The New Patriotic Party Member of Parliament for Dormaa East, Paul Apraku Twum Barimah has described the decision by the Akufo Addo government to continue with the expansion of power generation capacity to meet domestic, commercial and industrial needs of customers as outlined in the 2022 budget and financial statement as a laudable move.
As part of the project, construction works on the 200MW Phase 1 of the 400MW Early Power Project is ongoing and is expected to be completed soon. Besides, Construction works for the Stage 1A are 99.7 percent complete and works for the Stage 1B (56MW) combined cycle are 93 percent complete. The Amandi Power Project (200MW Twin City Energy Project) was completed, achieved commercial operation, and is currently dispatching power to the grid. In 2022, a joint venture partner will be engaged to undertake the repowering of the T3 Power Project with VRA.
According Paul Twum Barimah, a site has been identified at Anwomaso in the Ashanti Region for the Ameri Relocation Project aimed at boosting power supply in the middle and northern parts of the country. Geotechnical and grid impact studies for the project were completed and negotiations with the Engineering, Procurement and Construction (EPC) contractor are ongoing. In 2022, the Ministry will continue activities on the relocation of the Plant.
Besides, mobilisation of major construction equipment and facilities to the Pwalugu Multipurpose Dam and Irrigation Project site is also ongoing. Contractors are scheduled to start the construction of access roads and bridges, as well as a camp equipped with water and power supply facilities.
Renegotiation of Power Purchase Agreements
To ensure power is affordable for industrial, commercial and residential use, he said the Ministry of Energy in collaboration with key stakeholders, has been renegotiating and restructuring Power Purchase Agreements (PPAs). The exercise is progressing steadily with seven operational Independent Power Producers (IPPs), namely, Karpower, Cenpower, Sunnon Asogli, Early Power, Twin City Energy (formerly Amandi), AKSA Energy and Cenit.
‘The PPAs when finalised will reduce the overall financial burden imposed on Government by the onerous “take or pay” contracts. In this regard, Government is taking a nuanced approach to addressing each contract individually, tailored to the specific peculiarities of each of the seven key IPPs. Government has reached agreements with some IPPs to convert power plants to tolling structures, switch to natural gas, as well as reduce tariffs. This is expected to result in considerable savings to Government and the nation over the remaining lifespan of the PPAs. These savings are expected to come from a combination of reduced capacity and energy charges across the portfolio’.
The Financial statement notes that In order to reduce transmission and distribution system losses and also improve transmission system reliability, works on the following projects have steadily progressed: Kumasi-Kintampo Lot of the 330KV Kumasi-Bolgatanga Transmission Line Project is complete and the line has been energised; Volta-Achimota Lot of the 161KV Volta-Achimota-Mallam Transmission Line Upgrade Project is 83 percent complete and the Achimota-Mallam segment is 55 percent complete; Pokuase Bulk Supply Point Project is completed, commissioned and in service. This seeks to improve power supply to the surrounding communities; and the Kasoa Bulk Supply Point Project which comprises a re-construction of a section of GRIDCO’s 161KV Winneba to Mallam Transmission lines and tie-inworks is 85 percent and scheduled for completion by the end of 2021.
To improve the National Interconnection Transmission System (NITS), plans are underway to secure funding: for the construction of the 50MVAr STACOM in the Ashanti and the Northern Regions of Ghana (a Siemens-Ghana collaboration); complete and commission the Volta-Mallam-Achimota Transmission Line Upgrade Project by the end of first quarter 2022; commence the construction of the GRIDCo Western Corridor Transmission Upgrade Project (WCTUP); and commence the construction of the main dam under the Pwalugu Multipurpose Dam and Irrigation Project.
In pursuit of H.E. The President’s aspiration to achieve universal coverage of electricity by 2024, a total of 162 communities were connected to the national grid thereby increasing the national electricity access rate from 85.17 percent in 2020 to 86.63 percent in 2021. Connections to another 512 communities are at various stages of completion.
In 2022, the Ministry will work to complete many such projects, and approximately 800 towns will be connected to the national grid under the SHEP4, SHEP-5 and Turnkey Projects. Additionally, the Ministry will implement a strategy to select 2,401 communities with population of 400 and above to be connected to the national grid as a priority.
The Ministry of Energy has received over 11 million LED bulbs (6W, 9W and 13W) for distribution as part of the Energy Efficiency and Demand Side Management Policy. A list of beneficiary public institutions and MMDAs is being finalised for the distribution of five million LED bulbs to begin by end of 2021. The remaining six million LED bulbs will be sold to the general public.
Installation works commenced for the construction of street lighting infrastructure in Ho and the newly created regional capitals. Progress of works at Ho is 80 percent complete. Poles have been procured to commence the installation of streetlights in seven Municipalities and Districts in the Ashanti, Northern, Upper East, and Upper West Regions.
In 2022, the Ministry will embark on streetlight metering as a measure to efficiently determine the accuracy of electricity consumption. This is to eliminate the use of estimates by Electricity Distribution Companies which is based on the total number of streetlights installed in the country, irrespective of whether they are functioning or not.
Government is still committed to Private Sector Participation (PSP) in the electricity distribution sector and is considering the implementation of a phased introduction of PSP, through privatisation of the retail component of the electricity distribution business. This is expected to increase revenue collection, improve service delivery and significantly reduce commercial distribution system losses.
The Energy Commission trained 154 Certified Electrical Wiring Inspectors (CEWIs) to carry out inspection of wiring in commercial buildings. A total of 1,962 out of 2,640 applicants who participated in the Electrical Wiring Examinations were successful and graduated.
Renewable and Alternative Energy Development Programme
As part of the strategy to electrify island communities and hard-toreach areas with renewable energy technologies, the construction of three minigrids at Azizkpe, Aflive and Alorkpem Islands in the Ada East District of the Greater Accra Region commenced and are expected to be completed in 2022. In addition, the Ministry will construct 10 mini-grids in 10 island communities as well as supply and install solar home systems in 20 island and lakeside communities in 2022.
The Bui Power Authority (BPA) 50MW Solar Power Plant and the VRA 13MW Kaleo Solar Project were successfully commissioned and operationalised. In 2022, BPA will pursue the building of other hydro power plants.
a total of 2,068 units of solar lanterns were distributed to rural and peri-urban communities at subsidised prices as part of efforts to promote clean lighting sources. Additional 10,000 units of solar lanterns are projected to be distributed in 2022.
In a bid to address the exposure of women and children to carbon monoxide emissions from the use of wood fuel for cooking as well as reduce deforestation, a total of 151,000 units out of a target of 446,000 Improved Charcoal Cook Stoves were distributed in 2021. The distribution of the remaining 295,000 stoves will be completed in 2022.
The process to identify a nuclear vendor as a strategic partner for the first nuclear power plant commenced. Nine prospective vendors responded to the Request for Information (RFI) by Nuclear Power Ghana Limited in collaboration with the Ministry. Assessment and data collection of the four candidate sites are ongoing and the process for prospective nuclear power site identification is 25 percent complete.
In 2022, the Ministry and Nuclear Power Ghana Limited will finalise processes to identify a vendor country. Efforts toward the identification of the preferred site for the first nuclear power plant will be continued.
Government assisted GNPC to acquire 7 percent each of Anadarko’s interests in the Deepwater Tano (DWT) and West Cape Three Points (WCTP) Blocks in the sale and purchase deal with Kosmos Energy.
Total crude oil production from the Jubilee, Tweneboa-Enyenra-Ntomme (TEN) and Sankofa-Gye-Nyame (SGN) Fields was 41,532,507 barrels from January to September 2021, translating into an average daily oil production of 152,133.73 barrels. A total of 77,196.45 MMscf of gas translating into average daily gas production of 282.77 MMscf was delivered for power generation and non-power gas users over the same period.
As at 30th September, 2021, the Greater Jubilee Field, had produced total crude oil of 19,940,478 barrels, averaging 73,042 barrels per day. A total of 26.55 Bcf of gas was delivered to the Gas Processing Plant at Atuabo, translating into an average of 97.25 MMscf per day.
Total Crude oil produced by the TEN Field from January to September 2021 was 9,476,489 barrels, averaging 34,712.41 barrels per day. A total of 2.50 Bcf of gas was delivered to the Gas Processing Plant, translating into an average of 9.17 MMscf per day.
oil production from the SGN Field from January to September 2021, was 12,379,540 barrels at an average rate of 44,379.27 barrels per day. A total of 48.14 Bcf of Non-Associated Gas was delivered to the Onshore Receiving Facility (ORF) at Sanzule, translating into average of 176.35 MMscf per day.
Processing and interpretation of the 668.99km 2D seismic data acquired by GNPC is completed. About 750km of 3D seismic data is expected to be acquired in the fourth quarter of 2021. In addition, preparatory studies commenced towards the drilling of a well in the Voltaian Basin in 2022.
Aker Energy made significant progress in the concept selection for the development of the Pecan Field, and is expected to submit the Plan of
Development (PoD) by end of 2021. Parliament granted approval to GNPC to acquire 37 percent stake in the Deepwater Tano Cape Three Points (DWTCTP) block and 70 percent of the South Deepwater Tano (SDWT) block from Aker Energy and AGM Petroleum Limited, respectively.
Negotiations commenced with N-Gas, the supplier of gas in the West African Gas Pipeline (WAGP) as part of Government’s efforts to renegotiate existing gas agreements to lessen the Take-or-Pay burden. The Government Negotiation Team (GNT) is also currently negotiating petroleum agreements with four companies.
The Tema LNG Project, a strategic project to diversify and boost security of gas supply to the nation, is expected to be commissioned by end of 2021. The terminal will have the capacity to receive, regasify, and deliver up to 400 MMscfd.
All LPG intervention activities were reviewed and embedded in the LPG for Development (LPG4D) Programme. Several activities will be incorporated under the two main modules – LPG for Household Module (LPG4H) and the Commercial Module – to increase the use of LPG to 50 percent by 2030.
With regard to the LPG for Household Module, 120,000 LPG cook stoves will be distributed across 60 districts in the rural and peri-urban areas. The Commercial Module will introduce interventions that will benefit senior high, technical and vocational schools, commercial catering users and some commercial vehicles.
According to him, the Cylinder Recirculation Model (CRM) will continue to run alongside the current distribution system. The Cylinder Investment Margin (CIM) will be introduced to fund the supply of cylinders which shall be distributed for free.
According to the statement, the Petroleum Hub Corporation was set up, an Interim report on the Strategic Environmental Assessment (SEA) of the Petroleum Hub Infrastructure Master Plan was completed and a temporary environmental permit obtained. The draft Spatial Plan was subjected to review at a stakeholders’ forum. The Ministry of Energy at the recent Offshore Technology Conference (OTC) also engaged prospective investors to promote Ghana as an attractive destination for investment, technology, and a hub for refined petroleum products in the West African sub-region. In 2022, the Corporation will commence feasibility studies on the Petroleum Hub Infrastructure Master Plan.
Honourable Paul Twum Barimah thus, called on his colleague members of Parliament, to both majority and minority to do well and approve the budget to enable government implement the laudable policies and programs to promote human and infrastructural development.