Ghana: Timing For Proposed Merger Of VRA, BPA, ECG And NEDCo Wrong—IES

Michael Creg Afful
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Ghana: Timing For Proposed Merger Of VRA, BPA, ECG And NEDCo Wrong—IES
The Institute for Energy Security (IES) has urged the government to reconsider its planned merger of some state-owned power sector agencies, noting that embarking on such a venture is likely to worsen the liquidity issues that have already plagued the power sector. “The focus should be on stabilising and strengthening the existing institutions such as the VRA, Bui Power Authority, the ECG and the NEDCo, rather than dismantling them,” said Nana Amoasi VII, the Executive Director for IES, in a statement issued and copied to energynewsafrica.com. He argued that while the proposed merger and restructuring of Ghana’s power sector may have its proponents, he expressed the belief that the risks far outweigh the benefits in its current form. Nana Amoasi VII urged the government to conduct extensive engagement with all relevant stakeholders, including the VRA staff and industry experts, to ensure that the proposed changes are thoroughly vetted and understood by all parties. “Transparent dialogue is essential to avoid potential pitfalls that could harm the sector, but rather ensure that the best interests of the nation are prioritized,’’ he said. The IES boss’ statement follows agitations by the staff of the VRA and the NEDCo over the government’s plan to merge the Volta River Authority and Bui Power Authority into one entity, Electricity Company of Ghana (ECG) and Northern Electricity Distribution Company (NEDCo) into another entity. Full Statement By The IES The Institute for Energy Security (IES) has taken note of the recent draft bill proposing the merger of the Volta River Authority (VRA) with Bui Power Authority, the combination of the Electricity Company of Ghana (ECG) with the Northern Electricity Distribution Company (NEDCo), and the establishment of an independent Thermal Power Authority. The IES’ attention has also been drawn to media publication of stories reflecting significant opposition by the VRA staff and the Ghanaian government regarding the proposed restructuring of key institutions in the energy sector. The IES glean from the publications that the VRA staff view the potential merger and privatization of assets as detrimental to the organization, the country’s energy security, and the affordability of electricity. The IES finds the VRA staff group’s opposition justifiable in several respects. First, they raise concerns about the long-term financial stability of VRA, particularly if profitable parts of the organization like the thermal assets are privatized. Second, they argue that VRA’s ability to generate diverse sources of power (hydro, thermal, and renewable) is essential to national energy security and restricting it could weaken its role. Third, the staff claim that VRA’s support for NEDCo ensures consistent electricity supply to underserved regions, and disrupting this support may have social and economic repercussions. Lastly, the staff feel excluded from key decisions, raising suspicions that these reforms might prioritize private interests over the nation’s welfare. After careful analysis of the concerns raised by the staff group, we find their opposition to be both valid and critical to the future of Ghana’s energy security and affordability. In IES’ assessment, the proposed bill presents significant risks to the stability of Ghana’s power sector, and to VRA’s operational and financial health, especially regarding the separation of its thermal assets. Below are the key concerns and recommendations: Key Concerns
  1. To the extent that the allocation of hydro-generated power is determined by the Electricity Market Oversight Panel (EMOP), VRA’s flexibility in managing its customer base and financial health is restricted to exclude bilateral customers like the mines and the export market. Selling primarily to ECG and VALCO, both of which have delayed payments, could exacerbate VRA’s liquidity problems, as it would have limited options for recovering outstanding debts. Payment delays reduce VRA’s cash flow, making it difficult to invest in maintenance or expand operations, and increase its reliance on external borrowing, which could weaken its long-term sustainability.
 
  1. The staff groups have raised concerns that separating the thermal power assets of VRA from its hydro asset may lead to the gradual privatization of these critical assets. We support this concern, as thermal power generation forms a key pillar of VRA’s revenue. It is the revenue from unregulated thermal power sales that helps augment and stabilize cash flow for the VRA. If the proposed bill removes thermal assets from VRA’s control, it could jeopardize the organization’s financial viability, as it would lose a significant revenue stream.
 
  1. The Cash Waterfall Mechanism (CWM) is designed to ensure equitable distribution of revenue across the power sector. However, VRA receives a paltry 30% of what it is owed from power sales to ECG under the cash waterfall mechanism month-on-month. This represents a major threat to VRA’s liquidity, as it would be receiving less cash than needed to maintain operations and service its debts. If these liquidity challenges persist, VRA could face operational difficulties.
 
  1. VRA has highlighted that ECG and VALCO owe millions of dollars in unpaid bills, which exacerbates VRA’s liquidity challenges. With the current CWM generating a backlog of revenue entitlement to the VRA, this non-payment threatens the sustainability of the entire organization. The merger of ECG with NEDCo, without addressing these financial shortcomings, could make matters worse.
 
  1. In the context of the government owing independent power producers (IPPs) over US$2 billion, the financial health of an independent Thermal Power Authority is far from guaranteed. The creation of an independent Thermal Power Authority could exacerbate the existing financial burden on the government if it inherits the same capacity charge obligations. This could lead to strained relationships with IPPs and, in turn, compromise power reliability if the IPPs cut off supply due to non-payment.
  Recommendations
  1. We urge the government to conduct extensive engagement with all relevant stakeholders, including VRA staff, and industry experts, to ensure that the proposed changes are thoroughly vetted and understood by all parties. Transparent dialogue is essential to avoid potential pitfalls that could harm the sector, but rather ensure that the best interests of the nation are prioritized.
 
  1. VRA should retain control over its thermal power plants. These plants are crucial to VRA’s financial health and their removal would severely compromise the authority’s operational sustainability. We urge the government to reconsider the creation of an independent Thermal Power Authority.
 
  1. The government must urgently resolve the outstanding debt issues between VRA, ECG, and VALCO. These entities’ failure to meet their payment obligations has created a severe liquidity crisis for VRA, and this must be corrected before any structural changes are made.
 
  1. A thorough impact assessment should be conducted on the cost implications of merging VRA’s hydro assets with Bui Power Authority. Any move that risks increasing electricity tariffs must be reconsidered in light of the economic challenges facing Ghanaians.
 
  1. With the government currently owing independent power producers (IPPs) over US$2 billion, it is critical to address this debt before creating any new energy authorities. The IPPs play a crucial role in maintaining power supply, and any shutdown threats due to non-payment could severely affect the reliability of Ghana’s electricity supply.
 
  1. It is imperative to encourage competition and innovation in the distribution sector. As a result, the ECG and NEDCo should be allowed to operate independently for purposes of quality service delivery.
  While the proposed merger and restructuring of Ghana’s power sector may have its proponents, we believe that the risks far outweigh the benefits in its current form. The focus should be on stabilizing and strengthening the existing institutions such as the VRA, Bui Power Authority, ECG, and NEDCo, rather than dismantling them. We urge the government to reconsider the bill and work towards solutions that preserve Ghana’s energy security, affordability, and long-term sustainability.   Signed NANA AMOASI V11 EXECUTIVE DIRECTOR   Full Statement By The IES The Institute for Energy Security (IES) has taken note of the recent draft bill proposing the merger of the Volta River Authority (VRA) with Bui Power Authority, the combination of the Electricity Company of Ghana (ECG) with the Northern Electricity Distribution Company (NEDCo), and the establishment of an independent Thermal Power Authority. The IES’ attention has also been drawn to media publication of stories reflecting significant opposition by the VRA staff and the Ghanaian government regarding the proposed restructuring of key institutions in the energy sector. The IES glean from the publications that the VRA staff view the potential merger and privatization of assets as detrimental to the organization, the country’s energy security, and the affordability of electricity. The IES finds the VRA staff group’s opposition justifiable in several respects. First, they raise concerns about the long-term financial stability of VRA, particularly if profitable parts of the organization like the thermal assets are privatized. Second, they argue that VRA’s ability to generate diverse sources of power (hydro, thermal, and renewable) is essential to national energy security and restricting it could weaken its role. Third, the staff claim that VRA’s support for NEDCo ensures consistent electricity supply to underserved regions, and disrupting this support may have social and economic repercussions. Lastly, the staff feel excluded from key decisions, raising suspicions that these reforms might prioritize private interests over the nation’s welfare. After careful analysis of the concerns raised by the staff group, we find their opposition to be both valid and critical to the future of Ghana’s energy security and affordability. In IES’ assessment, the proposed bill presents significant risks to the stability of Ghana’s power sector, and to VRA’s operational and financial health, especially regarding the separation of its thermal assets. Below are the key concerns and recommendations: Key Concerns
  1. To the extent that the allocation of hydro-generated power is determined by the Electricity Market Oversight Panel (EMOP), VRA’s flexibility in managing its customer base and financial health is restricted to exclude bilateral customers like the mines and the export market. Selling primarily to ECG and VALCO, both of which have delayed payments, could exacerbate VRA’s liquidity problems, as it would have limited options for recovering outstanding debts. Payment delays reduce VRA’s cash flow, making it difficult to invest in maintenance or expand operations, and increase its reliance on external borrowing, which could weaken its long-term sustainability.
 
  1. The staff groups have raised concerns that separating the thermal power assets of VRA from its hydro asset may lead to the gradual privatization of these critical assets. We support this concern, as thermal power generation forms a key pillar of VRA’s revenue. It is the revenue from unregulated thermal power sales that helps augment and stabilize cash flow for the VRA. If the proposed bill removes thermal assets from VRA’s control, it could jeopardize the organization’s financial viability, as it would lose a significant revenue stream.
 
  1. The Cash Waterfall Mechanism (CWM) is designed to ensure equitable distribution of revenue across the power sector. However, VRA receives a paltry 30% of what it is owed from power sales to ECG under the cash waterfall mechanism month-on-month. This represents a major threat to VRA’s liquidity, as it would be receiving less cash than needed to maintain operations and service its debts. If these liquidity challenges persist, VRA could face operational difficulties.
 
  1. VRA has highlighted that ECG and VALCO owe millions of dollars in unpaid bills, which exacerbates VRA’s liquidity challenges. With the current CWM generating a backlog of revenue entitlement to the VRA, this non-payment threatens the sustainability of the entire organization. The merger of ECG with NEDCo, without addressing these financial shortcomings, could make matters worse.
 
  1. In the context of the government owing independent power producers (IPPs) over US$2 billion, the financial health of an independent Thermal Power Authority is far from guaranteed. The creation of an independent Thermal Power Authority could exacerbate the existing financial burden on the government if it inherits the same capacity charge obligations. This could lead to strained relationships with IPPs and, in turn, compromise power reliability if the IPPs cut off supply due to non-payment.
  Recommendations
  1. We urge the government to conduct extensive engagement with all relevant stakeholders, including VRA staff, and industry experts, to ensure that the proposed changes are thoroughly vetted and understood by all parties. Transparent dialogue is essential to avoid potential pitfalls that could harm the sector, but rather ensure that the best interests of the nation are prioritized.
 
  1. VRA should retain control over its thermal power plants. These plants are crucial to VRA’s financial health and their removal would severely compromise the authority’s operational sustainability. We urge the government to reconsider the creation of an independent Thermal Power Authority.
 
  1. The government must urgently resolve the outstanding debt issues between VRA, ECG, and VALCO. These entities’ failure to meet their payment obligations has created a severe liquidity crisis for VRA, and this must be corrected before any structural changes are made.
 
  1. A thorough impact assessment should be conducted on the cost implications of merging VRA’s hydro assets with Bui Power Authority. Any move that risks increasing electricity tariffs must be reconsidered in light of the economic challenges facing Ghanaians.
 
  1. With the government currently owing independent power producers (IPPs) over US$2 billion, it is critical to address this debt before creating any new energy authorities. The IPPs play a crucial role in maintaining power supply, and any shutdown threats due to non-payment could severely affect the reliability of Ghana’s electricity supply.
 
  1. It is imperative to encourage competition and innovation in the distribution sector. As a result, the ECG and NEDCo should be allowed to operate independently for purposes of quality service delivery.
  While the proposed merger and restructuring of Ghana’s power sector may have its proponents, we believe that the risks far outweigh the benefits in its current form. The focus should be on stabilizing and strengthening the existing institutions such as the VRA, Bui Power Authority, ECG, and NEDCo, rather than dismantling them. We urge the government to reconsider the bill and work towards solutions that preserve Ghana’s energy security, affordability, and long-term sustainability.       Signed NANA AMOASI V11 EXECUTIVE DIRECTOR

Nigeria: NNPCL Sets September 15 To lift Petrol From Dangote Refinery

Michael Creg Afful
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Nigeria: NNPCL Sets September 15 To lift Petrol From Dangote Refinery
Nigeria’s National Oil Company Limited (NNPCL)  has set September 15, 2024, to commence lifting Premium Motor Spirit (petrol) from the Dangote Refinery. Adedapo Segun, the Executive Vice President of Downstream of NNPC Limited, disclosed this last Thursday. He stressed that the NNPCL was awaiting the September 15 timeline provided by the 650,000 barrels per day Lagos-based refinery. His comments comes as fuel scarcity lingers nationwide despite the recent price hike. Segun said that the NNPCL is collaborating with marketers to “ensure that stations open early but close late to maintain adequate fuel supply to meet the needs of Nigerians. “We are also engaging relevant authorities to ensure product diversions are prevented and timely deliveries to all stations are ensured. “The scarcity should ease in the next few days as more stations recalibrate and begin operations,” he announced to Nigerians. Recall that Dangote Refinery, on Wednesday, denied claims that the NNPCL had started lifting its petrol. This comes days after Aliko Dangote, the President of the Dangote Group, officially announced that his refinery had commenced production.     Source: https://energynewsafrica.com

Nigeria: Fuel Tanker Explosion Kills At least 48 People In Niger State

Michael Creg Afful
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Nigeria: Fuel Tanker Explosion Kills At least 48 People In Niger State
A fuel tanker collided with a trailer carrying travellers and cattle, exploded and killed at least 48 people in north-central Nigeria on Sunday, the disaster management agency said. Several other vehicles were also caught in the accident, it said. Local media reported that two of the other vehicles—a crane truck and a pickup van—were involved in the accident and caught in the fire. Abdullah Baba-Arah, Director-General, Niger Emergency Management Agency (NEMA), said the agency received a report of a deadly tanker explosion that occurred on Sunday at about 12:30 am along the Bida-Agaie-Lapai highway. Baba-Arab said initially 30 bodies were found. However, in a later statement, he said there were an additional 18 bodies of victims who were burned to death in the collision. Mr Baba-Arah said two other vehicles—a crane truck and a pickup van—were also involved in the multiple incidents. Over 50 cattle were also burnt alive. He said the dead had been given a mass burial. Mohammed Bago, Governor of Niger state, said residents of the affected area should remain calm and asked road users to “always be cautious and abide by road traffic regulations to safeguard lives and property.”   Source: https://energynewsafrica.com

South Africa:Green Capital’s Expansion In The South African Market

Michael Creg Afful
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0
South Africa:Green Capital’s Expansion In The South African Market
The Polish company Green Capital S.A., one of the leading firms in the renewable energy sector, has announced the dynamic growth of its operations in the South African market. Green Capital’s presence in South Africa, headquartered in Johannesburg, underscores its commitment to the development of the renewable energy sector and its desire to participate in the energy transition of a country facing significant challenges related to energy shortages and reliance on fossil fuels. The Green Capital team in South Africa consists of four highly qualified specialists with experience in the development of wind and solar energy. With a diversified portfolio of projects exceeding 1000 MW, Green Capital South Africa is becoming a key player in the local renewable energy sector, actively contributing to the country’s energy transformation. In July 2024, Green Capital signed five new land lease agreements in the Western Cape, Free State, and Gauteng provinces. This marks another step in realizing our ambitious plan, which includes projects exceeding 2000 MW. Mikołaj Kowalczyk, International Business Director at Green Capital, comments: “The South African market is very promising and full of potential, particularly in the context of the rapid development of the renewable energy sector. The country is struggling with severe electricity shortages, leading to temporary power outages that have a negative impact on the economy. According to observers, frequent power outages reduced real GDP growth by two percentage points in 2023. Currently, coal is the main source of energy in South Africa, which presents the country with the urgent challenge of transitioning to green energy. Green Capital plans to play a significant role in this process. We are pleased to see that the new government and the Minister of Energy in South Africa recognize the importance of renewable energy sources and are implementing favorable changes that support the development of this sector. “In the coming years, Green Capital plans to implement dozens of projects in South Africa, with about half of them already secured with locations and in advanced planning stages. Cooperation with landowners and adaptation to challenges related to the transmission network are key aspects of our strategy. “South Africa is grappling with transmission infrastructure issues, making it difficult to integrate new projects into the grid, so we are actively working on solutions to address this problem to meet the growing demand for green energy.” Green Capital is focusing its efforts on developing photovoltaic projects, particularly in the western part of the country, including the Western Cape province, and from Limpopo through Gauteng and Mpumalanga to the Free State. The company’s goal is not only to increase the share of renewable energy in South Africa’s energy mix but also to contribute to the country’s sustainable development and economic growth. Despite visible progress, the renewable energy market in South Africa faces numerous challenges, such as insufficient transmission network capacity and long project implementation times, which can currently exceed five years. Although investments in transmission network development are being made on a large scale, the pace of infrastructure expansion is not keeping up with the growing demand for its use. Additionally, landowners often hesitate to commit to long-term projects that will yield results only after several years. Green Capital is determined to accelerate the development of green energy and adapt its strategy to local needs, ensuring a future based on clean and renewable energy sources.     Source: https://energynewsafrica.com

Zambia: ZESCO Signs MoU With Chinese Firm To Develop Energy Projects To Solve Power Crisis

Michael Creg Afful
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0
Zambia: ZESCO Signs MoU With Chinese Firm To Develop Energy Projects To Solve Power Crisis
Zambia’s power utility company – ZESCO Limited – has signed a memorandum of understanding (MoU) with China Datang Corporation Limited, one of the largest energy suppliers in China, to develop energy projects in Zambia to address the power crisis being experienced by Zambians. The signing ceremony was witnessed by the President of Zambia, H.E. Hakainde Hichilema, in Beijing, China. ZESCO Limited has been rationing power due to shortfalls in power generation occasioned by drought which has limited water inflow into the Kariba dam. Some parts of the country receive power supply for only three hours, while others endure 24 hours without power. In a Facebook post after the signing of the agreement, President Hakainde Hichilema wrote: “We are determined to resolve this energy crisis. “We have directed both Zesco and China Datang to immediately get down to work so that we can address the current energy deficit. China Datang offers the kind of energy mix that our country requires to diversify away from our country’s dependence on hydro energy. “We have since concluded our mission here in Beijing and heading back home,” he concluded. Commenting on the agreement, ZESCO wrote: “This partnership underscores Zambia’s commitment to enhancing its energy infrastructure and diversifying its energy sources. “With this strategic partnership, Zambia is taking a significant step towards ensuring a reliable energy supply that will support economic growth and improve the quality of life for its citizens,” ZESCO said.     Source: https://energynewsafrica.com

Ghana: VRA, NEDCo Workers Hoist Red Flags To Protest Merger

Michael Creg Afful
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0
Ghana: VRA, NEDCo Workers Hoist Red Flags To Protest Merger
Staffs of the Volta River Authority (VRA) and the Northern Electricity Distribution Company (NEDCo) have hoisted red flags on their premises in protest at the proposed merger of some of the power sector agencies. The Government of Ghana, through the Ministry of Energy, has submitted a bill to Parliament for consideration. The bill is seeking to merge VRA and the Bui Power Authority (BPA) into one entity, and the Electricity Company of Ghana (ECG) and NEDCo into one entity. Besides, there will be the establishment of an Independent Thermal Authority to take over the running of all the thermal plants of VRA. However, this has triggered protests by the staffs of both VRA and NEDCo. The groups argue that these decisions are not in the best interest of Ghanaians and could have severe consequences for VRA and the nation. They declared that the proposed changes could undermine the contributions of VRA to the national grid and security. Speaking to William Asare, Senior Staff Chairman for VRA/NEDCo via telephone, he questioned the rationale behind the proposed plan. He told this portal that when the issue was highlighted by the media some time ago, they met their management and during the meeting the Board Chairman of NEDCo confirmed that a committee had been put together by the Energy Ministry to discuss the possibility of restructuring the energy sector. According to him, the Board Chairman vehemently denied knowledge of any bill seeking to merge VRA and NEDCo. He said the staffs of VRA and NEDCo hoisted red flags at all their offices across the country on Wednesday evening as a first step of many actions they would be taking. Mr Asare pointed out that there was a good reason why the Act that established VRA mandated it to diversify its energy sources in the future. He said the idea was for VRA to develop other energy sources because there could be erratic rainfall which could affect power generation from the Akosombo and the Kpong hydroelectric dams.       Source: https://energynewsafrica.com

Moldova Sets Ambitious Targets For Renewable Energy Transition

Michael Creg Afful
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0
Moldova Sets Ambitious Targets For Renewable Energy Transition
The Republic of Moldova has unveiled an ambitious plan to boost renewable energy production by offering a comprehensive set of investment incentives aimed at attracting foreign investors. Key measures include priority access to connection approvals for auction winners, long-term fixed-rate contracts for up to 15 years, and support mechanisms for both small and large-scale producers. The government has also secured significant external financing from international partners such as the EBRD and USAID to expand its energy infrastructure. With upcoming tenders for wind and solar projects, Moldova is creating a favorable environment for investors to capitalize on its growing renewable energy market The Importance of Renewable Energy for Moldova Moldova’s renewable energy strategy is a crucial step toward energy independence and sustainability. The country’s energy landscape has shifted considerably since 2022, following the conflict in Ukraine. As a result, Moldova rapidly connected to the European energy system and reduced its reliance on Russian energy supplies. The capital, Chișinău, is at the forefront of efforts to boost green energy production, marking a significant shift in the country’s energy policy. The Moldovan government recognizes the importance of energy security, and renewable energy is seen as a key solution to achieving both independence and a greener future. Moldova’s 2030 Renewable Energy Targets By 2030, Moldova aims to produce at least 30% of its electricity from renewable sources. The government has also set a goal to reduce greenhouse gas emissions by 70% compared to 1990 levels. As part of this strategy, Moldova is set to join the International Solar Energy Alliance (ISA), aligning itself with 98 countries committed to expanding solar energy production. In addition to these goals, Moldova has secured significant external financing, including tens of millions of US dollars from the European Bank for Reconstruction and Development (EBRD) and the U.S. Agency for International Development (USAID). This funding will support the construction of 300-kilometer energy interconnection lines with Romania, enhancing Moldova’s national energy system’s reliability and import/export capacity. Since March 2022, Moldova’s electricity system has been operating in parallel with Romania’s, following the implementation of new infrastructure that has strengthened the security and reliability of the national power grid. This development has also increased Moldova’s capacity for electricity imports and exports through the Moldova-Romania interconnection, enhancing the overall stability of the energy supply. Auctions and Business Opportunities in Renewable Energy Moldova is also opening its renewable energy market to large-scale investors through a series of tenders for renewable energy projects. The Ministry of Energy in Chișinău has announced that offers for these tenders will be accepted from September 2024 to January 2025. The Ministry has implemented measures to facilitate investor participation, including prioritizing connection approvals for large-scale renewable energy producers who win the auction. Additionally, new legislation is being developed to ensure competitiveness and efficiency in the approval process. “Not all investors will have the necessary connection approvals when they submit their auction bids. As an initial solution, we will prioritize granting connection approvals to large eligible producers who are selected as winners of the auction”, said Carolina Novac, State Secretary at the Ministry of Energy. “Additionally, when new connection approvals become available, these producers will be placed at the top of the waiting list.” In the long term, the Ministry of Energy plans to amend the electricity legislation to introduce a guarantee of good execution — capacity reservation — as a requirement for obtaining connection approval. “This provision is necessary to ensure both competitiveness and the proper organization of the process”, Novac emphasized. In 2023, the Ministry made significant changes to the promotion of renewable energy. The government introduced three key support mechanisms for green energy producers, guaranteeing the purchase of surplus energy delivered to the grid, helping them recover their investments:
  • Net metering was replaced with net invoicing on January 1, 2024, applicable to small producers with installations for personal consumption.
  • A fixed rate for 15 years is available for photovoltaic plants up to 1 Megawatt and wind farms up to 4 Megawatts.
  • A fixed price, also valid for 15 years, applies to photovoltaic plants larger than 1 Megawatt and wind farms larger than 4 Megawatts.
“We protect consumers by securing the best possible price while ensuring that investors receive the compensation they expect based on a competitive process”, said Victor Parlicov, Minister of Energy. Investing in Moldova’s Renewable Energy Future With the recent tender announcements, Moldova plans to add 105 MW for wind farms and 60 MW for solar parks to its current installed capacity. The capacity limit for obtaining prominent eligible producer status is set at 4 Megawatts for wind projects and 1 Megawatt for photovoltaic projects. The ceiling price has been established at 77.88 euros per Megawatt-hour for wind energy and 86.7 euros per Megawatt-hour for solar energy. The guaranteed fixed price will be determined through the auction process and cannot exceed the ceiling price of 1.5 Moldovan lei per kilowatt-hour for wind energy and 1.67 Moldovan lei per kilowatt-hour for solar energy, as set by the National Agency for Energy Regulation (ANRE), the central authority responsible for regulating and overseeing Moldova’s energy sector. Moldova has significant renewable energy potential, with estimates of 20,868 MW for wind energy, 4,648 MW for solar energy, 840 MW for hydro energy, and 850 MW for biomass. While maximizing these resources could allow Moldova to meet nearly all its energy needs during peak hours, the current gap between potential and actual green energy production is partially covered by import purchases from diversified sources:  Romanian Energy and Gas Market Operator (OPCOM),  Romania’s Hidroelectrica and Nuclearelectrica as well as Ukrhydroenergo from Ukraine through the state-owned company Energocom, Moldova’s central electricity supplier. By 2023, Moldova had achieved 348.3 MW of renewable energy capacity (132.7 MW of wind power, of which 115.3 MW net metering, 6.9 MW of solar power, 16.8 MW of hydropower, and 6.6 MW from biogas), and with the addition of 165 MW from the new tenders, the total capacity will reach 513.3 MW, bringing Moldova closer to meeting its daily energy production needs. Export Opportunities for Renewable Energy Producers Moldova’s renewable energy producers are not limited to the domestic market and are not obliged to deliver electricity solely to state-owned Energocom. Many producers have sold electricity to Ukraine and Romania, taking advantage of competitive prices in neighboring countries. “This summer, Moldovan producers sold energy on the stock exchange to Ukraine and to consumption partners in Romania. This is the commercial market; you produce a good and want to sell it at the highest possible price”, said Victor Binzari, Director of Energocom. He added that the capacities announced for bidding in Moldova are critical in the current situation. “According to the regulation, Energocom is obliged to buy green energy produced by investors. More energy produced in the country means less energy purchased from Moldgres [Moldova’s primary electricity producer, operating on Russian-supplied gas and located on the left bank of the Nistru River]. We no longer buy energy from abroad; instead, we buy energy produced in Moldova”, he concluded. With the expansion of its renewable energy infrastructure, Moldova is reducing its dependence on external energy sources. Energocom is committed to purchasing domestically produced green energy, reducing the need for imports and boosting national energy production.      

Sinclair Returns As Sankofa Acquires AOW Energy Event

Michael Creg Afful
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0
Sinclair Returns As Sankofa Acquires AOW Energy Event
Sankofa Events, led by respected energy executive Paul Sinclair – has acquired the AOW industry event – previously known as Africa Oil Week. With the AOW acquisition, Sinclair returns to take the helm of the summit that he helped build into Africa’s leading oil, gas and energy event and a crucial deal-making environment for governments and energy businesses alike. “I am proud and excited to lead AOW – an event I have much history with and a powerful brand I firmly believe in,” said Sinclair. “AOW has made extraordinary progress over the past few years, and I am determined to build on that and develop it even further. I look forward to seeing my friends from the African oil, gas and energy sector at the upcoming event in October.” The next AOW conference, titled AOW: Investing In African Energy, starts on October 7 in Cape Town, South Africa. For the past nine years, AOW has been managed by international exhibition and conference company Hyve Group. Hyve will remain on board until after this year’s event – the 30th edition of AOW – to provide support for Sankofa. “Paul knows the event extremely well, believes concretely in AOW’s purpose, and has an excellent knowledge of the sector,” said Hyve Group CEO Mark Shashoua. “Hyve will support Paul over the coming months, to ensure continuity for the AOW community. We are fully committed to delivering another fantastic event.” Sinclair has deep networks across the global oil, gas and industry. He served as vice president: energy for Africa Oil Week from 2017 – 2023, and also helped to launch the Green Energy Africa Summit, which has subsequently become part of the consolidated AOW event. He reassured investors that the conference will continue to provide a dedicated, vitally important engagement and dealmaking space for oil and gas stakeholders – particularly upstream players – offering engagement activities and opportunities for governments. “We are excited about the growth possibilities of this powerful property,” said Sinclair. “AOW already adds significant value to the energy sector, facilitating deal flow, partnerships and business growth in the African oil and gas space, as well as supporting the energy transition. We look forward to growing that impact, for the benefit of all stakeholders in the industry.”     Source: https://energynewsafrica.com

OPEC+ Countries Extend Voluntary Cuts

Michael Creg Afful
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0
OPEC+ Countries Extend Voluntary Cuts
The OPEC+ countries, which previously announced additional voluntary cuts in April and November 2023 have emphasized their collective resolve to ensure full compliance with the voluntary production adjustments. The group includes Iraq Saudi Arabia, Russia, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman held a virtual meeting on September 5th, 2024. In August 2024, Saudi Arabia, Russia, the United Arab Emirates, Kuwait, Algeria, and Oman, conducted two ministerial discussions with Iraq and Kazakhstan. Both countries were urged to achieve full conformity and compensate for the overproduced volumes since January 2024. Iraq and Kazakhstan committed to engage with secondary sources to outline their plans for production adjustments to achieve compliance and meet the compensation schedules they submitted to the OPEC Secretariat on August 22nd. Iraq and Kazakhstan reinforced their commitment during the OPEC Secretary General’s visits in late August, conducted in coordination with Saudi Arabia’s Minister of Energy and the Chairman of the OPEC and non-OPEC Ministerial Meetings. During those visits, the OPEC Secretariat organized workshops with the secondary sources where both countries provided extensive details on the immediate and concrete measures they are implementing to achieve full conformity with the required production levels and to meet their compensation schedules for August and for September. These measures included advancing field maintenance plans and reducing production alongside with delaying and canceling spot sales for the month of August. Moreover, the countries committed to adjust compensation plans for any over produced volumes in August. In recognition of this strengthened resolve and renewed firm commitment, the eight participating countries have agreed to extend their additional voluntary production cuts of 2.2 million barrels per day for two months until the end of November 2024, after which these cuts will be gradually phased out on a monthly basis starting December 1st, 2024, according to the attached schedule, with the flexibility to pause or reverse the adjustments as necessary. The overproducing countries also reconfirmed their commitment that the entire overproduced volume will be fully compensated for by September 2025.     Source: https://energynewsafrica.com

Kenya: Kenya Power Restores Power Supply In Parts Of Kenya After Outage On Friday Morning

Michael Creg Afful
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Kenya: Kenya Power Restores Power Supply In Parts Of Kenya After Outage On Friday Morning
Kenya’s power utility company, Kenya power has announced restoration of power supply to some parts of the country that experienced power outage on Friday morning. At about 9:20 am on Friday, Kenya Power in a statement informed the country that it was experiencing power outage affecting several parts of the country, except sections of North Rift and Western Regions. However, in an update issued at about 11:55 a.m., the company said it has restored power supply to parts of North Rift, Western, Central Rift, Nairobi and Mt. Kenya. The company apologized to Kenyans, especially those in the affected areas for the inconveniences caused by the outage. It appealed to residents in areas that are experiencing outage to exercise patience as work is ongoing to restore power supply to them.   Source: https://energynewsafrica.com

Ghana: Fuel Prices Fall For The Third Time

Michael Creg Afful
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Ghana: Fuel Prices Fall For The Third Time
Oil Marketing Companies in the Republic of Ghana have reduced the pump prices of both petrol and diesel for the first pricing window of September, which runs from the 1st to the 15th of September 2024. This is the third conservative time that fuel prices have been reduced as a result of the decline in the prices of refined petroleum products on the international market. A litre of petrol sells between Gh¢13.31 and Gh¢14.35 per litre, while diesel sells between Gh¢13.57 and Gh¢14.70 per litre. Unlike other parts of Africa where fuel prices are reviewed every month, in Ghana, fuel prices are reviewed every two weeks. The reduction in fuel prices is a result of a reduction in refined petroleum products on the international market. Forex (exchange rate) which is also one key determinant of cost ex-pump price of fuel has also seen some stabilisation, with a dollar being exchanged for Gh¢15.73 Data from the National Petroleum Authority, the petroleum downstream regulator, showed that the price of refined petroleum products -petrol and diesel went down. NPA’s estimates showed that petrol price decreased to US$779.10 from US$794.58 per metric tonne while diesel price decreased to Gh¢712.88 from US$720.20 per metric tonne for the second pricing window of August 31. Crude oil prices also witnessed some decreases during the second window of August, with Brent falling from $84 to $ 79 per barrel and WTI falling from $75 to $73 per barrel. Currently, GOIL is selling petrol (Ron 91) at Gh¢14.16 per litre while petrol (Ron 95) is sold at Gh¢15.66, with diesel being sold at Gh¢14.99 per litre. Shell is selling petrol at Gh¢14.35 per litre while diesel is sold at Gh¢14.70 per litre. TotalEnergies is selling petrol at Gh¢14.25 while diesel is sold at Gh¢14.70 per litre. Star Oil is selling petrol at Gh¢13.31 per litre while diesel is sold at Gh¢13.57 per litre. Petrosol Ghana is selling petrol at Gh¢13.95 while diesel is sold at Gh¢14.55 per litre. Zen Petroleum is selling petrol at Gh¢13. 31per litre while diesel is sold at Gh¢13.57per litre. Lucky Oil is selling petrol at Gh¢13.31 per litre while diesel is sold at Gh¢13.57 per litre. Allied is selling petrol at Gh¢13.31 while diesel is sold at Gh¢13.57 per litre. Pacific is selling petrol at Gh¢14.39 per litre while diesel is sold at Gh¢14.79 per litre. Engen Ghana is selling petrol at Gh¢14.10 while diesel is sold at Gh¢14.60 per litre. Benab is selling petrol at Gh¢13.31 while diesel is sold at Gh¢13.57 per litre.     Source: https://energynewsafrica.com

Nigeria: SCADA System Will Be Operational In Q4, 2024–TCN

Michael Creg Afful
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Nigeria: SCADA System Will Be Operational In Q4, 2024–TCN
Nigeria’s power transmission company (TCN) has assured its customers that the Supervisory Control and Data Acquisition (SCADA) system that will effectively monitor and control field devices will be operational in the fourth quarter of 2024. SCADA systems are used for controlling, monitoring and analysing industrial devices and processes. Speaking to the press at the weekend, Sule Abdulaziz, the Managing Director of TCN, said the SCADA implementation had reached about 60 per cent completion and is expected to be completed by the last quarter of 2024. He said that all the machinery offshore had been shipped into the country, adding that engineering and design works were ongoing, as reviews and modifications were being made continuously as the equipment was being installed. “About 70 per cent of the equipment has been delivered to various sites and mounted in the substations’ control rooms across the country.” He also said that configuration, integration and interconnection of these pieces of equipment commenced in July. “By middle of July, part of the grid was seen on the new SCADA system and this will be continuously expanded to other parts of the network. “TCN has done a lot in terms of revamping transmission equipment nationwide; several sub-stations have been expanded, new transformers have been installed, others upgraded, and transmission lines projects have equally been executed. “All these have contributed to increasing TCN’s wheeling capacity to 8100 Megawatts (MW) as of today,” he said. Abdulaziz said that the diligent implementation of the Nigerian Electricity Grid Maintenance, Expansion and Rehabilitation Programme (NEGMERP) had fast-tracked transmission infrastructure in the country. He said that there had been milestone achievements in grid efficiency, maintenance, rehabilitation, equipment procurement and expansion. “We have successfully completed several transmission substations across the country, which has enhanced the capacity and efficiency of the power transmission network. “We initiated the re-conducting of aged and de-rated capacity 132 Kilo Volt (KV) lines, and have also built new ones including 330kV transmission lines which have improved the reliability and capacity of the transmission system. “Most aged transformers have been replaced with new ones, and the capacities of existing ones have been upgraded, resulting in improved system performance and efficiency. “The company places strong emphasis on maintaining equipment and infrastructure through proactive maintenance practices and timely procurement of necessary spare parts.” Abdulaziz said that the commitment had helped prevent disruptions, enhanced system performance, and reinforced TCN’s reputation as a dependable transmission system provider. “In the last one year under President Bola Tinubu’s administration, TCN has witnessed outstanding successes in all aspects of transmission projects, including initiation, scoping, construction, network operations and maintenance. “These, among other achievements, have had a transformative impact on the country’s power transmission infrastructure nationwide. “It has consequently improved reliability, efficiency, and capacity, thereby, laying a more solid foundation for the country’s economic development and growth,” he said.     Source: https://energynewsafrica.com

Nigeria: Gridlock In Nigeria Amid Fuel Shortages And Price Hikes

Michael Creg Afful
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Nigeria: Gridlock In Nigeria Amid Fuel Shortages And Price Hikes
Nigerians have been hit by a double whammy of chronic fuel shortages and a hike in prices by the state-owned oil company. The Nigerian National Petroleum Corporation (NNPC), which imports the country’s fuel and distributes it to private sellers, blamed its debts and rising global prices for its difficulty in getting fuel. Many people have been left stranded with long queues at petrol stations nationwide. Commuters in Lagos have been lining up at bus stations, but there very few buses operating. A report by the BBC quoted a section of Nigerians expressing their frustration of trekking long distances as public transport prices have doubled along some routes. On Tuesday, the NNPC said it was putting up the petrol price from 617 naira ($0.40, £0.30) to 897 naira a litre. Its petrol stations have the cheapest fuel on sale in the country – but at the vast majority of other private garages the pump price is much higher. When the NNPC puts up the price, so do private sellers and in some states, like Oyo, Kano and Kaduna, petrol is now selling for as much as 1,200 naira a litre. Many garages around the country have shut because they have run out of fuel, others have closed to adjust their prices. In the capital, Abuja, most are open but all have long queues as desperate drivers wait their turn – some slept in their cars overnight. Fuel stations are not rationing supply, so there is a danger their wait will be futile. A motorcycle rider in Kano, the main trading hub of northern Nigeria, said it was frustrating: “Most of the fuel stations here in Kano are closed because they want to adjust their pumps to the new price. “I was able to get fuel at 950 naira at a particular station, but other places have already started selling at 1,200 per litre,” Aminu Danyaro told the BBC. Black-market traders, who buy fuel from petrol stations and sell it by the roadside from jerrycans at inflated prices, are doing a brisk trade in Kano, where there is significantly less traffic than usual. The Nigeria Labour Congress (NLC) – the country’s main trade union body – says it feels “betrayed”, explaining that the reason it accepted the new minimum monthly wage of 70,000 naira ($44, £34) in July was because there was an agreement with the government that petrol price would not be increased. When President Bola Tinubu came to power last year, he shocked Nigerians on his first day by removing a subsidy that kept the price of fuel low. This – amongst other policies – has led to the worst economic crisis in a generation and cost-of-living protests, dubbed “10 days of rage”, were held countrywide last month. Nigerians are now pinning their hopes on the new privately owned Dangote Petroleum Refinery, which has been built by one of Africa’s richest man, Aliko Dangote. On Monday, it was announced with great fanfare that the refinery had just started producing petrol – a milestone in Nigeria which despite being Africa’s largest producer of crude oil imports all its refined fuel. But it is not clear how long Nigerians will have to wait to see ready availability of petrol or a drop in prices.     Source: https://energynewsafrica.com

Uganda: AEC Condemns CRI’s Campaign To Block Uganda Oil Project

Michael Creg Afful
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Uganda: AEC Condemns CRI’s Campaign To Block Uganda Oil Project
The African Energy Chamber (AEC) has expressed strong opposition to the Climate Rights International(CRI) – an organization fixated on perpetuating global energy poverty – in its efforts to prevent financial institutions and insurers from providing support to Uganda’s energy industry. With an electrification rate of less than 60% in urban areas and less than 20% in rural areas, Uganda should be allowed every right to tap into its 1.4 billion barrels of recoverable oil reserves and half-trillion cubic feet of proven natural gas reserves to ensure economic growth and social development in the country. Fixated on disseminating energy poverty in Uganda, CRI Executive Director Brad Adams has called on the international community to divest in the development of the country’s Kingfisher oil field. Due to be commissioned in 2025, the project, which has created more than 1,500 local employment opportunities, is poised to become the first commercial oil field in Uganda. The field is estimated to hold 560 million barrels of oil and demonstrates the potential to bring untold benefits to the country and her people. Determined to improve the landscape of the African energy sector, the AEC has been to Uganda. The Chamber has spoken with investors in the project and the communities of Uganda, who are wholehearted in their support for this crucial project. Yet, despite Uganda’s dedication to leveraging its resources to ensure reliable oil and gas supplies to meet local demand, a lack of investment in production and infrastructure development as a result of interference from developed nations has resulted in a stagnant market for the country. Growing international pressure for the world to transition to renewable energy on the terms of the Global North is crippling energy progress in Africa. As Ugandans struggle to keep the lights on, to keep their families fed and healthy, average monthly U.S. crude oil production established a monthly record high of more than 13.3 million barrels per day (bpd) in December 2023. Meanwhile U.S. natural gas production continues to grow, reaching an average of nearly 100 billion cubic feet per day just a couple years ago. In Norway, the country reached an average daily gas output of roughly 11.4 billion cubic feet while daily oil production showed over 2 million barrels. The UK uses half a million tons of coal for energy production while Germany clocks in at the fourth largest consumer in the world with 257 million tons. And there are no signs of slowing. In a 156-page report published this month, CRI said it documented widespread human rights abuses and environmental damage at the Kingfisher site in eastern Uganda. As a result of these insinuations, the CRI has called on all financial institutions and insurers to cease all support for the project, bringing untold harm to dozens of communities and millions of people in the country. Having visited the project on a number of occasions, the Chamber wholeheartedly denies these unfounded accusations of abuse and instead bids the CRI to beckon the U.S. and Norway to stop producing. To stop the UK and Germany from burning coal. Instead of beckoning Uganda to halt its development, perhaps Adams should ask Norway and Germany to cancel their gas deal rather than fixating on keeping Uganda poor. “The time for Uganda to exploit its immensely valuable resources is now. Africa will not give in to international coercion to prevent the continent from energizing and bringing wealth to its people. “Africa will not succumb to pressure to adhere to the energy transition on anyone else’s terms. “We know what is good for African energy and we will do everything in our power to ensure that the continent’s resources benefit her people,” states AEC Executive Chairman NJ Ayuk. The AEC is determined to improve the landscape of the African energy sector and explore the continent’s full potential in a way where our people benefit first. The AEC collaborates with African and international partners across the government and private sector spectrum in all areas of the energy industry, and the Chamber is unremittent in its passion to drive energy development throughout the continent     Source: https://energynewsafrica.com
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