Ghana: Parliament Passes Renewable Energy Amendment Bill, 2020
Ghana’s Parliament has passed the Renewable Energy (Amendment) Bill, 2020.
According to energynewsafrica.com’s sources, the Bill was passed last Friday, November 6, 2020.
The West African nation passed the Renewable Energy Act 2011 (Act 832) to spearhead the promotion of Renewable Energy.
Section 25 (1) of the Amended RE Act 2011, Act 832 emphasises the need for competitive procurement scheme for the purpose of attracting a competitive market rates for electricity generated from renewable energy sources.
It states that the competitive procurement scheme shall consist of (a) a tendering process and (b) an auction scheme.
It adds that a public utility shall not negotiate for a Power Purchase Agreement with a generator of electricity or contract power for electricity generated from renewable energy sources, unless the contracted power has gone through an open competitive and transparent procurement process.
The Amended Act also makes it mandatory for fossil fuel based electricity suppliers and companies that contribute to greenhouse gas emission to invest in non-utility scale renewable energies to offset their greenhouse emissions.
“A fossil fuel based wholesale electricity suppliers, a fossil fuel producer, and any other companies that contribute to greenhouse gas emissions shall invest in non-utility scale renewable energies to offset their Green House Gas emissions and mitigate the impact of climate change.”
Section 53 of the Amended Act also empowers the Minister to designate any public entity to execute and manage RE projects initiated by the state or in which the state has an interest.
Accordingly the BPA amendment Bill has also been passed to enable BPA to undertake RE and other cleaner energy projects designated to them by the Minister.
The amended Act, also defines hydro as a water based energy system which produces electricity. By this definition, Akosombo kpong and Bui power dams are defined as renewables.
Speaking to the Director for Renewable and Alternative Energies at the Ministry of Energy, Wisdom Ahiataku-Togobo, who confirmed the passage of the RE (Amended) Bill, said the Amended Act has scrapped feed-in-tariffs and replaced with a competitive bidding scheme.
A ‘feed-in-tariff scheme’ is a policy that obliges distribution utilities to buy electricity generated from renewable sources at a higher fixed price over a long period of about 20 years to guarantee return on investment.
He explained that at the time the RE Act was enacted, the cost of generating electricity from renewable especially solar was so high that distribution utilities were reluctant to buy the power and, hence, the need to introduce the feed-in-tariff policy to compel them to buy the power at a higher price of above 18 US Cents/kWh for distribution at a lower price. Today, price of electricity from utility scale renewable energy source is a good choice and should no more be an obligation.
He said, instead, there has been an introduction of a net-metering scheme for the purpose of encouraging self-generation of electricity from renewable energy sources on a power cost reduction or climate change mitigation basis and not for income generation.
Source: www.energynewsafrica.com
Ghana: IES Wins Policy Activist Of The Year Award
The Institute for Energy Security (IES), an energy think tank in the Republic of Ghana, has been adjudged the Policy Activist of the Year at the 2020 Oil& Gas Awards held in Accra.
IES beat Africa Centre for Energy Policy (ACEP) to emerge winner for the category.
According to the organiser’s, the energy think tank raised alarm about dirty and contaminated fuel on the market, particularly around Ashaiman, in the capital city, and advocated sanctions for the culprits.
They added that IES again, raised alarm about oil spillage and pair trawling on Ghanaian waters.
Commenting on the award, Executive Director of IES, Nana Amoasi VII said: “We are grateful to all Ghanaians and international bodies who have found IES as the preferred Energy think tank. Good work speaks for itself and we are happy it is being recognised. Our independent work is the reason for which the media have made us their first point of reference. We look forward to many more years of impact in the energy space.
“I dedicate this award to the young men and women at IES. I have come to admire their dedication to delivering top-notch analysis on energy related data, and critique of policies.”
African Energy Chamber Outdoors Its African Energy Outlook 2021
The African Energy Chamber has announced the release of the African Energy Outlook 2021 report.
The report explores the forces shaping up continent’s energy market after the historic shocks of 2020, and analyses the upcoming recovery on the back of the global energy transition and persisting market uncertainties.
After a year of historic crisis, the Outlook offers guidance and solutions for African energy stakeholders to navigate troubled waters and support a strong recovery in 2021 and beyond.
The pandemic notably came at a particularly difficult moment in Africa, exacerbating already challenging market conditions on the back of a competitive American shale industry, the delaying of major projects due to regulatory uncertainty, and increasing global attention to decarbonisation.
The African Energy Chamber notably expects a CAPEX spending cut of $30bn over the 2020-2021 period, and has identified a further $80bn of investment whose sanctioning will depend on improving market conditions, along with bold policy and fiscal reforms from African regulators.
Dr. Babajide Agunbiade Speaks About Nigeria’s Oil & Gas Industry In An Exclusive InterviewThe report provides detailed information in areas of critical importance, and includes sections examining jobs and employment, cash-flow and profit forecasts, the expenditure and investment outlook, carbon emissions, oil and gas market projections, and regional production outlook. Pressing issues including notably the OPEC’s production cuts, ongoing regulatory reforms, the impact of the COVID-19 by region and country, and offshore drilling demand across multiple continental shelves are analysed in detail.
Spending In Africa’s Upstream Sector Down By US$14 Billon, Assets Value Hit By US$200 Billion Fall‘’It goes without saying that Africa has witnessed its fair share of difficult times this year. Even though oil and gas activities have taken a hit, optimism surrounding African projects, fiscal regime and investments still exist but requires all of us as stakeholders to do more. There has always been opportunity in drastic and unprecedented times, which gives us a lot to look forward to,” declared Nj Ayuk, Executive Chairman of the African Energy Chamber. The Outlook is the result of strong regional and international cooperation between actors of government, and public and private sector stakeholders across sub-Saharan Africa. It gathers the latest available data on sub-Saharan Africa’s hydrocarbons markets, and benefits from the insights of key local, regional and international companies, experts and economists, making it the most comprehensive resource to date on the future of African energy markets. ‘’The report highlights the expected outcome of post COVID-19 mitigation strategies to the African energy sector in 2021 and beyond. It also assesses Africa’s competitiveness compared with other frontiers, and highlights the countless opportunities that continue to emerge and exist across our entire energy value chain. We look forward to this report serving as a basis for sound decisions towards a thriving energy industry in Africa,’’ said Senior-Vice President, Verner Ayukegba of the African Energy Chamber. Source: www.energynewsafrica.com
Nigeria To Lose $24bn Oil, Gas Investments In Six Years –Report
Nigeria will lose $24 billion in investments in the oil and gas sector between 2020 and 2025, due to effects of the COVID-19 pandemic on the global petroleum industry, a report published by the African Energy Chamber has claimed.
The Chamber, in its African Energy Outlook 2021, disclosed that with the $24 billion loss of investments in the oil and gas sector, Nigeria would account for 30 per cent of the total of $80 billion loss of investments that would be recorded in the petroleum industry across Africa.
“The detrimental impact of COVID-19 on global energy markets is also expected to have an impact on African activity. Compared to pre-COVID19 expectation, about $80 billion less investments are expected in Africa towards 2025, with the years 2020 to 2022 carrying the brunt of the difference.
“Out of these $80 billion, Nigeria is by far the most adverse impacted country with about $24 billion moving out of the 2020-2025 windows,” the Chamber said.
The Chamber further projected a delay in the Nigerian Liquefied Natural Gas, NLNG, Train 7 project, as well as other gas projects in the country, occasioned by the pandemic, which had also negatively impacted the price and demand of crude oil in the international market.
According to the chamber, upcoming gas projects would take a hit and run a risk of delays, while it noted that some oil majors operating in the country had already started shifting the timelines for their gas projects.
It said: “The majority of the projects in Africa that were up for sanctioning were planned assuming an oil price of between $55 and $60 per barrel, bbl. The oil price currently hovering around $40/bbl therefore spells bad news, especially as the top upcoming Final Investment Decisions, FID, in Africa have a breakeven crude price of over $45/bbl, with some even close to $60/bbl.
“ENI and ExxonMobil have both stated that they will focus on developing projects with a breakeven crude price of less than $35/bbl.
“In its latest announcement, Shell distanced itself from deep-water mega-projects off the coast of Nigeria, placing the Bonga Southwest-Aparo, a 150,000 barrels of oil per day, bpd, Floating, Production, Storage and Offloading, FPSO, development that was soon coming up for FID, on the backburner for now.
“Upcoming gas projects will also take a hit and run a risk of delays. Although Nigeria approved the development of NLNG train 7 last year, the upstream gas developments that were planned to supply feedgas to this development might now take a back seat.”
However, the AEC projected that at a higher crude oil price of $50 per barrel, and additional investments of up to $10 billion, Nigeria would be able to produce a total of two billion barrels of crude oil between 2020 and 2030.
The chamber said: “With an additional capital expenditure of $10 billion in investment over the 2020-2030 period, the additional capital expenditure is estimated at $49 billion at the $35 /bbl threshold increasing towards $100 billion as the $50/bbl threshold is approached. “Breaking down the uplift in additional resources produced and the additional capital expenditure unlocked reveals Nigeria as the country with most potential. Nigeria will effectively be able to produce about 2 billion barrels more than otherwise while justifying $10 billion more investments.” However, the AEC stated that: “From a spend perspective, that is, all money spent on investments and operations, we can expect a more stable outlook for Africa’s share. While Africa is projected to consistently represent about 8-9 per cent of the global spend between 2012 and 2025, its share of global production is also expected to decline over the same period.
“Unfortunately, the only conclusion to be drawn from such facts is once again that of a deteriorating competitive position for African petroleum resources. With the exception of a few jurisdictions, producing a barrel of oil from African soil remains less competitive than producing the same barrel elsewhere,” the Chamber concluded.
Source: Vanguardngr.com
Ghana: BOST Clears Over 90% Of Legacy Debts
The Bulk Oil Storage and Transportation (BOST) Company Limited in the Republic of Ghana, which was choking on huge legacy debts under the former administration, is now breathing as greater part of its debts has been cleared.
The state-owned strategic petroleum stock keeping company had a debt portfolio of about US$623,602,303 when the current administration took over in January 2017.
That comprised legacy trade debts (US $668million), GCB loan (GHS 58.4million), UBA loan (US$20million), Stanchart loan (US $137million), UMB loan (US $10million) and BDC’s claim ($36 million).
According to the current management of BOST led by Mr. Edwin Provencal, US $566,190,869 million out of the US623,602,303 debts was paid as at 30th June, 2019.
Ghana: BOST Revamps Buipe-Bolga Pipeline; Tema-Akosombo To Come Online SoonThe company’s outstanding legacy debt now stands at US$57,411,434. According to a document presented by Dr. Mohammed Amin Adam, Deputy Energy Minister, at the Energy Manifesto Town Hall organised by CBOD, six out of 15 petroleum storage tanks which were not in used because of poor condition had now been repaired. Among the other achievements of the current administration was the repair of one tag boat and two river barges which are currently operational. The document also mentioned the ongoing depots upgrading, GRA tax savings of GHS11 million and the ongoing rehabilitation of Tema-Akosombo Petroleum pipeline.
IRENA’s 19th And 20th Council Meetings Conclude
The Governing body of International Renewable Energy Agency (IRENA) convened virtually to chart the Agency’s course through challenging times
“The challenges posed by the COVID-19 pandemic are vast, evolving, and have changed all that we were accustomed to, at all levels, across the world,” said H.E. Dr. Bachir Ismael Ouedraogo Burkina Faso Energy Minister and Chair of the 19th and 20th IRENA Council, addressing more than 361 participants from 103 countries and the European Union.
“I wish to express my solidarity with all Members and the billions of people around the world that are impacted by this global pandemic.”
During the virtual meetings on 3 and 4 November 2020, delegates expressed their appreciation of IRENA and its Members for adapting to COVID-19 and ensuring that the Agency and its governing body meetings continued their work effectively during these unprecedented times.
In his opening remarks, IRENA Director-General Francesco La Camera said: “As the pandemic continues to rage with massive consequences on the lives and livelihoods of millions of people around the world– we can say with certainty that the imperative of the energy transitions has become even more apparent.
“IRENA, with its global membership and direct access to the wealth of knowledge, experience, and expertise of its Members is uniquely placed to lead this effort,” he added.
Mr. La Camera presented the Annual Report on the Implementation of the Work Programme and Budget to the Council, including data from the most recent SDG7 Tracking Report, published in May 2020, which IRENA chaired in collaboration with the IEA, World Bank, and UN Statistics. The report showed that while energy access is improving, more than 800 million people worldwide still lack access to electricity, which the Director-General underscored as a clear call to action.
The Director-General also presented findings from IRENA’s ‘Post-COVID recovery: An agenda for resilience, development, and equality’ to the membership. The report, launched in June, provides a way to link the short-term response to the pandemic to the Paris agreement’s medium- and long-term goals. The report also points out the need to invest 2 trillion USD in the energy transition within the next three years to make a green recovery possible.
Following the Director-General’s remarks, IRENA’s Directors presented their work to the Council, highlighting the Agency’s work on innovation, policy, finance and project facilitation, socio-economic analysis, and country-level support. Members welcomed IRENA’s efforts, including the effective implementation of the work programme and its continued engagement with members during the global pandemic. H.E. Ms. Perina Sila, Ambassador of Samoa to Japan and Permanent Representative to IRENA chaired the IRENA Council’s Programme and Strategy Committee and commended the Agency’s leadership in guiding the energy transition through the pandemic by aligning recovery efforts with long term sustainable development goals and the goals of the Paris Agreement.
Delegates also highlighted the importance of the Agency’s Collaborative Frameworks and stated that they have “resulted in an effective multilateralism approach that delivers results” and considered it as another opportunity for the Agency to be more responsive to the priorities of the membership.
The Collaborative Frameworks bring countries together to identify priority areas, concrete actions and foster international collaboration on key issues such as the development of hydropower, strategies to support high shares of renewables, the future of the renewable hydrogen economy, ocean and offshore renewables and the geopolitics of the energy transformation.
The co-facilitators of the five Collaborative Frameworks reported back the outcome of the first two meetings of their respective Collaborative Framework to the Council.
Further topics discussed include IRENA’s role in the Climate Investment Platform and the Agency’s administrative and institutional matters.
Arrangements for IRENA’s 11th Assembly were also a matter of discussion, including an endorsement of the Council Chair’s proposal to establish an open-ended ‘High-Level Forum on Energy Transition’ at the Assembly.
The Council Chair welcomed the Director-General’s proposal for the opening day of the 11th Assembly to be established as World Energy Transition Day, which would take place on January 18th. The membership also agreed to establish ‘COVID-19 – Energy Transition’ as the theme of the 11th Assembly.
Source:www.energynewsafrica.com
How A Biden Presidency Would Transform The U.S. Energy Landscape
Democrat Joe Biden has won the November U.S. presidential election, according to several major networks. Here are some of the changes that could occur in U.S. energy policy under his administration:
International Oil Supplies
Biden has shown an interest in multilateral diplomacy similar to previous Democratic administrations. That could mean an eventual path for OPEC members Iran and Venezuela to get out from under Washington’s sanctions and start pumping again, if the right conditions are met.
In Iran, that path could include a partnered approach between Washington and Europe, similar to a deal struck under Obama’s administration.
In Venezuela, Biden appears likely to continue to favor sanctions to pressure the regime of President Nicolas Maduro, but could increase diplomatic efforts to end the impasse by negotiating a new election or power-sharing with the opposition.
Outgoing President Donald Trump’s unilateral sanctions on the two countries have taken around 3 million barrels per day of crude oil off international markets, a little more than 3% of world supply.
Biden’s campaign has not detailed how it would approach these issues.
Line To OPEC
Biden lacks the chummy rapport that Trump had developed with Saudi Arabia’s defacto leader Crown Prince Mohammed bin Salman. That country is the biggest voice in the Organization of the Petroleum Exporting Countries, meaning Biden may not engage as closely on the group’s production policy. He is also more likely to rely on quiet diplomatic channels for influencing OPEC than Trump’s Twitter-centered approach.
Biden’s campaign has not yet detailed how it would approach these issues, but any influence he would wield as president would likely be in service of the same goal – a moderate oil price. Any U.S. president needs affordable fuel for consumers. And for Biden, the price would need to be high enough to make clean energy alternatives to fossil fuels competitive in support of his ambitious climate plan.
Trump had been more engaged with the Organization of the Petroleum Exporting Countries than most of his predecessors. He has sometimes influenced OPEC policy with his tweets and phone calls, arguing for an oil price low enough for consumers but high enough for drillers.
His sanctions also weakened the influence of OPEC hawks Venezuela and Iran within the group, removing two big historical hurdles to a pro-Washington OPEC policy. That concentrated power with leading producer Saudi Arabia, along with Russia, part of the group known as OPEC+.
A Green Transition?
A Biden administration would look to re-enter the Paris Climate Agreement, an international pact negotiated during the Obama administration to fight global warming that Trump pulled away from saying it could hurt the U.S. economy.
Biden has also vowed to bring U.S. emissions down to net zero by 2050, including by bringing emissions from the power industry to net zero by 2035 – a goal that will be tricky to accomplish without a Democratic majority in Congress.
Biden’s view is that climate change is an existential threat to the planet, and that a transition from fossil fuels can be an economic opportunity if the United States moves fast enough to become a leader in the clean energy technology.
Trump’s administration had acted to weaken or eliminate emissions targets, including the U.S. Environmental Protection Agency’s softening of vehicle emissions standards, and its rescinding of former President Barack Obama’s Clean Power Plan requiring cuts from the electric power industry. Transport and electricity together make up around half the country’s greenhouse gas emissions.
While European oil and gas companies like BP and Royal Dutch Shell have already begun implementing strategies for a global energy transition, U.S. majors like Exxon Mobil and Chevron have remained focused on the traditional energy business – sheltered politically by Trump’s leadership in Washington.
Federal Drilling
While Trump had sought to maximize domestic oil and gas production, Biden has promised to ban issuance of new drilling permits on federal lands and waters in order to fight global climate change.
The United States produced nearly 3 million barrels of crude oil per day from federal lands and waters in 2019, along with 13.2 billion cubic feet per day of natural gas, according to Interior Department data.
That amounts to about a quarter of total domestic oil output and more than an eighth of total U.S. production of gas. A federal ban on new permits would mean those numbers trend toward zero over a matter of years.
There would also be an impact on public revenue federal oil and gas production produced about $12 billion in public revenue in 2019, divided between the U.S. Treasury, states and counties, tribes, and cleanup funds.
New Mexico, for example, received $2.4 billion in disbursements last year, much of it going to its historically underfunded education system. The state’s Democratic Governor Michelle Lujan Grisham told Reuters this spring she would seek a waiver from Biden’s government to allow continued drilling if he was elected.
Biden’s camp has been mum on whether such a waiver program would exist.
Source: Energyworld.com
Ghana: NPP Are Better Managers Of The Energy Sector-Amin Adam
Ghana’s Deputy Minister for Energy in charge of Petroleum, Dr. Mohammed Amin Adam says the ruling party, New Patriotic Party (NPP), manages the country’s energy sector better than the opposition political party, NDC, anytime the former is in power.
According to him, when the NDC is in power, it mismanages the energy sector, but when the NPP takes over, it manages the sector very efficiently.
Making reference to the five years’ power crisis which the West African nation experienced between 2012 and 2016 under the NDC administration, Dr. Amin Adam, who is also the governing party’s Parliamentary Candidate for Karaga Constituency, said the NDC failed to make money available for the procurement of fuel to power the power plants.
He said upon assumption of office, the current administration stemmed the financial indiscipline in the sector and ensured that money was available for procurement of fuel.
“There has been debate as to whether we ended dumsor or the NDC ended dumsor, and I’m sure they may mentioned that when they appeared before you. But this is a confession by John Jinapor, the then Deputy Minister for Power, and this was a confession by him on October 26, 2016, when he conceded that dumsor was there. The cause, according to them, was financial which NPP had been drumming home about. Even when we also came into government, the first three to six months, we also had challenges because we were not going to stop dumsor overnight; we needed to put in place some measures so we had to, first of all, address the financial challenge of finding money to buy fuel to power our plants. The Nigerian gas was erratic, and most of the time, the gas was not coming and the NDC did not plan well to put in mechanism to flow our gas from the West to the East where we have most of the generation capacity. We had to find money to buy fuel to be able to fire the power plants,” Dr Mohammed Amin said at the Energy Manifesto Town Hall meeting organised by the Chamber of Bulk Oil Distributors (CBOD) in Accra last Friday, November 7, 2020.
He said the NDC left huge legacy debts in the country’s sector including GHc2 billion debt at the Electricity Company of Ghana (ECG).
According to him, that debt had l been cleared by the current administration and also injected an amount of GHc4 billion into the operations of the ECG.
Ghana: Sunon Asogli Power Wins Excellence In Power Generation AwardApart from the power sector, Dr. Amin said the current administration has managed the downstream petroleum sector very well and ensured that there is availability of fuel products. “We have also ensured that there is constant supply of petroleum products on the market and we have not had long queues that we experienced under the NDC at fuel stations. We have further improved on the quality of fuel supply and NPA has stood the test of time as afar as regulations are concerned,” he said. Dr. Amin pledged the support of the governing party to ensure that there is constant supply of electricity when the NPP secures a second term in office in order for businesses to thrive in the post Covid-19 pandemic. Source:www.energynewsafrica.com
Ghana: VRA Seeks To Become Electric Vehicle Leaders In Future
Ghana’s largest state power generation company, Volta River Authority (VRA), is seeking to use digitisation to drive the next chapter of its growth.
It also wants to be the leader in the country’s electric vehicles space.
The state-owned power generator and supplier of electricity will mark its 60th anniversary in April next year, and it believes that the ever-changing landscape requires it to be digitally efficient and diversified to stay competitive.
“We recognise that digitisation will compel us to drive down our costs and therefore remain competitive. So, we will fully embrace it,” CEO Emmanuel Antwi-Darkwa said at the 60th anniversary launch in Accra, on the theme: ‘Celebrating 60 years in the power business: Our legacy; our future’.
He added: “We also see a future in the electric vehicles space; we intend to be the leader in that space in Ghana. We will, therefore, collaborate with GRIDCo on continuing the development of a smart grid in Ghana to serve as the backbone of this digitisation effort.”
Ghana: Let’s Revisit Energy Conservation and Efficiency Perspective-VRA BossAmong other things, the Authority is looking to vary its operations and generation sources and sees clean, cost-efficient, diversified sources of energy like solar, wind and biomass as the future in the energy space. All these diversification and expansion efforts are to be achieved through technology, Ing. Darkwa said, adding: “Digitisation will facilitate the integration of these variable sources of power generation for effective operations. More importantly, technology will enable us to better monitor and maintain our generation assets.” It also plans to convert the Akosombo Township into a smart city, and by so doing, make it the technology hub of the country; as well as harnessing the full potential of the 60MW Pwalugu Multi-purpose dam, which comes with an additional 50MW solar component. Construction of the 17MW Kaleo/Lawra solar plants in the Upper West Region and similar ones at Ada, in the Greater Accra Region, and Anloga, in the Volta Region, among others, are also being pursued to support future growth and expansion of the VRA, Ing. Darkwa added. Ultimately, he said it is the Authority’s goal to move beyond aid from government and become financially sufficient. This, he said, would be actualised through prudent management in line with its financial recovery plan introduced in 2017. “While we are focused on our long-term plans, we also recognise that we are duty-bound to ensure there is adequate, competitively-priced electricity to support industrial and social development today,” he assured. Commenting on the company’s relevance in the advent of digitisation and competition, he explained that they would resource their employees with new skill sets so they could be nimble and tech-savvy. He stressed that VRA’s focus is to build a corps of human capital that is fit for the digital age. Source:www.energynewsafrica.com
Africa’s Post Pandemic Recovery Plan Switched On By Smart Power Projects
Across Africa, access to power is hampered by the lack of access to competitive funding, the dire state of the continent’s utilities infrastructure and the need for energy policy and legislation to be adapted so that it can boost investment in the sector. Post COVID-19, new solutions are urgently needed to address Africa’s power crisis and switch on a continent-wide strategy for its recovery and renewal.
Such solutions must take into account the energy transition and in particular, the utilisation of renewable energy, the focus on smart power technologies and cost effective solutions, as well as the global drive towards a decentralised, decarbonised and secure energy supply that addresses climate change and stimulates economic growth.
To address urgent energy needs across Africa, the African Union (AU) Commission and the International Renewable Energy Agency (IRENA) agreed in May 2020 to work together to alleviate the impact of COVID-19 and ensure that Africa is able to meet its development goals.
According to the AU, the focus of this agreement was on supporting the development and adoption of innovative renewable energy technologies, improving access to energy, building more resilient energy systems, mobilising international support including the private sector, developing larger and more robust power markets, and encouraging cross-border trade of renewable power.
Africa has a role to play in innovating smart power solutions for a post-COVID-19 world and ensuring a sustainable and diversified energy mix. Within developing economies, there are growing opportunities to implement new technologies and localised energy generation systems that lead to innovation that will change how the world generates, stores and distributes power.
The combination of the rise of cost-effective renewable energy, the decentralisation of energy production, and improvements in energy storage, smart metering and other digital technology have the potential to revolutionize the way power is generated and consumed.
Across Africa, new systems and networks can be designed around future environmental stressors and energy demands, without having to consider the limitations of old infrastructure. With advanced use of mobile technology in Africa and the lack of existing electricity transmission networks, these developments provide an opportunity for communities in Africa to gain access to power by leapfrogging the traditional model of centralised generation and transmission of power.
Ghana: Bui Power Authority To Commission Phase 1 Of 50MWp Solar PowerLong before COVID-19 shone a bright light on the continent’s energy crisis, investors in the energy sector in Africa were looking at opportunities to back innovative energy solutions that could address rapidly changing energy demands and environments. According to a Baker McKenzie report, the Smart Power Revolution – Opportunities and Challenges (report), more than 40% of the global energy companies surveyed said smart power was a core part of their business, and 37% had established at least one business line related to smart power. In Africa, the most noticeable trend has been the transition towards decentralised power solutions and solar home systems from being a niche sector dominated by NGOs to being considered a mainstream investment focus by the big players. To name a few, Engie, EDF, Marubeni and Mitsui, which have traditionally focused on grid scale generation, have all been investing in and buying or developing businesses in this area in Africa. Instead of lack of scale being an obstacle to getting the market going, companies have been developing models to scale up the sector themselves and build businesses or portfolios. To date, these have largely been financed on corporate balance sheets, but bankers are also taking notice and looking at how to put in place bankable business structures. There is a need to look at how to mitigate the short-term impact of COVID-19 on this sector – being consumer facing it has been much more heavily impacted than utility scale generation. It is key to ensure that a sector that is essential to Africa’s post COVID-19 recovery and renewal is not irrevocably damaged by the pandemic. It is helpful that governments across Africa have acknowledged the need to adapt their legal and regulatory frameworks and introduced programmes and incentives to boost this investment in innovative projects in the power sector. Multilateral and development finance institutions have been important allies in the development and mobilisation of funding in the renewable energy sector in Africa. Not only have they provided funding for projects, but they have structured successful programmes to address some of the political and credit risk issues that have hampered projects in many countries. For example, Zambia was the first country in Sub-Saharan Africa to implement the Scaling Solar programme, with support from the World Bank Group through the International Finance Corporation (IFC). The programme facilitates the development of privately owned, utility-scale solar PV projects and enables governments and utilities to procure solar power cheaply and efficiently. Zambia’s solar PV’s success led to the extension of the programme to Senegal. The 2019 scaling solar PV tender in Senegal set a new price benchmark for the region and made solar energy Senegal’s cheapest energy source. The extension of the programme to Ethiopia encountered obstacles around currency convertibility, but the IFC is extending the programme to Côte d’Ivoire, Madagascar and Togo. Similarly, the KfW-backed GET-FiT program has enabled a number of projects (in particular run of the river hydropower projects) to be developed in Uganda and Zambia to date, with extension to Mozambique and other countries under consideration. These DFI/multilateral programmes, however, take time and resources to implement and are dependent on particular structures that cannot easily be implemented without the involvement of these institutions. There remains a need for more local-led development of the sector, supported by appropriate tools and resources. One example of this would be Kenya’s National Electrification Strategy, launched by the Government of Kenya and the World Bank and which uses a geospatial tool to identify least-cost options for securing the delivery of electricity to houses and businesses in Kenya. It also outlines the important role of private sector investment in providing off-grid solutions to remote areas. If the continent can build on these initiatives, and is successfully able to address its power crisis through the widespread use of renewable energy solutions and smart power technologies, it will ensure that all who call it home can plug in to clean, sustainable and cost-effective electricity in the years to come, powering up Africa’s post-pandemic recovery in the process. Source: Kieran Whyte, Partner, Head of the Energy, Mining and Infrastructure Practice, Johannesburg, and Marc Fèvre, Partner, London, Baker McKenzie.
Ghana: Gov’t Gives ECG US$130 Million To Replace Obsolete Equipment To Boost Electricity Supply
The Government of Ghana has released US$130 million for the country’s southern power distribution, Electricity Company of Ghana (ECG), to replace all obsolete equipment within its line of operation.
Ghana’s Minister for Energy, John- Peter Amewu made this known when he addressed a gathering at the 8th edition of the Nation Building Updates in Accra, on Thursday, November 5, 2020, on the theme: ‘Keeping the lights on; powering our growth’.
According to him, ECG had been operating with obsolete equipment over the past 30 years, stressing that: “If the equipment is replaced, it will add value, transform power faster, reduce losses and make power cheaper for consumers.”
He said the challenges of the energy sector were not about adding more kilowatts but ensuring efficiency and good management and maintaining what was already there.
Mr Amewu explained that part of the cause of the high cost of electricity was the obsolete equipment used in the transmission of power.
He expressed the hope that when the obsolete equipment was replaced, “the light will be brighter, power expenditure will be lower and the industry will grow.”
Mr Amewu explained that the synergy that existed among the Ghana Grid Company Ltd (GRIDCo), the Volta River Authority (VRA), the Ghana National Petroleum Corporation (GNPC) and the Ghana Gas Company Ltd accounted for the improved services Ghanaians are enjoying under the current government.
He criticised the previous government for separating the petroleum sector from the energy sector, explaining that it resulted in the lack of coordination between the two sub-sectors, which accounted for the challenges the energy sector experienced under that government.
He said under the current government, there is a high level of ministerial collaboration, “and that explains why, today, you are enjoying power at low tariffs.
“Today, the Energy Sector Reform Programme, which is led by our Senior Minister, Mr Yaw Osafo-Maafo, has made it possible for us to solve some of our financial difficulties.”
Mr Amewu explained that the government decided to relocate the Karpower Plant from Tema to Takoradi in the Western Region, with support from the GNPC, to be closer to the gas power plant to reduce the distance of transporting gas, “which ultimately led to the increase in tariffs for the consumer”.
He explained that with the relocation of the Karpower to Takoradi, consumers would not be slapped with tariff increases “as we saw in the past.”
He said going forward, “we will improve significantly revenue collection with the implementation of remote sensing technology, which is currently being piloted by the ECG.
“We will reduce losses, particularly in power distribution, by ensuring that the ECG and the Northern Electricity Distribution Company (NEDCo) implement incentive-based loss reduction targets for all,” he assured Ghanaians.
Mr Amewu gave an assurance that the government would complete all ongoing rural electrification projects to ensure value for money.
“We will enforce competitive procurement of power, the least cost fuel procurement and minimising excess capacity charges,” he added.
Source: www.energynewsafrica.com
Ghana: Sunon Asogli Power Wins Excellence In Power Generation Award
Ghana’s largest Independent Power Producer, Sunon Asogli Power Ghana, has, for the second time in three years, been recognised for its ‘Excellence in Power Generation in the Republic of Ghana at the 4th Ghana Energy Awards 2020’.
Sunon Asogli beat Bui Power Authority, VRA and Karpowership to emerge winner in that category.
In a statement, the company said the award demonstrates the consistent degree of reliability and efficiency of Asogli’s power plant in Ghana’s energy sector.
“This stride has been achieved as a result of the relentless and selfless sacrifices of the Sunon Asogli family.
“Even in the midst of a pandemic, staff have put the country first by ensuring uninterrupted power supply to the Ghanaian people,” the company said.
This show of commitment is what has made Sunon Asogli Power the creme de la creme in the energy sector.
The award, which seeks to recognises the achievements, successes, efforts, innovation as well as excellence of corporate entities within the Energy sector, is fully endorsed by the Ministry of Energy and its agencies.
The 4th edition of the 2020 Ghana Energy Awards, was under the theme: ‘Excelling in Crises: The Energy sector in a Covid-19 Era’.
The colourful event, which took place at the Movenpick Ambassadorial Hotel in Accra, was under the Chairmanship of His Royal Majesty, Akwamuhene Odeneho Kwafo Akoto III.
The Minister for Energy, John-Peter Amewu, who was the Guest of Honour, was ably represented by the Deputy Minister in the sector responsible for Finance and Infrastructure, Joseph Cudjoe.
Chairman of Sunon Asogli Power, Yang Qun received the award for and on behalf of Management and staff of the power plant.
This show of commitment is what has made Sunon Asogli Power the creme de la creme in the energy sector.
The award, which seeks to recognises the achievements, successes, efforts, innovation as well as excellence of corporate entities within the Energy sector, is fully endorsed by the Ministry of Energy and its agencies.
The 4th edition of the 2020 Ghana Energy Awards, was under the theme: ‘Excelling in Crises: The Energy sector in a Covid-19 Era’.
The colourful event, which took place at the Movenpick Ambassadorial Hotel in Accra, was under the Chairmanship of His Royal Majesty, Akwamuhene Odeneho Kwafo Akoto III.
The Minister for Energy, John-Peter Amewu, who was the Guest of Honour, was ably represented by the Deputy Minister in the sector responsible for Finance and Infrastructure, Joseph Cudjoe.
Chairman of Sunon Asogli Power, Yang Qun received the award for and on behalf of Management and staff of the power plant. Ghana Struggling To Grow Electricity Access: IES Analysis
Ghana is faced with a slowdown in electricity access. A review of State documents, including the national “Budget Statements and Economic Policies”, the “Electricity Supply Plans”, and the Energy (Supply and Demand) Outlooks for Ghana, confirms the country is struggling to grow electricity access since 2016.
Driven by growth in demographic requirements, increased urbanization with an ever-increasing technological demand, and the aspiration to transform into a middle-income country, Ghana in 1989 devoted itself to a 30-year National Electrification Scheme (NES) to achieve universal access to reliable electricity supply by 2020. But 31 years after the policy was instituted, there still exist a substantial deficit in electricity access in Ghana. Current electrification rate is about 85 percent, a bit far off the target, with no improvement in sight.
https://www.clarion-events-group.com/l/339341/2020-10-15/2qssp58
Data from the Energy Commission, and Finance Ministry of Ghana showed that at end 2000 electricity access rate stood at 45 percent, with an annual average growth rate of approximately 2 percent. The decade ending 2010 revealed that the country had achieved an access rate of 67 percent; indicating an annual average growth rate of 2.2 percent from 2000. In the 6 years after 2010, the annual average growth rate as recorded by the Energy Commission was 2.7 percent. The trajectory therefore showed an incremental annual growth in electricity access.
Nevertheless, over the last 3 years the annual access growth rate has seen a substantial decline, from the 2.7 percent recorded before 2017, to a paltry 0.6 percent in the subsequent years. As of end 2019, the country had only obtained a national electricity access rate of 85 percent. Had the country maintained just the annual rate of roughly 2.7 percent, electricity access rate would have been somewhere around 94 percent today – comparable to other countries outside the sub-Saharan African and Asian band.
Under the rural electrification scheme, 1,212 communities were connected to the national grid in 2016 out of the targeted 1,500 communities, increasing the national electricity access rate from 80.5 percent to 83.24 percent.
In 2017, 289 out of a targeted 2,185 communities were connected to the national grid, with other projects said to be at various stages of completion – increasing the national electricity access rate from 83.24 percent in 2016 to 83.62 percent.
In 2018, 1,796 communities was planned to be connected to the national grid. However, just 122 out of a targeted 1,796 communities were connected to the grid, moving the access rate to 84.3 percent at end year. The other projects were also said to be at advanced stages of completion.
In 2019, 1,250 communities were expected to be connected to the national grid. Nevertheless, just 305 communities were connected to the grid, increasing the national electricity access rate from 84.32 percent in 2018 to 84.98 percent at end 2019.
Government has as a result revised its target, seeking to develop new strategies to push the boundaries to achieve the goal of universal access by year 2025, after failing at 2020. To achieve the objective by the new set year, Ghana may be required to grow annual access rate by at least 3 percent, and in tandem with growth in demographic requirements, increased urbanization, and increase in economic growth.
After growing its power generation capacity, and increasing electricity access through grid expansions, it is now time for Ghana to be religious on its policy goal of 100 percent national electrification, using more mini-grids and stand-alone renewable energy systems as catalyst. The deployment of renewable energy to achieve universal electricity access in Ghana is of course vital in the sense that a considerable proportion of the communities awaiting connection to the national electricity grid are currently difficult to access due to the fact that they are lakeside communities, with others planted on islands that require connection by sub-marine cables.
Source: Institute for Energy Security (IES)
Nevertheless, over the last 3 years the annual access growth rate has seen a substantial decline, from the 2.7 percent recorded before 2017, to a paltry 0.6 percent in the subsequent years. As of end 2019, the country had only obtained a national electricity access rate of 85 percent. Had the country maintained just the annual rate of roughly 2.7 percent, electricity access rate would have been somewhere around 94 percent today – comparable to other countries outside the sub-Saharan African and Asian band.
Under the rural electrification scheme, 1,212 communities were connected to the national grid in 2016 out of the targeted 1,500 communities, increasing the national electricity access rate from 80.5 percent to 83.24 percent.
In 2017, 289 out of a targeted 2,185 communities were connected to the national grid, with other projects said to be at various stages of completion – increasing the national electricity access rate from 83.24 percent in 2016 to 83.62 percent.
In 2018, 1,796 communities was planned to be connected to the national grid. However, just 122 out of a targeted 1,796 communities were connected to the grid, moving the access rate to 84.3 percent at end year. The other projects were also said to be at advanced stages of completion.
In 2019, 1,250 communities were expected to be connected to the national grid. Nevertheless, just 305 communities were connected to the grid, increasing the national electricity access rate from 84.32 percent in 2018 to 84.98 percent at end 2019.
Government has as a result revised its target, seeking to develop new strategies to push the boundaries to achieve the goal of universal access by year 2025, after failing at 2020. To achieve the objective by the new set year, Ghana may be required to grow annual access rate by at least 3 percent, and in tandem with growth in demographic requirements, increased urbanization, and increase in economic growth.
After growing its power generation capacity, and increasing electricity access through grid expansions, it is now time for Ghana to be religious on its policy goal of 100 percent national electrification, using more mini-grids and stand-alone renewable energy systems as catalyst. The deployment of renewable energy to achieve universal electricity access in Ghana is of course vital in the sense that a considerable proportion of the communities awaiting connection to the national electricity grid are currently difficult to access due to the fact that they are lakeside communities, with others planted on islands that require connection by sub-marine cables.
Source: Institute for Energy Security (IES)
India Wants OPEC To Fix Asian Oil Pricing Anomaly
India wants OPEC to review its pricing policies for the Asian market and end the premium it puts on its crude for Asia, Indian Oil Minister Dharmendra Pradhan said at the virtual OPEC-India Dialogue meeting with OPEC Secretary General Mohammad Barkindo on Thursday.
Pradhan urged the cartel, led and dominated by Middle Eastern oil producers, to address the ‘pricing anomaly’ for its oil.
The minister urged OPEC “about the urgency and need to address the historical aberration in crude pricing for Asia by ending Asian Premium recognizing the shifting of demand for crude oil to Asia, which is further accelerated by Covid-19 pandemic,” Pradhan said on Twitter.
“We had discussions on the rapidly changing global energy landscape, overcoming energy challenges, global oil price mechanisms, measures being taken by OPEC and its partners for balancing oil markets, and on ensuring oil supply security for India,” he added.
“Both sides drew attention to the close cooperation and engagement in many projects and investments between OPEC Member Countries and India, and other topical issues were addressed, including the Asian Premium and term contracts,” OPEC said in a statement about today’s meeting.
India depends on OPEC for 78 percent of its crude oil demand, 59 percent of liquefied petroleum gas (LPG) demand, and nearly 38 percent of its liquefied natural gas (LNG) demand, the Indian minister said, noting that India imported US$92.8 billion worth of oil, gas, and petroleum from OPEC members in the 2019-2020 financial year.
Earlier this year, India used the ultra-low crude oil prices to top its strategic petroleum reserves with oil at $19 a barrel, saving nearly US$700 million in the process, India’s Ministry of Petroleum and Natural Gas said in September.
The average cost at which India bought the crude oil in April and May was $19 per barrel, compared to $60 a barrel oil price in January 2020. Thanks to the cheapest oil in years at the start of the second quarter, India saved US$685.11 million on its crude oil import bill, the ministry said.
Source: Oilprice.com