ROLE OF RENEWABLE ENERGY IN GHANA S ELECTRICITY GENERATION

ROLE OF RENEWABLE ENERGY IN GHANA’S ELECTRICITY GENERATION MIX: ECONOMICS AND REGULATORY CONDITIONS PRESENTATION TO THE CHINESE DELEGATION 26 AUGUST 2015 BY Wisdom Ahiataku-Togobo Director, Renewable Energy Ministry of Power - Ghana

OVERVIEW OF GHANA Land Area: 238, 500 km 2 Population: 24, 658, 823 (2010 Census) Electricity Access: 76% (2013) Rural Access: 48% (2013) Consumption/Capita: 451. 5 KWh (2013)) Ave. GDP Growth Rate: 7% (2013) Major Export: Cocoa, Gold, Timber, Bauxite, Oil and Electricity 2

Akosombo 14, 000 ANNUAL ELECTRICITY GENERATION TREND 2000 Kpong -2013 TAPCO 12, 000 TICO TT 1 PP GWh 10, 000 SAPP TRPP 8, 000 ERPP 6, 000 KRPP MRP 4, 000 TT 2 PP Data Source: Energy Commission. Graph by: W. A. Togobo 2014 2, 000 CEL Solar 1 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Bui TT 3 PP 3

ELECTRICITY GENERATION PLANTS IN GHANA (2013) THERMAL POWER PLANT 8 TOTAL CAPACITY (MW) 1, 168 LARGE HYDRO POWER PLANTS 3 1, 580 57. 4% 3. 0 0. 8 0. 1% 0. 0% 2. 0 0. 1% 2, 754 5. 8 0. 21% PLANT TYPE QTY GRID CONNECTED SOLAR 20 OFF GRID SOLAR 41, 820 OTHER RENEWABLES 4 (Biomass) TOTAL INSTALLED CAPACITY CONTRIBUTION OF MODERN RE % 42. 4% EXCLUDES STANDBY DIESEL/PETROL GENERATORS AND INDIVIDUAL SOLAR HOME SYSTEMS 4

Current Electricity Supply Situation – 20142015 • Annual peak demand from electricity increased from 1, 729 MW in 2012 to 1, 943 MW in 2013 • Annual Growth rate is 12% • • Current average Forecast Demand - 1, 980 MW Installed generation capacity 2, 846 MW Available Peak Generation Capacity – 1, 712 MW Electricity supply inadequacy due to expansion and maintenance works, erratic supply of natural gas from Nigeria and low water levels in the hydro dams. 5

Electricity Demand Vs Available Generation Capacity Situation is becoming worse with decreasing level of water in the reservoir for Bui, Kpong and Akosombo Hydro Power Plants resulting in nationwide load shedding. 6

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ELECTRICITY GENERATION CAPACITIES AND END USER TARIFF IN SELECTED COUNTRIES (2011) Total Hydro % of Av. End user Electricity Power Solar Hydro solar tarrif US COUNTRY Capacity (GW) capacity cents/Kwh 0. 28% China 1, 100. 49 231 3. 09 20. 99% 7. 5 - 10. 7 7. 47% 0. 15% USA 1, 052. 86 78. 65 1. 56 8 - 17: 37 3. 00% 15. 73% Germany 159. 51 4. 78 25. 09 36. 25 2. 26% France 130. 38 18. 347 2. 949 14. 07% 19. 39 0. 03% Brazil 119. 07 82. 46 0. 03 69. 25% 16. 20 4. 24% Spain 101. 84 13. 28 4. 32 13. 04% 22. 73 1. 80% 1. 05% UK 93. 15 1. 68 0. 98 20. 00 2. 10% Australia 61. 94 8. 05 1. 3 13. 00% 30. 80 1. 49% 0. 09% South Africa 44. 28 0. 661 0. 041 8 - 16. 00 0. 00% 0. 04% UAE 26. 14 - 0. 01 6. 3 -10. 40 0. 07% 1. 43% Israel 13. 94 0. 01 0. 2 18. 00 0. 07% 0. 15% Denmark 13. 51 0. 02 40. 38 0. 00% Nigeria 5. 9 1. 94 - 32. 88% 2. 58 -16. 55 0. 09% Ghana 2. 18 1. 18 0. 002 54. 13% 6. 00 -30. 00 0. 04% Africa 137. 65 25. 639 0. 055 18. 63%

Renewable Energy Resource Potential Ghana has high potential for energy crops, forest and crop reside for electricity generation High solar irradiation 46 k. Wh/m²/day to support grid and off-grid electrification Ghana has over 14 potential hydro sites with total capacity of 740 MW yet to be exploited. High Wind power potential along coast. Data collection at 60 m & 80 m height underway in 13 sites. 11

Renewable Energy & Agriculture • Renewable Energy has key role to play in Agriculture – Use of wind and solar pumps can be cost effective for all year round irrigation for crop and vegetable farming. – Biogas production from animal farms (piggery, poutry, cattle etc) does not only provide energy for processing but very effective treating fecal waste and also provide organic manure. – Biomass is a major source of energy for processing 12 and preservation of farm products.

Renewable Energy Policy Strategy • Increase the contribution of RE source (including hydro, solar, biomass and wind) by 10% for grid, mini grid and off-grid applications; by 2020. • Reduce share of combustible renewables (woodfuel) in total energy mix to levels below 50% – Use of clean cooking fuel alternatives e. g. LPG and efficient woodfuel cookstoves. 13

The Renewable Energy Act 2011 (Act 832) • Provides the fiscal incentives and regulatory framework to encourage private sector investment. • Key Provisions includes: Feed-in-Tariff Scheme under which electricity generated from renewable energy sources would be offered a guaranteed price. – Purchase Obligation under which power distribution utilities and bulk electricity consumers would be obliged to purchase a certain percentage of their energy required from electricity generated from renewable energy sources – Net Metering (distributed generation) under which RE generated on site may be delivered to the local utility – to offset the cost of electricity provided by the utility. 14

Key Provisions in Act 832 • Off-grid Electrification – promote Mini-grid and stand-alone RE systems for remote off-grid locations • Woodfuels – Promote efficient production and utilization of woodfuel use for cooking, • Renewable Energy Fund to provide incentives for the promotion, development and utilization of renewable energy resources. • Establishment of Renewable Energy Authority to own, implement and manage renewable energy assets on behalf of the State. (particularly for off grid electrification) 15

Institutional Framework in Place with Clear Roles and Mandates • Energy Commission: Technical regulation and licensing for RE electricity generation, transmission and distribution • PURC: Economic regulation and setting tariffs for electricity including the Renewable Energy Feed-in. Tariff • Environmental Protection Agency: environmental regulation and permitting • Ghana Investment Promotion Centre: Assist and facilitate incentive for private sector investments (IPPs) 16

Feed-in-Tariff for Utility Scale Renewable Energy Inter-connection in Ghana (2014) Hydro <10 MW: Ghp 53. 62/KWh (US$c 16. 76) Hydro >10 MW: Ghp 53. 88/KWh (US$c 16. 85) Biomass: Ghp 56. 01/KWh (US$c 17. 51) Waste-to-Energy: Ghp 59. 03/KWh(US$c 18. 46) Biomass (plantation as feedstock): Ghp 63. 29/KWh (US$c 19. 79) Wind (without grid stability system): Ghp 51. 43/k. Wh (US$c 16. 01) Wind (with grid stability system): Ghp 53. 74/k. Wh (US$c 17. 42) Solar (without grid stability/storage system): Ghp 58. 36/KWh (US$c 18. 25) • Solar (with grid stability/storage system): Ghp 64. 41/KWh (US$c 20. 01) • • Index at exchange rate of Ghs 3. 1986/US$ (Sept 30, 2014) 17

Priority Areas for Renewable Energy Investments (Grid Connected) Programme Preliminary Target Installed Capacity by 2020 Feasibility study and the development of medium hydro potential sites Utility Scale Biomass & W 2 E (Waste to Energy) Power Plants Utility Scale Wind Park 3 -6 potential sites (200 -300 MW) 50 -100 MW 150 -300 MW Distributed grid connected RE generation 30 -100 MW through Net-metering (solar, wind, biomass, hydro) Utility Scale Solar Farms 150 MW 18

Expression of Interest in RE to Date RE Technologies # of Applications issued with PL Total Capacity Solar Wind Biomass Waste-to-Energy 29 4 2 3 2, 155 MW 676 MW 60 MW 271 MW Hydro Wave 3 1 195 MW 1, 000 MW 19

New Regulations for Utility Scale Solar Power Plants (Oct. 2014) • In order to maintain the integrity of the national grid, – A total nation-wide capacity for Solar PV Plants without grid stability/storage is limited to 150 MWp. – Maximum of 20 MWp per Solar plant without grid stability/storage shall be allowed to be connected to 161 KV or 330 KV at any solar PV generation site. – Maximum of 10 MWp per plant without grid stability/storage shall be allowed to be connected to the Distribution System at any solar PV generation site. 20

GRID CONNECTED SOLAR PV SYSTEM • Non Residential tariff above 600 KWh/month is GHs 0. 93/KWh (US$0. 31/KWh) • Compared to FIT for Solar US$0. 18 • Huge opportunities for investment in distributed generation through Netmetering • 19 Solar PV plants (distributed generation) Net-metering systems. 700 k. Wp at Noguchi Legon Presby Women Training Center Abokobi • 50 k. Wp solar park at the Ministry of Energy for instance accounts for 12 - 15% energy consumption. Valley View University, Oyibi 21

Priority Areas for Mini & Off Grid Renewable Energy Investments Programme Target by 2020 Mini Grid Renewable Energy based electrification in isolated communities 20– 50 communities (2 MW) Deploy Solar Home Systems (SHS) in isolated off 50, 000 SHS -grid households (5 MW) Deploy Solar Lanterns (SL) with mobile phone 2 million lanterns charging facilities through local assembling and (20 MW) partial subsidy Solar electrification in off-grid public facilities (schools, clinics, security outposts) 6, 000 Public facilities (1. 5 MW) Solar Community Lighting Systems (Solar Street 12, 000 systems lights) for isolated communities (1. 5 MW) Pilot Wind & solar water pumps, Biogas, Solar crop dryers etc to support SMEs in Agric 200 systems 22

Map of Installed Solar Systems

Off-grid Solar Electrification • Solar for off-grid application has potential to increase energy access for: – Limited lighting and battery charging – ICT (TV, radio, entertainment phone charging) • Significant impact quality of life of rural people • Mobile phone charging, music and other forms of entertainment are made possible with solar power. • Solar has potential to support ICT education in remote rural schools

Solar Street Lights – Community Solar (street) lights have reduced the risk of wild animal/reptiles (snakes) confrontation. • Women take advantage of the Community solarlight for economic activities. • Solar streetlight at security outpost has enhance visibility of security officials.

Enhanced Communication Solar Phone booth Time and cost involved in travelling only to deliver messages can be avoided

Battery & Mobile Phone Charging

Improved Health Facilities • Vaccines could now be stored. • Child delivery and other emergency health cases could be attended to at night.

Improved Water Delivery • Solar water pumps prevents drinking of contaminated water from rivers and streams. • Clearly the economic benefits of Solar PV far out ways the financial cost involved.

Tiptop Farms, Anloga • Renewable Energy demonstration farm located in Anloga in the Keta District. • Farm started with a 1. 6 m diameter wind pump irrigating 0. 5 acres daily • Currently the farm has a total of 20 acres under all year irrigation from solar, wind, biogas and electricity. 30

Solar • Solar 1. 6 KW solar pump capable of irrigating 2 -3 acres. 31

Biogas • Biogas has potential of producing about 15 m 3 of gas daily. 32

Investment Requirements It is estimated that an investment of USD 1. 0 billion will be required for utility scale grid connected and off-grid the renewable energy interventions in Ghana 33

Conclusions • Ghana is committed to the development and promotion of renewable energy. • The RE Law 2011 (Act 832) presents unique opportunities for the private sector to harness the benefits of renewable energy in Ghana. • Ghana has the right enabling environment for attracting private sector investment in sustainable energy solutions. – – – Political stability and good governance; Strong and independent institutions; The rule of law; Free and independent press; Transparency and accountability; and A strong civil society 34

Thank You For more information, please contact: The Director, Renewable Energy Ministry of Energy & Petroluem , Ghana. www. energymin. gov. gh renewable@energymin. gov. gh watogobo@gmail. com 35