Ghana’s Vice President and flag-bearer of the governing New Patriotic Party (NPP) Dr Mahamudu Bawumia has promised to do several things in both the petroleum and power sectors of Ghana if elected as President of Ghana in the upcoming general elections scheduled for December 7.
On pages 174, 175, 176, 177, 178, and 179 of the NPP’s 2024 Manifesto which was launched last Sunday, August 18, 2024, the party highlighted the achievements of the government in the energy sector for the past seven years and pledged to build on the successes chalked so far.
Below are the pledges as captured in the NPP Manifesto 2024
Under a Bawumia presidency, we will:
- address issues in the power sector, including inadequate infrastructure development, insufficient investment in renewable energy sources, aging power generation facilities, transmission and distribution losses, and inefficiencies in the supply chain, which contribute to persistent electricity shortages, unreliable service delivery, and high electricity tariffs
- address both upstream and downstream challenges in the petroleum sector, including issues relating to dwindling discoveries and explorations, increased costs at the pump, and
- providing leadership and investments in energy transition, local content, and cybersecurity preparedness of the energy sector
10.2.1. Power Sector
The power sector in Ghana has underperformed its potential, presenting ongoing challenges that exert a downward pressure on our national budget, and pose adverse consequences for the economy. The current regulatory framework has not fully yielded the desired outcomes. Residential, commercial, and industrial consumers still face issues with the reliability and cost competitiveness of power supply, hindering the country’s economic growth and development efforts.
Under a Bawumia presidency, we will:
- incentivise solar power users through the net metering system under which households and other producers of solar power get “credits” for excess power they provide the national grid, against which they can use grid power when not on solar
- implement a significant shift in electricity tariffs structure to a regime in which commercial rates are either equal to, or lower than residential rates, never higher, to power industries and businesses
- develop a framework to allocate reliable and affordable power pricing to aid the development of the emerging lithium, and integrated iron, steel, aluminium and manganese industries
- introduce a framework to streamline the procurement of fuel for power generation. This framework will encourage Independent Power Producers (IPPs) to buy their own fuel to improve power security and efficiency, transfer financial risk and cost efficiency responsibilities to IPPs, foster market competition, allow the government to focus on core responsibilities, reduce the fiscal burden, enhance transparency and accountability, and attract investments into the sector
- introduce measures to accelerate national electrification to achieve a universal access by 2028
- introduce Private sector participation (PSP) into the retail power sector, to improve efficiency and customer satisfaction, especially in metering, billing, and collection
- institute governance requirements similar to those in highly regulated sectors like finance and banking, to ensure board members’ fiduciary responsibilities, and potential sanctions, are clearly spelt out
- strengthen regulatory oversight within the power sub- sector, and implement institutional rearrangements, including the merger of Public Utilities Regulatory Commission (PURC) and the Energy Commission (EC), to empower the regulatory body and promote consistency in regulatory policies and standards, and
- digitise the revenue platform that will apply Cash Waterfall Mechanism (CWM) sharing ratio at the point of all electricity tariff payment, to enhance liquidity within the electricity value chain, increase transparency and reduce indebtedness
10.2.2. Petroleum Sector
The upstream industry of Ghana’s petroleum sector faces a myriad of challenges, including reduced production, discoveries and exploration, and the departure of major players. The downstream sector has its own set of continuing issues, mainly the increased cost of products at the pumps. To address these issues and reduce the burden it places on Ghanaians, a Bawumia presidency will:
- review the Petroleum Act, 2016 (Act 919) in the following areas:
– a new fiscal regime to make Ghana a preferred destination for exploration and production
– include onshore and transitional zones exploration policies
– introduce a 2-Year exploration license to replace the current reconnaissance license for offshore exploration, and
– make provisions for the funding of Ghana’s Energy Transition plan
- commit to simplifying approval processes for appraisals and production programmes, to reenergise upstream activities
- review and strengthen the Petroleum Revenue Management Act, to streamline government allocation of oil funds and address gaps in the law
- fully implement the Infrastructure-Led Exploration (ILX) strategy, to unlock the full potential of Ghana’s offshore reserves
- expand the Gold for Oil (G4O) Programme to increase its penetration of the oil market to further reduce the forex pressure on Bank of Ghana, and to further stabilise the prices of petroleum products New Patriotic Party (NPP)
- implement regulations that will improve the financial sustainability of the fuel supply chain in the downstream market, to minimise the credit system and improve liquidity for the procurement of petroleum products
- implement new policies to incentivise private sector participation in the petroleum and petrochemicals hub
- strengthen the regulatory capacity of the National Petroleum Authority (NPA), to develop regulations to promote an export-oriented petroleum hub
- partner the private sector to build and maximise our gas processing infrastructure for power generation, ammonia for fertiliser, and gas to petrochemical liquids
- introduce policy that will encourage and facilitate International Oil Companies to partner local universities, to collaborate on Research and Development for our upstream activities, and
- implement regulations to guide Regulator-Operators’ relationships to minimise regulatory overreach close collaboration for industrial harmony
10.2.3. Local Content and Participation
Under a Bawumia presidency, we will continue to promote effective and full local content and Ghanaian participation in the energy and petroleum sector.
To further our objectives, we will:
- review and strengthen local content laws to close the gaps and deepen the role of Ghanaians and Ghanaian companies in our upstream activities, including introducing measures to promote local capacity development, technology transfer, employment opportunities in the upstream sector, and
- introduce a dedicated National Ghanaian Content Fund, and National Data Acquisition Fund, to help Ghanaian enterprises enhance their competitiveness, and to effectively participate in the upstream sector
10.2.4. Energy Transition and Renewable Energy
The NPP is committed to diversifying Ghana’s energy mix to include significant investments in renewable energy as part of its commitment to the global energy transition strategy to address environmental and climate change, and importantly, to increase our energy security and reduce the cost of electricity for Ghanaians.
To further our overall goals in this area, a Bawumia presidency will:
- roll out 2000 MW of solar power to diversify our energy mix, increase the use of our natural resources, and improve our energy security. This will be supported by:
– promoting Solar Systems (SS) for Ministries, Departments and Agencies (MDAs), and, for Secondary and Tertiary institutions
– promoting mini, off-Grid electrification for rural communities not connected to the national grid, and
– promoting Solar Home Systems (SHS)
- align the addition of new generation capacity with the Integrated Power System Master Plan (IPSMP), and the National
Energy Transition Framework
- develop a Biofuel value chain policy to include:
– adaptation of E10 biofuel (Blend of 90% gasoline and 10% ethanol), and
– encouraging locally produced ethanol to be used for E10 Biofuel
- incentivise the private sector to develop waste-to-energy projects which will also help in controlling and disposing of waste, reducing sanitation-associated health risks, and
- accelerate the work of the Ghana Nuclear Power Authority, with our developmental partners, in choosing a Vendor/ Strategic Partner to commence the next phase of our nuclear power development
10.2.5. Energy Sector Cybersecurity Preparedness
A 2023 report by World Economic Forum (WEF), citing the International Energy Agency (IEA), indicates that “the number of weekly cyberattacks on energy companies have doubled since
2020.” These cybercrimes have heavily impacted businesses and households, severely affecting economic activity and growth. The report further cites lack of skilled cybersecurity professionals in the sector as a major risk.
To effectively protect our energy infrastructure and assets, a
Bawumia presidency will:
- implement mandatory cybersecurity training for all employees within the Energy Sector, to ensure staff are equipped with the knowledge and skills to identify and mitigate cyber threats effectively, and
- introduce a cybersecurity compliance certification scheme for firms operating in the energy sector, which will require companies to meet specific cybersecurity standards and undergo regular audits to ensure compliance.
Source: https://energynewsafrica.com