Ghana has witnessed sustained economic growth and

macroeconomic stability over the last three years:

-
2.00
4.00
6.00
8.00
10.00
12.00
2006 2007 2008 2009 2010 2011 2012 2013 2014
Trends in Real GDP and per Capita
growth rates in percent
Real GDP growth Real GDP Per Capita

2009


2010

2011

2012 (F)

GDP Growth Rate (%) 4.0 7.7 14.4 9.4
Inflation (%YoY) 15.6 8.6 8.6 8.7
Year
Indicator








Power cuts are frequent due to significant lower output
from power plants than installed capacity and inefficient
distribution network.

Total Installed Capacity 2,185MW
Hydro Power 1,100 MW
Thermal 1,085MW
Current Consumption 1,400 MW
Expected Annual Growth in Demand 10%
Expected Annual Capacity Additions 200 MW
National Access 66%
Expected Capacity by 2020 5,000 MW
Organisation Responsiblities
Ministry of Energy (MoE) Formulating, monitoring and evaluating policies, programmes
and projects in the energy sector. It is also the institution
charged with the implementation of the National Electricity
Scheme.
http://www.energymin.gov.gh/

Energy Commission (EC) The Energy Commission, in addition to being responsible for
technical regulations in the power sector, also advises the
Minister for Energy on matters relating to energy planning and
policy.
http://new.energycom.gov.gh/

Public Utilities and
Regulatory Commission
(PURC)
The PURC independent regulatory agency responsible for the
economic regulation of the power sector with the mandate to
approve rates for electricity sold by electricity distribution
utilities.
http://www.purc.com.gh/



The share of modern renewable energy technologies (Wind, Solar
PV, hydro below 100MW, Bio-fuel) for electricity is however very
negligible (<0.1%). Target by 2020 is 500 MW (10% of energy mix)

Investment Requirements to achieve target of (500 MW)








Source: Ministry of Energy
Energy Source Exploitable Potential
(MW)
Investment Requirement
US$ (million)
Wind 200-300 250-400
Solar 20 100-150
Medium small Hydro 150 200-300
Waste to energy 90 90-150
Total 500MW 640-1,000
Wind Energy
The gross wind electric potential is about 5,600 MW.
The table shows a summary of gross wind electric
potential for Ghana.




Source: Ministry of Energy

Wind Resource Utility
Scale
Wind
Class
Wind Power
at 50 m
(W/m
2
)
Wind Speed
at 50 m
(m/s)
Total Area
km
2

Percent
Windy
Land
Moderate 3 300 400 6.4 7.0 715 0.3
Good 4 400 500 7.0 7.5 268 0.1
Excellent 5 500 600 7.5 8.0 82 <0.1
Excellent 6 600 800 8.0 8.8 63 <0.1
Total 1,128 0.5

Solar Energy
Ghana is endowed with enormous solar energy
resource spread across the entire country.
Daily solar irradiation level ranges from 4 to 6
kWh/m
2
.

The annual sunshine duration ranges between
1800 to 3000 hours offering very high potential
for grid connected and off-grid applications.

Over 6,000 solar systems with an installed
capacity of 3.2 MW have been installed in the
country mainly for off-grid applications.

Generally, Northern Ghana has a better Solar
resource than South Ghana.







Bioenergy
The potential for production of bioenergy from waste is great.
Waste generated from the following sources could be used to
generate biofuel:


Municipal and Industrial waste
Waste generated from palm oil
production
Waste from cocoa production
Other agro-waste
IPP Undertakes Pre -feasibility study
IPP Identifies a Buyer or an Off-Taker (Bulk Customers).
Detailed feasibility studies to ascertain Technical Feasibility and Financial Viability of Project.
IPP interacts with relevant Regulatory Agencies, such as the Energy Commission EC
(Licensing and Technical Regulations) and the PURC (Pricing Regulation)
IPP obtains Site clearance by Environmental Protection Agency (EPA) & EC.
IPP Obtains Environmental Permit from EPA
Concluding a Memorandum of Understanding between IPP and Off-Taker after securing
PURCs No-Objection in principle.
Obtaining License from the Energy Commission
IPP obtains relevant approvals of identified reliefs from Governmental Agencies such as Ghana
Investment Promotion, Ministry of Energy and Ministry of Finance & Economic Planning etc.
IPP concludes Power Purchase Agreement with Off-Taker
According to Energy Policy, Government plans to increase supply of power
to meet the annual expected 10% growth in demand through investment
and private sector participation, (independent power producers)
Ghana plans to become net-exporter of power by 2015
Ghana plans to achieve universal access to power (electricity) by 2015
Government has also commenced the construction of US$850 million gas
processing plant and infrastructure linked to FPSO to be completed by end
of 2012
The Renewable Energy Bill has been passed by Parliament to provide the
regulatory environment for promoting private sector investments in
Renewable Energy Systems
A 400 MW hydro-electric power plant at Bui. First phase of 113 MW to be
commissioned by the end of 2012
Increase capacity of the Sunon Asogli Power Plant -(Independent power
producer) by 100 MW to bring total capacity to 200MW by end of 2012
Increase capacity of the Tema Osonor Power Co- (Independent Power
Producer)by additional 126 MW to bring total capacity to 330 MW
Expansion of Takoradi International Co (TICO) power plant by 110 MW to
330 MW by 2013
Government seeking strategic partners to develop the 220 MW Domini
power plant with Volta River Authority





Access to finance/capital

Difficulty in securing and registering land for business

Insufficient access to technology

Poor linkage between research development and private sector


The DB Partnership programme supports setting up long term partnerships
between Danish and Ghanaian companies . (http://um.dk/en/danida-
en/activities/business/partnerships/)

The DB Finance programme offers interest free, or low interest loan for larger and
medium sized investments in developing countries (http://um.dk/en/danida-
en/activities/business/finance/)

The Industrialisation fund for Developing Countries offers capital in the form of
debt or equity investments in developing world with a Danish partner (www.ifu.dk)


Eksport Kredit Fonden offers reinsurance, working capital guarantees and export
loan for company transactions in developing countries (www.ekf.dk)