA (2003)

ApplicationApplication No. of No. of InstallationInstallation

Solar Home SystemsSolar Home Systems 4,5004,500

Water Pumping Water Pumping 8080

Vaccine RefrigerationVaccine Refrigeration 210210

Telecommunication (repeater Stations)Telecommunication (repeater Stations) 6363

Radio transceiversRadio transceivers 3434

Rural telephonyRural telephony 33

Battery charging stationsBattery charging stations 2020

Grid connected (50KW)Grid connected (50KW) 11

Total Number of Installed SystemsTotal Number of Installed Systems 4,9114,911

Total Installed CapacityTotal Installed Capacity 1.0MWp1.0MWp

Improves the quality of life of the rural people Improves the quality of life of the rural people – Adds more productive hours to the working Adds more productive hours to the working

day. day. – Creates better access to television and radio Creates better access to television and radio

than regular batteriesthan regular batteries

SOLAR PV FOR RURAL HOMES & SHOPSSOLAR PV FOR RURAL HOMES & SHOPS

Survey of 200 Solar Home Systems installed Survey of 200 Solar Home Systems installed within 2 yrs (1999-2001)within 2 yrs (1999-2001)

More than 50% of adults watch TV or listen to More than 50% of adults watch TV or listen to radio/cassette playerradio/cassette playerPeople stay longer hrs - Sleeping time before People stay longer hrs - Sleeping time before 8.00pm reduced from 69.5% to 11%8.00pm reduced from 69.5% to 11%Increase in TV acquisition from 4 to 13Increase in TV acquisition from 4 to 13Radio/cassette player - from 16 to 64Radio/cassette player - from 16 to 64Economic activities in commercial stores, Economic activities in commercial stores, music record shops, pubs (drinking bars) music record shops, pubs (drinking bars) increase by 30-50%, increase by 30-50%, Agro processing industries requiring Agro processing industries requiring illumination at night have been rejubilated.illumination at night have been rejubilated.

Solar water pump brings Solar water pump brings safe drinking water closer safe drinking water closer to the poor including to the poor including women & childrenwomen & children

81.2% of rural households in Ghana have no access to pipe-borne water.

Depend on streams, rivers and wells

Water is often contaminated and not safe for drinking

SOLAR PV WATER PUMPSSOLAR PV WATER PUMPS

EducationEducation

It is a fact that communities with It is a fact that communities with electricity do better in basic school electricity do better in basic school exams than those without electricityexams than those without electricity

Teacher are unwilling to accept Teacher are unwilling to accept postings to communities without postings to communities without electricity. electricity.

Distance education for pupil and Distance education for pupil and junior student through TV cannot be junior student through TV cannot be enjoyed by school children in enjoyed by school children in unelectrified communitiesunelectrified communities..

Solar Streetlight Solar Streetlight helps to avoid helps to avoid women spending women spending the night with their the night with their babies beside their babies beside their produce on the eve produce on the eve of market daysof market days..

Solar streetlight Solar streetlight located at a lorry pack located at a lorry pack improves security and improves security and enhances safety for enhances safety for women travelling at women travelling at dawn.dawn.

Solar electrification brings life to rural communities at night in off grid.

SOLAR STREETLIGHTSSOLAR STREETLIGHTS

CHALLENGESCHALLENGES

Challanges - CostChallanges - Cost

High investment costHigh investment costHigh replacement cost for batteries, DC High replacement cost for batteries, DC lamps & regulators - 5yrslamps & regulators - 5yrsTariffs collected are therefore not Tariffs collected are therefore not adequate to ensure replacement of adequate to ensure replacement of components when due.components when due.Limited applicationLimited application

Challenges - InstitutionalChallenges - Institutional

No comprehensive policy for PV No comprehensive policy for PV electrificationelectrification

No dedicated institution currently exist No dedicated institution currently exist solely for the development and promotion solely for the development and promotion of RETs in Ghana.of RETs in Ghana.

Removal of dust and unwanted Removal of dust and unwanted materials from birds are major materials from birds are major issues to optimize efficiency (not issues to optimize efficiency (not tilt angle) tilt angle)

This is hard workThis is hard work

Challenges - MaintenanceChallenges - Maintenance

Preliminary evaluationPreliminary evaluationThe monitoring and evaluation of solar PV projects The monitoring and evaluation of solar PV projects vis-à-vis the challenges that have been vis-à-vis the challenges that have been enumerated has led to the following key findings:enumerated has led to the following key findings:

1. Grid electrification is the ultimate and preferred choice for rural inhabitants due to the numerous advantages it offers.

2. Such rural inhabitants therefore consider solar PV electrification as a transition source of electricity delivery while hoping for the national grid to get closer.

OPPORTUNITIES FOR PV IN GHANAOPPORTUNITIES FOR PV IN GHANA

Activities linked to income generationActivities linked to income generation

TelecommunicationTelecommunication

EducationEducation

Health Health

Water supplyWater supply

SecuritySecurity

Solar light in a rural guest house attracts customers from none electrified hotels.

Solar light in this poultry house Solar light in this poultry house saves about 38.2 litres saves about 38.2 litres

kerosene monthlykerosene monthly..

Solar lighting for petroleum retail outlet in an Solar lighting for petroleum retail outlet in an unelectrified station avoids the danger of fire unelectrified station avoids the danger of fire

outbreaks from naked kerosene lightoutbreaks from naked kerosene light..

Solar Battery Service can be a lucrative business in isolated remote villages

Battery Charging

Telecom Repeater Telecom Repeater StationsStations

COMMUNICATION COMMUNICATION SYSTEMSSYSTEMS

Rural Phone boothRural Phone booth

RURAL KEROSENE RURAL KEROSENE DISTRIBUTION DISTRIBUTION

IMPROVEMENT PROGRAMMEIMPROVEMENT PROGRAMME

Ministry of EnergyMinistry of Energy

BackgroundBackground

Kerosene is the fuel used mostly for lightning and Kerosene is the fuel used mostly for lightning and cooking in rural Ghanacooking in rural GhanaSupply of Kerosene to rural areas has been low and Supply of Kerosene to rural areas has been low and inconsistentinconsistentAdulteration of Diesel with Kerosene, bad roads, Adulteration of Diesel with Kerosene, bad roads, smuggling has resulted in inconsistency in supplysmuggling has resulted in inconsistency in supplyKerosene Promotion Fund was established in 1999 into Kerosene Promotion Fund was established in 1999 into which was lodged a margin of ¢30.00per liter of which was lodged a margin of ¢30.00per liter of kerosene factored into the kerosene transportation kerosene factored into the kerosene transportation Margin (UPPF)Margin (UPPF)The Margin has been increased to ¢50.00per liter of The Margin has been increased to ¢50.00per liter of kerosenekerosene

Aim of ProgrammeAim of Programme

The aim of the Rural Kerosene Distribution The aim of the Rural Kerosene Distribution Improvement Programme is to ensure that Improvement Programme is to ensure that kerosene is made available at all times to kerosene is made available at all times to the people of Ghana, especially the rural the people of Ghana, especially the rural dwellers at approved and affordable pricedwellers at approved and affordable price..

Objective of ProgrammeObjective of Programme

To establish 2200 kerosene reseller To establish 2200 kerosene reseller outlets in the rural areas all over the outlets in the rural areas all over the country by end of December 2004.country by end of December 2004.

Target AreasTarget Areas

The programme is targeted nationwide The programme is targeted nationwide and would cut across all the 230 and would cut across all the 230 constituencies. constituencies.

On the average, about 20 kerosene On the average, about 20 kerosene reseller outlets per district will be reseller outlets per district will be established by end of the programme.established by end of the programme.

Expected OutcomesExpected Outcomes

It is expected that a significant shift It is expected that a significant shift towards poverty alleviation will be made towards poverty alleviation will be made when kerosene is made available and when kerosene is made available and affordable to especially the rural dwellers.affordable to especially the rural dwellers.

The Programme is expected to generate The Programme is expected to generate employment for especially the rural employment for especially the rural kerosene resellers.kerosene resellers.

Programme AdministrationProgramme Administration

The programme is administered jointly by The programme is administered jointly by the Ministries of Energy and Local the Ministries of Energy and Local Government & Rural DevelopmentGovernment & Rural Development..

Programme PhasesProgramme Phases

700 kerosene surface tanks/accessories 700 kerosene surface tanks/accessories fabricated in phase I in 2002.fabricated in phase I in 2002.

1,500 kerosene surface tanks fabricated in 1,500 kerosene surface tanks fabricated in phase II in 2004. Distribution of tanks on-phase II in 2004. Distribution of tanks on-going. going.

800 kerosene surface tanks to be fabricated by 800 kerosene surface tanks to be fabricated by end December 2005 in phase III.end December 2005 in phase III.

FundingFunding

Funding for the project is sourced from the Funding for the project is sourced from the Kerosene Promotion Fund, into which a Kerosene Promotion Fund, into which a margin of margin of 50.00 per litre is lodged out of 50.00 per litre is lodged out of the the 230.00 per litre under the UPPF 230.00 per litre under the UPPF margin for kerosene.margin for kerosene.

Ownership of TanksOwnership of Tanks

District Assemblies will hold tanks in trust District Assemblies will hold tanks in trust for the Ministry of Energy (the owner) and for the Ministry of Energy (the owner) and monitor the programme.monitor the programme.

Selection of ResellersSelection of Resellers

Selection of the resellers is based on one Selection of the resellers is based on one of the following evidences:of the following evidences:– Evidence of self-financing by reseller (a Evidence of self-financing by reseller (a

minimum of minimum of 11 million as capital, being half 11 million as capital, being half the cost of a consignment).the cost of a consignment).

– Evidence of rural bank financing.Evidence of rural bank financing.– Evidence of the District Assembly’s letter of Evidence of the District Assembly’s letter of

guarantee.guarantee.

Commercial Component of Commercial Component of ProgrammeProgramme

Prospective investors (resellers) as Prospective investors (resellers) as indicated earlier, will be expected to pre-indicated earlier, will be expected to pre-finance kerosene supplied to them as the finance kerosene supplied to them as the commercial component of the programme commercial component of the programme and this will strictly be between the OMCs and this will strictly be between the OMCs and the resellers.and the resellers.

Programme UpdateProgramme Update

Phase I was successfully executed and Phase I was successfully executed and completed with 700 surface tanks and completed with 700 surface tanks and accessories distributed to selected locations in accessories distributed to selected locations in the former 110 districts. the former 110 districts.

Phase II of the programme is on-going with Phase II of the programme is on-going with distribution of tanks. About 994 tanks and distribution of tanks. About 994 tanks and accessories have been distributed out of 1,500 accessories have been distributed out of 1,500 tanks and accessories. tanks and accessories.

ChallengesChallenges

Some selected resellers refuse to pay Some selected resellers refuse to pay back for kerosene received on credit back for kerosene received on credit

Short-delivery of product by tanker drivers Short-delivery of product by tanker drivers to resellers. to resellers.

Proper Administration of the programme is Proper Administration of the programme is required at the District levelrequired at the District level

IMPACT OF PROGRAMMEIMPACT OF PROGRAMME

Monitoring Activities carried out indicates :Monitoring Activities carried out indicates :– Social acceptability of the programmeSocial acceptability of the programme– Kerosene is readily accessible to rural folks at Kerosene is readily accessible to rural folks at

approved priceapproved price– Source of employment for resellersSource of employment for resellers– Improved livelihood of ruralImproved livelihood of rural

THANK YOU FOR YOUR THANK YOU FOR YOUR ATTENTIONATTENTION