Infrastructure - Energy

Sector Overview 

The government’s energy policy is embodied in the Strategic National Energy Plan 2006-2020. The policy aims to develop a sound energy market that would provide sufficient, viable and efficient energy services for Ghana’s economic development through the formulation of a comprehensive plan that will identify the optimal path for the development, utilization and efficient management of energy resources available to the country.

The Energy Commission (EC) and the Public Utilities and Regulatory Commission (PURC) regulate the electricity supply industry. The Energy Commission, in addition to being responsible for technical regulations in the power sector, also advises the Minister for Energy on matters relating to energy planning and policy. The PURC on the other hand is an independent regulatory agency responsible for the economic regulation of the power sector with the mandate to approve rates for electricity sold by electricity distribution utilities. 

The energy sector has been a vital component of Ghana’s industrial and socio-economic development. In this regard, the sector has been undergoing a number of developmental initiatives to improve overall operational efficiency and supply security.

The sector is composed of two main sectors, namely petroleum and power. Ghana’s petroleum sector involves upstream and downstream activities. The upstream activities include the production, procurement and refining of crude oil and the downstream activities include production, distribution and marketing of petroleum products and premixing of petroleum product for industrial uses, including fishing.

Distribution of petroleum products in Ghana is dominated by multinational oil marketing companies. Following the deregulation policy of the government, the oil marketing companies have increased in numbers to include several local Ghanaian companies. The products are retailed through gas stations which are either owned by the Oil Marketing Companies (OMCs) or private individuals. There are one hundred and thirty eight (136) accredited oil marketing companies in good standing for business in Ghana. The private sector, including the OMCs and others source and supply finished products through an open competitive tendering system.

The power sub-sector involves the generation, transmission and distribution of electrical energy for industrial, commercial and domestic use in Ghana. The Power System of Ghana is run by seven public institutions. These are the Ministry of Power (MOP), Energy Commission (EC), Public Utility Regulatory Commission (PURC), Volta River Authority (VRA), Ghana Grid Company (GridCo), Electricity Company of Ghana Limited (ECG) and the Northern Electricity Department Company (NEDCo), a subsidiary of the VRA. 

Electricity is the dominant modern energy form used in the industrial and service sectors accounting for 69% of modern energy used in the two sectors of the national economy. The Ghana electricity supply industry is unbundled with separate jurisdictions and entities regarding activities of electricity generation, transmission and distribution.

 Electricity Generation

Electricity generation is undertaken by the state-owned Volta River Authority (VRA), which operates the Akosombo Hydro Power Station, Kpong Hydro Power Station and the Takoradi Thermal Power Plant (TAPCO) at Aboadze. VRA is also a minority joint partner with TAQA, a private sector company which owns and operates the Takoradi International Power Company (TICO) thermal power plant also located at Aboadze. Bui Power Authority (BPA), another state-owned entity, is charged with the implementation of the Bui Hydro electric Power Project. In addition, independent power producers have been licensed to build, own and operate power plants. 

VRA Installed Generation Capacity 

Plant

Installed Capacity (MW)

Dependable Capacity (MW)

Type of Plant

Fuel Type

Akosombo Hydro Plant

1,020

900

Hydro

Water

Kpong Hydro Plant

160

140

Hydro

Water

TAPCO - T1

330

300

Thermal

LCO/Gas

TICO - T2

330

320

Thermal

LCO/Gas

Mines Reserve Plant (MRP)

80

70

Thermal

Gas

Tema Thermal 1 Plant (TT1P)

110

100

Thermal

Gas/LCO

Tema Thermal 2 Plant (TT2P)

49.5

45

Thermal

Gas

Tema Thermal 2 Plant Expansion (TT2PP-X)

38

32

Thermal

Gas

Kpone Thermal Power Plant (KTPP)

220

200

Thermal

Gas/DFO

VRA Navrongo Solar Plant

2.5

-

Solar

Sunlight

 

   

 

 

Total Capacity

2,340

2,107

 

 

 *LCO - Light Crude Oil | *DFO - Distillate Fuel Oil | *HFO - Heavy Fuel Oil

 

Installed Capacity of Independent Power Producers (IPPs) and other Plants

Plant

Installed Capacity (MW)

Dependable Capacity (MW)

Type of Plant

Fuel Type

Bui Hydro Plant

400

340

Hydro

Water

Kar Power Barge 1

235

225

Thermal

HFO

Sunon Asogli Phase 1

200

180

Thermal

Gas

Sunon Asogli Phase 2 Stage 1

180

160

Thermal

LCO/Gas

Sunon Asogli Phase 2 Stage 2

180

160

Thermal

Gas/LCO

CENIT Power Plant

110

100

Thermal

LCO

Ameri Power Plant

250

230

Thermal

Gas

BXC Solar

20

-

Solar

Sunlight

AKSA

360

340

Thermal

HFO

 

   

 

 

Total Capacity

1,935

1,735

   

Ghana's Total Installed Capacity: 4,275 Mw

*LCO - Light Crude Oil | *DFO - Distillate Fuel Oil | *HFO - Heavy Fuel Oil

Source: VRA, Power Generation Facts & Figures

 

Transmission

GRIDCo was established in accordance with the Energy Commission Act, 1997 (Act 541) and the Volta River Development (Amendment) Act, 2005 Act 692, which provides for the establishment and exclusive operation of the National Interconnected Transmission System by an independent utility and the separation of the transmission functions of the Volta River Authority (VRA) from its other activities within the framework of the Power Sector Reforms. 

The grid transmission network connecting the main production to consumption centres has been modeled and categorized into five zones under the Ghana Grid Company (GridCo).

GRIDCo’s main functions are to:

  • Undertake economic dispatch and transmission of electricity from wholesale suppliers (generating companies) to bulk customers, which include the Electricity Company of Ghana (ECG), Northern Electricity Distribution Company (NEDCo) and the Mines;
  • Provide fair and non-discriminatory transmission services to all power market participants;
  • Acquire and manage assets, facilities and systems required to transmit electrical energy
  • Provide metering and billing services to bulk customers;
  • Carry out transmission system planning and implement necessary investments to provide the capacity to reliably transmit electric energy; and manage the Wholesale Power Market.

 

Power Distribution

There are 3 distribution companies currently operating in Ghana, with some 69 Substations scattered around the country

  • Electricity Company of Ghana (ECG) - serves customers in the southern Ghana
  • Northern Electricity Distribution Company - serves the northern part of the country
  • En Clave Power – serves companies at the Tema free zone enclave

 

Renewable Energy

The main policy issues in the renewable energy sub-sector are:

  • Low level of application of new renewables
    (small hydro, modern biomass, wind, solar, and bio-fuels) in the national energy mix
  • Over dependence and inefficient utilization of wood fuel resources.

The policy goals of the renewable energy subsector are:

  • Achieve 10% contribution of modern renewables (excluding large hydro and wood fuels) in the electricity generation mix by 2020.
  • Reduce the demand on wood fuels from 72% to 50% by 2020.
  • Promote development and use of other biomass technologies including biogas, biofuels, gasification and waste-to-energy.

 

 

 

     

 

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Contact:

The Hon. Minister
Ministry of Energy
P.O. Box T40 Stadium Post Office
Accra – Ghana

Tel: +233 302 667 151
Fax: +233 302 668 262

E-mail: energy1@ghana.com