Ghana: Gov’t Acted On Contaminated Fuel Saga- BOST Replies NDC
The Bulk Oil Storage and Transportation (BOST) Company Ltd has rubbished claims by Ghana’s largest opposition party, National Democratic Congress (NDC) that the governing New Patriotic Party (NPP) failed to act when the issue of contaminated fuel occurred at BOST in 2017.
At a press conference addressed by the National Communications Officer of the NDC, Sammy Gyamfi accused the Akufo-Addo-led governing NPP of sweeping the issue under the carpet for reasons known to them.
“Today, we know that the committee tasked to investigate the Movenpina-Zup Oil contaminated fuel saga, has found that the transaction was criminal and that, the proceeds from same has not been paid into the state coffers till date. Indeed, the committee’s report indicates that Movenpina has not paid BOST for the 471,000 litres sold through Zup Oil Limited. The committee also found out that thousands of litres of fuel which was lodged in the tanks of the NPA could not be accounted for.
“President Akufo Addo’s handling of the “BOSTGATE” corruption scandal smacks of grand collusion and cover up of epic proportions. The fact that till date no one is standing prosecution for this pungent corruption scandal which has caused the nation huge financial losses, bears Akufo-Addo out as the biggest enabler and promoter of corruption,” he said.
However, in its response to the allegations, BOST said it has an evidence to suggest the government acted.
According to BOST, the National Security and BNI, as well as the Ministry of Energy, set up committees and investigated the allegations and reported their findings.
“The Minister for Energy also constituted a committee made up of representatives from the National Security and the National Petroluem Authority (NPA) to investigate the allegations and reported their findings to the Minister,” the statement said.
It noted that BOST further constituted a committee which was made up of key industrial players to investigate the fuel contamination, and the committee also submitted its findings to the company.
BOST also refuted claims by the NDC that the company sold five million litres of contaminated products to unlicensed companies, explaining that it was 471,000 litres which was sold. According to the company, the remaining product was sent to Tema Oil Refinery for correction.
BOST explained that the then MD of the company relied on the established practice for the disposal of the contaminated product.
“Prior to 2017, a total of 38 companies including the local union of BOST, were allowed to buy contaminated products from BOST. It is on record that these companies were not licensed for that purpose,” the company said.
BOST provided the list to back its claims.
Ghana Must Deploy The Renewables To Achieve Universal Electricity Access By 2025, After Failing At 2020 Target (Article)
Paa Kwasi Anamua Sakyi (Nana Amoasi VII), IES
Globally, access to substantial quantity and quality energy infrastructures have been found as essential to rapid and sustainable socio-economic development.
According to the International Energy Agency (IEA), modern energy services, particularly, electricity and gas have an effect on productivity, health, education, safe water, and communication services. Ahali (2015) finds the extensive use of electric powered machinery as playing major roles in both industrial and household production.
Indeed without electricity, economic transformation through improved productivity in manufacturing and services, technological innovations, and promotion of value-addition in resource-based economies would not be possible.
Insufficient supply of energy will limit socio-economic activities, restrict economic growth, negatively impact living standards, and aggravate poverty and inequality, and also hampers government revenues (Ahali 2015; Oseni 2012; IEA 2014).
It goes to suggest that the need for electricity is critical, as it is a catalyst for sustainable economic development. That it is impossible for a country to develop and sustain beyond subsistence means without having access to electricity for the greater portion of its society. Economic sectors such as agriculture, transportation, mining, services, and industries cannot do without electricity, as it presents itself as a vital commodity.
In spite of its vital role, a billion people mostly concentrated in Sub-Saharan Africa and Asia still live their daily lives without electricity, and hundreds of millions more live with unreliable or expensive power (IEA 2019; Mobisol 2018).
Global Electricity Access
The International Energy Agency (IEA) reports that global efforts to deepen the access to electricity access across the globe are showing positive signs in all regions, and the pace of progress has accelerated over the past few years. That for the first time in 2016, the population not having access to electricity had fallen below the 1.1 billion mark.
In its latest report, the IEA suggests that the number of people without access to electricity has dropped from close to 1 billion in 2017 to 860 million; a record in recent years. Most of the progress made were in developing Asia, where 800 million people representing 80 percent of the total 860 million have gained access since 2010.
IEA’s latest analysis of Asia Energy Outlook 2019 revealed that close to 1 billion people have gained electricity access in developing Asia since 2000 with 94 percent of the region having access to electricity in 2018 compared with 67 percent in 2000. India accounts for nearly two-thirds of this progress as it continues to make unprecedented progress towards universal access.
The analysis of Africa Energy Outlook 2019 shows that in Africa the number of people gaining access to electricity doubled from 9 million a year between 2000 and 2013 to 20 million people between 2014 and 2018, outpacing population growth. As a result, the number of people without electricity access which peaked at 610 million in 2013, declined slowly to roughly 595 million in 2018. Much of this recent dynamism has been in East Africa, as Kenya, Ethiopia, and Tanzania accounted for more than 50 percent of those gaining access. The majority of the progress over the past decade in Africa has been made as a result of grid connections, but the rapid rise has been seen in access via solar home systems. Kenya, Tanzania and Ethiopia accounted for around 50 percent of the 5 million people gaining access through new solar home systems, according to IEA’s latest estimation in 2018.
In spite of the strides made, IEA suggests that sub-Saharan Africa’s electrification of 45 percent in 2018 remain very low compared to other parts of the world. The million people still without access to electricity there represents more than two-thirds of the global total. And about half of the sub-Saharan African population without electricity access can be found in Uganda, Nigeria, Democratic Republic of Congo, Tanzania, and Ethiopia.
Of those without access to electric energy in sub-Saharan Africa, West Africa is reported to accounts for 30 percent. Putting the average access rate across West Africa at 52 percent, with Ghana being one of the most successful countries in the sub-region in expanding access. Data from the IEA has it that in 2016 only 8 countries were listed as having an access rate above 80 percent – Gabon, Mauritius, Reunion, Seychelles, Swaziland, South Africa, Cape Verde and Ghana; while most countries had a rate below 50 percent and some had a rate of below 25 percent.
Electricity Access Rate in Ghana
Becoming fully aware of the key role of electricity to an economy, Ghana in 1989 devoted itself to a 30-year National Electrification Scheme (NES) to achieve universal access to reliable electricity supply by 2020. The objective according to Ahali (2016) was driven by growth in demographic requirements, increased urbanization with an ever increasing technological demand, and the aspiration to transform into a middle-income country.
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. The baseline at the time the policy was rolled showed national electricity access of about 25 percent, with only 5 percent rural penetration. Data from the Energy Commission of Ghana showed that at the end of 2000 electricity access rate stood at 45 percent, suggesting an annual growth rate of approximately 2 percent. The next decade ending 2010 revealed that the country had achieved an access rate of 67 percent; indicating an annual growth rate of 2.2 percent. Also the annual growth rate between the next 6 years that followed (2010 and 2016) as recorded by the Energy Commission was 2.7 percent. The trajectory therefore shows an incremental annual growth in electricity access.
Source: IES Construct, Data from the Energy Commission
However, over the last 3 years (between 2016 and 2019) the annual electricity access growth rate has seen a substantial decline, from 2.7 percent to a paltry 0.6 percent. As at the end of 2019 the country had obtained a national electricity access rate of 85 percent. If the country had maintained just the annual rate of roughly 2.7 percent, electricity access rate would have been somewhere around 92 percent today; comparable to other countries outside the sub-Saharan African and Asian band.
It is evidently clear that with the current growth rate it is practically impossible to achieve universal access by end 2020. And the admission of this fact is what has led the Government of Ghana revising its target, and seeking to develop new strategies to push the boundaries to achieve the goal of universal access by year 2025.
Ceasing The 2025 Opportunity
To be able to achieve a universal electricity access by the new set year 2025, Ghana may be required to work hard to grow the annual access rate by at least 3 percent, and in tandem with growth in demographic requirements, increased urbanization with an ever increasing technological demand, increase in economic growth, and increase in development and industrial activities; which are consistently placing a high demand for electricity in Ghana.
After continuously increasing power generation capacity from largely thermal sources, and increasing electricity access through grid expansions, it is now time for Ghana to be religious on its policy goal of 100 percent national electricity using renewable energy as a catalyst.
Source: IES Construct, Data from the Energy Commission
However, over the last 3 years (between 2016 and 2019) the annual electricity access growth rate has seen a substantial decline, from 2.7 percent to a paltry 0.6 percent. As at the end of 2019 the country had obtained a national electricity access rate of 85 percent. If the country had maintained just the annual rate of roughly 2.7 percent, electricity access rate would have been somewhere around 92 percent today; comparable to other countries outside the sub-Saharan African and Asian band.
It is evidently clear that with the current growth rate it is practically impossible to achieve universal access by end 2020. And the admission of this fact is what has led the Government of Ghana revising its target, and seeking to develop new strategies to push the boundaries to achieve the goal of universal access by year 2025.
Ceasing The 2025 Opportunity
To be able to achieve a universal electricity access by the new set year 2025, Ghana may be required to work hard to grow the annual access rate by at least 3 percent, and in tandem with growth in demographic requirements, increased urbanization with an ever increasing technological demand, increase in economic growth, and increase in development and industrial activities; which are consistently placing a high demand for electricity in Ghana.
After continuously increasing power generation capacity from largely thermal sources, and increasing electricity access through grid expansions, it is now time for Ghana to be religious on its policy goal of 100 percent national electricity using renewable energy as a catalyst.
Ghana: Energy Ministry Invites Proposals Into Review Of Renewable Energy ActDeployment 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. Hagan (2015) suggest that for most of these communities, extension of the grid network would be challenging due to geographical and financial constraints, and off-grid and mini-grid options may be the technology of choice for meeting their electricity needs. It has already been part of the country’s plan to develop and deploy renewable energy (RE) and energy efficiency technologies to achieve a 10 percent penetration of national electricity production by 2020. It is for this reason that in 2011 the Renewable Energy Act was enacted to provide for the development, management, utilization, sustainability and adequate supply of renewable energy for the generation of heat and power, and thereby increase the proportion of renewable energy in the national energy supply mix while contributing to the mitigation of climate change. Energy Commission’s data shows that at end 2019 Ghana had only 1 percent penetration rate of electricity from renewable energy sources in its total generation mix. It is therefore evident that the country failed to meet it initial target of universal electricity access by 2020 because it also failed to meet its 10 percent deployment of renewable energy by 2020. The International Energy Agency (IEA) has found that decentralized solutions are the least-cost way to provide power to more than half of the world population estimated to gain access by 2030. It has identified renewable energy sources as the least expensive modes to achieve universal electricity access in many parts of the world. In addition to increasing grid-connected electricity generation from renewables, declining costs of small scale solar photovoltaic (PV) for stand-alone systems and mini-grids is vital in helping deliver affordable electricity access to millions. This according to the body, is especially the case in remote rural areas in African countries, home to many of the population still deprived of electricity access. Written by Paa Kwasi Anamua Sakyi (aka Nana Amoasi VII), Institute for Energy Security (IES) ©2019 Email: [email protected] The writer has over 23 years of experience in the technical and management areas of Oil and Gas Management, Banking and Finance, and Mechanical Engineering; working in both the Gold Mining and Oil sector. He is currently working as an Oil Trader, Consultant, and Policy Analyst in the global energy sector. He serves as a resource to many global energy research firms, including Argus Media and CNBC Africa
Ghana: ACEP Leads Experts To Proffer Solutions To Africa’s Upstream Oil & Gas Sector After COVID-19
The Africa Centre for Energy Policy (ACEP), an energy think tank in the Republic of Ghana, West Africa, has led energy, governance and development experts to discuss the impact of coronavirus on Africa’s upstream oil and gas sector.
Leading the discussion, the executive director of ACEP, Benjamin Boakye observed that Africa was set to lose US$65 billion from the oil and gas sector this year alone as a result of the effect of the Covid-19.
According to him, the European Commission (EC) made this projection recently and underscored the need for Africa to swiftly move to find alternative financing for the continent’s development agenda.
Mr Boakye, who was speaking at a virtual conference hosted in Accra, noted that the COVID-19 has negatively affected revenue generation.
“We have to start a conversation about how the situation looks in the context of Africa particularly, revenue generation and debt financing and employment in the oil and gas sector,” he said.
Mr Boakye was of the view that the impact of Covid-19 could significantly reduce investment, estimated to be about 33 percent in Africa and subsequently affect the continent’s socioeconomic development.
He bemoaned that small and medium scale businesses in the oil and gas sector could suffer even more adversely.
Commenting on the Ghanaian perspective, Gyekye Tanoh, the Policy and Research Advocacy Coordinator at Hand and Brain Action Research Initiative, who moderated the conference, was of the view that Africa needed to think outside the box to ensure sustainable development of the continent.
“Is Africa learning or it is business as usual? If you have to spend monies and it is not there, what is the consequences of its implication on social investment if you have such a significant drop in revenue and the struggle for investment for the people’s interests, what do have to do?” he posed.
According to Mr Gyekye, structural frustration in the regime of international trade, financial and primary commodity value chain were issues the continent needed to deal with to survive the storms of any global crisis.
Touching on the Mozambique experience on the oil and gas governance culture, Prof. Adriano Alfredo Nuvunga, who is the Executive Director of the Centre for Democratic Development in his country, emphasised poor management and ill-developed infrastructure of the oil and gas sector as the main challenges in his country.
He admitted that, though the current government was improving, the pace was too slow to revolutionarise the sector soon.
Other speakers from Uganda, Kenya and participants across the globe contributed to making insightful suggestions to help Africa to come out with prudent and pragmatic measures to deal with the poor governance culture in the oil and gas sector so that the continent’s people could benefit in the area of local content development, social investment drives and other important human centred programmes to speedily drive development, even after the Covid-19.
Eni Announces Renewables-Powered Restructuring Plan
Italian oil and gas major Eni has announced a restructuring of its business operations, with a strong focus on incorporating renewable energy and wide-spread energy efficiency, as well as decarbonisation efforts on an “irreversible path” to make the company “leaders in the energy transition”.
The two new business groups are Natural Resources and Energy Evolution.
Natural Resources, headed by current Chief Upstream Officer Alessandro Puliti, will focus on the company’s gas operations, the scaling up of energy efficiency efforts. Carbon capture and compensation projects are also planned.
The second new division, Energy Evolution, will be headed by current Chief Financial Officer (CFO) Massimo Mandazzi, and will focus on expanding Eni’s power renewable energy and biomethane generation efforts and coordinate the bio and circular evolution of Eni’s refining system and chemical business.
Overall, the business group will incorporate renewable energy and natural gas-powered generation, whilst greening its refining and chemicals businesses, Retail Gas&Power and mobility Marketing operations.
Planned projects include carbon capture, gas to power and gas to hydrogen projects will be examples, allowing to add value to gas resources and provide customers with entirely sustainable energy.
Further plans include greening the company’s consumer product line, with a focus on producing “greener” products.
The company also intends introducing a new function, Technology, R&D, and Digital, which will incorporate the company’s current ICT and Digital activities, and focus on research & development of new technologies and their fast implementation on an industrial scale.
Chief Executive Officer Claudio Descalzi said: “This new structure reflects Eni’s pivot to the energy transition. An irreversible path that will make us leaders in decarbonised energy products.
“To make the plan come true, and position us to accelerate its delivery, we are creating two new business groups in our company. They will have specific objectives, but they will also cooperate to deliver on the transition and to provide our customers with the widest range of sustainable products.
“The fight against climate change and promotion of sustainable development is recognised by governments, civil society, investors and business alike as priorities for global development. Only those who pursue these in an innovative way will create value in the long term.
“We want to be main actors in a Just Energy Transition, in which we believe, and is central to Eni’s transformation,” concludes Descalzi.
The new organisational structure will be implemented over the coming weeks.
WTI Oil To Average $34.60 This Year-HSBC
Expectations that the oil market will swing into deficit in July prompted HSBC to revise up its oil price forecasts for this year, with the U.S. benchmark WTI Crude projected to average $34.60 a barrel.
The previous forecast by HSBC Global Research was $32.80 per barrel. The bank also increased its forecast for the average Brent Crude price in 2020 to $39 a barrel from $37 previously expected, due to the record production cuts that are set to flip the market into deficit next month.
“We see the market almost back in balance in June, and moving into deficit in July,” HSBC said on Monday.
Libya Loses Over $5 Billion Due To Oil BlockadeThe oil market is set for a deficit from August onwards, even after OPEC+ eases the current cuts, Rystad Energy analysts said on Friday. The market deficit coming this summer, however, doesn’t mean that there will be a global oil supply crunch, because inventories and floating storage have yet to begin depleting. Despite the record cuts from the OPEC+ group and economics-driven production curtailments in North America, the trend in oil prices is still uncertain because the recovery path of global oil demand is still highly uncertain, according to the bank. “We think this uncertainty is behind the latest push from OPEC+; its goal of eliminating the market surplus is in sight, but the precise timing is not yet clear,” HSBC Global Research said, as quoted by Reuters. OPEC+ agreed on Saturday to extend the record productions cuts of 9.7 million bpd by one month through the end of July, contingent on all countries in the pact complying 100 percent with their quotas and compensating for lack of compliance by over-achieving in the cuts in July, August, and September. Early on Monday, oil prices were down at 8:40 a.m. EDT, with WTI Crude trading at $39.15, down by 1.09 on the day, and Brent Crude down 0.35 percent at $42.17, as the OPEC+ extension was largely priced in in Friday’s market rally and as Libya confirmed the restart of its largest oilfield following six months of blockades.
Equinor Launches Maritime Climate Ambitions
Oil and gas firm, Equinor is launching its ambitions for reducing own emissions from ships, detailing how the company will help decarbonise shipping as the UN marks World Oceans Day.
Specifically, the company aims to halve maritime emissions in Norway by 2030 compared to 2005 emissions and halve global emissions by 2050 compared to 2008 emissions.
The ambitions for the maritime activity are said to be in line with the goals of the International Maritime Organization (IMO) for global shipping and the goals set by Norwegian authorities.
What is more, as a supplier to the maritime sector, Equinor wants to escalate its production and use of low-carbon fuels by 2030 and strongly increase production and use of zero-emission fuels by 2050.
As explained, Equinor’s maritime climate ambitions are embedded in the company’s climate roadmap launched on 6 February 2020. The climate roadmap aims to ensure “a competitive and resilient business model” fit for long-term value creation and in line with the Paris agreement.
The maritime sector represents 6 per cent of total greenhouse gas (GHG) emissions in Norway and 2–3 per cent of global emissions. Being both a producer and a supplier of fuel to the maritime sector, Equinor has extensive maritime activity around the world, including around 175 vessels on contract with the company at any time.
“As a producer and user of maritime fuel, Equinor has a good opportunity to help decarbonise shipping. From our position on the Norwegian continental shelf (NCS), we will develop new solutions contributing to substantial emission reductions together with the maritime industry in Norway and internationally,” Irene Rummelhoff, Equinor’s executive vice president for Marketing, Midstream and Processing (MMP), said.
Equinor said it has worked systematically on reducing its carbon intensity by developing new types of vessels and using alternative fuels in close collaboration with the industry.
“Equinor has been a pioneer in using liquefied natural gas (LNG) as a fuel, and during 2021 we will introduce large-scale use of liquefied petroleum gas (LPG) as a fuel,” according to the company.
Additionally, a new hybrid battery system has been introduced for seven supply vessels on the NCS, and the next
generation of dual-fuel vessels is being introduced to the fleet continuously.
The company has also, in collaboration with the maritime industry, started developing the world’s first supply vessel to run on zero-emission ammonia. Under the agreement signed with the shipowner Eidesvik Offshore, Viking Energy could become the first supply vessel in the world to run on ammonia for long distances, without any greenhouse gas emissions.
Equinor intends to continue supporting the development of low-carbon fuels for the industry.
“In an intermediate phase, we will introduce batteries, hybrid solutions as well as LNG and LPG solutions. Our longer-term ambition is to develop value chains for zero-emission fuels to the maritime sector that will gradually replace low-carbon fuels,” Equinor further said.
“Equinor will play an important role in developing new zero-emission fuels for ships, such as hydrogen and ammonia, in combination with carbon capture and storage,” Rummelhoff continued.
“We can help establish new value chains in the sector, for example by pilot projects together with other players. We see this as an exciting business opportunity that fits the company’s strategy and technological advantages as well as Norway’s role as a laboratory for new maritime technology.”
Saudi Arabia Boost Crude Export Prices To Support OPEC+ Efforts
Saudi Arabia made some of the biggest price increases for crude exports in at least two decades, doubling down on its strategy to bolster the oil market after OPEC+ producers extended historic output cuts.
The steepest jump will hit July exports to Asia, state producer Saudi Aramco’s largest regional market, according to a pricing list seen by Bloomberg.
Overall, the increases for Saudi crude erase almost all of the discounts the kingdom made during its brief price war with Russia.
The sharp price increases show that Saudi Arabia is using all the tools at its disposal to turn around the oil market after prices plunged into negative territory in April. As the price setter in the Middle East, the increases in its official prices may be followed by other producers.
Tighter crude supply is helping repair an oil market battered by the coronavirus. Unprecedented output cuts led by the Saudis and Russia boosted prices in May, and the OPEC+ group decided Saturday to extend those limits through July. Brent crude, down 36% this year, has clawed back some of its losses and ended trading on Friday at more than $40 a barrel.
But the profits that oil refiners make from processing crude into fuel are struggling to keep up with the rising market, and the sharp Saudi price hikes are likely to exacerbate that problem. Representatives for refineries from Europe and Asia expressed concern and said the pricing would crush margins.
Saudi Arabia unleashed a price war in March when it slashed official selling prices by the most in three decades. The kingdom took that drastic step after failing to reach an agreement with Russia to extend production cuts in the face of the pandemic’s destruction of oil demand.
After Tweets, phone calls and top-level consultations, OPEC+ returned to negotiations and hammered out the biggest output curbs in history, pledging to take nearly 10 million barrels a day off the market. U.S. production plunged by roughly 2 million barrels daily as low prices drove producers to shut wells.
OPEC+ chose on Saturday to renew production limits at almost the same level, instead of tapering them as planned at the end of June. Aramco, which typically announces pricing on the fifth day of each month, had delayed its July numbers until after OPEC+ members made their decision.
Saudi Arabia sells its crude at a differential to oil benchmarks, announcing every month the discount or premium it’s charging to global refiners. The so-called official selling prices help set the tone in the physical oil market, where actual barrels change hands.
With China’s demand for crude now rising, the Saudis are raising prices. The month-on-month increase in the official selling price for flagship Arab Light crude to Asia, which accounts for more than half of Saudi oil sales, is the largest in at least 20 years. Aramco raised Arab Light to Asia by $6.10 a barrel to a premium of 20 cents over the benchmark.
It raised July pricing for all grades to Asia by between $5.60 and $7.30 a barrel. That compares with an expected increase of about $4 a barrel, according to a Bloomberg survey of eight traders and refiners.
Buyers in the U.S., the Mediterranean region and Northwest Europe will also pay more for oil.
Nigeria: Power Generation Companies Lose N122.79Billion In Five Months Over Capacity Challenges
Power Generation Companies in the Republic of Nigeria have reportedly lost about N122.79 billion (an equivalent of U.S $315,433,511.94) between January to May this year.
The Guardian quoted Pioneer Executive Secretary of the Association of Power Generation Companies, Dr. Joy Ogaji, as saying that while available capacity generation stood at 8,286.62 megawatts in May, average generation was 4,146.79 MW with stranded generation remaining at 4,140 MW.
A data from January to April, showed that while the generation capacity average was 8000MW, average generation was 3,821, 4,114, 3,912, and 4,099 megawatts for January to April respectively, while stranded generation for the respective months were 3,791, 3,949, 4,406 and 4,489 respectively.
Ogaji said the loses, which remained a risk on the part of the investors discouraged further investment in the sector, since current transmission and distribution infrastructure have continuously failed to wheel the generated electricity.
Nigeria: Group Opposes Removal Of TCN MDIn her analysis, the supply growth from the takeover date in November 2013 to date shows that available generation capacity which was 4,214.32MW has increased by 48 per cent to 8,145MW (as GenCos recovered 3,930.68MW). “However, due to system constraints, the generated power is rejected or forced to be reduced to match the infrastructure that transmits and distributes this power to the Customer. “A case in Point: In Quarter one 2020, despite an available generation capability of 8,145MW, GenCos were only allowed to generate 3,987MW, thus losing an average of 4,159MW daily average generation,” Ogaji stated. She stressed that the wellbeing of the power generation company goes beyond efficient operations to include its ability to generate income from power generated, adding that with a total available installed generation capacity of more than 7,500MW and maximum wheeling capacity of not more than 5,500MW, there would always be a recurring instance of about 2,000MW idle generation. According to her, idle generation represents capital investment not able to yield revenue that will hence impact the ability of the GenCos to support efficient operations and service loans used in developing the power plants. Ogaji disclosed that out of the meagre 5,500MW of transmission wheeling capacity, the DisCos have not proven to be able to distribute more than 4,500MW, continuously leaving yet another 1,000MW of generation capacity unutilised. She said: “In total, due to the combined technical incapacitation of Transmission Company of Nigeria and the DisCos, the GenCos are unable to deploy a total of 3,000MW of capacity that would ensure sustainable profitable operations. If one considers the fact that the DisCos have in the recent past been operating around 3,500MW or below, this figure escalates to 4,000MW of idle capacity. “In effect, the GenCos are not able to deploy a total of 4,000MW of idle power, and out of the 5,500MW wheeled by TCN, the DisCos only remit about 25 per cent (875MW) of this power as revenue to NBET, making a total of 6,625MW generation capacity not yielding revenue for the GenCos. Source:www.energynewsafrica.com
Somalia: Energy Firm Tackles Solar Power Transition
A solar photovoltaic power plant recently commissioned by BECO is now operational in Mogadishu, the capital of Somalia.
Through this project, BECO, Somalia’s main electricity supplier, originally aimed to reduce the costs involved in importing fossil fuels for electricity production.
An added benefit is the reduction of CO2 emissions of the many diesel-powered generators it operates.
The Mogadishu solar photovoltaic power plant has a capacity of 8MWp, which the company plans to increase to 100MWp, with an investment of $40 million.
Pending the expansion of the solar power plant by 2022, the utility will continue to rely on its power generators to supply the Somali capital.
Madagascar: Sahofika Hydropower Project Gets 4 Million Euro FundingAccording to BECO, the impact of the solar power plant is already being felt. However, the company’s chief engineer, Mohamud Farah pointed out: “Unless we have batteries to store electricity, we can’t stop using fossil fuels, and the cost per kilowatt-hour when we get to 100MWp will still depend on batteries.” BECO’s facilities provide a total of 35MW, compared to an estimated demand of 200MW. Somalia does not have a national electricity grid, which collapsed at the start of the civil war in 1991. With the return of peace to the country, the electricity supply is provided by private companies. BECO provides electricity in the cities of Mogadishu, Balad, Jowhar, Afgooye, Elasha, Kismayu, Barawe and Marka. According to the US Agency for International Development (USAID), Somalia has an installed capacity of about 106MW, and the majority of power companies to date rely on diesel generators for electricity generation. A recent study by the African Development Bank (AfDB) estimates that Somalia has the highest renewable resource potential of all African nations, particularly in terms of onshore wind power, and that it could produce between 30,000 and 45,000MW. Solar energy could potentially generate a surplus of 2,000kWh/m2. According to the World Bank’s 2018 report, more than 64% of the population has no access to electricity.
Ghana: Taxi Drivers Bare Teeth At Gov’t, Threatens 20% Fare Increment Today
Two Taxi Driver Unions in the Republic of Ghana have threatened to increase transport fares by 20% today (Monday) over failure of government to reduce the cost of fuel to cushion them.
A statement issued jointly issued by True Drivers Union and the National Concern Drivers Association in Ghana, they accused the Akufo-Addo administration of failing to be sensitive to their plight.
Amongst the measures being introduced by the government to stem the spread of coronavirus included reduction in the number of taken by both taxis and commercial vehicles.
Ghana: Expect Increment In Fuel Prices In June–IES To ConsumersAccording to the driver unions, they have adhered to the social distancing directive aimed at stemming the spread of Covid-19 by cutting the number of passengers in trotro and taxis, yet government failed to reduce prices of fuel when it hit a record time low price in recent times. The statement observed that government’s attitude towards them showed disregard and insensitivity. They further argued that government provided monetary fund for small and medium scale enterprises but drivers were not considered. “Fuel prices are always increased and they won’t allow us to increase our fares. This is so unfair. We are giving government up to June 8, to reduce the fuel prices, else we will automatically increase our fares by 20%. They warned that any hindrance will call for a massive demonstration by drivers across the country. Source: www.energynewsafrica.com
Ghana: Danger: Illegal Miners Dig GRIDCo’s Transmission Tower In Western Region
The illegal mining activities which have destroyed water bodies in the Republic of Ghana has taken another dimension as illegal miners are now digging around power transmission lines of GRIDCo in search of gold.
Officials of Ghana’s power transmission company who were on a routine inspection of their transmissions lines in the Western Region discovered that illegal miners at Asawinso Brofoyedru have dug around one of the transmission tower in search of gold.
In a tweet sighted by energynewsafrica.com, GRIDCo, served notice to galamsey miners at Asawinso Brofoyedru in the Western region, to desist from mining close to their power transmission towers.
Source:www.energynewsafrica.com
According to the company, activities of the galamsey miners have become a menace to power supply in the locality. “Additionally, the proximity of their operations to the transmission towers poses a danger to the lives and safety of the miners and others close to the area.”Officials of the Ghana Grid Company (GRIDCo) have served notice to galamsey miners at Asawinso Brofoyedru in the Western region, to desist from mining close to their power transmission towers or face prosecution. pic.twitter.com/RvOpavtNTn
— Ghana Grid Company (@GhGridCo) June 5, 2020
Ghana: ECG Embarks On GHS 29.5 Million Power Expansion In Ashanti RegionSpeaking to energynewsafrica.com, Chief Executive Officer of GRIDCo Ing. Jonathan Amoako Baah said the actions of the illegal miners has become a serious worry to the company stating that his outfit has collaborated with security agencies in the area and would hunt the miners and arrest them for prosecution if the activities continue. “We’re advising all illegal miners in the area to desist from mining around our properties. We will hunt all of them and bring them to book,” he warned.
Source:www.energynewsafrica.com
Kenya: Two Suspects Apprehended For Stealing Electrical Equipment
Two suspected thieves have been arrested for stealing electrical equipment belonging to Kenya Power.
The suspects were nabbed after Kenya Power security officers were informed that a white truck was spotted around the Kamkunji area ferrying copper wires from vandalized transformers and underground cables. Following the tip, police officers in liaison with the Kenya Power security team apprehended the vehicle at the Kariokor round about.
The truck driver, James Maina Mwangi and his turn-boy Paul Kananga Njoroge are currently being detained at the Jogoo Road Police Station.
Zambia: ZESCO Limited, Power China Sign 600MW Solar Power Plant ContractVandalism of electrical equipment is considered an economic crime according to the Energy Act and the two could be liable to pay a minimum fine of Kshs.5,000,000 or a minimum jail term of 10 years if convicted. Kenya Power has intensified surveillance on the grid network as a measure to counter illegal connections and vandalism. The company is also working closely with other security stakeholders including the Directorate of Criminal Investigations (DCI) and the Kenya Police Service to track down these crimes. Source:www.energynewsafrica.com
Ghana: Aker Energy Commits To Making Pecan Oil Field A Success
Norwegian oil and gas firm, Aker Energy, has reaffirmed its commitment to finding a solution that will allow for the commencement of a phased development of the Pecan field offshore Ghana.
“In a time when most other E&P companies are putting development projects on the shelf due to the COVID-19 situation and historic low oil prices, Aker Energy and our partners, Lukoil, Fueltrade and GNPC, working closely with the government of Ghana, are actively pursuing a development concept where we can commence phase one of a phased development of the Pecan field,” Håvard Garseth, CEO of Aker Energy said in a statement.
“Although we have an altered timeline, we are on our way to finding a development concept with a breakeven price that is sustainable and resilient also in a low oil price environment,” he added.
In March, Aker Energy announced that a final investment decision (FID) for the Pecan field development project had been placed on hold, postponing the project. While no new date has been set for the FID, the company is working actively to confirm the feasibility of a phased Pecan field development by executing conceptual studies.
Breaking News: Fuel Tanker Catches Fire At Gomoa Buduatta (Video)The phased development of the Pecan field and the utilization of a redeployed FPSO vessel will substantially reduce the CAPEX and, hence, reduce the breakeven cost. In addition, it will increase the possibility of reaching a commercially feasible project that will allow for an investment decision. Aker Energy and partners are currently assessing several FPSO candidates for redeployment, and the final selection will be based on technical capabilities and cost. While the original field development concept was based on a centralized FPSO supporting the development of the entire Pecan field, as well as tie-ins of all other area resources, the focus has shifted toward a phased development approach. This approach will enable Aker Energy to commence with one FPSO for Pecan in the south and expand to a second FPSO in the north after a few years, with tie-ins of additional discovered resources. The first FPSO will be deployed at around 115 kilometers offshore Ghana over a subsea production system installed in ultra-deep waters in depths ranging from 2,400 to 2,700 meters. “Getting projects like the Pecan field in operation is key toward our mission of making Ghana a major producer in West Africa and Africa as a whole,” Dr. Mohammed Amin Adam, Ghana’s Deputy Minister of Energy in-charge of petroleum said. On her part Country Director of Aker Energy, Kadijah Amoah, stated that “with our partners, we are optimistic that we will establish a workable concept so that we can finally see first oil in the fourth offshore field in Ghana. We remain committed to Ghana.” Source:www.energynewsafrica.com
India: Gov’t Plans To Privatise Electricity Distribution Companies
The Indian government is considering the option of privatising the electricity distribution companies (DISCOMs) in the country due to poor performance.
According to report, the outbreak of novel coronavirus which has affected global economy has negatively impacted the revenue stream of electricity distribution companies (DISCOMs) in India forcing government to bail them out.
Apart from the $265 billion economic recovery stimulus package, the Indian government announced $12.5 billion bailout package for state distribution utilities to pay-off their dues to generators.
However, it will be difficult for the government to support the loss-making distribution utilities in the future due to the economic downturn.
Hence, complete privatisation or partial franchising will reduce the burden of the government and will increase competition, improve infrastructure through fresh investments.
It was recently announced that DISCOMS in the eight union territories, which are under the administrative control of the federal government will be privatised, says GlobalData, a data and analytics company.
The distribution companies in India are largely state-owned and subsidy-driven. Regional governments provide direct subsidy payments to make-up utilities’ loss and industrial consumers pay higher tariffs to subsidise agricultural loads.
Somik Das, the senior power analyst at GlobalData, comments: “Privatisation is expected to provide better service to the customers, improve operational efficiency and financial efficiency of the distribution sector. The segment poses tremendous market opportunities for private players provided the state government plays its part and ensures a risk-free business environment.
“Private investments will help better the existing grid infrastructure resulting in reduced amount of losses. Cities like Mumbai, New Delhi, and Kolkata, as well as some smaller towns can be cited as examples, where private participation has led to a reduction in revenue losses and more viable operations.”
Source:www.energynewsafrica.com