South Africa: Government Approves New Laws To Open Up South Africa’s Electricity Market
South Africa’s cabinet approved a bill on electricity regulation designed to clear the path for private generation projects and power trading.
State-owned Eskom has provided more than 90% of electricity used by the most industrialized nation on the continent for a century.
The Electricity Regulation Amendment Bill outlines an entity to buy power as a step toward establishing a competitive market.
The Draft Electricity Amendment Bill has been approved for submission to parliament and will be prioritized, Minister in the Presidency Khumbudzo Ntshavheni told reporters in Pretoria, the capital, last Thursday.
Eskom has become an unprofitable utility, despite its monopoly, and is moving ahead with a plan to separate the business into generation, transmission and distribution units.
The bill will strengthen the role of the National Energy Regulator of South Africa and allow measures to create a transmission system operator that includes the “provision of an electricity trading platform on a multi-market basis, and provide access to the transmission network on a non-discriminatory basis,” Ntshavheni said in a statement.
Ghana Signs First Take-And-Pay Power Purchase Agreement With Turkish Energy Firm
Ghana has signed the first take-and-pay power purchase agreement with Aksa Energy Company Ghana Limited, a Turkish power firm, for the construction of a 205MW capacity combined cycle gas turbine plant in Anwomaso in the Ashanti Region.
Previously, all power purchase agreements signed with independent power producers were take-or-pay.
The Akufo-Addo administration raised concerns about how the cost of electricity had become very expensive as a result of the ‘Take-or-Pay’ clauses in the PPAs signed during the previous regime.
To address the issue, the Energy and Finance Ministries came up with new criteria by ensuring that, going forward, all PPAs for new projects are signed under ‘Take-and-Pay’ clauses.
A take-or-pay contract clause obligates a buyer to pay for a contracted quantity of a commodity, regardless of whether the buyer takes the entire quantity agreed or not while take-and-pay is an agreement where the buyer’s obligation to pay is not unconditional, but is contingent on either upon the delivery of purchased goods or services or upon the buyer’s consent to take the delivery.
Last week, energynewsafrica.com, reported that ECG had signed a power purchase agreement with Aksa Energy.
Details of the agreement were scanty but in a post on ECG’s Facebook on Tuesday and sighted by energynewsafrica.com, ECG said the agreement with Aksa Energy was Take-and-Pay with a 40 per cent guaranteed dispatch.
According to ECG, there would be no buyer guarantee and no government guarantee.
The project is expected to reach commercial operations in the 4th quarter of 2024.
According to ECG, the project would enhance power generation capacity and voltage stability for customers in the middle belt of Ghana and the export market.
The responsibility for fuel supply would lie with Aksa.
Source: https://energynewsafrica.com
Ghana: NEDCo Sets April 18 For Massive Revenue Mobilisation Exercise To Recover Gh¢1.27 Billion
The Northern Electricity Distribution Company Ltd (NEDCo) has announced that it will undertake a general revenue mobilisation exercise across its operational areas effective Tuesday, April 18, 2023.
The exercise is expected to last for more than a month, and it hopes to collect about Gh¢500 million out of Gh¢1.27 billion owed by customers.
According to a statement issued by the power distribution company, the exercise would cover all categories of customers in arrears, including State-Owned Enterprises (SOEs), Ministries, Departments and Agencies (MDAs), Metropolitan, Municipal and District Assemblies (MMDAs).
NEDCo is responsible for power distribution in Sunyani, Techiman, Tamale, Wa, Bolgatanga and Oti.
NEDCo said special security arrangements would be put in place to arrest and prosecute anyone who interfered with the exercise.
“Any persons identified to be engaged in illegal connections or reconnections will equally be dealt with by the law.
“We wish to further notify the general public that recalcitrant customers who have refused to redeem their indebtedness to the company after they have been served with Demand Notices will be arraigned before Court.
“Customers in arrears are entreated to pay their bills immediately to avoid disconnection and payment of reconnection fees.
“NEDCo urges all to cooperate for this exercise to be successful, bearing in mind that we can only serve you well when you pay your bills,” the statement concluded.
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Source: https://energynewsafrica.com
Ghana: Gov’t Withdraws Increment In Fuel Marking Margin After Backlash From Minority Group
The government has reversed its decision to increase the Fuel Marking Margin from Ghp4 to Ghp9 per litre on petroleum products.
A notice issued by Curtis Perry Kwabla Okudzeto, Deputy CEO of NPA, to Oil Marketing Companies (OMCs) in the West African nation indicated that the Governing Board of NPA had approved an increase in the Fuel Marking Margin from Ghp4 to Ghp9.
The NPA, therefore, advised the OMCs to implement it in Price Build Up effective Sunday, April 16, 2023.
However, the increment was met with stiff opposition by the Minority in Ghana’s Parliament.
Two ministers in the former administration of John Dramani Mahama, Emmanuel Armah Kofi Buah (a former Minister for Petroleum) and John Abdulai Jinapor (a former Deputy Minister for Power) in a series of comments on Twitter and Facebook accused the Akufo-Addo administration of being insensitive to the plight of Ghanaians.
“The reported increase in fuel marking margins by the board of NPA, if true, is a clear example of a government that cares less about the excruciating hardships of its citizens.
“It is even worse when such an exercise is undertaken at a time when Ghanaians have already been compounded with burdensome taxes imposed by this same insensitive government in recent times.
“This is going to affect the prices of fuel at the pump which will unavoidably have cascading effects on other goods and services. The latest increment of the fuel marking margin is unjustified & must therefore be reversed forthwith,” Hon. Armah Kofi Buah tweeted.
However, barely 24 hours when the duo went public to lash at the government, the NPA, in a statement to the Oil Marketing Companies ( OMCs), informed them about the government’s decision to reverse the increment.
“We wish to, hereby, withdraw the increment. Hence, the FMM will remain Ghp4.00/Lt until further notice,” it said.
Fuel Marking Margin means a margin incorporated into the buildup of petroleum prices to pay for the marking of petroleum products to prevent tax revenue loss, smuggling and adulteration of petroleum products.
The increment in FMM would have resulted in increases in fuel prices from tomorrow.
Currently, a litre of petrol is sold between Gh¢11. 64 and Gh¢12.65 while diesel is sold between Gh¢11.99 and Gh¢12.84.
Source: https://energynewsafrica.com
Ghana: Aker Energy Finally Submits PoD For Pecan Field After Several Postponement
After failing several times to meet the deadline for the submission of the Plan of Development (PoD) for the Pecan Field, offshore Republic of Ghana, Aker Energy, the Norwegian oil and gas, finally on Friday, April 14, 2023, submitted the PoD to Ghana’s Energy Minister, Dr Matthew Opoku Prempeh, in Accra, capital of Ghana.
Aker Energy is the operator of the Deepwater Tano/Cape Three Points (DWT/CTP) block offshore Ghana.
This was contained in a statement issued by Aker Energy.
The firm was supposed to submit the PoD for Pecan Field to the West African nation’s Energy Ministry in 2018 but failed and postponed it several times.
This raised doubts about its reliability and commitment to the development of the Pecan Field.
After failing several times, the Energy Ministry then gave them up to April 15, 2023, to submit the PoD else they would reassign the field to whoever they deemed fit for the purpose.
Commenting on the development, the CEO of Aker Energy Ghana Limited, Kadijah Amoah said, “This is a major milestone for us. We are proud to say that together with our partners and the Ghanaian authorities, we have submitted a comprehensive plan of development that will form the basis for the sustainable and efficient development of the Pecan field.”
The PoD presents an overall plan for phased development and production of the resources in the DWT/CTP contract area.
The phased development plan would start with the development of the Pecan field as a firm phase one, being the largest of several discoveries in the contract area.
The main Pecan field, located in ultra-deep waters ranging from 2,400 to 2,700 meters about 115 kilometres offshore Ghana, would be developed with a Floating Production Storage and Offloading (FPSO) vessel and a subsea production system (SPS).
The operator and partners expect the Pecan field development and subsequent phases to provide significant proceeds to Ghana.
“This has been a team effort and despite the significant challenges we faced, we have shown once again our resilience and unflinching commitment to the project. We now look forward to the approval of the PoD so we can get to work, developing and producing the resources for the ultimate benefit of the Ghanaian people,” said Amoah.
Source: https://energynewsafrica.com
Ghana: Bitumen Supply Chain To Be Regulated Soon—NPA
Ghana’s petroleum downstream regulator, National Petroleum Authority (NPA), has announced that it is developing a framework to regulate the importation, storage, processing and marketing of bitumen in the West African nation.
The aim is to streamline the bitumen supply chain and ensure compliance with quality standards and specifications.
According to the regulator, the framework will have inputs from the Ghana Standards Authority (GSA), the Ghana Highways Authority (GHA) and the Customs Division of the Ghana Revenue Authority (GRA).
The NPA Chief Executive, Dr Mustapha Abdul-Hamid, and Management members of the Authority made this known on Wednesday during an inspection tour of a bitumen storage and production plant jointly owned by Goil Good Energy and Societe’ Multinationale de Bitimumes (SMB) of Cote d’Ivoire in Tema.
The facility, which is 7,500 metric tonnes installed capacity, takes delivery of bitumen from Cote d’Ivoire.
One component of the facility produces polymer-modified bitumen and bitumen emulsions, which are combinations of bitumen and some chemicals.
Operations started in September 2022 and arrangements are underway for the official commissioning of the plant, possibly by President Nana Addo Dankwa Akufo-Addo and his Ivorian counterpart, Mr Alassane Ouattara, this year.
Per the law establishing the NPA, it has the mandate to regulate all petroleum products, including bitumen, which is mainly used for road construction.
Dr Abdul-Hamid affirmed the commitment of the NPA to streamline the bitumen supply chain to ensure compliance with industry standards.
Giving details of the NPA’s actions, the Head of Planning of NPA, Mr Dominic Aboagye indicated that the NPA constituted a committee a couple of years ago to look at the entire bitumen supply chain to see how to streamline the sector.
Consequently, he said the Authority engaged players in the bitumen value chain to understand their operations, and it turned out that much of the supply was from Cote d’Ivoire.
With that information, a team from the NPA, led by Dr Abdul-Hamid, visited Cote d’Ivoire in 2021 to study the operations of Societe’ Multinationale de Bitimumes (SMB), the main exporter of bitumen to Ghana.
Mr. Aboagye said the NPA committee had since been developing the framework, and indicated that the Authority would engage the GHA, the GSA, the Customs Division of GRA and players in the bitumen supply chain to finalise the framework to regulate the sector.
He said all players in the bitumen supply chain would be licensed by the NPA to streamline their operations.
In their presentations, the Group CEO of Goil Company Limited, Mr Kwame Osei Prempeh said the plant had been selling the bitumen, polymer-modified bitumen and bitumen emulsions on demand for road construction.
He welcomed the move by the NPA to regulate the bitumen supply value chain as it would ensure the supply of quality products in the country.
The NPA team that participated in the tour included the Director of Economic Regulation and Planning, Mrs. Alpha Welbeck, the Director of Policy Coordination, Dr Sheila Addo, the Head of Quality, Control, Mr. Ubeidalah Kutia Saeed, and the Executive Assistant to CE, Mr Faisal Ibrahim Cisse.
Source: https://energynewsafrica.com
South Korea Pledges $5 Billion In Support For Battery Makers In The U.S
South Korea has announced a $5.32 billion financial support package aimed at helping the country’s battery makers invest in infrastructure in North America over the next five years.
The initiative is intended to help South Korean firms capitalize on the United States’ Inflation Reduction Act, which requires automakers to source 50% of critical EV battery resources from the U.S. or a U.S. free-trade partner to qualify for new federal incentives.
South Korea’s package will provide support through lowering lending rates, and insurance premiums cut by up to 20% and additional loans and tax credits for firms seeking to build battery and materials production facilities in North America.
The South Korean government will work on the initiative with the country’s biggest battery cell makers and materials firms.
The new U.S. legislation has sparked some concern among auto manufacturers, particularly given that China dominates the global supply of many key raw materials used to make EV batteries.
South Korea has been particularly affected, with two-thirds of its cathode, anode and electrolyte materials sourced from China. However, several automakers are already reacting to the new requirements with new investment plans.
In March, South Korean battery maker LG Energy Solution announced that it would invest $5.6 billion into a stalled U.S. battery project in Arizona to qualify for the new federal incentives.
South Korea’s LG Energy Solution Ltd, Samsung SDI Co Ltd and SK On together account for over a quarter of the global market of EV battery cell makers, with LG Energy Solution and Samsung SDI also among the top five.
As well as supplying Tesla, Volkswagen and General Motors, Korean companies have also been stepping up international expansion in recent months.
The South Korean government-backed battery alliance was launched last November to enable the country to better compete with China when sourcing essential resources to provide better stability for the battery supply chain.
South Korean Trade Minister Lee Chang-yang stressed, “Both the government and businessmen should cooperate to find solutions together to effectively cope with situations changing rapidly after the Inflation Reduction Act.”
While the recent U.S. policy addition has fueled some uncertainty during an already challenging time, the ongoing development of the electric vehicle industry is a strong driver of vitality and increased competition in the automotive sector.
Source: Oilprice.com
Ghana: Ghana Gas Completes Atuabo Gas Processing Plant Maintenance Works
The Ghana National Gas Company Limited has completed the planned maintenance works on its Atuabo Gas Processing Plant in the Western Region.
According to the company, “The entire maintenance activities ended in the late hours of Wednesday, April 5, 2023, ahead of the scheduled date of completion.”
A statement issued on April 7 and signed by the Head of Corporate Communications, Ernest Kofi Owusu-Bempah Bonsu indicated that the gas processing plant is currently at a flow rate of 90mmscfd.
It would be recalled that Ghana Gas, on March 25, shut down the Atuabo Gas Processing Plant for mandatory maintenance works.
The shutdown affected the gas supply to some power plants, thereby, resulting in a shortfall in generation by 150 Megawatts.
The Electricity Company Limited, as a result, released a load-shedding timetable from March 30 to April 7 between 6 pm and 11 pm.
Load shedding is expected to end now that the maintenance work has been completed.
Meanwhile, the Management of Ghana Gas has thanked the general public for their patience and cooperation during the maintenance period.
Source: https://energynewsafrica.com
Ghana: GOIL Dispatches Fuel To Stations Experiencing Shortages
Ghana’s leading indigenous Oil Marketing Company, GOIL Plc, has dispatched fuel products to its service stations that run out of products during the Easter festive season.
A statement issued by Public Relations Manager of GOIL Plc, Mr. Robert Kyere said the company took delivery of enough products yesterday and has taken adequate steps to dispatch them.
GOIL attributed the shortages to operational challenges during the Easter holidays.
“Over 2 million more will be dispatched today,” he said
According to GOIL, it intends to release more stocks to the affected stations in the next two days to augment supplies at the stations.
“GOIL apologizes for the inconveniences caused to our customers,” the statement concluded.
Source: https://energynewsafrica.com
Ghana: ECG Signs Power Purchase Agreement With Aksa Energy For 350MW Plant In Kumasi
Ghana’s southern power distribution company, ECG, has signed a power purchase agreement with Aksa Energy Compay Ghana, a Turkish power firm for the construction of 350 MW combined cycle gas turbine plant in Kumasi in the Ashanti Region.
Details of the project regarding cost and duration for construction are sketchy but this portal can confirm that the agreement was signed on Thursday April 6, 2023, at the Ministry of Energy.
In 2021, Government announced plans to relocate the Ameri power to Anwomaso in the Ashanti Region to stabilise power supply to Ashanti Region and northern part of Ghana.
In January 2022, Government of Ghana fully took charge of the power plant.
However, after almost a year of taking over the plant from the Ameri Group, the plant is still at its current location in the Aboadze enclave in the Western Region.
The Akufo-Addo administration has claimed that the country has excess capacity.
That means the West African nation does not require any additional power plant for now.
The signing of the new PPA will surprise industry players especially Civil Society Groups in the energy sector who have been critical about certain decisions in the power sector.
In a Facebook post on the new PPA by the Minister for Energy, Dr Matthew Opoku Prempeh sighted by energynewsafrica.com, he said “earlier this morning, the Electricity Company of Ghana (ECG) and AKSA Energy Company Limited (AECL) signed a power purchase agreement in furtherance of our quest for grid stability and reliability, especially in the middle belts of our country.
“In my remarks, I reminded the two parties of the essence of this morning’s exercise and thus, charged the ECG to ensure the full operationalization of the agreement in the interest of Ghanaians.
“The Ministry of Energy envisages an energy sector that will be robust enough to support our national economy and therefore we will continue on the path of these important partnerships which will result in the constant availability of power for industrial and residential consumption,” his post concluded.
Source: https://energynewsafrica.com
Zambia: ZESCO Signs 2400MW Power-purchase With CIEG Of China
Zambian electricity distribution company, ZESCO, has signed a Power-Purchase Agreement (PPA) with Integrated Clean Energy Power Company Ltd (CiEG) of China to produce 2,400 megawatts of renewable energy estimated at US$3.5 billion.
The power-purchase agreement will be rolled out in phases of 600MW and 800MW over three years in four provinces beginning this year, with 300MW in Southern Province and 300MW in Central Province.
The PPA comes at the back of the earlier investment of US$2.5 billion in 2,000MW (2Giga-watts) of energy by MASDAR from the United Arab Emirates.
This signifies the new dawn of the government’s strong resolve to achieve energy sufficiency for the domestic economy and energy surplus to enable increased exports as part of promoting export diversification and enhanced foreign currency earnings.
“This sizable Foreign Direct Investment (FDI) into Zambia from China is a testament to the reset and enhanced relations between the two countries for mutual benefit, which dates back to the two founding fathers—Chairman Mao and Dr Kenneth Kaunda,” Eng Peter Chibwe Kapala, Minister for Energy, said in a Facebook post aighted by this portal.
CiEG is an investment development and mergers and acquisitions of international projects arm for China Huadian Corporation.
China Huadian Corporation is a global energy company and a Chinese state-owned enterprise. It is the 3rd largest electricity power producer in the world and is listed on Fortune 500.
Source: https://energynewsafrica.com
India Plans To Add 250 GW Of Renewable Energy Capacity By 2028
India is looking to boost its renewable energy capacity by 250 gigawatts (GW) over the next five years as part of a plan to have 500 GW of installed clean energy capacity by 2030.
The Indian government will invite bids for installation of 50 GW of renewable capacity each financial year until the 2027/2028 financial year, the Ministry of New and Renewable Energy said in a statement carried by PTI.
The ministry said it was already working on upgrading and expanding the transmission grids to accommodate an expected surge in renewable power generation. German government forced to slow energy ‘green agenda’ rollout
As of the end of February 2023, India’s total renewable energy capacity was 169 GW, with 82 GW at various stages of implementation and about 41 GW under tendering stage. Solar, hydropower, and wind power have the highest shares of that capacity.
India’s coal-fired generators continue to provide around 70% of the country’s electricity. India is not ditching coal anytime soon—it will continue to rely on the dirtiest fossil fuel for decades, at least until 2040, Coal and Mines Minister Pralhad Joshi signaled at the end of last year.
In November, India’s Prime Minister Narendra Modi said at the G20 summit in Bali that “India is committed to clean energy and environment. By 2030, half of our electricity will be generated from renewable sources.”
“Time-bound and affordable finance and sustainable supply of technology to developing countries is essential for inclusive energy transition,” Modi added.
In the 2021/2022 financial year ended March 2022, investment in renewable energy in India hit a record $14.5 billion, up by 125% compared to FY 2020-21 and 72% higher than the pre-Covid FY 2019-20, the Institute for Energy Economics and Financial Analysis (IEEFA) said in a report last year.
But investment will have to more than double to $30-$40 billion annually for India to reach its renewable capacity target by 2030, IEEFA said.
In the 2021/2022 year, a total of 15.5 GW of renewable energy was installed in India, a rebound from the slump during 2020, the institute noted.
Source: Oilprice.com
Nigeria: Group Raises Alarm Over Deliberate Plan To Deny Local Meter Manufacturers From Winning Bid
PowerUp Nigeria, an advocacy group in the Republic of Nigeria, has questioned whether there is a deliberate attempt by the Federal Government to deny local meter manufacturers the opportunity to win bid for the supply of 1.2million meters via World Bank loan as advertised by TCN PMU.
Making reference to newspaper advertisement, Adetayo Adegbemle, Executive Director of PowerUp Nigeria, noted in a press statement that there are 5 Lots in what was advertised, stating that each of the 5 Lots are asked to raise / submit Bid Security in US Dollars.
He said, for instance, anyone applying for Lot 4 is to raise a Bid Security of $450,000.
According to him, local meter manufacturers are struggling to survive in the Nigerian economy, adding that even those who patronised for the NMMP are still being owed.
He, therefore, whether the huge amount of money in Bid security is intended to push local meter manufacturers out of business.
“It must be stated that We have had this kind of World Bank Loan with similar conditions before(2012) However, none of the Imported Meters procured under that scheme are presently still in the system.
“Again, this is a World Bank Loan, which we are definitely repaying. It is therefore imperative that we also use this to deepen our local manufacturers’ capacity.
The PowerUp Nigeria boss argued that the provisions in the advertisement is counter productive and demanded an immediate review to ensure that Bid Securities are reduced downward.
Source: https://energynewsafrica.com