Documente Academic
Documente Profesional
Documente Cultură
March 2012
Table of contents
INTRODUCTION 3
2. ENERGY POLICY 14
2.1. Legal and Regulatory Framework 14
2.1.1. Energy Efficiency Standards and Labelling (Non-Ducted Air Conditioners and Self-Ballasted
Fluorescent Lamps) Regulations, 2005. LI 1815 15
2.1.2. Renewable Energy Policies 16
2.1.3. Solar Street Lights 17
2.2. Barriers for Energy Efficiency and Renewable Energy 17
2.2.1. Financial Incentives for Renewable Energy 18
2.3. Institutional Framework 18
2.3.1. Ministry of Energy 18
2.3.2. Energy Commission of Ghana 18
2.3.3. Public Utilities Regulatory Commission 18
2.3.4. Energy Foundation 18
2.3.5. Public Institutions 19
2.3.6. Non Governmental Institutions and other relevant Private Actors 20
2.3.7. Identified possible further Stakeholders who could be involved in EE or RES programs 20
2.3.8. International Organisations/Institutions/Donors 21
2.4. Gender Assessment of the Ghana Energy Sector 21
c:\users\vincs kong\downloads\ghana_stock_taking_report_anx11.doc 1
2.4.1. National Gender and Energy Training 22
2.4.2. Strengthening Gender and Energy Networking in Ghana 22
3. ENERGY ACCESS 23
3.1. The following graph shows a list of programs and activities to increase access to electricity 23
3.1.1. Energy Efficiency for Cooking 24
5. RECOMMENDATIONS 29
5.1. Priority areas for action 29
5.2. Hotels 29
5.3. Create regional markets for EE and RE goods, 30
5.4. Standards and labelling, 30
5.5. Energy Efficiency in Power Distribution 30
6. LIST OF REFERENCES 30
7. CONTACT LIST 31
c:\users\vincs kong\downloads\ghana_stock_taking_report_anx11.doc 2
Introduction
This report provides an overview of the current status of energy efficiency and renewable energy in
Ghana. The report is mainly based on information provided by the Energy Commission and the
Energy Foundation of Ghana as well as on stock taking missions undertaken by the SEEA-WA team in
October and February 2012. The information collected through interviews with national authorities
and relevant actors was complemented by desk research.
The remainder of this stock taking report is organized as follows: Firstly, general characteristics of the
economic structure and the energy consumption patterns are described. Secondly, the main
elements of the Ghana energy policy are presented. Thereafter, focus is given to key areas in which
activities are currently being conducted and/or intervention is required to improve Energy Efficiency.
Finally, some recommendations for further action are outlined.
Most government efforts to restore the productivity of the Ghanaian economy have been directed
toward boosting the countrys exports. These policies, however, have had numerous consequences.
Following the initiation of the ERP in 1983 Ghanas GDP has registered steady growth, most of it
attributable to the export sector, including cocoa and minerals and, to some extent, timber
processing. The cost of this growth is apparent, however, in Ghanas growing external debts, which
have financed rehabilitation of the export sector, and in the countrys steady rate of inflation that
has curbed consumer imports.
Significant changes have taken place in the structure of GDP since the ERP began. Agriculture
continues to be the bedrock of Ghanas economy, accounting for more than 48 percent of GDP in
1991. Agricultures long-term importance has declined, however, in favour of that of industry, the
contribution of which to GDP more than doubled from 1988 to 1991 when it constituted almost 16
percent of GDP, and in favor of services, the contribution of which was 35.3 percent in 1991. Notable
changes have also occurred within the broader sectors: cocoas share rose from 5.6 percent in 1983
to 9.5 percent in 1991; manufacturings contribution increased from 3.9 percent to 8.7 percent; and
construction output from 1.5 percent to 3.5 percent.
Notable growths have been recorded in recent years as structural changes in the Ghanaian economy
took effect in the last decade. The country has registered appreciable growth rate from the year
2000 averaging about 5% and this has urged on till crude oil was found in commercial quantities
though agriculture still dominated this growth, especially cocoa. After the rebasing of the economy
in 2010, its size is now estimated to be USD 35 billion giving rise to the current state as described
below based on 2009/10 economic reports.
The primary sector grew by 6.2% against target of 5.7%. The high growth in agriculture was led by
crop and livestock sub sector largely on account of expansion in areas of cultivation and good rainfall
patterns in the farming areas of the Country. The cocoa production and marketing sub-sector also
saw significant improvement in growth due to increase in producer prices, effective disease and pest
c:\users\vincs kong\downloads\ghana_stock_taking_report_anx11.doc 3
control and application of fertilizer and good husbandry practice. The sub-sector target of 3.5% was
exceed by 1.5%
The sector grew by 3.8% down from an annual growth target of 5.9%. The lower performance of the
sector was driven primarily by activities in the construction sub-sector, the largest contributor to
industrial output which experienced output contraction by 1% against a growth target of 8%
The Service sector which has recently become a major source of growth of the Ghanaian economy
grew by 4.6% against a target of growth rate of 6.6%. The lower than expected growth performance
of the sector is mainly explained by the poor performance of wholesale, retail, restaurant and hotels
and t he Government services.
The table below provides the state of the Ghanaian economy per sector contributions
Amount (GHC m)
Total GDP 2009 (@ constant 2006 prices) 21,521
Primary sector (Agriculture) 6,129
Secondary Sector (Industry) 4,725
Tertiary Sector (Services) 10,667
Source : Energy Commission of Ghana 2012
The Final energy consumption covers all energy supplied to the final consumer for all energy uses
(International Energy Agency, 2011). This includes the consumption of electricity and fuels (such as
oil, gas, coal, wood fuel etc.) in the household, industry, services, agriculture and transport sector.
c:\users\vincs kong\downloads\ghana_stock_taking_report_anx11.doc 4
1.3. Final Energy Consumption by Fuel Products
c:\users\vincs kong\downloads\ghana_stock_taking_report_anx11.doc 5
1.5. Primary Energy Production
Total primary energy production measures the amount of primary energy produced by a particular
country or region. Primary energy includes losses from transportation, friction, heat loss ad other
inefficiencies.
The following is a list of relevant privately and state owned power plants in Ghana, including the
source of energy used to produce electricity.
Isolated diesel
generators
Thermal Natural 200 1 Private Grid connected
Gas
Thermal Oil* 790 5 Public/private Grid connected
Thermal Coal n/a
Large Hydropower 1,180 2 Public Grid connected
Plants (>10MW)
c:\users\vincs kong\downloads\ghana_stock_taking_report_anx11.doc 6
Photovoltaic
*LCO and Natural Gas
Source: Energy Commission of Ghana 2012
Maximu % Of
Installed
Owner/ m Existing
Plant Fuel Type Capacity
Operater Capacity Capacit
* (MW)
(MW) y
c:\users\vincs kong\downloads\ghana_stock_taking_report_anx11.doc 7
1.7. Main Actors- Electricity Supply and Distribution
After the State-owned Enterprises Reform (SOE) in 2003, comprehensive privatisation has taken
place. Liberalization of economy remains government policy, however SOEs continue to play an
important part in the economy. This is particularly the case in the power sector for a number of
reasons. Private participation in the power sector has been hampered by the electricity tariffs which
are still below full cost recovery. SOEs will continue to feature in the economy till such a time as the
market can support increased private sector growth through sustained improvement in the macro
economic outlook of the economy i.e. Interest rates, inflation, and stable currency exchange rate.
The Volta River Authority (VRA) is a state owned company in charge of the production of
hydroelectricity and the development of the energy resources of the Volta Lake.
The VRA also produces power through the two thermal plants at Aboadze and a generator at Tema.
Since 1987, VRA had also distributed electricity in certain areas ( in the north as well as part of the
east and west of the country).
The rest of the country is provided with electricity by the Electricity Company of Ghana (ECG) and the
Northern Electricity Department (NED). The north is generally supplied by NED, while distribution in
the south is in charge of the ECG. In 2010, the government had announced its intention to split the
ECG and NED into autonomous regional companies or separate business units to increase access and
ensure effective distribution of electricity across the country.
Ghana Grid Company (GRIDco), an independent company, has managed the transportation network
since 2007.
Ghana aims to promote independent producers. In that context, in February 2008, VRA signed an
agreement with the American group CMS Generation for the acquisition and the extension of the
Takoradi 2 thermal power plant. A company, Takoradi International Power Co (TICO) was created and
owns and operates the power plant, in which CMS Generation holds 90% of the shares and VRA 10%.
(Enerdata, 2011)
Sunon Asogli Power Ltd is a multinational enterprise with power generation as its main business. It
has completed the first phase of construction in Tema, feeding 200 megawatts (MW) into the
GRIDCo network (equivalent to 15% of the national electricity generation). According to official
announcement by the Managing Director, hopes are to complete the second phase within the year
2012, adding an additional 360 MW to the grid.
c:\users\vincs kong\downloads\ghana_stock_taking_report_anx11.doc 8
Figure 2 - Electricity distribution zones for ECG (yellow) and NED (red)
Ghana is facing an increase of Electricity consumption at about 10%/year. This also provides
challenges for the distribution network which is outdated and overloaded, with many transformers
operating beyond capacity, leading to high losses. Distribution losses (commercial + technical) are
estimated at 21-22%. Transmission losses are about 4%, considered to be an acceptable level.
Work on phase factor correction can reduce losses. ECG is considering using high voltage (33 kV) lines
within its distribution network to reduce losses.
1.9.1. Oil
Over the years the Government has been subsidizing the petroleum products till the formation of
National Petroleum Authority (NPA). The NPA is a statutory Agency regulating, overseeing and
monitoring the petroleum downstream industry in Ghana to ensure efficiency, growth and
stakeholder satisfaction to Monitor and regulate petroleum price in accordance with the prescribed
pricing formula to Grant licenses to service providers and marketing companies; Protect Consumers
interests and maintain the highest standards of petroleum products offered to them.
The retail price depends on exchange rate of the local currency to the dollar, crude oil price at the
world market, ex-refinery differential (which is a stabilization margin to manage the unpredictable
swings in the international markets) taxes and margins
At the introduction of the ex-refinery differential, the NPA holds wide consultations with
relevant stakeholders. These stakeholders include TOR, Bulk Distribution Companies,
Government and the Association of Oil Marketing Companies. As stated earlier, the
stabilization fund otherwise referred to as ex-refinery differential manages the swings of
product prices as well as ensures that the social fuels (i.e. kerosene, premix and LPG) can be
subsidized with insignificant increases of the prices of gasoline and gasoil.
c:\users\vincs kong\downloads\ghana_stock_taking_report_anx11.doc 9
Prices are reviewed every two weeks and consumption volumes keep changing. NPA
constantly monitors the downstream industry and makes the necessary adjustments to
ensure that service providers
The following table presents retail prices of major petroleum Products according to information of
the National Petroleum Authority.
c:\users\vincs kong\downloads\ghana_stock_taking_report_anx11.doc 10
09
16-Apr-
09 1.40 0.86 0.86 0.67 0.61 0.43
06-Jun-
09 1.44 1.11 1.12 0.86 0.80 0.56
16-Jul-09 1.49 1.11 1.12 0.86 0.80 0.64
31-Oct-
09 1.45 1.17 1.18 0.91 0.84 0.67
04-Jan-
11 1.46 1.52 1.53 0.91 1.05 0.84
Source: NPA
1.9.2. Electricity
There is an automatic tariff adjustment mechanism in operation in Ghana. This depends on
exchange rate swings of the local currency to the dollar. The residential tariff is formulated
to socially protect the vulnerably (social mitigation tool) by creating a first band of 0-50unit
which attract a government subsidy. There are bands with different rates to enable
consumers who are energy efficient conscious to remain within, while movement to a higher
band attract a higher rate
The commercial and industrial tariff is formulated taking into consideration energy efficiency
by imposing a power factor surcharge( which is a measure of the efficiency of ones electrical
system).There is also the maximum demand charge which penalty for putting pressure on
the utilities to meet unplanned demand. The Government as part of its rural electrification
programme has institute the rural electrification levy component in the tariff.
The following table shows the Electricity Tariffs for the period October 2003 March 2011
c:\users\vincs kong\downloads\ghana_stock_taking_report_anx11.doc 11
Source: Energy Commission of Ghana 2010
Electricity tariffs have been raised, but have probably not yet reached the level of cost recovery.
Both VRA and ECG have stated that they use life cycle cost in their procurement procedures.
The PURC set electricity tariffs, and sets the respective shares for generation (VRA), transmission
(Gridco) and distribution (ECG).
Ghana peak power consumption is between 18:30 and 20:30. Nevertheless, Ghana has a smaller
peak than other ECOWAS countries, notably because of the importance of mines and industry that
consume 24/24. Currently, there is no surcharge for consumption during peak hours.
ECG has introduced pre-payment meters to improve their cash flow. The Company has also
introduced split meters where the measurement is made at the pole, and the reading
c:\users\vincs kong\downloads\ghana_stock_taking_report_anx11.doc 12
transmitted to a device at ground level to reduce theft. The split meters which are read
monthly are manufactured in Ghana under license from an Egyptian firm, are currently being
piloted in parts of Accra before a national rollout.
ECG also has a Loss Control Unit dedicated to reducing power theft.
Over 80% of cooking in rural communities is done with Firewood and the majority of lighting derives
from Kerosene.
Urban Communities on the other hand are more prone to using charcoal for cooking or Liquid
Petroleum Gas (LPG) and Wood are also used in smaller quantities. The transport sector is the main
consumer of petroleum products.
At present, renewable energy source used in Ghana consists of firewood, hydropower and solar
energy. Firewood is widely used mainly in rural households for cooking. The growing population and
demand, combined with shortages in LPG put pressure on forests and lead in some cases to
deforestation.
Over 81% of Ghanas electricity is generated from the Akosombo and Kpong Hydro Power Plants (
approximately 6,873.3 GWh or 591 ktoe) (Kennedy A., 2006). The Akosombo Dam forms the Volta
lake, the largest reservoir by surface area in the world and has a capacity of 1012 MW. The Kpong
Dam is located further down the Volta River and holds a capacity of 160 MW. The Bui Dam, located
on the Black Volta, is suspected to complete construction within the year 2012, and will hold a
capacity of 400MW. (Kennedy A., 2006)
At present there are over 5000 off-grid photovoltaic (PV) systems installed nationwide (total capacity
1MW. (Energy Foundation)
c:\users\vincs kong\downloads\ghana_stock_taking_report_anx11.doc 13
2. Energy policy
As a means to secure a 10% decline in energy consumption by 2012 and a 10 % increase of RES with-
in the energy mix by 2020, the government of Ghana has put into place a National Energy Policy that
is to deal with renewable energy deployment, waste-to-energy management and energy efficiency.
Also gender aspects are a substantial part of the energy policy 1
As stated in the original document, the National Energy Policy is intended to serve as a :
Decision-making platform for the effective management and development of Ghanas Energy
Sector;
Guide to key stakeholders and institutions in the energy sector highlighting the definition and
implementation of key activities in respect of their mandates;
Guide for coordinating the implementation and monitoring of energy sector policies;
Platform for dialogue on investment opportunities with Ghanas development partners and
the private sector.
The document is divided into nine (9) sections.
Section One gives a brief account of the various policy directions in the energy sector.
Section Two acknowledges the concerns relating to power and identifies appropriate
measures to address them.
Section Three indicates the state of affairs in the energy sector with respect to petroleum
issues and the necessary Government interventions required to support and enhance the
growth of this sector.
Section Four highlights Governments efforts to increase the amount of renewable energy in
the national energy mix.
Section Five gives a brief account of the measures being taken to tackle the waste
management problem in the country. The focus is to convert all wastes to energy.
Section Six outlines Governments attempt to ensure that energy is supplied and used
efficiently with the least possible wastage.
Section Seven focuses on the course being pursued to limit the adverse effects of energy
production and usage on the integrity of the environment.
Section Eight highlights the steps being taken by Government to mainstream gender
concerns in the energy sector.
Section Nine explicates Government plans to develop the sector to play its role as a fulcrum
of the national economy.
1
ENERGIA has done a gender assessment which is envisaged to be published in the second half of
2012
c:\users\vincs kong\downloads\ghana_stock_taking_report_anx11.doc 14
Electricity Regulations LI 1937 Law 2008 National electricity grid code,
Wholesale electricity market,
Functions & responsibilities of
the Electricity Transmission
Utility,
Electricity market oversight
panel and Dispatch procedures
Source: Energy Commission of Ghana 2012
Concerning energy-efficiency (EE) and renewable energy sources (RES), the most relevant acts are
listed below:
Type (Law, Year of
Name of the Legal Act Main characteristics
regulation etc) release
Energy Efficiency Standards and Law 2009 and Prescribes the minimum
Labelling (Household 2010 energy performance level of
Refrigerating Appliances) refrigerating appliances.
Regulations, 2009. LI 1958 and
amendment 2010. LI 1970
Energy Efficiency (Prohibition of Law 2008 Prohibits manufacture, sale
Manufacture, Sale or or importation of
Importation of Incandescent incandescent filament
Filament Lamp, Used lamps;
Refrigerator, Used Freezer and Prohibits importation and
Used Air-Conditioner) sale of used air-conditioner;
Regulations, 2008 Prohibits importation and
sale of used refrigerating
appliances
Energy Efficiency Standards and Law 2005 Prescribes the minimum
Labelling (Non-Ducted Air energy performance level of
Conditioners and Self-Ballasted Air conditioners and CFLs.
Fluorescent Lamps) Regulation,
2005. LI 1815
Renewable Energy Law Law 2011 Encourages the harnessing
of renewable energy by the
creation of ready market for
RE
Source: Energy Commission of Ghana 2012
2.1.1. Energy Efficiency Standards and Labelling (Non-Ducted Air Conditioners and Self-Ballasted
Fluorescent Lamps) Regulations, 2005. LI 1815
Ghana is operating a Mandatory Appliance Standards and Labelling regime under which importers
and retailers of Room Air Conditioners and Compact Fluorescent Lamps (CFL) are required to import
and sell only products that meet minimum efficiency and performance standards approved by the
Ghana Standards Board. The Energy Efficiency Standards and Labels Programme is designed to
ensure that only appliances that meet minimum energy efficiency standards enter the Ghanaian
market. In accordance with the provisions of the Energy Efficiency Standards and Labelling (Non-
ducted Air Conditioners and Self Ballasted Fluorescent Lamps) Regulations, 2005 (LI1815) appliance
manufacturers who export to Ghana and retailers who sell in Ghana are obliged to display a label
c:\users\vincs kong\downloads\ghana_stock_taking_report_anx11.doc 15
which indicates the energy efficiency rating of the product before the first retail sale. (Energy
Foundation,s.a.)
It is an offence under LI1815 to import, display for sale or sell Air Conditioners and Compact
Fluorescent Lamps in Ghana unless they meet the minimum performance standards and are properly
labelled. (Energy Foundation,s.a.)
The main policy issues in the renewable energy sub-sector as published by the Ministry of Energy are:
Low level of application of new renewables (small hydro, modern biomass, wind, solar, and
bio-fuels) in the national energy mix
Over dependence and inefficient utilization of woodfuel resources.
Achieve 10% contribution of modern renewables (excluding large hydro and woodfuels) in
the electricity generation mix by 2020.
Reduce the demand on woodfuels from 72% to 50% by 2020.
Promote development and use of other biomass technologies including biogas, biofuels,
gasification and waste-to-energy.
Provide the regulatory framework and fiscal incentives for the development and promotion
of renewable energies by the private sector-Independent Power Producers (IPPs)
o A Renewable Energy Bill which has the following main contents is currently in
parliament for consideration and enactment into law.
Feed-in-Tariff
Obligatory purchase
Renewable Energy Fund
c:\users\vincs kong\downloads\ghana_stock_taking_report_anx11.doc 16
Promote the use of alternative fuels such as biogas, LPG, wood-briquettes etc. for cooking
and heating.
Support sustainable regeneration of woody biomass resources through legislation and fiscal
incentives for re-forestation particularly in schools.
The Renewable Energy Law has been passed into Law in November, 2011 as Act 832.
The law aims to make RE investments attractive for the private sector, notably by:
making purchase of RE obligatory for the system operator;
creating a framework of RE feed in tariffs, to be set by the PURC;
offering a 20% subsidy for "inside the fence" RE investments, as a compensation for taking a
load off the grid.
establishing a target of 10% new renewable energy for 2020.
The renewable energy law targets 150 MW of wind capacity in 3 years, notably by establishing
strategic partners for PPP.
There have been a number of solar street light pilot projects in Ghana over the past 10 years. These
pilot projects have mainly been carried out in communities which are off the national electricity. In
recent years new technologies in LED lighting are bringing to the fore more prospects for solar street
lighting. This is further being piloted in some communities in the Greater Accra Region. Ghana is
considering a solar street light programme which will see increased use of street lights across the
country.
c:\users\vincs kong\downloads\ghana_stock_taking_report_anx11.doc 17
2.2.1. Financial Incentives for Renewable Energy
As a step to overcome financial barriers, subsidies have been introduced, as to stimulate the market
for Renewable Energy Sources.
Energy
Type of subsidy Efficiency or Target Group Short description of subsidised measures
RES
Tax exemption RES General public Renewable energy generators (solar panels,
wind turbines) are exempt from import duty
Feed-in tariff RES Individuals and A guaranteed price for renewable energy
Organizations pumped into the national grid
Source: Energy Commission of Ghana 2012
The following tables give an overview on the most relevant public and private actors in the field of
energy.
c:\users\vincs kong\downloads\ghana_stock_taking_report_anx11.doc 18
2.3.5. Public Institutions
c:\users\vincs kong\downloads\ghana_stock_taking_report_anx11.doc 19
Natural Gas
infrastructure
throughout the
Energy Center, Prof. +233
KNUST Abeeku 246590698
Brew-
Hammond
Source : Energy Commission of Ghana 2012
In addition to the government, there is a relevant amount of private actors, stakeholders and
international organisations/institutions/donors that are involved in national energy matters.
2.3.7. Identified possible further Stakeholders who could be involved in EE or RES programs
c:\users\vincs kong\downloads\ghana_stock_taking_report_anx11.doc 20
ECG Electrovolta Building, Dr. Smart- drnksmartyaho 024431589 Power
Accra Yeboah o.co.uk 9 distributors
Main recommendations:
Review and implement the National Energy Policy and other corporate Plans to include gender
responsiveness, gender objectives and gender sensitive indicators for monitoring and evaluation.
As there are best practices in Ghana of gender integration in programs, organisations within the
sector should link and learn better, to enable them to share best practices.
Review Ghanas regional and international commitments (United Nations, AU, etc.) and identify
sources of support/funding for gender mainstreaming in energy.
As the energy sector moves towards more people-centred approaches, more staff with social
science backgrounds may be needed to augment the energy skills of current technical staff.
c:\users\vincs kong\downloads\ghana_stock_taking_report_anx11.doc 21
Policies of recruiting and promoting staff should encourage more women to enter the sector and
stay employed in it.
Representation of women in decision-making positions on boards and committees should be
promoted as per the Governments promise of Affirmative Action of 40 percent.
Gender training should be integrated within in-service training programs.
The formation and strengthening of womens associations should be encouraged as part of
gender mainstreaming initiatives in the energy sector, to give women a stronger voice.
The final report, gender mainstreaming strategy and gender audit brochure are forthcoming.
The main objective was to broaden the in-country capacity base on gender mainstreaming in energy
projects/programmes in Ghana by strengthening the capabilities of government project managers,
project developers and managers to design and implement gender sensitive energy projects.
The training was attended by 24 participants who were selected based on their qualifications and
relevance of their job descriptions.
A major output of the training was the gender mainstreaming action plans developed during the
training. The participants were required to implement the action plans as soon as they are back in
their work places. The NFP will monitor implementation of the action plans.
Key objectives:
c:\users\vincs kong\downloads\ghana_stock_taking_report_anx11.doc 22
Capacity building
Networking
Key results:
The network held its annual meeting with stakeholders from government, civil society and private
enterprise participating. A joint set of actions was agreed upon.
Improved cook stove pilot project reached 6 female entrepreneurs, eventual target is to reach
1000 of the ICS in Ghana.
50 new member registered in gender and energy network.
Awareness creation through media coverage to the activities of the network.
Lessons learned:
Interest in mainstreaming gender is growing to the extent that two scientists from the CSIR have
approached the network on the possibility of the network providing avenues for PhD level
research. Thus the ENERGIA secretariat and the Africa Regional Secretariat should consider
looking into the possibility of providing topics.
Through the involvement of female professionals in the Network activities the network has
become richer in knowledge.
Given the right encouragement the Network youth members who have graduated from the
universities could contribute to knowledge sharing in network activities as well as act
ambassadors for the network.
Many professionals working in the field of science and technology have limited knowledge in
gender and energy but are very enthusiastic about becoming involved.
The Gender and Energy Network, Ghana is independent and could collaborate with departments
and agencies to run network activities as a registered NGO.
The involvement of the Nigeria network in our annual general meeting was most welcome.
3. Energy Access
In Ghana, the Ministry of Energy has the main responsibility concerning energy access programs. A
National Electrification scheme was introduced in 1989 by the Energy Ministry to provide access by
all to electricity by 2020. The implementation of the governments policy of universal access by 2020
belongs to the most important actions in this regard. By standings of the Energy Commission of
Ghana in 2012, 70% of the country is supplied with electricity.
All regional and district capitals have been connected to the national grid. The ongoing effort is
largely in the rural areas.
Access to electricity is however skewed towards urban households. 815 of urban households have
access to electricity compared to 25 in rural areas. Less than one in ten (7.2%) of rural poor
households has access to electricity compared to their urban counterparts (Energy Foundation)
3.1. The following graph shows a list of programs and activities to increase access to electricity
c:\users\vincs kong\downloads\ghana_stock_taking_report_anx11.doc 23
programme attain universal
access by 2020
Self Help poor Rural areas Grid connected Communities
Electrification provide
Programme contribution
(SHEP) towards
extension of the
grid.
Subsidy poor Rural & urban Grid connected Lifeline tariff
affordable to the
poor
Solar PV Poor rural Off grid systems To provide
installations for power to island
remote areas communities
where grid
extension is not
viable
The following table gives a list of some of the initiatives, actions and relevant projects which
have been/are being carried out or are planned in the field of RES and EE in Ghana. Since the
mind nineties, various initiatives have helped to reduce energy wastage and create a culture
of energy efficiency in Ghana leading to behavioural changes by energy consumers in Ghana.
Such activities resulted in increase in CFL penetration rate, reduction of system losses, and
higher awareness of the public in energy efficiency. RE promotion has also seen a lot of
invigoration including the passing of the Renewable Energy Law in 2011 to encourage private
sector participation in RE power generation with supporting initiatives like the feed-in tariff,
among others.
c:\users\vincs kong\downloads\ghana_stock_taking_report_anx11.doc 24
Nature of the Financing
action (policy, institutions
technology, Short Duration (national, donor
Title of the behavioural description of Sectors (start and end project,
Action change, etc.) the action concerned date) international)
Energy Installation of Automatic Public September National
efficiency in capacitor banks capacitor banks sector 2010 till all the
public are installed in relevant
buildings public buildings institutions
that consume are covered
high electricity
are
Legislations Advocacy for Various LIs Public and
on RE and the (about 7) have private
energy introduction of been passed to sector 2006 till date National
efficiency LI which back regulate the
energy sector, the
efficiency latest being LI
programmes, on refrigerators
etc
Energy audits
Energy audits in over 100 Private Major industrial
in industry industries Sector 2012 sectors
National sales
to improve
availability of
CFLS leading to
Promotional higher
sale of CFLs penetration
CFL imported by rate from 3% to
promotion VRA 36% public 2004-2006 National
Removal of
Energy incandescent
efficient Free for
lighting distribution of 6 replacement by
programme million CFLs CFL Public 2007-2008 National
Develop
Appliance standards and
standard and labels for CFLs,
labelling air 2006- till
programme for conditioners, relevant
Standards electrical refrigerators, Public and appliances are
and Labels appliances etc private covered National
Sustained Develop
public programmes
education to and activities to
ensure educate the
behavioural public on the
change in steps to take in
Public energy avoiding Public and 2004 and
education consuming energy wastage private continues National
c:\users\vincs kong\downloads\ghana_stock_taking_report_anx11.doc 25
public and reduce
cost to
consumers
Energy audits
installation
capacitor banks
Power factor and
Energy correction, replacement of
efficiency in lighting T12 fluorescent
public retrofitting and with T5
tertiary replacement of fluorescent
institutions inefficient lamps Public 2003-2010 National
Energy
management Capacity About 350 Public and 2005- 2010 National
training of building trained Private
energy Sector
manager in
industry
Grid Capital subsidy20% of Public and 2009 - 2012 National
connected hardware cost private
solar PV is borne by
system Government
Wind energy Exploration Collection and Public and 2011 - 2013 World Bank
resource analysis of private
assessment wind resource
data
Source: Energy Commission and Energy Foundation 2012
4.1. Ongoing and Past Initiatives
In response to a 2007-2008 power crisis, Ghana carried out a large scale CFL programme. Given the
crisis situation, it was deemed too urgent to wait for carbon financing, so the programme was carried
out with 15.5 MUSD of funding from the government. Under the programme, 6 million CFLs, costing
12 MUSD were imported and distributed. Teams went to households, and installed the bulbs,
removing the existing incandescents, that were subsequently destroyed. The programme allowed a
saving of 105 MUSD in avoided investment for 120 MW of emergency generation facilities. The
penetration of CFLs has increased from about 3% in 1998 to about 70% currently. Since the beginning
of the CFL programme, expanded use has reduced consumption by an estimated 400 MW.
It was estimated that 6 million lamps would be enough for the then 1.5 million customers, but this
proved to be too low, in part because "compounds" have one meter but many families. The free CFL
exchange programme was followed quickly by a Legislative Instrument (LI1958) banning the
importation and distribution of incandescent lamps in Ghana.
Importation of CFLs (as well as PV equipment), is duty free.
The current market price of an unbranded but labelled 11W CFL is about 1.5 Cedis (0.75)
A testing facility for light bulbs, costing 50 000 USD, has been installed an inaugurated. The Ghana
standard includes resistance to a peak voltage of 260V. The standards for light bulbs are managed by
the Ghana Standards Board.
Currently, CFLs and T5 neon bulbs are manufactured in Ghana.
c:\users\vincs kong\downloads\ghana_stock_taking_report_anx11.doc 26
External lights outside houses amount to a large part of consumption, notably because they are on as
much as 12 hours a day.
4.1.2. Refrigerators
Household refrigerators are among the biggest categories of energy consuming appliances. A survey
of 1000 households showed a range of annual consumption of 100 15000 kWh (as compared to 50-
350 for the range of European quality labels for new refrigerators).
A refrigerator energy efficiency programme has been designed by the Energy Commission of Ghana
to ensure that only energy efficient refrigerators are imported in the country. This programme seeks
total public participation through education and a reward scheme whereby members of the public
can trade in their old inefficient and second hand refrigerators for new and energy efficient ones. An
appliance efficiency label for refrigerators has also been developed as part of the programme which
puts the programme into gear for full execution. Consultations with importers and actors in the sub
sector have been sensitized on the scheme whiles public awareness on the scheme started in 2011 to
educate the public and raise awareness as full implementation is scheduled to take place from 2012.
A project on energy efficient refrigerators has been for funding by GEF. The project envisages:
testing and labelling for all imported refrigerators. The standards and the label have already been
designed. The testing facility is planned for construction by June 2012. The standards for
refrigerators are managed by the Ghana Standards Board;
making illegal imports of non labelled refrigerators, including used refrigerators, after a 2 year
transition period. This law was adopted in November 2010;
awareness raising for consumers;
a rebate for purchase of 5 star refrigerators;
bank financing for purchase of EE refrigerators. A coupon for financing is distributed to buyers
through refrigerator sellers;
payment is made to old refrigerators turned in for scrapping. The scrap system includes
extraction of the CFC refrigerant, in view of destruction and payment through the Multi-lateral
fund of the Montreal Protocol. The gases will be exported for destruction;
the refrigerators will be tested by manufacturers, according to the Ghana standards. The
manufacturer will affix the Ghana label. In case of false labels, Ghana will lodge a complaint with
the WTO;
the financing of the programme through the sale of Montreal and Kyoto credits.
4.1.4. Audits
Energy audits have been carried out by the Energy Foundation in several industries across sectors of
the economy including beverages, oil refinery, textiles, steel, hospitality, services, health, large
tertiary institutions, etc. Through the audits, energy efficiency improvement opportunities are
identified and recommendations made on solutions to be implemented to achieve the identified
opportunities. These audits and the implementation of corrective measures have assisted many
c:\users\vincs kong\downloads\ghana_stock_taking_report_anx11.doc 27
industries to achieve efficiency in the operations however some more have had difficulties
implementing recommendations due to the lack of financial arrangements. A lot more industries
could benefit from improved efficiency should financial arrangements enable them to implement the
recommendations in the energy audit reports
The Energy Commission conducted energy audits and installed power factor correction devices to
reduce energy wastage in selected government installations such as ministries, departments, large
hospitals, and other major government facilities in the last three years. More areas have been
earmarked for the continuation of this programme.
4.1.6. ESCOs
To ensure that energy efficiency become a major feature in Ghanas energy use, Energy Services
Companies were organized and trained to help provide energy efficiency services to industry.
Training programmes were held to improve their capacity both in Ghana and abroad. ESCOs render
services ranging from electrical motor, boiler and HVAC system efficiency, electrical load
management, power factor correction, monitoring and targeting energy management, refrigeration
and air conditioning, energy safety, lighting efficiency, furnace efficiency among others. The Energy
Foundation of Ghana is one of the foremost ECSOs in Ghana along with others like AB Management,
A1 Engineering, and many other experts operating in individual basis. Through energy management
training for industry, the Energy Foundation has trained over 300 energy managers in industry and
has made policy suggestions through advocacy and sensitization programmes for legislators and
other state actors which have resulted in new legislations in energy efficiency and major nationwide
programmes. ESCOs continue to render services such as the recent power factor correction exercise
undertaken by the Energy Commission whiles the Energy Foundation is currently auditing 100
industries in Ghana under an initiative by the Electricity Company of Ghana.
c:\users\vincs kong\downloads\ghana_stock_taking_report_anx11.doc 28
5. Recommendations
The following given measures where ranked by the Energy Commission according to the most
relevant need for action in order to improve EE and the use of RES in Ghana
The following given sectors were prioritised by the Energy Commission according to their potential
for EE-improvements.
1. Industrial sector
2. Residential sector
3. Transport sector
4. Commercial Sector
5. Service sector
6. Agricultural sector
The following table shows the most important/successful measures in the respective sectors
according to the Energy Commission
5.2. Hotels
Technical opportunities include: tri-generation, solar hot water, biogas. Energy costs may be up to 10% of hotel
operating costs.
Client satisfaction is paramount for hotel managers. This may make some EE actions difficult to carry out
(opposition to turning off lights, to key controls for air conditioners and lighting, etc.). On the other hand, hotel
managers may be attracted by schemes for "green" certification of their establishments. Reliability of energy
systems is crucial.
c:\users\vincs kong\downloads\ghana_stock_taking_report_anx11.doc 29
5.3. Create regional markets for EE and RE goods,
Attain scale economies, lower prices, and create jobs. Favour dissemination of local technologies.
Regional markets for power transformers would help creation of an African manufacturing capacity.
This would also increase local capacity to repair transformers.
Action at the regional level would help avoid the problems of porous borders between ECOWAS
countries.
5.5. Energy Efficiency in Power Distribution
There is a large potential for action. A work group within WAPP appears to be the best option.
6. List of References
Amoah M.O.A. (2011). Assessing the Operations of Bulk Oil Storage and Transportation Company
Limited in Petroleum Products; Delivery to Northern Ghana. Kwame Nkrumah University of Science
and Technology. Department of Planning. Kumasi, Ghana
c:\users\vincs kong\downloads\ghana_stock_taking_report_anx11.doc 30
KITE, (2010). Asogli Plant Feeds GRIDCo With Power.
http://kiteonline.net/index.php?option=com_content&view=article&id=205:asogli-plant-feeds-
gridco-with-power&catid=5:news-content&Itemid=5. [Last Viewed : 23.02.2012]
Modern Ghana (2012). Work to Commence on 360 Million Dollar Sunon Asogli Plant.
http://www.modernghana.com/news/370270/1/work-to-commence-on-360-million-dollar-sunon-
asogl.html. [Last Viewed : 23.02.2012]
OECD/IEA (2011). Ghana: Statistics. Consumption of Oil Products.
http://www.iea.org/stats/pdf_graphs/GHOIL.pdf. [Last Viewed : 23.02.2012]
Togobo W.A. (2005). The Ghana Experience in Funding Rural/ Renewable Energy Through Levies on
Fossil Fuels and Electricity. Ministry of Energy.
UNSD (2008). Energy Indicators. Workshop on Environment Statistics.
http://unstats.un.org/unsd/environment/envpdf/UNSD_UNEP_ECOWAS%20Workshop/Session%200
8-2%20Energy%20indicators%20%28UNSD%29.pdf. [Last Viewed : 23.02.2012]
7. Contact List
Agyarko, Kofi. Chief (Energy Efficiency & Climate Change). Energy Commission. Accra, Ghana.
Off. Tel. : +233 30 2813756 /7 /9
Cell: +233 30 2815089
E-mail: kofiagyarko@gmail.com
agyarkok@energycom.gov.gh
Web: www.energycom.gov.gh
Amuna, William. Director, Technical Services Dept. Aksombo. Volta River Authority.
Off. Tel. : +233 (0) 34 3020743
Cell : +233 (0) 24 4315243
+233 (0) 24 4369989
Fax : +233 (0) 30 2665238
E-mail: dtsd@vra.com
wamuna@gmail.com
Annan-Takyi, Kwesi. Communication & Marketing Officer. Energy Foundation. Accra, Ghana.
c:\users\vincs kong\downloads\ghana_stock_taking_report_anx11.doc 31
Off. Tel. : +233 30 2515610 /12
Cell : +233 (0) 264080251
Fax : +233 (0) 302515613
E-mail: kwesegn@gmail.com
Web: www.ghanaef.org
Idan, John Afari. CEO. Biogas Technologies Africa Ltd. Tema, Ghana.
Off. Tel. : +233 30 3410638
Fax: +233 30 3410637
Private: +233 30 3932058
Web: www.biogasonline.com
Mensah, Sabina A. National Focal Person. Gender and Energy Network. Tema, Ghana.
Off. Tel. : +233 302811483
Cell: +233 244379974
Web: www.geda-ghana.tripod.com
Modey, Bernard T.. Director, Southern Network Services. GRIDCo. Tema, Ghana.
Off. Tel. : +233 (0) 30303321
Fax: +233 (0) 30303321
Cell: +233 244 326035
Web: www.biogasonline.com
c:\users\vincs kong\downloads\ghana_stock_taking_report_anx11.doc 32
Ben Hagan consultant
Daniel Azu Electricity Company of Ghana
Bernard Tawia Modey GRIDCo
Sam Aduama Golden Tulip Hotel
William Amuna VRA Technical Services Director
John Afari Idan Biogas Technologies Africa Ltd.
Stephen Duodu Energy Foundation
Frederick Kenneth Appiah Energy Commission
c:\users\vincs kong\downloads\ghana_stock_taking_report_anx11.doc 33