Ghana is looking at establishing a Renewable Energy Authority to spearhead the promotion of renewable energy and the full implementation of the Renewable Energy Act 2011 (Act 832) in the West African nation, energynewsafrica.com can report.
This is contained in the Amended Renewable Energy Act 2011 (Act 832) which is currently before Cabinet for awaiting approval and onward submission to Parliament for deliberation, sighted by energynewsafrica.com.
The review of the Act was to ensure active participation of the private sector in achieving the government’s goal of scaling up the penetration of renewable energy in the energy mix.
Government of Ghana, in 2011, passed the Renewable Energy (RE) Act and committed itself under the UNFCCC Paris Agreement on climate change to increase the penetration of the other renewable energy resources by 10/percent mainly from, solar, wind biomass, tidal wave and small hydro power by the year 2030.
According to Section 53 of the amended Renewable Energy Act 2011(Act 832) sighted by energynewsafrica.com, it states that: “Until such time that a Renewable Energy Authority is established, (a) the Renewable Energy Directorate under the Ministry of Energy shall oversee the implementation of renewable energy activities in the country; (b) the Minister may designate any public entity to;(i) execute renewable energy projects initiated by the state or in which the state has an interest; and (ii) manage the assets in the renewable energy sector on behalf of the state as in (i). (iii) undertake a renewable energy activity and any other clean energy alternative activity for the purpose of generating electric power.”
Pursuant to section 53(b) of the Act, the Bui Power Authority Act 2007 (Act 740) has therefore been amended to allow them to assume the role of the Renewable Energy Authority.
Section 25 (1) of the Amended RE Act 2011, Act 832 emphasizes the need for competitive procurement scheme for the purpose of attracting a competitive market rates for electricity generated from renewable energy sources stating that the competitive procurement scheme shall consists of (a) a tendering process; and (b) an auction scheme.
It adds that a public utility shall not negotiate for a Power Purchase Agreement with a generator of electricity or contract power for electricity generated from renewable energy sources unless the contracted power has gone through an open competitive and transparent procurement process.
The Amended Act also makes it mandatory for fossil fuel based electricity suppliers and companies that contribute to greenhouse gas emission to invest in non-utility scale renewable energies to offset their greenhouse emissions.
“A Fossil fuel based wholesale electricity suppliers, a fossil fuel producer, and any other companies that contribute to greenhouse gas emissions shall invest in non-utility scale renewable energies to offset their Green House Gas emissions and mitigate the impact of climate change.”
Speaking to the Director for Renewable and Alternative Energies at the Ministry of Energy, Wisdom Ahiataku-Togobo, who confirmed that the Amended Renewable Energy Act has been forwarded to Cabinet, said the Amended Act has scrapped feed –in- tariffs and replaced with a competitive bidding scheme.
A “feed-in-tariff scheme” is a policy that obliges distribution utilities to buy electricity generated from renewable sources at a higher fixed price over a long period of about 20years to guarantee return on investment.
He explained that at the time the RE act was enacted, the cost of generating electricity from renewable especially solar was so high that distribution utilities were reluctant to buy the power and hence the need to introduce the feed in tariff policy to compel them to buy the power at a higher price of above 18 US Cents /kWh for distribution at a lower price. Today price of electricity from utility scale renewable energy source is now a good choice and should no more be an obligation.
He said instead there has been introduction of a net-metering scheme for the purpose of encouraging self-generation of electricity from renewable energy sources on a power cost reduction or climate change mitigation basis and not for income generation.
Source:www.energynewsafrica.com
