Background
On November 1, they held a press conference and warned they will be staging a March as part of efforts to get the debts paid by the state.
Addressing a press conference at the International Press Centre in Accra, Chairman of the Senior Staff Association of GRIDCo, Raphael Kornor said staff have reached their wits end and cannot continue to sacrifice any longer.
The staff, he said, have resolved to embark on various actions if the GHc 250 million the President directed the Finance Minister to be paid GRIDCo is not paid.
The other debts they are demanding are the USD $32, 576,974.05 owed them by VALCO as at September 30th, 2019, the GHc 607 million owed by ECG as at 1st March 2019, the GHc 177 million owed them by NEDCo as at September 30th, 2019 and the GHc 94, 204,903.17 which is the PDS debt which the ECG collected during the suspension of PDS.
Actions to Be Embarked on
As a sign to show how serious they are with their demands, the Senior Staff Association of GRIDCo announced, “With immediate effect, we declare the hoisting of red flags at all locations with red arm bands by all staff. This is to show our displeasure,” Mr. Kornor said.
He further noted, “From the Friday, November 22nd, 2019: staff would treat all emergency work as normal work within the normal working hours. From the Friday, November 29th, 2019, staff are going to march to the ECG office and the Ministry of Finance to picket in demand of our money. If by the close of work Wednesday, December 4th, 2019 all our debts are not paid, we would declare a sit-down strike. Following the sit-down strike, we shall impress upon GRIDCo Management to disconnect all customers indebted to us.”
“We are embarking on these actions to restore the backbone of the NITS and to ensure that GRIDCo remains a fully-owned Ghanaian company managed by full-blooded Ghanaians and not to be thrown out there for people to grab,” Mr Kornor further stated.
Ghana: GRIDCo Workers Begin Indefinite Strike Wednesday
Workers of Ghana’s power transmission company, GRIDCo, are set to start an indefinite sit-down strike from Wednesday, December 11 over the mounting debts which they say is crippling the company.
The intended action forms part of a series of measures the staff have resolved to adopt in a bid to get the authorities to address their grievances.
In a press statement issued on Tuesday, it said emergencies will not be attended to outside the normal working hours.
The staff will also hoist red flags at all offices of the company and also wear red armed bands.
Background
On November 1, they held a press conference and warned they will be staging a March as part of efforts to get the debts paid by the state.
Addressing a press conference at the International Press Centre in Accra, Chairman of the Senior Staff Association of GRIDCo, Raphael Kornor said staff have reached their wits end and cannot continue to sacrifice any longer.
The staff, he said, have resolved to embark on various actions if the GHc 250 million the President directed the Finance Minister to be paid GRIDCo is not paid.
The other debts they are demanding are the USD $32, 576,974.05 owed them by VALCO as at September 30th, 2019, the GHc 607 million owed by ECG as at 1st March 2019, the GHc 177 million owed them by NEDCo as at September 30th, 2019 and the GHc 94, 204,903.17 which is the PDS debt which the ECG collected during the suspension of PDS.
Actions to Be Embarked on
As a sign to show how serious they are with their demands, the Senior Staff Association of GRIDCo announced, “With immediate effect, we declare the hoisting of red flags at all locations with red arm bands by all staff. This is to show our displeasure,” Mr. Kornor said.
He further noted, “From the Friday, November 22nd, 2019: staff would treat all emergency work as normal work within the normal working hours. From the Friday, November 29th, 2019, staff are going to march to the ECG office and the Ministry of Finance to picket in demand of our money. If by the close of work Wednesday, December 4th, 2019 all our debts are not paid, we would declare a sit-down strike. Following the sit-down strike, we shall impress upon GRIDCo Management to disconnect all customers indebted to us.”
“We are embarking on these actions to restore the backbone of the NITS and to ensure that GRIDCo remains a fully-owned Ghanaian company managed by full-blooded Ghanaians and not to be thrown out there for people to grab,” Mr Kornor further stated.
Background
On November 1, they held a press conference and warned they will be staging a March as part of efforts to get the debts paid by the state.
Addressing a press conference at the International Press Centre in Accra, Chairman of the Senior Staff Association of GRIDCo, Raphael Kornor said staff have reached their wits end and cannot continue to sacrifice any longer.
The staff, he said, have resolved to embark on various actions if the GHc 250 million the President directed the Finance Minister to be paid GRIDCo is not paid.
The other debts they are demanding are the USD $32, 576,974.05 owed them by VALCO as at September 30th, 2019, the GHc 607 million owed by ECG as at 1st March 2019, the GHc 177 million owed them by NEDCo as at September 30th, 2019 and the GHc 94, 204,903.17 which is the PDS debt which the ECG collected during the suspension of PDS.
Actions to Be Embarked on
As a sign to show how serious they are with their demands, the Senior Staff Association of GRIDCo announced, “With immediate effect, we declare the hoisting of red flags at all locations with red arm bands by all staff. This is to show our displeasure,” Mr. Kornor said.
He further noted, “From the Friday, November 22nd, 2019: staff would treat all emergency work as normal work within the normal working hours. From the Friday, November 29th, 2019, staff are going to march to the ECG office and the Ministry of Finance to picket in demand of our money. If by the close of work Wednesday, December 4th, 2019 all our debts are not paid, we would declare a sit-down strike. Following the sit-down strike, we shall impress upon GRIDCo Management to disconnect all customers indebted to us.”
“We are embarking on these actions to restore the backbone of the NITS and to ensure that GRIDCo remains a fully-owned Ghanaian company managed by full-blooded Ghanaians and not to be thrown out there for people to grab,” Mr Kornor further stated.
Ghana: Tullow CEO’s Resignation Will Adversely Affect Investor Confidence – Expert
A technical consultant for the Ghana Oil and Gas for Inclusive Growth (GOGIG), a civil society in the Republic of Ghana, Mr Samuel Bekoe, has said the resignation of the Chief Executive Officer of Tullow Oil PLC’s and its Head of Exploration Unit ‘signifies doubt’ in the ability of the company and will adversely affect investor and shareholder confidence.
According to him, the share price of Tullow Plc which has plummeted by percent 50 percent may also delay revenue generation from production as compared to what the company was forecasting.
“The fact that both the CEO and the Head of the Production have resigned on the same day definitely shows signs of very significant problems in their operations in Ghana. We [Ghana] are one of Tullow’s major operation sites so we should be very concerned about the fact they are struggling to deliver what is expected of them,” he cautioned in an interview with Ghanaweb.com on Tuesday, December 10.
Bekoe advised that the country learns from this, adding that going forward, government does the necessary audit on the technical aspects and abilities of the company that is allowed to take over the production in the country’s oil fields.
Some Petroleum experts have also warned that the company will embark on some potential cost rationalization to reduce the cost base which may end up incurring debts on the country along with some of its exciting contracts likely to be terminated.
On Monday, December 9, the shares of Tullow Oil PLC on the London Stock Exchange plummeted by more than 50 percent as news of the resignation of its Chief Executive Officer, Paul McDade, was announced due to failure to meet its production targets in Ghana.
According to reports, the lead partner of the Jubilee and TEN fields could not meet its production targets due to technical problems at Jubilee as well as a delay in the completion of a well at the TEN fields.
Tullow which is listed on both the Ghana and London Stock Exchange has also faced challenges in recent months to its plans to develop oil fields in Uganda and Guyana.
The company earlier announced a revision to its key production figures stating that oil production is expected to hover around 87,000 barrels of oil per day (bopd) this year, while lowering production in 2020 of between 70,000 and 80,000 (bopd), as it undertook a review of its production performance issues.
South Africa: NERSA To Hold Eskom RCA Public Hearings In Feb 2020
The National Energy Regulator of South Africa (NERSA) has announced the timelines to process Eskom’s Regulatory Clearing Account (RCA) application for the 2018/19 financial year.
Eskom is requesting a total RCA balance of R27, 323 million. NERSA received Eskom’s 2018/19 RCA application on 8 August 2019.
On receipt of the application, it was screened for compliance with both the Fourth Multi-Year Price Determination (MYPD4) Methodology and the Minimum Information Requirements for Tariff Applications (MIRTA) requirements.
On 13 November 2019, Eskom submitted a revised application after several interactions with NERSA. On 19 November 2019, full compliance with the MYPD4 and MIRTA requirements was confirmed, after all outstanding information was submitted by Eskom.
The Energy Regulator will assess Eskom’s application following due regulatory processes. The indicative timelines for the decision-making process is provided in Table 1 below.
In line with NERSA’s commitment to being transparent and broadening public participation in its decision making process, the public hearings will be held as follows:
The RCA is a correction mechanism of the MYPD, where excess or inadequate returns are managed. It consists of the variance between the actuals for the full financial year and what was allowed in the MYPD decision of the Energy Regulator. By design, the RCA is backward-looking and deals with actuals and facts.
Written comments can be forwarded to [email protected], hand-delivered to 526 Madiba Street, Arcadia, Pretoria or posted to PO Box 40343, Arcadia, 0083, Pretoria, South Africa. The closing date for written comments is 20 January 2020 at 16:00.
Members of the public and stakeholders who wish to attend or present their views at any of the public hearings must submit their request to [email protected] by 15:30 on 27 January 2020.
Eskom’s RCA application is available on the NERSA website at www.nersa.org.za under ‘Consultation > Notices > Electricity’.
In line with NERSA’s commitment to being transparent and broadening public participation in its decision making process, the public hearings will be held as follows:
The RCA is a correction mechanism of the MYPD, where excess or inadequate returns are managed. It consists of the variance between the actuals for the full financial year and what was allowed in the MYPD decision of the Energy Regulator. By design, the RCA is backward-looking and deals with actuals and facts.
Written comments can be forwarded to [email protected], hand-delivered to 526 Madiba Street, Arcadia, Pretoria or posted to PO Box 40343, Arcadia, 0083, Pretoria, South Africa. The closing date for written comments is 20 January 2020 at 16:00.
Members of the public and stakeholders who wish to attend or present their views at any of the public hearings must submit their request to [email protected] by 15:30 on 27 January 2020.
Eskom’s RCA application is available on the NERSA website at www.nersa.org.za under ‘Consultation > Notices > Electricity’.
Nigeria: First Solar Mini-Grid Commissioned In Rokota Community
The Federal government of Nigeria, through its implementing agency – Rural Electrification Agency (REA), has facilitated the commissioning of a solar hybrid mini-grid power plant in Rokota Community, Edati local government area, Niger State.
The project is the first to be commissioned under the World Bank-supported Nigeria Electrification Project (NEP).
It will provide clean, safe and reliable electricity to an expected three thousand people in the community.
Speaking during the commissioning of the project, the Village Head of Rokota Community, HRH, Alhaji Adamu Mohammed Rokota, expressed appreciation to the federal government of Nigeria and the World Bank and PowerGen for deploying the solar hybrid mini-grid in the community.
“At Rokota, our children can study under the glow of clean electricity. As enterprising people blessed with kaolin, red clay and iron ore resources, we look forward to more commercial activities and small businesses growing Rokota’s economy.”
Managing Director for REA, Damilola Ogunbiyi emphasised the importance of using off-grid electrification technologies to increase electricity access in Nigeria.
She also stated “there are countless investment opportunities in the off-grid market. This is why the REA is collaborating with private sector solar developers. We are also committed to using renewable energy in the reduction of annual greenhouse carbon emissions by 25,000 metric tons. This is in adherence to Nigeria’s commitment to the Paris Agreement on Climate Change.”
World Bank Nigeria Country Director, Shubham Chaudhuri, in his goodwill message, reiterated the World Bank’s commitment to promoting universal access to electricity.
He noted that “the World Bank is committed to reducing the consumption and use of fossil fuels in energy production through renewable energy investments. Through various renewable energy projects across the world, the Bank ensures that there is an increase in universal access to electricity especially in underserved and unserved communities.”
Managing Director of PowerGen Renewable Energy Nigeria Limited, Alastair Smith in his remarks about the implementation of the transformative project stated that “thanks to the Nigeria Electrification Project, under the Performance-Based Grant which we applied for, we have been able to deliver this solar hybrid mini-grid power plant within two months, a record time. I am proud to say that the mini-grid, with a total solar capacity of 64KW and 360KWh of battery storage, was delivered based on international best practice and standards while also using local labour, and provides sufficient power for about 3,000 people”.
Rokota Community is the first beneficiary of renewable off-grid electricity under the Nigeria Electrification Project Mini Grids component. The component aims to provide clean, safe, reliable and affordable electricity to 300,000 homes and 30,000 local businesses in Nigeria.
World Bank Nigeria Country Director, Shubham Chaudhuri, in his goodwill message, reiterated the World Bank’s commitment to promoting universal access to electricity.
He noted that “the World Bank is committed to reducing the consumption and use of fossil fuels in energy production through renewable energy investments. Through various renewable energy projects across the world, the Bank ensures that there is an increase in universal access to electricity especially in underserved and unserved communities.”
Managing Director of PowerGen Renewable Energy Nigeria Limited, Alastair Smith in his remarks about the implementation of the transformative project stated that “thanks to the Nigeria Electrification Project, under the Performance-Based Grant which we applied for, we have been able to deliver this solar hybrid mini-grid power plant within two months, a record time. I am proud to say that the mini-grid, with a total solar capacity of 64KW and 360KWh of battery storage, was delivered based on international best practice and standards while also using local labour, and provides sufficient power for about 3,000 people”.
Rokota Community is the first beneficiary of renewable off-grid electricity under the Nigeria Electrification Project Mini Grids component. The component aims to provide clean, safe, reliable and affordable electricity to 300,000 homes and 30,000 local businesses in Nigeria. Nigeria: NNPC Assures Of Seamless Supply, Distribution Of Petroleum Products
The Nigerian National Petroleum Corporation (NNPC) has assured of regular supply of fuel products despite oil pipeline fire outbreak.
There was fire outbreak last Thursday along Atlas Cove-Mosimi Pipeline, part of the System 2B pipeline in Baruwa Swamp area of Lagos.
The corporation said preliminary reports of the incident indicated that the fire outbreak might have been caused by an act of vandalism by suspected oil thieves.
The corporation, in conjunction with the Lagos State, has contain the fire and repair works have commenced which will lead to speedy restoration of the pipeline operations.
The corporation commended all stakeholders for their prompt response, assuring the public of seamless supply and distribution of petroleum products supply in the Country throughout the Yuletide season and beyond
CEO Of Aker Energy Resigns
The Chief Executive Officer of Aker Energy, Norwegian oil and gas giant, Jan Arve Haugan has resigned.
It is not clear why Mr Jan Arve Haugan decided to resign.
Prior to joining Aker Energy, he held several positions including being President & CEO of Kvaerner ASA, from 2011 to 2018.
Mr Haugan served in a number of leading roles in Norsk Hydro from 1991 to 2011, and as CEO of Qatalum, a joint venture with Qatar Petroleum and one of the largest primary aluminium plants built in one phase, located in Qatar.
Prior to joining Hydro, he held positions in Terra Mar Project Management and a civil construction company, F. Selmer (now Skanska).
He holds an M.Sc. in Construction Management from the University of Colorado at Boulder, USA. Mr Haugan is a Norwegian citizen.
In a statement posted on the Aker Energy’s website, it said that the Board of Directors has named Svein Jakob Liknes, Head of Operations, as acting Chief Executive Officer following the decision by Jan Arve Haugan to resign.
“Aker Energy continues the effort to optimise and safeguard the Pecan project in close collaboration with Ghanaian authorities. As Aker Energy is preparing for the next phase with PDO approval, followed by project execution as the main tasks, Jan Arve Haugan is stepping down and Svein Jakob Liknes has been named acting CEO,” Aker Energy said in the statement.
According to the statement, Svein Jakob Liknes has extensive experience both from projects and operations and he has worked closely on the Pecan PDO process, making him the right fit to lead Aker Energy,” Øyvind Eriksen, President and Chief Executive Officer at Aker ASA said.
“I want to thank Jan Arve Haugan for his leadership and relentless work in building a complete exploration and field development organisation in Aker Energy. At the same time, we appreciate the opportunity to maintain our strong and long-lasting collaboration with Jan Arve Haugan in his capacity as board member in Kværner as well as in existing and new projects,” Eriksen said.
Svein Jakob Liknes has served as Aker Energy’s Head of Operations, overseeing the company’s current Plan of Development and Operations (PDO) process.
Prior to joining Aker Energy, Liknes held the position as SVP Operations & Asset Development in Aker BP.
The appointment to acting CEO is effective immediately and will remain in effect until further notice.
In parallel with the leadership transition, the composition of the Board of Directors will be changed in both Aker Energy and TRG Energy, the owner of AGM Petroleum in Ghana and in which Kjell Inge Røkke is the main shareholder, to strengthen the two companies and better reflect that they will continue to operate as separate entities also in the next phase.
The main task for TRG Energy is to quantify discoveries, including by drilling new appraisal wells. Aker Energy will continue as a service provider to TRG Energy.
In addition to the reallocation of board members between TRG Energy and Aker Energy,
Ms Rosalind Kainyah has decided to resign from the Board of Aker Energy and will continue to offer her support through her consultancy business. The new board compositions are as follows:
Aker Energy:
Karl Johnny Hersvik, Chairman
Samaila Zubairu, Deputy Chairman
Anne Marie Cannon
Tore Torvund
Kjell Inge Røkke
Øyvind Eriksen
TRG Energy:
Sverre Skogen, Chairman
Kjell Inge Røkke, Deputy Chairman
David Adomakoh
Kristian Monsen Røkke
Olav Revhaug
Khash Mohajerani
Top of Form
Bottom of Form
Tullow Oil CEO, Exploration Director Resigns Over Poor Production From Ghana Fields
The Chief Executive of Tullow Oil Plc and exploration director have resigned, sparking a precipitous fall in share price as the firm cut its prediction for how much oil it will produce over the coming years.
Tullow’s shares fell 60 percent following announcement by Mr Paul McDade and Angus McCoss, that they had quit the firm.
The board said it was “disappointed by the performance of Tullow’s business”.
More than £1.05bn had been wiped off Tullow’s market value at 9am on Monday morning, leaving the company reeling, valued at £801.7m.
The firm has suspended its dividend to shareholders, and “now needs time to complete its thorough review of operations”.
Tullow shares have been under pressure since a steep fall last month, when it cut its production guidance for this year.
Dorothy Thompson, the company’s chair, said: “Despite today’s announcement, the board strongly believes that Tullow has good assets and excellent people capable of delivering value for shareholders.
“We are taking decisive action to restore performance, reduce our cost base and deliver sustainable free cash flow.”
Thompson has temporarily been installed as executive chair, as the firm kicks off its search for a new chief executive.
In July, Tullow reported that its production well at TEN in Ghana had been suspended, which then also postponed the completion of the site’s water injector well.
In addition to the reduction in production, export from the Ghana fields has been low due to a lack of demand from the Ghana national petroleum company.
The company said it expects full-year net production to average around 87,000 barrels of oil per day, reiterating its guidance from last month’s trading statement.
It also hopes for free cash flow of about $350m (£265.7m). It assured investors it has liquidity headroom of more than $1bn and no debt maturities approaching imminently.
However, Tullow said that after a review of “production performance issues” this year, and the impact this could have on its fields’ performance in the coming years, it had changed its guidance.
Next year’s production is predicted to average between 70,000 and 80,000 barrels of oil per day (bopd), while over the next three years it expects an average of 70,000 bopd.
Tullow said it had picked out “a number of factors” that have caused the reduction in guidance.
“Whilst financial performance has been solid, production performance has been significantly below expectations from the group’s main producing assets, the TEN and Jubilee fields in Ghana,” it said.
Ghana: COPEC Charges BOG To ‘Arrest’ Cedi Depreciation To Avoid Needless Fuel Increment
The Chamber of Petroleum Consumers (COPEC), a consumer advocacy group in the Republic of Ghana is outraged by the government’s inability to ‘arrest’ the depreciation of the country’s cedis against the US dollar.
COPEC claims the depreciation of the Ghana currency has resulted in the latest increment in fuel price.
Fuel prices across most of the major oil marketing companies (OMCs) have seen an increase of almost one percent since Friday, December 6, 2019.
In a press statement copied to energynewsafrica.com, the Executive Secretary of the Chamber, Duncan Amoah said a “recent depreciation of the cedi against the dollar from ¢5.53 to around ¢5.710 forward rates is largely responsible for this increase in prices.
“The depreciation of the cedi, if left unchecked, will certainly see prices going up again and even higher in the second window of this month,” he said.
He, however, admitted that “there has been some marginal increases in FOB (Free On Board) prices as freight premiums have shot up a bit due to the IMO cap 2020 programme.”
COPEC called on the Monetary Policy Committee (MPC) to work very hard to control the fast depreciating currency in order to avoid any needless fuel price increases at a time when most petroleum consumers are already complaining of very harsh fuel prices across pumps within the country.
Below is COPEC’s full statement:
CHECK THE SPATE OF THESE FUEL PRICE INCREASES.
Fuel prices across most of the major Oil Marketing Companies (OMCs) have seen an increase of almost 1% since 7 pm on Friday, 6/12/19.
Average pump prices that hitherto was at 5.360/ litre for both petrol and diesel have seen an increase of 5 pesewas to current new prices of 5.410/ litre or 24.345/ gallon for both petrol and diesel.
The recent fast depreciation of the cedi from ¢5.53 to around ¢5.710 forward rates is largely responsible for this increase in prices though there’s also been some marginal increases in FOB prices as freight premiums have shot up a bit due to the IMO Cap 2020 programme.
The depreciation of the cedi if left unchecked will certainly see prices going up again and even higher in the second window of this month.
Whiles acknowledging some recent efforts by the Bank of Ghana to auction dollars with the aim to stabilising the forex rates, the recent trend of depreciation seem to point to little gains in that regard as fuel imports continue to operate with forward forecasts as far as forex rates are concerned.
There simply is no guarantee per the current auction module to any of the fuel importers, as the net effect of the cedi’s depreciation continues to be directly impacting on the trading numbers that eventually reflects in pump prices.
It is our expectation that the Monetary Policy Committee will work very hard to control the fast depreciating currency in order to avoid any needless fuel price increases at a time when most petroleum consumers are already complaining of very harsh fuel prices across pumps within the country.
We further call on the Government to review some of the nuisance and needless fuel taxes as we currently have in the price build-up in the country since the 2020 budget has set out in clear terms to focus on clamping down on fuel smuggling which is known to cost the country over 1.6 billion in taxes evaded annually.
Signed
Duncan Amoah
Executive Secretary
Rosneft Elbows PDVSA Aside On Venezuela Service Contracts
A subsidiary of Rosneft has taken over some contract discussions with local service providers in Venezuela, stepping in for PDVSA on joint projects with the state-owned oil company, according to people familiar with the matter.
The move is a major turnabout for PDVSA, which in the past typically operated all aspects of the joint ventures, said the people, who asked not to be named because the talks with the service providers aren’t public.
It builds on previous small steps that have yielded key activities to Rosneft, and underscores Russia’s growing influence in Venezuela’s oil industry.
PDVSA has been forced to cede more control amid an exodus of experienced workers, corruption and lack of investment that has driven production down to less than 800,000 bpd in October from more than 2.5 MMbpd in 2015.
The Russian oil company is stepping in to reinforce current assets and widen its presence in the country, even as some of Venezuela’s other partners such as China National Petroleum Corp. have signaled reluctance. Over the past months, CNPC’s affiliates have shied away from construction works and projects at oil facilities.
Rosneft and PDVSA declined to comment.
PDVSA and Rosneft plan to boost production at three of their five joint ventures — Petromonagas, Petrovictoria and Petromiranda — that were hit by power failures and U.S. sanctions, according to the people. Rosneft now trades much of Venezuela’s oil from an office in Panama staffed with former PDVSA employees.
Rosneft receives oil as part of its joint ventures with PDVSA, and also as repayment for loans. It’s not subject to U.S. sanctions that restrict American refiners from importing Venezuelan crude. Most international oil companies and trading houses have avoided buying oil from PDVSA since the sanctions were imposed.
Precision Drilling de Venezuela, previously owned by Weatherford International Plc and now wholly owned by Rosneft, is reaching out to some local companies including holding discussions on scope of work and potential payment in rubles, they said. Repeated attempts to reach Precision Drilling by phone in Anaco were unsuccessful.
Ghana: Karpowership’s Utilisation Of Natural Gas Will Save Electricity Users $170.5M Annually-Akufo-Addo
Ghana’s President Nana Akufo-Addo says the decision to switch 470MW Karpowership from depending on heavy fuel to natural gas is likely to save electricity users an amount of $170.5 million per year, and a projected amount of $1.2 billion over the remaining term of the contract.
He said in line with government’s policy of promoting the use of gas as the primary fuel for power generation, the 470-megawatt Karpowership is now running on natural gas, instead of Heavy Fuel Oil (HFO), for the generation of electricity.
“In line with government’s policy of promoting the use of gas as the primary fuel for power generation, the 450-megawatt Karpowership is now running natural gas, instead of Heavy Fuel Oil (HFO), for the generation of electricity.
“This follows the relocation of the Karpowership from its original location in Tema to the Sekondi Naval Base, in the Western Region, and the successful conversion of 90% of its engines to run on natural gas. As a result, Ghana will save a monthly take-or-pay cost of $40 million, resulting in projected annual savings to the country of $480 million.
“Specifically, the switch of the Karpowership to natural gas will save electricity users an amount of $170.5 million per year, and a projected amount of $1.2 billion over the remaining term of the contract, by way of reduced electricity charges to consumers.
Commissioning the facility on Saturday, 7th December, 2019, in Secondi in the Western Region, President of the West African nation said “the arrangement that we have made with the companies is that the gas that comes out of the ground belongs to us. We are not paying for it. If it is ours, we should use it.”
Additionally, the President stated that the conversion is to ensure the maximum utilisation of indigenous gas (OCTP gas) in the Western Region, “to reduce, to the barest minimum, or to eliminate the financial consequences under the take-or-pay obligation.”
Explaining the rationale for the relocation of Karpowership, he noted that the Western Region “is where the gas of our country originates. So, the gas is right next door, and it can feed the facility easily. There are several savings that come out as a result, now that we are going to use gas as the primary source of power generation in the country. We are talking significant sums of money over the course of the next 10 years. We are looking at something in excess of $1 billion worth of savings in the generation of power via gas”.
As a result of this, President Akufo-Addo explained that the use of natural gas “helps bring down the cost of electricity, saves our country, and makes it possible for us to look at a secure source of powering the transformation of our country’s economy and for the industrial development of Ghana. That is our main goal.”
With Government determined to move the country away from being mere producers and exporters of raw materials, the President indicated that stable, affordable and reliable power is required.
Reiterating the commitment of his Government to putting Ghana on a sound footing, he stressed that the development that is going to take place in Ghana over the years ahead is one that will not only benefit all sections of our society, but will also be irreversible.
“The business in Ghana where we go forward and stumble and then go back, we want to put that behind us by making intelligent arrangements in all sectors of our national life, especially in our energy sector, so that from now on when we are going forward, we can keep on going forward and forward and forward,” President Akufo-Addo added.
The President thanked the “competent people” at GNPC, VRA, GRIDCo, Ghana Gas, and the Electricity Company of Ghana “for doing an exceptionally good job in trying to protect our nation and its economic potential and development.”
“Specifically, the switch of the Karpowership to natural gas will save electricity users an amount of $170.5 million per year, and a projected amount of $1.2 billion over the remaining term of the contract, by way of reduced electricity charges to consumers.
Commissioning the facility on Saturday, 7th December, 2019, in Secondi in the Western Region, President of the West African nation said “the arrangement that we have made with the companies is that the gas that comes out of the ground belongs to us. We are not paying for it. If it is ours, we should use it.”
Additionally, the President stated that the conversion is to ensure the maximum utilisation of indigenous gas (OCTP gas) in the Western Region, “to reduce, to the barest minimum, or to eliminate the financial consequences under the take-or-pay obligation.”
Explaining the rationale for the relocation of Karpowership, he noted that the Western Region “is where the gas of our country originates. So, the gas is right next door, and it can feed the facility easily. There are several savings that come out as a result, now that we are going to use gas as the primary source of power generation in the country. We are talking significant sums of money over the course of the next 10 years. We are looking at something in excess of $1 billion worth of savings in the generation of power via gas”.
As a result of this, President Akufo-Addo explained that the use of natural gas “helps bring down the cost of electricity, saves our country, and makes it possible for us to look at a secure source of powering the transformation of our country’s economy and for the industrial development of Ghana. That is our main goal.”With Government determined to move the country away from being mere producers and exporters of raw materials, the President indicated that stable, affordable and reliable power is required.
Reiterating the commitment of his Government to putting Ghana on a sound footing, he stressed that the development that is going to take place in Ghana over the years ahead is one that will not only benefit all sections of our society, but will also be irreversible.
“The business in Ghana where we go forward and stumble and then go back, we want to put that behind us by making intelligent arrangements in all sectors of our national life, especially in our energy sector, so that from now on when we are going forward, we can keep on going forward and forward and forward,” President Akufo-Addo added.
The President thanked the “competent people” at GNPC, VRA, GRIDCo, Ghana Gas, and the Electricity Company of Ghana “for doing an exceptionally good job in trying to protect our nation and its economic potential and development.”
Landlocked Developing Countries Turn To Renewables To Socio-Economic Development(Article)
Almost 40 per cent of people living in landlocked developing countries (LLDCs) still lack access to energy. The Political Declaration adopted by the High-Level Midterm Review of the Vienna Programme of Action (VPoA) for Landlocked Developing Countries highlights the importance of renewables in addressing this challenge.
The International Renewable Energy Agency (IRENA) is working extensively with LLDCs to help them tackle the energy access gap through increased uptake of renewables which have become increasingly cost competitive and accessible as a result of rapidly falling costs.
As a catalyst and enabler of development, societies cannot grow without access to reliable and affordable energy services. And while notable progress has been made on energy access in recent years with the total number falling below 1 billion, a significant number of people in LLDCs still live without reliable energy and remain the furthest behind. Disconnected from global markets and a lack of access to the open ocean has made it difficult for LLDCs to match the pace of development seen elsewhere.
Innovations in technology and business models, together with falling costs, have supported the rapid uptake of renewables worldwide, offering affordable energy access to even the most isolated of rural communities. In 2017 alone, at least 34 million people gained access to energy through off-grid solutions, including solar lighting, solar home systems and mini-grids.
IRENA supports LLDCs by identifying any existing policy and regulatory limitations and offering recommendations, through its Renewables Readiness Assessment (RRA) tool. The aim is to encourage investment by creating an attractive, favourable environment.
To date, the Agency has worked with a number of LLDCs in the development of RRAs, which also identify the optimal renewables mix for countries, allowing them to maximise their full and unique resource potential. To date, RRAs have been conducted in 9 LLDC countries, including Azerbaijan, Bhutan, Mali, Mongolia, Niger, the Republic of Moldova and Zambia.
Another notable example of IRENA’s country-level engagement with LLDCs is the development of the Eswatini Energy Masterplan 2034. The roadmap was developed as result of the joint Energy Planning Capacity-Building Programme in cooperation with the Kingdom of Eswatini, aligning the country’s national energy sector with its development objectives.
In addition to offering countries knowledge and expertise, IRENA’s collaboration with the Abu Dhabi Fund for Development (ADFD) funds the deployment of renewable energy projects in developing countries. The work of the IRENA/ADFD Project Facility has financed renewable energy projects in countries like Rwanda and Burkina Faso, helping them gain access to low-cost capital to fund the deployment of renewable energy projects.
IRENA is now moving towards further strengthening its support to countries on the ground to mobilise investments and scale up projects through new partnerships and initiatives. In this context, IRENA, UNDP, Sustainable Energy for All, in coordination with the Green Climate Fund announced the Climate Investment Platform, at the UN Climate Action Summit in New York.
Partnerships are key to achieving the Sustainable Development Goals. Recognising the role renewable energy plays in addressing them, IRENA has strengthened its cooperation with United Nations organisations. Last September, the Agency and UN-OHRLLS signed an MOU to step up cooperation to implement the energy component of the VPoA.
This article was first published on IRENA’s website
Ghana: ECG Retrieves GH¢200,000 From Illegal Connections At Dansoman
The Dansoman District Office of the Electricity Company of Ghana (ECG) has, since January this year, retrieved more than GH¢200,000 from customers who were using electricity illegally.
The amount represents penalties and surcharges imposed on the individuals and corporations caught using power for free.
The Dansoman District Manager of the electricity distribution and retail company in the West African nation, Mr Vincent Osei-Appiah, told the Daily Graphic that a special monitoring team set up to audit electrical connections in factories, warehouses and workshops led to the uncovering of the canker.
“The identified customers were engaged in illegalities such as direct connections, meter tampering and meter bypass,” he said.
He added that following the success achieved by the task force so far, the scope of its operations would be expanded to include all categories of customers in the district.
The Dansoman District is one of seven operational districts of the ECG in the Accra West Region.
The acting General Manager, Accra West Region of the ECG, Mr Emmanuel Ankomah, warned that the region would wage a relentless “war” on all illegal activities as the Christmas season beckoned.
“We want to make the Accra West Region the model for others to emulate. Special measures, including strategic partnerships with the security agencies, have been taken to identify, surcharge and rectify all illegal connections in the region,” he said.
Mr. Ankomah advised ECG customers to report any suspected illegal connection to the nearest ECG office and pledged that aside from the identity of the whistleblower being protected, “there is a cash reward for the informant”.
Ghana: ECG MD Accompanies President To Commission Karpower Interconnection Project (Photos)
The Managing Director of Ghana’s power distribution and retail company, Electricity Company of Ghana (ECG), Kwame Agyeman-Budu on Saturday joined the President of the Republic, H.E. Nana Addo Dankwa Akufo-Addo to commission the Karpowership Interconnection Project at the Western Naval Command in Secondi.
The 470MW Karpowership is one of the power producing plants whose generated power is distributed by ECG.
It is expected that connecting the plant to indigenous gas will save the government huge sums of money every month as compared to when it was connected to heavy fuel.
Also present at the ceremony were Minister for Energy, John-Peter Amewu, William Owuraku Aidoo, Joseph Cudjoe, CEOs of VRA, GRIDCo, GNPC and Ghana Gas Company Ltd.
MD’s was accompanied by GM of MD’s office, Dan Adjei-Larbi, GM Baiden Ebenezer, and MD’s Executive Assistant, Kwame Kyeretwie-Amponsah.
Asia Poised To Become Dominant Market For Wind Energy
Asia could grow its share of installed capacity for onshore wind from 230 Gigawatt (GW) in 2018 to over 2600 GW by 2050, a new report by the International Renewable Energy Agency (IRENA) has suggested.
By that time, the region would become a global leader in wind, accounting for more than 50 per cent of all onshore and over 60 per cent of all offshore wind capacity installed globally.
According to the “Future of Wind” published at China Wind Power in Beijing today, global wind power could rise ten-fold reaching over 6000 GW by 2050. By midcentury, wind could cover one third of global power needs and – combined with electrification – deliver a quarter of the energy-related carbon emission reductions needed to meet the Paris climate targets. To reach this objective, onshore and offshore wind capacity will need to increase four-fold and ten-fold respectively every year compared to today.
“With renewables, it’s possible to achieve a climate-safe future,”IRENA’s Director-General Francesco La Camera said.
“Low-cost renewable energy technologies like wind power are readily-available today, representing the most effective and immediate solution for reducing carbon emissions. Our roadmap for a global energy transformation to 2050 shows that it is technically and economically feasible to ensure a climate-safe, sustainable energy future. Unlocking global wind energy potential will be particularly important. In fact, wind energy could be the largest single source of power generation by mid-century under this path. This would not only enable us to meet climate goals, but it would also boost economic growth and create jobs, thereby accelerating sustainable development.”
The global wind industry could become a veritable job motor, employing over 3.7 million people by 2030 and more than 6 million people by 2050, IRENA’s new report finds. These figures are respectively nearly three times higher and five times higher than the slightly over one million jobs in 2018. Sound industrial and labour policies that build upon and strengthen domestic supply chains can enable income and employment growth by leveraging existing economic activities in support of wind industry development.
But to accelerate the growth of global wind power over the coming decades, scaling up investments will be key. On average, global annual investment in onshore wind must increase from today USD 67 billion to 211 billion in 2050. For offshore wind, global average annual investments would need to increase from USD 19 billion to 100 billion in 2050.
Statistical highlights:
- Asia would account for more than 50% of global onshore wind power installations by 2050, followed by North America (23%) and Europe (10%). For offshore, Asia would cover more than 60% of global installations, followed by Europe (22%) and North America (16%).
- Within Asia, China would take the lead with 2525 GW of installed onshore and offshore wind capacity by 2050, followed by India (443 GW), Republic of Korea (78 GW) and South-East Asia (16 GW).
- Globally, the levelised cost of electricity (LCOE) for onshore wind will continue to fall to 2-3 cents USD/kWh by 2050compared to 6 cents USD/kWh in 2018. Costs of offshore wind will drop significantly to 3-7 cents USD/kWh by 2050 compared to 13 cents USD/kWh in 2018.
- Wind turbine size for onshore applications will increase, from an average of 2.6 megawatts (MW) in 2018 to 4-5 MW for turbines commissioned by 2025. Offshore applications will likely increase to 15-20 MW in a decade or two. Floating wind farms could cover around 5-15% of the global offshore wind installed capacity (almost 1 000 GW) by 2050.