By: Fred Yaw Sarpong
The Africa Centre for Energy Policy (ACEP), an energy think-tank has backed the government’s decision to review all the power agreements entered by the previous government.
Dr. Ismael Ackah of ACEP
However, ACEP is urging the government to be cautious when reviewing the agreements in order not create problem for the country.
Speaking to the Daily Express, Dr. Ishmael Ackah, Head of Policy Unit and Energy Policy Advisor at ACEP said between 2012 and 2015, the government issued about 34 power licenses. “Not up to five of these licenses are in operations and it’s difficult to understand,” he added.
According to him, if all these power licenses are in operation, Ghana will generate about 10,000 megawatts of power, and this will be far more than about 4,000 megawatts of power the country will need if the government is able to set up the ‘one district one factory’ it promised the people of Ghana.
“He also mentioned that export of power from Ghana to other neighboring countries do not fetch the country huge money, as compared to collection of power from Ivory Coast. Ghana gets about 4 cents per kilo watt from exporting power while we pay about 14 cents per kilo watt to import power,” he stated.
“World Bank has said that excess capacity of power will cost about US$2.5 billion annually. I don’t think we have to allow that to happen,” he emphasized.
Mr. Emmanuel Kuyola, the Country Director for Natural Resource Governance Institute (NRGI) said they are not against the review of any power agreements.
Mr. Kuyola said “NRGI don’t have issue with that if the government thinks that’s the best way to go. But the government must treat cautious when reviewing such agreements.”
President Nana Akufo-Addo announced in his recent State of the Nation Address (SONA) in Parliament that “the government is conducting a review of all the Power Agreements entered into by the previous government in order to prioritize, renegotiate, defer or cancel outright, if necessary, in the national interest.”
He mentioned that “as at the end of 2016, the Electricity Company of Ghana (ECG) had signed 43 Power Purchase Agreements (PPA), whilst a further 23 were under discussion.”