The power sub-sector under the New Patriotic Party (NPP) administration is facing severe challenges, including outdated infrastructure, mounting debt, and mismanagement, which have hindered reliable power supply and slowed national electrification efforts.
The sector’s financial situation is dire, with $1.5 billion owed to independent power producers, $600 million to the Ghana National Gas Company, and another $600 million to the partners of the OCTP for gas bills. This mounting debt threatens the entire power value chain, putting the country’s energy security at significant risk.
Energy is central to economic growth and social well-being, and the NDC, during its eight years in government, made significant strides in securing Ghana’s energy future. We expanded electricity generation from 1,810 MW in 2009 to 4,292 MW in 2016 through key projects like the Bui hydroelectric project and several thermal plants. We modernised transmission infrastructure, reducing congestion and improving reliability, and increased national electrification access from 54% to 84%, connecting over 2,000 northern communities to the grid and deploying solar systems in off-grid areas.
The NDC also introduced the Energy Sector Levy to address legacy debts and developed the Cash Waterfall model to ensure equitable distribution of electricity sales proceeds. Our efforts laid the foundation for a robust, reliable, and sustainable power sector.
As the capable alternative, the NDC is ready to build on these achievements, offering a clear plan to revitalize the power sector. We will address generation, transmission, and distribution challenges while resolving the debt crisis, ensuring that energy remains a catalyst for industrial growth and national development.
Generation
The NDC government is committed to delivering a reliable, efficient, and dependable power supply. Central to this commitment is our recognition of the crucial role renewable energy plays in Ghana’s energy transition. As global efforts intensify to combat climate change, our nation must align with these objectives to ensure a sustainable and resilient energy future.
The continuous reduction in the levelized cost of electricity (LCOE) for new renewable energy sources presents a significant opportunity that we must seize. By integrating more renewables into our energy mix, we not only enhance our energy transition credentials but also capitalize on the economic benefits of increasingly cost-competitive renewable technologies.
To achieve this, we will develop additional sustainable power sources, promote energy conservation, and ensure that planning and building regulations incorporate sustainable energy conservation ideas.
Our approach to power generation will include adopting a flexible generation mix that allows for adaptability in the power sector, with a strong emphasis on expanding the share of renewables. This balanced approach will ensure a stable and diversified energy supply that is both environmentally sustainable and economically viable.
In parallel, we will promote combined-cycle thermal generation where appropriate and feasible, to achieve least-cost power generation while maximizing efficiency. We will also develop small and mini hydro projects, such as the Juale, Pwalugu, and Pra dams, to ensure flexibility and diversity in a sustainable manner. These projects will contribute to the overall energy mix and support rural electrification efforts.
Furthermore, local stand-alone generation systems for riverine communities will be developed in the medium to long-term, leveraging appropriate technologies to ensure these communities have access to reliable power.
We will maximize the use of domestic natural gas in thermal power generation, reducing reliance on imported fuels and ensuring a stable supply. Simultaneously, we will systematically replace plants that are not meeting reliability, efficiency, and environmental standards, improving supply and ensuring that Ghana’s power generation infrastructure is modern and efficient.
Transmission
The NDC will support GRIDCo in building a resilient and robust grid system with the necessary redundancies, enabling transmission line servicing with minimal outages. We will upgrade and modernize the 161kV and 330kV transmission networks to optimize efficiency and reduce losses. This will involve constructing additional bulk supply points to enhance supply quality, reliability, and flexibility.
Furthermore, we will implement a wholesale electricity market that plays a crucial role in providing consumers with more competitive electricity prices and greater transparency. By allowing various power producers to compete in selling electricity, a well-functioning wholesale market will encourage efficiency, lower costs, and ultimately benefit consumers by providing them with more reliable and affordable electricity.
Distribution
The NDC government will work to achieve universal access to electricity by 2028. To accomplish this, we will leverage revenues from the Energy Sector Levies, budgetary allocations, and support from development partners, in collaboration with indigenous Ghanaian companies, to accelerate the pace of the rural electrification program.
We will create opportunities for local players to participate in electricity retail, empowering communities and creating jobs. This will be supported by installing smart boundary meters to ensure accountability at the local level.
We will also reposition the distribution utilities to attract significant investments into the sector, enhancing capacity and improving technical and operational efficiency. By leveraging appropriate technologies and improving human resources, we aim to reduce aggregate technical, commercial, and collection losses through accountable Key Performance Indicators (KPIs).
The standardization of meter deployment across the country will be a priority, and we will eliminate bottlenecks associated with the acquisition of meters, making electricity connectivity for new customers easier and more affordable.
Furthermore, we will review the electricity tariff structure to promote industrialization and competitiveness, ensuring the delivery of least-cost electricity through efficient management of the distribution sector.
Debt Management and Sector Sustainability
Recognizing the critical financial challenges facing the power sector, the NDC will address the sector’s mounting debt by revisiting the Energy Sector Levy and ensuring the strict implementation of the Cash Waterfall mechanism.
We will implement financial management reforms to prevent future debt accumulation, aligning repayment schedules with the sector’s revenue streams. This will create a sustainable and transparent financial framework that attracts investments and maintains the sector’s long-term viability.
Conclusion
The NDC is fully prepared to address the challenges in the power subsector and to build on the achievements made during our previous administration. Our comprehensive plan will ensure a reliable, affordable, and sustainable power supply that drives Ghana’s economic growth, creates jobs, and improves the quality of life for all citizens.
By embracing the opportunities presented by renewables and the decreasing costs of new renewable technologies, and by developing a competitive wholesale electricity market, we are committed to leading the country toward a brighter, more sustainable, and energized future.
The writer, Edward A. Bawa is MP, Bongo and a Manifesto Spokesperson on Energy.
Source: myjoyonline.com
