Page 22 - Apmor 2018

energy country profile

The Renewable Energy Act’s Purchase sector development and inclusion. Corruption, high inflation rates, ageing
Obligation (RPO) provision may further attract Future Potential in Wider Context infrastructure and an obstructive bureaucracy,
investors to the sector, as power distribution continue to challenge the development of
utilities and bulk electricity consumers are The development of Ghana’s renewable Ghana’s renewable energy sector.
now obliged to purchase a certain percentage energy sector has received enormous support However, the development of Ghana’s power
of their energy required from electricity from various international stakeholders, sector is a strategic government objective, and
generated from renewable energy sources. including the World Bank Group, the African could potentially represent billions of dollars of
Again, there are concerns. At present, the PURC Development Bank (AfDB), USAID, CIDA, investments in coming years. While harnessing
has yet to confirm the percentage required for International Renewable Energy Agency Ghana’s extensive renewable energy potential
each of these consumers. (IRENA), United Nations Environments could prove potentially lucrative for investors,
Programme (UNEP) and Global Environment
However, the government’s commitment to Facility (GEF). it could also help solve Ghana’s ongoing power
developing the country’s renewable energy crisis and boost the country’s wider economic
development.
sector has been endorsed by the Climate While overall, an enabling policy environment
Investment Funds (CIF) under the CIF’s provides increasing opportunities for The bottom line is, the market for renewable
dedicated fund for Scaling Up Renewable investments in Ghana’s renewable energy energy in Ghana is growing – with plenty
Energy in Low Income Countries Programme sector, the government may need to introduce of room for new players with the capacity
(SREP). Notably, SREP funding has been further incentives to attract investors. to navigate the country’s existing structural
instrumental in de-risking renewable energy As with many countries in the region, investing and institutional problems. (Courtesy of
investments in several other countries, as well in Ghana is limited by other constraints. www.shadowgovintel.com)
as lowering the cost of capital for renewable
energy projects, and it is reportedly likely to
increase investor confidence in the sector.
Yet Concerns & Obstacles Remain INTERNATIONAL TRAINING
Although Ghana’s government has made
a concerted effort to create an attractive
environment for businesses operating in the The KWS PowerTech Training Center (KRAFTWERKSSCHULE E.V.)
renewable energy sector, the sector is still provides training for all areas of power technology:
relatively underdeveloped, and continues
to suffer from weak and unclear policies and powerp lants
regulations. powerp lants
The country also suffers from a lack of powerp lants
technical expertise and knowledge within the
local workforce, including those involved in the powerp lants
maintenance and servicing of ongoing projects. power, Wind power
Notably this issue has been exacerbated by a
lack of quality training facilities in the country.
Furthermore, the tax incentives which apply training
to the renewable energy sector in Ghana
are rather unclear. While the government Operation personnel trained to German standards!
has introduced complete import duty and At our training center in Essen/Germany or worldwide.
value added tax (VAT) exemption for solar
PV and wind energy generation systems and
equipment, these do not apply to other sub-
sectors. Notably, due to the high start-up
costs of many renewable projects, a relatively
unstable currency, limited access to capital and
high interest rates, further incentives may be
necessary to attract investors to the sector.
Some of these issues, however, are beginning
to be addressed: but they are far from enough.
For example, in 2015, the UNDP and Ghana’s
Energy Commission embarked on a four-
year project ‘China-Ghana South-South
Cooperation on Renewable Energy Technology KRAFTWERKSSCHULE E. V. – TRAINING FOR THE FUTUR E
Transfer (RETT)’, which aims to help with the Deilbachtal 199, 45257 Essen, Germany www.kraftwerksschule.de
transfer of knowledge, skills and technologies Phone: +49 201 8489-0 info@kraftwerksschule.de
from China, with a strong focus on private Fax: +49 201 8489-102 1:2008

22 | AFRICAN POWER Mining & Oil Review Vol 21, Issue 20, 2017