Overview of the Energy Sector Ghana has nearly 4,000 MW of installed generation capacity, but actual availability seldom surpasses 2,400 MW owing to shifting hydrological conditions, insufficient fuel sources, and decrepit infrastructure. The government aims to increase electricity production to 30,000 MW by 2020.
The energy sector accounts for about 1% of Ghana's GDP but has a significant impact on unemployment. Electricity prices are the highest in West Africa, averaging 6.9 cents per KW/hour in 2014. By comparison, electricity prices in South Africa, Nigeria, and Ivory Coast were 3.1, 2.5, and 2.4 cents per KW/hour, respectively.
Ghana is one of the largest producers of cocoa in the world. It also has large gold deposits and oil reserves. In fact, it is one of the wealthiest countries in Africa without any natural resources. Its economy grew at an average rate of 5.5% between 2002 and 2012, when it made substantial progress towards alleviating poverty. However, the recent global economic crisis had a negative effect on Ghana's economy.
Almost half of Ghana's population lives below the poverty line, with limited access to clean water and sanitation facilities. There is also widespread corruption, which has prevented the energy sector from making a major contribution to poverty reduction.
Overview of Ghana's Energy Sector The unstable and insufficient supply of power is a major impediment to Ghana's economic progress. The country has 2,450 MW of installed generating capacity, including 546 MW from independent power companies (IPPs). However, real availability is rarely greater than 2000 MW. Power cuts are common, especially during peak hours when many businesses shut down to avoid losing money. Electricity is transmitted to homes and businesses across Ghana via 4,500-volt high-tension lines known as "power buses." The national electricity company is called the Ghana Electric Company (GES). It was established in 1958 and operates under the supervision of the Ministry of Energy. GES has a capital stock of 17 billion cedis ($350 million) with about 15% owned by foreign investors. Its revenue increased from about $30 million in 1998 to $150 million in 2003. Electricity is rationed throughout most of Ghana, except in the central business district of Accra.
Ghana's energy policy aims at reducing reliance on external sources by developing indigenous oil and gas reserves as well as renewable energy technologies. The government has set up several industrial parks to attract investment in the energy sector. In addition, it offers tax breaks and cheap loans to encourage production of ethanol, sugar, and other energy crops.
Ghana is expected to have 20,000 MW of electricity by 2020, much of it generated from hydropower.
Ghana's energy demand is estimated to be 2,000 megawatts, with a current total generating mix of 1,200 megawatts, 69 percent of which comes from hydroelectric sources and 30.4 percent from fossil fuels. The Akosombo hydroelectric project has a capacity of 912 megawatts, while the Kpong dam has a capacity of 160 megawatts. There are also small amounts of wind power and solar power in Ghana.
The country's electricity network is mainly based on diesel generators that supply power to local towns and villages as well as to some large industries. Electricity is transmitted to major cities across Ghana via 275-kilovolt high-voltage lines that connect all of the generator sites to regional power stations. A new 3,300-megawatt gas-powered plant will come on line at the end of this year, doubling Ghana's natural gas capacity. This should reduce dependence on foreign oil imports.
Ghana's energy policy aims to reduce reliance on foreign oil by developing renewable energy resources by 2020. In addition, it seeks to improve efficiency in existing energy use through public awareness campaigns.
Ghana is one of the fastest-growing economies in Africa, and its economy will continue to require more electricity to drive growth. However, much of this increase can be offset by improving energy efficiency, so that less electricity is needed per unit of output. Also, several large-scale renewable energy projects are under development in Ghana, which should help reduce dependence on foreign oil.
Nigeria will enhance its energy supply to Ghana through the West African Power Pool, which will go live this month. This is fantastic news for Ghana, which has a projected energy need of 2000MW and a total generating output of 1200MW. The Nigerian government plans to double its power generation by 2030, so this agreement will help bridge the gap until Ghana's own power industry can meet its needs.
When it comes to global warming, countries like Nigeria and Ghana have a small impact individually but they can make a big difference together. By working together, you could reduce the amount of carbon dioxide that enters our atmosphere.
Ghana isn't exactly known for being an environmentally friendly country, but it's trying hard to change that. With help from larger nations like Nigeria, it hopes to cut down on its use of non-renewable energy sources and instead focus on renewable alternatives like solar and wind power.
In conclusion, yes, Nigeria does supply Ghana with electricity! Not only does Nigeria provide us with energy, but it also helps us diversify our sources and reduces our dependence on fossil fuels.
With the economic impact of an insufficient power supply, the need for a dependable and adequate power source becomes even more essential. While Ghana has pledged to providing universal access to electricity by 2020, the main difficulty is the capacity to accomplish this objective and, more crucially, to ensuring that supply is stable and adequate.
The lack of stability in the power supply is due to several factors including the fact that about 85% of electricity is generated from coal which creates many pollution problems; also, the use of diesel generators which account for nearly one-third of total production is very inefficient. In addition, blackouts are common during droughts or intense rainstorms.
Even though Ghana has made significant progress in bringing electricity to all its citizens, there is still much work to be done if it is to meet its commitment to provide sustainable energy to everyone by 2020.
Ghana produces a variety of renewable energy sources in addition to hydropower and solar energy. Wind power, geothermal energy, and biomass are also used to generate electricity in Ghana. In 2014, Ghana's annual electricity production was about 1 million megawatt hours, which is approximately 1% of the world total.
Geothermal energy has the potential to be one of the most significant energy resources in Ghana. The government has stated its intention to expand the use of geothermal energy for electricity generation.
Currently, Ghana relies on foreign oil imports to meet nearly 100% of its needs. The government has announced plans to reduce this figure to below 50% by 2020. This goal can be achieved through increased domestic oil production, but also through other forms of renewable energy.
The use of solar energy in Ghana is growing rapidly. There are now more than 3,000 solar-powered households in Ghana, compared with only 70 in 2007. The government has set a target of providing all schools with solar-powered lighting by 2015.
Africa has very high rates of solar energy conversion. The average global rate is only 2%. Africa has huge potential for solar power because it has clear skies much of the year and sunlight throughout the day.