Infrastructure - Energy

The energy sector is the lifeline in the development of any nation. This belief informed the decision to undertake the construction of the first hydroelectric (Akosombo) dam in 1965, which continues to be an important investment in Ghana’s economic history. Over the years with the increased demand by power users for greater security and reliability other sources of power – thermal, solar and lately windmills, as well as imports – have been added to the generation mix. The thrust of Government policy in the energy sector and Ghana’s oil find in commercial quantities is to push for a significant increase in its energy resources to become a net exporter of both power and fuel within the next five years. The production of Ghana’s oil started in the year 2010. 

Energy Sector

The sector is composed of two main sectors, namely petroleum and power. The Ministry of Petroleum has oversight responsibility over the Petroleum sector which is made up of two sub-sectors – the downstream activities (i.e. finished products production, distribution) and upstream activities (i.e. exploration, development, production of oil and gas). As part of its oversight responsibility, the Ministry also operates the nation’s strategic reserve of petroleum products through the publicly owned Bulk Oil Storage and Transportation Company (BOST). 

In the downstream segment, the Tema Oil Refinery, which operates Ghana’s only petroleum refinery with a processing capacity of about 45,000 barrels of crude oil per stream day, produces gasoline, kerosene, diesel oil, pre-mix fuel, aviation fuel and liquefied petroleum gas (LPG), among others. Tema Lube Oil Company produces assorted lubricants and special oils on behalf of the 17 licensed Oil Marketing Companies (OMCs).
 
In the upstream sub-sector, the Ghana National Petroleum Corporation (GNPC) is the key institution that is collaborating with private investors to prospect for crude oil and gas within Ghana’s territorial boundaries.

The Ministry of Power has the responsibility for developing and implementing energy sector policy in Ghana. The Power sub-sector is run by three utilities: the Volta River Authority(VRA), Ghana Grid Company Limited and Electricity Company of Ghana Limited (ECG).

According to the Ministry of Power, about 76% of Ghanaians have access to power, and the goal is to achieve universal access by 2020. Presently, about 55% of Ghana’s power source is Hydro whilst thermal plants and solar energy contribute 45% and 1% respectively to the energy pool. As at November 2016, Ghana has total installed capacity of 3,644 MW as against a dependable capacity of 3,275 MW.   

Power Providers

Akosombo Dam - Hydroelectric power plant

 

 

 

 

 

 

 

The Volta River Authority (VRA), being publicly owned, is the largest generation company in the country. It also serves as a direct provider to bulk industrial customers.

Currently, Ghana’s production is from the following sources: 

VRA Installed Generation Capacity 

Plant

Installed Capacity (MW)

Dependable Capacity (MW)

Type of Plant

Akosombo Hydro Plant

1,020

900

Hydro

Kpong Hydro Plant

160

140

Hydro

T1 - Combined Cycle

330

300

Thermal

T2  - Combined Cycle

330

320

Thermal

TT1PP

110

100

Thermal

MRP

80

70

Thermal

TT2PP 

50

45

Thermal

KTPP 

220

200

Thermal

Takoradi 3 (T3)

132

120

Thermal

VRA Solar Power  Plant Project

2.5

0

Renewable

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

Plant

Installed Capacity (MW)

Dependable Capacity (MW)

Type of Plant

Bui Hydro Plant

400

340

Hydro

Sunon-Asogli (Phase 1)

200

180

Thermal

CENIT Power Plant-IPP

110

100

Thermal

Karpower Barge 

250

230

Thermal

AMERI Energy Power Plant

250

230

Thermal

The Ministry also has oversight responsibility over the Energy commission, which is a sector institution responsible for regulating, developing and managing the utilization of energy resources such as electricity, natural gas and petroleum products. The commission is also responsible, in particular, for preparing indicative plans for the development of the energy sector, licensing of public utilities for transmission, wholesale supply, distribution and sale of electricity and natural gas and enforcing performance standards of the utilities. 

The Public Utilities Regulatory Commission (PURC) is a statutorily independent body responsible for regulating and the overseeing provision of electrical and water utility services to consumers. Its functions include protecting the interests of providers and consumers, approval of rate, monitoring performance, standards and promoting competition among service providers.

 

 

Energy in Ghana

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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