The Ghanaian government, led by Minister of Energy, Dr. Matthew Opoku Prempeh, has recently signed two Power Purchasing Agreements (PPA) to bolster the country’s power generation capacity by approximately 720 Mega Watts (MW).
The agreements involve 370MW AKSA in Tema and 350MW AKSA in Kumasi, operating under the new PPA policy, which replaces the previous “Take or Pay” arrangement. This initiative not only ensures a prudent increase in power generation but also aims to enhance efficiency in both generation and distribution across the country.
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Addressing the media during the weekly Minister’s Briefing organized by the Ministry of Information in Accra, Dr. Prempeh debunked claims that the government has not added any Mega Watt of power.
He emphasized that the newly signed PPAs are characterized by a focus on efficiency, a departure from previous agreements. The government has also implemented various measures within the power sector to improve overall efficiency.
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Key measures include the conversion of the 200MW KTPP plant and the 220MW CENIT/TTIPP plant from open cycle thermal plants to combined cycles, along with the retrofitting of the 132 MW T3 plant. Dr. Opoku Prempeh highlighted the government’s commitment to power sector development, with emphasis on distribution and increased incorporation of renewable energy into the generation mix.
Solar energy’s share has risen to 3.2% of the percentage target for generation by 2030, and ongoing projects include a 100MW solar Photovoltaic (PV) facility under construction at Bui.
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The minister outlined steps taken to address challenges in the power transmission sector, such as upgrading the 161KV Volta-Achimota Mallan Transmission line and completing the Kumasi-Kintampo section of the 330 Kumasi-Bolgatanga transmission line project.
Feasibility studies have been completed for the third Bulk Supply Point (BSP) in Kumasi, the Dunkwa 330KV substation, and the Static Var Compensation at Ahodwo substation.
As part of the Electricity Company of Ghana’s (ECG) reforms, measures have been introduced to improve efficiency in revenue mobilization, including boundary metering and distribution transformer metering. Approximately 16,000 distribution transformers have been surveyed, with metering set to commence next year.
Dr. Opoku Prempeh also touched on challenges in the petroleum downstream sector, citing excess forex demand and increased global prices leading to pump price escalations.
Prudent negotiations, including the implementation of a forex auction window for BIDECs and the establishment of a credit reference bureau for all dealers, have been instrumental in mitigating forex exposure on BOST and BIDECs through the government’s Gold for Oil policy.
