Nicholas Newman Afrelec October 2017
Since taking office in January 2017, President Nana Akufo-Addo, alarmed that Ghana’s dash for electricity risked swinging from power shortages to a power glut — and paying too much in the process – has applied the brakes on the power procurement process. Renewable power projects, were prominent among the dozens of contracts granted to developers in recent years as Ghana scrambled to overcome a chronic electricity shortage. To the consternation of investors, the new government has begun the process of renegotiating downwards the subsidy levels for green power and delaying or even cancelling some projects. Investors, for their part, have raised concerns over the inadequacy of tariffs, the poor investment environment and the limited availability of renewable technological capacity and experience. To fulfill its ambitions, Ghana’s Energy Commission is currently proposing the introduction of tax credits designed to encourage investment and purchases of solar, wind and biofuels so that renewables could contribute 10 percent of electricity production by 2020.
Ghana’s electricity market
With 80 percent of Ghana’s 30 million population having access to electricity, it ranks alongside South Africa, rather than sub- Saharan countries, where just 29 percent have access to reliable electricity, as is noted by former Minister for Power Dr. Kwabena Donkor. Nevertheless, the country’s inadequate electricity supply remains a constraint its economic growth. For instance, power cuts in 2015 are estimated to have cost the economy $2.2m a day, according to Ghana’s Institute of Statistical, Social and Economic Research. Read more https://newsbase.com/publications/afrelec-africa-power-monitor Week 40 page 6.