Page 31 - Vol 33 Issue 34 2021

Analysis energy

However, these improvements mask some consequences of unpaid bills and electricity theft, Thermal generation capacity now has a higher
inefficiencies that need addressing if the country hampering full cost recovery. Ultimately, this share of the energy mix but its fuel sources
is to have a more resilient electricity sector. negatively impacts on further investments that have improved, shifting from heavy fuel oils to
could improve electricity supply. gas. However, there has also been less room for
Rebalancing energy Energy security is not just about increased low-carbon energy generation. The target for
sources power generation and availability. It is about renewable energy generation was 10% by 2020,
and has now been extended to 2030.
the entire value chain, from generation to
transmission and through to distribution. Our Finally, power in Ghana is expensive, compared
The World Energy Council’s Energy Trilemma analysis shows a lack of investment in the with some neighbouring West African countries.
Index ranks Ghana among the top 10 countries country’s distribution infrastructure. For example, Ghana’s tariff averages 15.5 cents
that have improved on energy security, equity The result is that a persistent 25% of electricity per kilowatt versus 10.5 cents per kilowatt in
and environmental sustainability. Only two other generated in Ghana is lost at the retail end. neighbouring Côte d’Ivoire. This can reduce the
African countries – Kenya and Ethiopia – made These are caused by dilapidated infrastructure country’s competitiveness, given that cheaper
the top 10. (technical losses) as well as electricity theft or power attracts both domestic capital and foreign
The shift from hydro to thermal has helped commercial losses. Ghana’s losses are more than investment.
Ghana to increase energy security. Whereas double the sub-Saharan Africa average of 12%. It’s also important in meeting Sustainable
hydro accounted for 68% of electricity generated The state of distribution infrastructure has Development Goals (SDG) 7 and 13 which,
in 2000, it’s now 36%. At the same time, the implications for integrating other variable respectively, aim to increase access to modern
country has increased thermal generation renewable energy sources into the grid by energy and combat climate change. Currently,
capacity to 64% of the mix. Ghana also has a making them even more expensive to connect. about 70% of Ghana’s population lack access to
better balance of sources for fuel for electricity For consumers, such losses mean power outages clean cooking fuels. This has severe implications
generation. In 2019 Ghana procured 63% of gas are likely to continue. for health, gender, and the environment.
from its own offshore fields and another 37%
via the West African Gas Pipeline. Gas supply A better balance
reliability is expected to improve again when the Addressing
Tema LNG project is completed.
Renewable energy makes up less than 1% of inefficiencies in Addressing inefficiencies in Ghana’s electricity
the electricity mix excluding hydro. There are a sector will reduce the need to price in distribution
number of reasons for this. They include a lack Ghana’s electricity losses, thereby enhancing affordability. This could
of financing for renewable projects and a general promote industrialisation and clean cooking
lack of public awareness of renewable energy sector will reduce with electricity. Balancing the often-competing
technologies. Ghana is also short of experienced dimensions of the “energy trilemma” remains the
personnel to install and manage renewable the need to price in central challenge of energy governance and not
projects. just about reducing carbon intensity as the sole
On equity, 85% of the population has access to
electricity in 2020. This makes Ghana one of the distribution losses, mandate. (Courtesy of The Conversation)
African countries that are most likely to achieve This article was co­authored with Doris Agbevivi an
100% universal access by 2030. thereby enhancing Energy Economist with the Energy Commission of
Despite the improvement in electricity access, Ghana, Theophilus Acheampong, Associate lecturer,
we also found that changes to the energy mix, affordability. University of Aberdeen and Bridget O. Menyeh,
and the resulting electricity tariff structure, have Research Associate , Loughborough University
been masking inefficiencies in the distribution
system. Environmental sustainability is a composite
The tariff structure places a burden on some measure of final energy intensity (the energy
consumer categories. These include commercial used to produce a particular output), low carbon
and industrial users. This creates unintended energy generation and CO₂ emissions per capita.

AFRICAN POWER Mining & Oil Review Vol33 Issue 34 2021 | 31