Nigeria: World Bank To Support Nigeria’s Electrification Project With $750 Million

The World Bank has announced plans to commit an additional US$750 million to increase Nigerians’ access to electricity through the Nigeria Electrification Project (NEP), according to a report by the new telegraph.

The report said the World Bank’s Director of Strategy and Operations for the Western Central African Region made this known while inspecting the 60 KiloWatts Mini-Grid Project in Kilankwa Community, Kwali Area Council of Abuja.

“This is the first national electrification project we see at work here, about $350 million is coming to a close, and we are preparing a successor project that will be $750 million.

“We are extending our support to something that we think is critical and Nigeria is leading the world in small grid development,” Ms Elizabeth Huybens said as carried by new telegraph.

The Kilankwa project would assist the country in providing access to electricity to more people faster than it could have done by just extending the national grid.

“So, I am very impressed that the grids in small communities work and there is also the foresight to think about how one can fully optimise the use of the electricity generated to expand productive activities.

“Like the rice mill that we have just seen, I hope that in the future, we will see a lot more of that,” she said.

She added that the project was considered because the bank believed that access to electricity by all was one of the most important goals to pursue by any country.

According to her, without electricity, it is hard to think about how communities can live, adding that kids cannot study at night.

“We cannot move toward electric vehicles if we don’t have electricity. You cannot even charge your cell phone without electricity.

“So, it is hard for me to think about modern life without electricity and it is hard for me to think about reducing poverty without access to electricity.

”And since the World Bank’s overarching goal is to help countries eradicate poverty, we need to help them provide access to electricity for its population,’’ Huybens said.

The Managing Director of REA, Mr Ahmad Salihijo said that the project was currently serving about 300 households and businesses.

Salihijo said that the project was developed by the World Bank under the Performance-Based Grant of NEP.

“This has been operational for some time now. So, we are privileged to have come here with the World Bank team to see how it is performing.

“We are working on ensuring productive use and also make sure that we have energy-efficient equipment connected to the mini-grid,” he said.

Yabo said that the project had assisted him to reduce the cost of diesel to run his business and enabled him to make more profit.

Kenya: Transparent And  Cost Reflective Tariffs Essential For Investment In Energy Sector—PURC Boss

The Executive Secretary of Ghana’s economic and regulator for electricity and water, Public Utilities Regulatory Commission (PURC), Dr Ishmael Ackah, has tasked African governments to use tariff setting as a guarantee for investment to attract investors into the continent’s energy value chain. According to him, investors can only invest in economically viable ventures, so as the economic regulator of electricity in Ghana, they have adopted what he called a cost reflective and transparent tariff regime to ensure that investors recover their investment. He added that the Commission undertakes quarterly adjustment tariff mechanism which is driven by inflation and interest rates to offer the investor community and consumers the opportunity to assess what goes on in the sector. Dr Ackah was speaking on the topic: ‘Charting a course for Equitable Energy Transitions on the Continent,’ at the just ended 25th Africa Energy Forum in Nairobi, Kenya. Dr Ackah said his outfit has ensured that renewable energy sources are run adding that their prices are passed through to protect investments and ensure customers get better service. “We have implemented several reforms and one of them is the passage of guidelines for the energy sector. This is to ensure that consumers get access to net meters to help them have solar panels and sell some to the national grid when they get excess power. “All these will help facilitate Ghana’s energy transition agenda,” he stated. Dr. Ackah said the Commission uses postage stamp tariff to cushion power consumers in the rural to help accelerate socio-economic development in those deprived areas. He encouraged minigrid and offgrid to meet Ghana’s 13 percent population without access to electricity. Answering a question about how Ghana is helping women who constitute the majority of the population in the energy value chain, Dr. Ackah noted that women mostly use biomass for cooking stressing that it has health implications too. He intimated that Ghana’s supply of sustainable energy like solar, LPG and other clean fuels would preserve women’s health and save their time. The PURC boss also said that governments in Africa ought to intensify the supply of off-grid solutions to help small businesses like hairdressing and small shops to trigger economic development in rural communities.    

Source: https://energynewsafrica.com

Ghana: Bui Power Authority Grabs Six HESS Awards

Ghana’s state-owned second largest power generation, Bui Power Authority (BPA), last Friday, received six awards at the Health, Environment, Safety and Security (HESS) Awards ceremony in Accra, the capital of Ghana. They are the Sustainability & Operational Excellence Award, Best Company in Fire Safety & Security Management Practices, HESS Team of the Year 2023 and HESS Company of the Year 2023. The rest are HESS Personality of the Year 2023 which went to Mr. Chrisentus B. Kuunifaa, Deputy Director for Occupational Health, Safety and Environment and HESS Leadership in Sustainability & Environmental Stewardship Award which went to Hon. Samuel Kofi Dzamesi, CEO of Bui Power Authority. The HESS Award is an annual event designed to identify and publicly recognise companies and individuals for their exceptional performance, leadership and innovations focused on the Health, Safety and Security of employees and stakeholders as well as the protection of the environment. Speaking on behalf of the CEO, after receiving the various awards, Mr Chrisentus Kuunifaa stated that the awards are a testament to the Authority’s leadership and commitment to HESS issues in all spheres of their operations. “Winning six enviable awards in an awarding scheme that recognises the efforts of organisations in prioritising health, safety, security and environmental issues is something Bui Power Authority is most proud of. This is a validation of all the good work we do to ensure a safe working environment for all our employees and stakeholders. We wish to express our appreciation to the organisers for this enormous recognition. I do not doubt that these awards will spur us to do better than we already have,” he said.     Source: https://energynewsafrica.com

Ghana: Petroleum Tanker Drivers Call Off Strike

Petroleum tanker drivers in the Republic of Ghana have called off their sit-down strike and resumed work today, Friday, June 30, 2023, energynewsafrica.com.can report. This follows a meeting with the Roads and Highway Minister, Kwesi Amoako-Attah, and Minister for Transport, Kwesi Ofori Asiamah, in Tema on Thursday. The bulk vehicle drivers declared a sit-down strike on Monday to protest the deplorable state of roads that link fuel depots in Tema, Kumasi, Takoradi and Buipe. The drivers, under the aegis of the Ghana National Petroleum Tanker Drivers’ Union, accused the Roads and Highway Minister of neglecting his duty to ensure that the area, which generates substantial amounts of revenue for the state, had an improved road network. Speaking to energnewsafrica.com, the Vice Chairman of the Ghana National Petroleum Tanker Drivers’ Union, Sunday Alabi said the contractor who was working on the road but left returned to the site on Monday and had since been working to level the road to make it accessible. He said the Minister indicated that the road was part of the concrete roads the Akufo-Addo administration was executing in the country and, therefore, the contractor would just level it and make it accessible while they take their time to work to complete it. A joint committee comprising seven members—three from the Ministry of Roads and Highways and four from the union—has been set up to monitor the progress of works in Tema, Kumasi, Takoradi and Buipe. The Roads and Highway Minister, Amoako-Attah assured the drivers that either he or his Deputy would be at the site once a week to inspect the progress of work on the road. Giving those words, he said, “Please do the work as is required of you. “The country belongs to all of us. There is a problem and it must be resolved. So, we need to be patient and address it the right way. So let us work together.”     Source: https://energynewsafrica.com

Ghana: ECG Tema Region Decries Encroachment Of Its Facilities

The Tema Region of the Electricity Company of Ghana (ECG) has decried the continuous putting up of structures within its utility corridor, a situation which poses danger to lives and properties. The General Manager of the Region, Ing Ankomah Emmanuel who made this known during a press briefing said, “The encroaching is done mainly by ‘chop bar’ operators, fitting shops and all sorts of businesses including the use of metal containers for businesses such as salons, barbershops and provision shops.” He noted that the encroachers put these structures up in the utility corridors as well as near transformers, substations and overhead cables, a situation that sometimes impedes repair works. Ing Ankomah added that “this situation has become rather too rampant within the entire Tema Region which spans from Nungua, Tema, Afienya, Lower Manya Krobo, Yilo Krobo, Prampram, Ningo, Sege, Ada, Sokpoe, Juapong and surrounding areas,” adding that “the situation is present in all districts under the Tema Region.” The Tema Region operates within three Regions of the country namely Greater Accra, Eastern and Volta. Ing Ankomah appealed to the members of the public involved in such activities to take precautions and stop citing their businesses near their utility corridors to avert the possible danger of loss of lives and property. He appealed to the relevant state agencies in the various jurisdictions to take up this issue to ensure that the utility corridors would remain free from such activities.       Source: https://energynewsafrica.com

Boosting Africa’s Energy Transition – Initiatives, Funding And Investment (Article)

By: Kieran Whyte & Co Forty-three per cent of Africa’s population does not have access to electricity, mostly in sub-Saharan Africa, according to a recent report by the International Energy Agency. Increasing access to a clean, decarbonized, decentralised energy supply is therefore critical for the continent. The growing focus on energy transition can benefit Africa in numerous ways, including that the continent is already in the process of harnessing its vast supply of renewable energy to generate power, and is also gearing up to increase trade in its large store of critical minerals, needed for the global energy transition. To enable this transition, countries across Africa are implementing policy that takes into account the energy crisis and the need for a renewable energy supply that addresses climate change and the commitments made under the Paris Agreement. In addition, many countries in Africa, and other jurisdictions, are launching initiatives and providing funding, investments and grants for African renewable energy projects. Funding And Grants Countries in Africa and around the world have all recently reaffirmed their commitment to impact-building and strategic, long-term projects that benefit energy transition and promote economic stability in Africa. For example:
  • In May 2023, the Africa Finance Corporation and Japan Bank for International Cooperation (JBIC), signed a Memorandum of Understanding to collaborate on infrastructure projects that accelerate energy transition in Africa.
  • In January 2023, Team Europe (the European Union and its member states) launched the Just and Green Recovery Team Europe Initiative for South Africa, as part of its Global Gateway programme. The initiative includes funding of more than EUR 280 million in the form of grants, which will be directed towards supporting policy reforms on green recovery, unlocking green investments and building a knowledge-based transition in South Africa.
  • In 2022, the G7 countries announced that a USD 600 billion lending initiative, the Partnership for Global Infrastructure Initiative (PGII) would be launched to fund sustainable infrastructure projects in developing countries, with a particular focus on Africa.
  • Also in 2022, the US announced it was mobilising USD 200 billion for developing countries over the next five years as part of the PGII. This funding will be in the form of grants, financing and private sector investments. One of the priority pillars of this funding will be “tackling the climate crisis and bolstering global energy security”. Some deals have already been announced, including a USD 2 billion solar energy project in Angola.
  • Power Africa, a US government-led programme that focuses on addressing Africa’s access to electrical power, has also provided significant support for energy transition. In its 2022 Annual Report, Power Africa noted that one of its achievements had been to successfully deliver first-time and improved electricity access to 37.7 million people in Africa through 7.6 million new on- and off-grid connections to homes and businesses in 2022.
  • In February 2022, the European Commission announced investment funding for Africa worth EUR 150 billion. The funding package is part of the EU Global Gateway Investment Scheme and is said to be in the form of EU combined member funds, member state investments and capital from investment banks. In 2020, the European Commission published its Comprehensive Strategy with Africa, outlining the region’s plans for its new, stronger relationship with the continent. Some of the key focal points in this strategy were assisting the continent with green transition and improving access to clean energy.
  • China and Africa have also recently agreed to work together on improving Africa’s capacity for green, low-carbon and sustainable development. At the 2021 Forum on China-Africa Cooperation, green development was one of nine programmes identified as part of the China-Africa Cooperation Vision 2035.
  • The UAE has also moved to establish mutually beneficial initiatives in the energy sector in Africa. As the fourth largest investor on the continent, the UAE has made significant investments across Africa in energy and infrastructure projects, which benefit the continent but also assist the UAE to advance its own development agenda. Furthermore, the UAE’s expertise in oil and gas can has also assisted African countries to advance their own gas to power agendas. For example, there have been recent investments in LNG projects in Mozambique, Nigeria, Senegal and Mauritania. The commitment to developing ongoing, sustainable trade is also demonstrated by recent diplomatic and policy-driven decisions. The UAE and Kenya recently issued a joint statement announcing their intention to negotiate a comprehensive economic partnership agreement (CEPA), which will increase non-oil bilateral trade between the UAE and Kenya, which rose to USD 2.3 billion last year.
  • Many new cross-regional energy transition initiatives have recently been announced. The Africa Carbon Markets Initiative (ACMI) was launched at COP 27 with the goal of substantially expanding Africa’s participation in voluntary carbon markets. The ACMI is aiming for the production of 300 million credits annually in Africa by 2030 and 1.5 billion credits annually by 2050. It noted these targets would provide much needed financing for energy transition in Africa. Many African countries, including Gabon, Kenya, Malawi, Nigeria and Togo supported the initiative.
  • Egypt launched, under the leadership of its COP27 presidency, the Africa Just and Affordable Energy Transition Initiative, which will identify local strategies and energy mixes needed to steer African countries away from reliance on fossil fuels. The implementation of clean energy transition cannot be the same globally. The initiative aims to meet the universal access by 2030 and energy demands of Agenda 2063 for the African continent and, among other means, includes consolidating and facilitating technical and policy support. It was also recently announced that Egypt is set to achieve its goal of supplying 42 % of the country’s energy requirements through renewable energy by 2035.
  • At COP 26 in November 2021, the EU and the governments of France, Germany, the UK and the US pledged USD 8.5 billion in first round financing to assist South Africa with energy transition projects as part of the Just Energy Transition Partnership (JETP). During COP 27, President Cyril Ramaphosa launched the new Just Energy Transition Investment Plan, which outlined the investments required to achieve the South Africa’s decarbonization commitments, while promoting sustainable development, and ensuring a just transition. The plan identifies USD 98 billion in financial requirements over the next five years, from both the public and private sectors. Discussions are also underway to establish a similar partnership in Sénégal.
  • Nigeria’s Environment Minister Mohammed Abdullahi said at COP 27 that Nigeria wanted the support of a JETP with the G7. He said that the country needed significant resources to implement its energy transition, noting a USD 10 billion per year financing requirement to meet its 2060 net zero target.
  • Kenya’s President William Ruto announced recently that Kenya had signed a framework agreement to produce an initial target of 300 MW of green hydrogen in the country.
  • Tanzanian President Samia Suluhu Hassan presented a USD 18 billion energy transition proposal covering 12 southern African countries that are connected via the Southern African Power Pool. The proposal is to increase renewable energy generation (solar and wind) by around 8.4 GW. The 12 countries are Angola, Botswana, Democratic Republic of the Congo, Eswatini, Lesotho, Mozambique, Malawi, Namibia, South Africa, Tanzania, Zambia, and Zimbabwe.
  • Multilateral and development finance institutions (DFIs) have been important allies in developing and mobilizing funding in Africa’s renewable energy sector. They have provided funding for projects, but they have also structured successful programmes to address potential risks. For example, the Sustainable Energy Fund for Africa (SEFA), a multi-donor Special Fund managed by the African Development Bank, provides catalytic finance to unlock private sector investment in renewable energy and energy efficiency.
Investment Access to power on the continent has been hampered by the lack of access to competitive funding, the dire state of Africa’s utilities infrastructure, and the need for energy policy and legislation to be adapted to boost investment. However, new systems and networks are now being designed around future environmental stressors and energy demands, without having to consider the limitations of old infrastructure. With the use of mobile technology and the lack of existing electricity transmission networks, these developments are now providing an opportunity for African communities to gain access to power by leapfrogging the traditional model of centralized generation and transmission of power. New and cost-effective solutions that utilize renewable energy, green hydrogen, battery storage and smart power technologies, as well as the global drive towards a secure energy supply that addresses climate change and stimulates economic growth, are all leading to innovative private equity (PE) and M&A investment opportunities. For example, PE funds in South Africa are investing in the country’s energy transition by backing the independent power producers that supply renewable energy to South Africa’s power grid, as well as ancillary companies in the clean energy sector. However, according to Bloomberg, clean energy investment in Africa is concentrated in a handful of markets – South Africa, Egypt, Morocco, and Kenya. These countries were the recipients of three-quarters of all renewable energy asset investments, totalling USD 46 billion, in the continent since 2010. It is hoped that the many initiatives that focus on boosting access to renewable energy in Africa will result in a whole continent approach, switching on access to power for the forty-three percent of the African population who are not yet benefitting from the region’s renewable resources.     By: Kieran Whyte and Angela Simpson, Partners, Johannesburg; Lamyaa Gadelhak, Partner, Helmy, Hamza & Partners, Baker McKenzie Cairo; Adnan Doha, Partner, Baker McKenzie Dubai; and Matthew Martin, Foreign Legal Specialist, Baker McKenzie North America.

Nigeria: Buhari Deliberately Delayed Fuel Subsidy Removal To Allow Tinubu, APC To Win Election-Garba Shehu

Nigeria’s immediate past President Muhammadu Buhari says his administration deliberately delayed the implementation of the policy seeking to remove fuel subsidies to ensure that All Progressives Congress (APC), led by Bola Ahmed Tinubu, won the last general polls.

According to him, if he had removed the fuel subsidy ahead of the general elections, his party and Bola Ahmed Tinubu would have been defeated during the polls.

“We must be politically honest with ourselves. The Buhari administration, in its last days, could not have gone the whole way because the APC had an election to win. And that would have been the case with any political party that was seeking election for another term with a new principal at its head.

“Poll after polls showed that the party would have been thrown out of office if the decision as envisaged by the new Petroleum Industry Act was made,’’ said Garba Shehu, Buhari’s erstwhile spokesman in a statement in response to concerns by some Nigerians that it has taken Tinubu, who is in office for few days to implement removal of fuel subsidies.

“The decision to remove subsidies, as in our case—and we believe in all situations—was not for the President to take all by himself.

“That’s why it’s important to remind ourselves and all those who have conveniently forgotten that the Buhari administration had been on this pathway from the very beginning in 2015.

“Removing subsidies for the Naira and PMS was cued and put on hold. Look at, for example, the Petroleum Industry Act…the important decision was kept for a better time.

“It could not have come at a time when tensions were high in the country and no responsible leader would have added fuel to the fire.

“In the view of many Including those in the security circles, only a new administration with goodwill that fills a warehouse can attempt this, and here now comes in the wit and grit of the Tinubu government,’’ Garba Shehu stated.

 

 

 

 

Source: https://energynewsafrica.com

UK Could Be Starved Of Energy, Says North Sea Boss

The UK is at risk of being “starved” of North Sea energy leaving it reliant on imports, a major oil and gas producer has told the BBC. Ithaca Energy said Labour’s pledge to ban new oil and gas exploration in the North Sea and current taxation policy was “spooking” investors. Ithaca is almost entirely invested in North Sea oil and gas. Environmental groups say any new oil and gas fields in the region would take the UK over its carbon budget limits. Last week, Labour leader Sir Keir Starmer said a Labour government would not grant licences to explore new fields in the North Sea, saying it would be an “historic mistake” to wait until UK oil and gas runs out. But Gilad Myerson, executive chairman of Ithaca, said the move would threaten the UK’s energy security. “By a new government imagining they’ll be able to stop licences and oil development in the UK, ultimately what that means is that they’ll be starving the UK of energy, and it will become very dependent on energy from abroad,” he said. North Sea oil and gas is traded on international markets and the prices are set globally, but Mr. Myerson insists much of it is used domestically, and it therefore has a lower carbon footprint than energy imported from abroad. “Most of the hydrocarbons in the UK are developed and are produced for the UK market. Some of the oil will go to refineries abroad, but will ultimately make its way back to the UK,” he said. A Labour spokesperson said that while the party would not issue any new licences, it would “continue to use existing fields in the North Sea for decades to come”. “The best way to bring down bills, increase our security and sovereignty, and create good jobs is to get on with a sprint for clean energy and we welcome all businesses being part of that.” Ithaca, which has stakes in six of the 10 largest oil and gas fields in the North Sea, is also worried about the current government’s approach to taxation. Last May, the government introduced a windfall tax on energy company profits, known as the Energy Profits Levy. It was set at 25%, but was later increased to 35% in the Autumn Statement, taking the overall tax rate on companies in the sector to 75%. Earlier this month, the Treasury announced the windfall tax would stay in place until 2028 but would be scrapped if oil and gas prices fell closer to historical levels for a sustained period. But Mr Myerson said the chances of oil and gas prices falling sufficiently to trigger the elimination of the tax were “extremely low” as supply and demand had changed after the Russian invasion of Ukraine.   Source: BBC

Ghana: Petroleum Tanker Drivers Declare Sit Down Over Bad Roads Linking Fuel Depots

Petroleum tanker drivers in the Republic of Ghana, on Monday, declared a sit-down strike to protest the deplorable state of roads that link fuel depots in Tema, Kumasi, Takoradi and Buipe. The tanker drivers, under the aegis of the Ghana National Petroleum Tanker Drivers’ Union, said they would not move their trucks to any of the depots to load fuel until Ghanaian authorities fix the bad state of their roads. National Chairman of the Union, George Teye Nyaunu, who led the drivers and a section of Ghanaian journalists to inspect the poor state of the road from the Tema Oil Refinery to Kpone-Katamanso township, said they are pained that the government has abandoned the area which has been contributing huge revenue to the state and rather fixing roads in areas where the country does not generate much revenue. He told the journalists that President Akufo-Addo instructed the Roads and Highways Minister to ensure that the road was fixed as far back as 2017, but said the Minister has failed to live up to the expectation. He recalled that a sod was cut before the 2020 general elections but said immediately after the elections, the road was abandoned. “If, indeed, the Roads and Highways Minister is serious or is concerned about petroleum products or concerned about Ghanaians, this road should have been a burden to him. “I have nothing against the President because, from 2017, he instructed the Roads Minister to do this road. So, I can see a bad nut. The Minister is a bad nut,” Mr Nyaunu said. The road was virtually empty when a section of the journalists visited the TOR-Kpone stretch of the road where several petroleum depots are dotted around. On a working day like Monday, the road would have been very busy, but all the depots closed their gates, thereby, making the road virtually empty except for taxis that managed to ply the torn road to Kpone. Sections of the road had developed deep holes and collected rainwater, making it difficult for tankers to ply the road.             Source: https://energynewsafrica.com

Kenya: Africa Must Develop Its Geothermal Energy Resources—KenGen Chairman

Africa has been urged to take full advantage of the geothermal energy resources in the continent to fast-track the continent’s energy requirements. The Chairman of Kenya Electricity Generation Company (KenGen), Julius Migos Ogamba, made the call at the just ended 25th Africa Energy Forum in Nairobi, Kenya. He noted that energy efficiency, cost-effectiveness in the sector and cleanliness of geothermal energy offer Africa the unique opportunity to embrace this renewable energy to save the continent from her fast-degrading environment. The conference, which is hosting 4,000 delegates across Africa and other parts of the world, creates the environment for participants to share their views on how to foster swift, prudent, practical and innovative suggestions in the continent’s desire to access cheap, reliable and sustainable energy for its people. “For Kenya, this forum will provide us the opportunity to engage like-minded participants in clean energy generation, sustainable financing and innovative strategies to be employed in the sector for enhanced delivery,” Julius Migos Ogamba observed. According to him, the platform also gives them the chance to strike investment partnerships in the sector to drive the area in Kenya particularly and Africa in general. Concerning best governance cultural practices, the KenGen Chairman stressed that they adhere to the latest virtues in the industry and hopes to even deepen such practices to ensure that Africa’s future energy generations do not suffer from any negative environmental norms. Africa has a huge geothermal potential, particularly in the Rift Valley, which extends from the Horn of Africa to Malawi. The geothermal potential capacity for eastern Africa is more than 20 Gigawatts. High geothermal power potential is located in eastern African countries such as Eritrea, Ethiopia, Kenya, Uganda and Zambia. The potential for geothermal energy in East Rift System countries is estimated at  over 15,000megawatts. Kenya’s Cabinet Secretary for Energy and Petroleum, Davis Chirchir said they have been able to provide over 76 per cent of the people in the East African nation with electricity and hope to increase it further by the end of this year. He emphasised that Kenya has vast land resources and that getting access to geothermal was easy, assuring all that reliance on traditional sources of fuel and its negative impact on the environment could be further reduced if they keep to geothermal and other renewable sources of energy. Honourable Chirchir also urged participants to share their experiences and ideas to help Africa to deal with Africa’s environmental degradation, help to make energy cheap and also leverage their resources to take solutions for energy problems facing the continent.       Source: https://energynewsafrica.com

Ghana: Independent Power Producers Serve Final Shutdown Notice To Government

Independent Power Generators, Ghana, formerly Chamber of Independent Power Producers, Bulk Distributors and Consumers (CiPDiB), have reminded the government to honour their request by paying 30 per cent of the US$1.6 billion outstanding arrears to avoid a total shutdown of their power plants from July 1, 2023. The group warned that failure on the part of the government to settle the said amount will not guarantee continued power supply to the national grid. The group communicated this in a letter to the Minister for Finance on Thursday, stating that they are now unable to persuade their creditors, contractors and other essential stakeholders to further withhold payment and maintain operations. “We had indicated in our letters that IPPs needed to receive an interim payment of 30% of the outstanding arrears of each IPP by 20th June 2023. Unfortunately, we have not seen any good faith indication or commitment of such impending payment from ECG/Government as of today, June 21, 2023, despite the Electricity Company of Ghana’s recent collection efforts, as reported in the media, which yielded circa ¢3.1 billion,” the group said in a letter sighted by energynewsafrica.com. The group, which controls more than 50 per cent of the power generation in West Africa, urged the government to resolve its debt to them as soon as possible. According to them, the Electricity Company of Ghana (ECG) owed them around $1.4 billion as of May.    Because of the debt, the IPPs lacked working cash to finance inputs such as chemicals for cleaning water for the thermal generators and other supplies, many of which were priced in foreign currency, primarily the US dollar. They claimed they owed banks, and some had to make repayments this month but had to pay a penalty for defaulting, stating that they have been suffering in silence due to rising debts. “We refer to our letters dated March 27, 2023, and May 25, 2023, with reference numbers IPGG/1/2023 and IPGG/2/2023 addressed to the Minister [Finance] by which the IPP Chamber stressed the urgent necessity for the government to prioritise payment of the outstanding arrears owed to members of the IPP Chamber to enable the IPPs to cover critical operational costs required to continue operations and pay overdue debt service,” the letter to the Finance Minister added. It further urged the government, the Electricity Company of Ghana and other stakeholders to regard this reminder with the seriousness it deserves and to take the necessary actions.     Source: https://energynewsafrica.com

Kenya: Volta River Authority Participates In 25th Africa Energy Forum

The Volta River Authority (VRA), the state power generation company in the Republic of Ghana, registered its presence at the just-ended 25th Africa Energy Forum hosted in Nairobi, Kenya, East Africa. The Forum, which started on Tuesday, June 20, successfully ended on Friday, June 23, 2023. The Authority shone at the event when its former CEO, Kweku Awotwi, was given a lifetime award for his contributions to Africa’s energy sector alongside Mr Andrews Herscowitz, former Coordinator of the US Power Africa Programme. Mr Emmanuel Antwi-Darkwa, Chief Executive Officer of the Authority, led a four-member delegation including Chief Musa Badimsugru Adam, a board member, to represent the Authority. This year’s Africa Energy Forum, which was hosted in Kenya for the first time in Africa, attracted more than 4,000 delegates from Africa and other parts of the world. The Forum brought together government officials, utilities, regulators, development finance institutions, commercial banks, power developers, technology providers, engineering, procurement, construction companies (EPCs) and professional services. During the forum, Mr Emmanuel Antwi-Darkwa held meetings with officials of Synergy Consulting, an independent international Financial Advisory Services Company, and Elecnor, the contractor who executed the Solar PV farm in Kaleo and Lawra, Ghana. Mr Antwi-Darkwa also met with officials of Kenya Electricity and Generation Company (KenGen) to discuss future partnerships.       Source: https://energynewsafrica.com

Ghana: Star Oil Sympathizes With Family Of Police Officer Shot By Armed Robbers

Star Oil, one of the oil marketing companies in the Republic of Ghana has expressed its sympathies to the family of the deceased police officer who was killed in a bullion van at one of its branches at Ablekuma Fanmilk, a suburb of Accra, capital of Ghana on Thursday, June 22. Armed robbers attacked the van a few minutes after it arrived for cash collection at the station. Videos of the incident show members of the public rescuing the fatally shot policeman from a pick-up truck. The police officer was only identified as Amoah according to his name tag. A statement issued by Star Oil said, “We wish to express our sincere sympathies to the family of the deceased police officer and the Ghana Police Service”. It assured to provide further details on the incident to the police. “We will provide further details on this incident after subsequent consultations with the Ghana Police,” Star Oil promised in its statement. The police service says it’s on a manhunt for the robbers.       Source: https://energynewsafrica.com

Kenya: Electricity Supply In Kenya Is Far Better Than South African-Kenya Power CEO

Kenya Power, the electricity supply company in Kenya has asked Kenyans to be patient despite the increasing cost of power, stating that the country was better off than other African countries. The Chief Executive Officer of Kenya Power, Engineer Joseph Siror, who was addressing journalists on Thursday, June 22, cited South Africa as one of the countries grappling with electricity challenges forcing its government to ration power. Kenya Power, he underlined, was better placed to distribute electricity owing to the structural reforms undertaken at the institution. He intimated that the company was also working towards reducing the high cost of power. “Some countries have not handled it well, like South Africa. If you knew the kind of rationing (they are subjected to), you would appreciate where we are as a country. “We are at a much better point when you compare us to South Africa in terms of electricity and service provision,” he added. Siror stated that the high cost of power resulted from increased government investment in the company necessitating the recovery of the funds spent. During the recovery period, the company was forced to increase the cost of power as one of the alternatives to generating more income and clearing its debts. “Over the past few years, the government has ambitiously invested in the electricity centre, and the initial investment has to be recovered. “And during this period some of those investments are still recovering. But as we go forward, most of these will have been recovered and the cost of power will also go down,” explained Siror. At the same time, he stated that some of the projects were yet to be completed, further delaying Kenya Power’s plan to reduce power prices. Nonetheless, Kenya Power rolled out several measures to reduce power prices. One of the key strategies was increasing power demand, especially for higher consumers like businesses. “The key areas I am looking at are increasing the power demand. When you look at the power demand curve within 24 hours, there are times when it is higher. “Our work is to engage the power consumers and the SMEs to see if we can work together towards them getting more power,” he added. The second strategy Siror noted would help reduce the cost of power was increasing operational efficiency by establishing smart grids across the country. “We are looking at ways to increase our operations, and the aspect of the smart grid plays a very key role. That is why we are looking at solutions and initiatives that can assist us to address that,” added Siror. Kenya Power launched the Smart Poles on June 8 to support high-speed internet connectivity, eliminate the challenges of losing signals, and ensure wider and more efficient data coverage.     Source: https://energynewsafrica.com