Energy Crisis in Ghana:

Drought, Technology or Policy?

Edited by Abeeku Brew-Hammond and Francis Kemausuor -------------------------------------------------------------------------------------- -----------------------------------------------------------------With a Foreword by Francis Momade

 Kwame Nkrumah University of Science and Technology (KNUST) College of Engineering, Kumasi, Ghana, 2007

ISBN #: 9988-8377-2-0

Cover Design by Mr. Eric Anane-Antwi, Department of Publishing Studies, KNUST, Kumasi

Foreword
The College of Engineering at Kwame Nkrumah University of Science and Technology (KNUST) has been at the forefront of energy technology and policy research in Ghana for several decades. The decision to organise a seminar series on Energy Crisis in Ghana marked the beginning of a new wave to engage the university community and experts from the outside the university in a results-oriented dialogue aimed at finding solutions to the countrys critical problems. This book is living testimony to the practical issues discussed during the seminar series on Energy Crisis in Ghana. Experts drawn from the public and private sectors, and their colleagues in the university, found a common agenda in the search for practical solutions to our energy problems. As Provost of the College of Engineering, KNUST, I must say that I was particularly pleased to hear one of the experts, an economist from Ghanas civil society, pay tribute to the calibre of engineers (mostly trained at KNUST) working in the utilities. Our College of Engineering is seeking to institutionalise such positive interactions with the society at large through the establishment of The Energy Centre, KNUST. Through this centre we propose not only to talk with colleague experts from the public and private sectors, but also to walk the talk. The next couple of years should therefore see at least one concrete joint venture undertaken to provide sustainable energy here on campus within the framework of a public-private partnership business model. I take this opportunity to salute senior members of the College of Engineering, like Prof Fred Akuffo, Prof Ebow Jackson, Dr David Anipa and Mr Isaac Edwin who have toiled over the years to build a solid foundation in energy research. I wish also to say more grease to your elbows to the editors of this book, Prof Abeeku BrewHammond and Mr Francis Kemausuor, and I invite all readers to join me in wishing The Energy Centre, KNUST, a very bright future.

Francis Momade, June 2007

Acknowledgements
The College of Engineering is grateful to the authors for their generous contribution of time and knowledge towards the energy seminar series which has resulted in this book. The authors agreement to bear all financial expenses related to their travel to Kumasi for the seminars is also gratefully acknowledged. Raymond Asamoah-Barnieh and other teaching assistants and staff of the Department of Mechanical Engineering, KNUST provided logistic support including ensuring the availability of a stand-by generator for the energy seminar series.

ii

Table of Contents

Foreword.........................................................................................................................i Acronyms.......................................................................................................................iv 1. Introduction and Key Messages...........................................................................1 Abeeku Brew-Hammond and Francis Kemausuor Why the Power Shortage?....................................................................................6 Theo Sackey Potential for Energy Savings .............................................................................16 Alfred Kwabena Ofosu-Ahenkorah Planning for Implementation .............................................................................34 Rudith King and Imoro Braimah Role of Renewables ...........................................................................................45 Fred Ohene Akuffo Private Sector Participation................................................................................53 Ebow Essandoh and Selom Akaba Tariffs and the Poor ...........................................................................................59 Ishmael Edjekumhene Energy and Gender ............................................................................................71 Rose Mensah-Kutin

2.

3.

4.

5.

6.

7.

8.

About the Authors and Other Contributors .................................................................82

iii

Acronyms
Term AU bbl BST CEB CFL CMS DANIDA DCS DSC EAF ECG ECOWAS EUT GDP GE GECAD GLSS GPRS GSB GT1 GT2 GWCL H2S HIV/AIDS HRSG JICA KMA KNUST LCO LPG MDGs NED PfA PRSPs Description African Union Barrel Bulk Supply Tariff Communaut Electricit du Bnin Compact Fluorescent Lamp CMS Energy Corporation (USA) Danish International Development Agency Distributors Control System Distribution Service Charge electric arc furnace Electricity Company of Ghana Economic Community of West African States End User Tariffs Gross Domestic Product General Electric GECAD Ghana Limited (Authorized Distributor/Sales Representative of GE Power Systems) Ghana Living Standards Survey Ghana Poverty Reduction Strategy Ghana Standard Board Gas Turbine 1 Gas Turbine 2 Ghana Water Company Limited Hydrogen Sulphide Human Immuno-Deficiency Virus/Acquired Immune Deficiency Syndrome Heat Recovery Steam Generator Japanese International Co-operation Agency Kumasi Metropolitan Assembly Kwame Nkrumah University of Science and Technology Light Crude Oil Liquefied petroleum gas Millennium Development Goals Northern Electricity Department Platform for Action Poverty Reduction Strategy Processes

iv

PURC R&M SLT SNEP SONABEL SUSTRAN-Africa T1 T2 TTPS UNCED VALCO VRA WAGPCo WHO

Public Utility Regulatory Commission Regulating & Metering Station Special Load Tariff Strategic National Energy plan Socit Nationale d'lectricit du Burkina Sustainable Transport Action Network for Africa Takoradi Thermal Power Station 1 Takoradi Thermal Power Station 2 Takoradi Thermal Power Station United Nations Conference on Environment and Development Volta Aluminium Company Limited Volta River Authority West African Gas Pipeline Company World Health Organisation

Units MW KV Km kWh TOE kgOE/ca kWh/ca kcal GWh DC Kg/Nm3 Nm3/h C

Description Megawatts Kilovolts Kilometre Kilowatt hours Tonnes of Oil Equivalent Kilograms of Oil Equivalent per capita Kilowatt hours per capita Kilocalories Gigawatt hours Direct Current Kilogram per Newton metre cube Newton metre cube per hour Degrees Celsius

1. Introduction and Key Messages

Abeeku Brew-Hammond and Francis Kemausuor
It is now widely accepted that this is the fourth power crisis Ghana has had in recent memory. The first in 1984 was caused by an unprecedented drought whose impacts were felt throughout the West African sub-region. The second and third power crisis, which occurred in 1998 and 2002, were also attributed to low rainfall in the Volta basin. The current crisis, following so closely in the heels of the last one, has been subject to much public debate and most critical observers now agree that the old reason of low water levels in the Volta Lake is no longer
VOLTA LAKE REGULATION CHART (1995-2006) 270 265
ELEVATION (feet) NLD

260 255 250 245 240 235

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
YEAR Minimum Reservoir Elevation

tenable. Source: VRA Figure 1.1: Water Levels in the Volta Lake Reservoir (Crisis Years in Red) The water levels in the Volta Lake from 1995 to 2006 are presented in Figure 1.1. The minimum levels attained in the current and recent power crises years (1998, 2002 and 2006) all fall below the Minimum Reservoir Elevation for safe

operation of the Akosombo power plant. The frequency of these crises raises a serious question about our ability to learn from previous mishaps. The actual inflows into the Volta Lake over the longer term period from 1965 to 2006 are presented in Figure 1.2. Leaving aside the near-zero inflows recorded in the drought years of 1983/84, inflows for the recent and current power crises years (1998, 2002 and 2006) are indeed some of the lowest recorded over the last decade. However, these crisis year inflows are significantly higher than some of those recorded in preceding years (1990 and 1992) which did not see any major load-shedding programmes, underscoring the urgency of getting to the bottom of the crises and putting our finger on what are the fundamental causes.

A n n u a l N e t In f lo w ( c f s )

1200000
Volta Lake Inflows

1000000 800000 600000 400000 200000 0 1965

1970

1975

1980

1985

1990

1995

2000

2005

2010

Source: VRA Figure 1.2: Inflows into the Volta Lake Reservoir (Crisis Years in Red)

Following the load shedding exercise which bedevilled Ghana in August 2006, the College of Engineering of the Kwame Nkrumah University of Science and Technology (KNUST) organized a series of seminars during which experts in

the energy industry and others who were engaged in policy making were invited to deliver lectures on various technical and policy issues necessary to address the recurrent crises. The theme of the seminar series was: Energy Crisis in Ghana. This book is a compilation of the key issues that were addressed during the seminar series and these are presented in seven chapters, from Chapter 2 to Chapter 8. Chapter 2 is based on the presentation by Mr. Theo Sackey of the Volta River Authority (VRA) who led the discussion on Planning for Adequate and Reliable Power Supply: Issues and Challenges. This chapter addresses the current and future projected electricity demand and supply including critical generation and transmission requirements. Technical issues affecting VRAs ability to maintain supply adequacy and reliability, financial issues, challenges and the way forward for Ghanas energy industry are critically addressed. Chapter 3 is dedicated to the potential for energy savings based on a presentation by Dr. A. K. Ofosu-Ahenkora of the Energy Commission, on Energy Efficiency and Conservation. In his presentation Dr. Ofosu-Ahenkora recounted how far Ghanaians have come abreast with issues of energy conservation and what tough measures the Commission is currently taking to encourage energy conservation in Ghana. He also gave some good advice for the public on what to look out for when they go to the market in search of electronic appliances. Chapter 4 tackles issues in Planning for Implementation. This chapter is based on a presentation by Dr. Rudith King and Dr. Imoro Braimah of the College of Architecture and Planning at KNUST. The two authors agree that planning in Ghana is often done without factoring in financing, and monitoring and evaluation measures. This chapter addresses planning not only in energy issues but in every project that one may undertake, making it a good reference material for everybody. Chapter 5 shifts our focus to Role of Renewables in Ghanas energy sector development, based on an address by Prof. F. O. Akuffo of KNUSTs Department of Mechanical Engineering. Prof. Akuffo is of the view that the technical aspects of renewable energy exploration in Ghana are well in place and what is left now is for government to come out with the right policy frameworks to enable the private industry begin to explore the market.

Chapter 6 is based on the presentation by Mssrs. Ebow Essandoh and Selom Akaba of GECAD who took seminar participants through a discussion on The Role of the Private Sector in Energy Supply in Ghana. The Chapter argues that mankinds energy problems have political, economic and environmental issues at stake and that resources such as capital, manpower, access to technology and good government policy initiatives are needed to address these issues. The authors are of the view that there are huge prospects for the private sector in Ghanas energy supply industry which includes the need for new power plants, alternate and renewable sources of energy such as solar, wind turbines and bio fuels exploration Chapter 7 discusses a very sensitive issue, Tariffs and the Poor. Mr. Ishmael Edjekumhene of KITE, a local energy and environment NGO, thinks that like every good or service, the price of electricity should reflect or cover the fullcost of production and supply. He however acknowledges that differential income levels among households means that some households will not be able to procure electricity if asked to pay the full-cost of production and supply, and for such households price subsidies are inevitable. Subsidies should however be welltargeted and cost reflective: fostering markets rather than distorting them. Chapter 8 takes a critical look into Gender and Energy in a country where the female population is more than 50%. The Chapter is based on a presentation by Dr. Rose Mensah-Kutin of ABANTU for Development, the local section of a regional NGO involved in gender advocacy. Dr. Rose Mensah-Kutin stresses the need for governments to accept and understand the inequalities that gender systems generate between women and men, and the need to promote policies for addressing them, and she hits hard on the fact that womens concerns and rights have to be factored into policies of energy resource mobilisation and utilisation. An important feature in some of the chapters is the Addendum. This feature is found in those chapters based on presentations which were following by lively discussions. It is important to stress that the views expressed in the Addendum represent the main points raised in participants contributions and they do not necessarily reflect views of the authors.

The key messages that emerge from all eight chapters of this book may be summarised as follows:

The current power crisis in Ghana is due more to the shortage of generation capacity in the country than to low levels of water in the Volta Lake Reservoir; There is considerable potential for energy savings particularly in the residential sector where simple measures like the use of energy efficient lighting can result in a significant reduction in the countrys demand for electric power; Planning without adequate provision for financing the plan implementation is a major constraint in power sector development in Ghana and until this is addressed we may not be able to realise the dream of making power crisis a thing of the past; Renewable energy in general and solar energy in particular can make an important contribution to electricity supply in rural areas which do not currently have access to the national grid if we gear ourselves up to overcome the challenge of policy implementation; Given a favourable policy environment the private sector should be able to help address the need for new power plants, natural gas distribution systems to make full use of the West African Gas Pipeline, and renewable energy systems including solar PV, wind and biofuels; Cost-reflective tariffs are a critical component of a favourable policy environment and it is important that subsidy schemes respect this in addition to being well targeted to support the poor; and Women constitute the bulk of poor people with poor access to modern energy services in Ghana and this makes it imperative for linkages between energy and gender to be factored into poverty reduction schemes across all sectors of the economy.

2. Why the Power Shortage?

Theo Sackey

Background and description of existing facilities There have been three major power system planning studies in Ghana beginning in 1971 when we carried out what was known as the Ghana Power Study: Engineering and Economic Evaluation of Alternative Means of Meeting VRA Electricity Demands to 1985. This was followed in 1985 with the Ghana Generation Planning Study and then the Generation and Transmission System Master Plan Study in 2001. Each of these studies established generation and transmission facilities required by the country over a 15-20 year period.

Ghanas installed generation capacity as of October 10, 2006 stood as follows: - Akosombo 1,020 MW = 6 x 170 MW units - Kpong 160 MW = 4 x 40 MW units - Takoradi T1 330 MW = 2GT(2x110 MW) +110MW ST units - Takoradi T2 220 MW = 2GT(2x110) units

Existing transmission facilities also include: - 4,100 km of 161 kV lines - 74 km of 225 kV lines - 133 km of 69 kV lines - 42 Transformer and Switching Stations - Interconnections Benin La Cote dIvoire Togo

An aerial view of the Akosombo and Takoradi power stations are presented in Figures 2.1 and 2.2 respectively.

Current situation and projected electricity demand and supply Ghanas energy demand from 2004 to 2006 is presented in Table 2.1. The 2006 energy demand was projected at 9,518 GWh (excluding CEB wheeled) with the following composition: Domestic demand of 7,196 GWh VALCO supply of 1,240 GWh CEB supply of 700 GWh SONABEL supply of 4 GWh System usage of 378 GWh The projected domestic demand of about 7,200 GWh was an increase of 12.2% over the 2005 demand. A map of VRAs transmission network is shown in Figure 2.3

Figure 2.1: Akosombo hydro generating plant

Figure 2.2: Takoradi thermal power generation plant

Figure 2.3: Map of VRAs transmission network

Table 2.1: Ghanas energy demand in GWh from 2004 to 2006

Domestic Customers ECG NED Direct Customers Mines Total Domestic Growth Rate Valco Supply to CEB (Togo/Benin) CEB - Wheeled System Usage 10 662 371 333 Actual 2004 4,820 473 112 599 6,004 Actual 2005 5,053 501 110 753 6,417 6.9% 259 635 394 292 7,996 Projected 2006 5,277 550 156 1,217 7,200 12.2% 1,240 700 313 378 9,831

Total Demand 7,380 Note: ** NED Supply includes supply to SONABEL

The VRA planned to meet the total 2006 demand of 9,518 GWh with the following supply resources: 5,862 GWh from Hydro 1,997 GWh from T1 859 GWh from T2 800 GWh Imports from Cote dIvoire

The minimum reservoir elevation to meet this provision was projected to be 239 feet based on planned average hydro draft rate of 16 GWh/day and expectation of average inflows in 2006. This did not happen and by July 2006, the Akosombo reservoir elevation had fallen to about 238 feet due to lower than expected rains.

Meanwhile there were losses from some of the other generating sources from which we had some hope. Significantly there was Reduced T1 availability Loss of about 150 MW from T1 in April from generator rotor winding insulation failure

Reduced imports from Cote dIvoire Unscheduled outages at the Vridi Thermal plant Disruptions in natural gas supply which affected thermal plant supply Retrofit of the Buyo hydro plant (55 MW)

These unexpected trends greatly affected power supply to the country and that brought about the load shedding in August 2006. The 2006 Volta Lake depletion curve is shown in Figure 2.4. It can be seen from the curve that the water level has been significantly reducing from January 2006.

2006 Volta Lake Depletion Curve January -- August Planned Hydro Draft Rate -- 16.1 GWh
251 250 249 248 247 246 Elevation (feet) 245 244 243 242 241 240 239 238 237 236 Jan-06

Feb-06

Mar-06

Apr-06

May-06 Months

Jun-06

Jul-06

Aug-06

Base case (5,862 GWh)

Actual

Figure 2.4: Volta Lake depletion curve

10

As at August 1, 2006, the Akosombo reservoir elevation was 236.99 feet and inflow projections indicated that below average inflows could occur. Continued hydro draft at the current rate could result in the reservoir attaining an elevation of less than 236 feet at which level generation the Akosombo dam may have to be limited to two units only and this could result in the loss of about 520 MW of generation.

Critical generation and transmission requirements Demand-side and short-term supply options to meet deficits are: Intensive energy conservation measures nation-wide of which the major focus is the replacement of incandescent lamps. 50,000 energy saving lamps were to be installed by end of October 2006 and one (1) million are being imported by the Ministry of Energy before the end of the year. Upgrade of the Tema Diesel Power Station by installing 70 100 MW new and high efficiency units by January 2007 126 MW Plant (Frame 9E) from mid 2007 125 MW Osagyefo Power Barge in 2007

The projections as presented in Figure 2.5 indicate that by the year 2010 the total electricity demand will be about 12,210 GWh which includes the following: Domestic demand of 9,100 GWh VALCO supply of 1,970 GWh (3-potlines) CEB supply of 700 GWh SONABEL supply of 70 GWh System usage of 370 GWh

Over the medium term (2006-2010), domestic demand for electricity is expected to grow at an average rate of about 6% with major growth drivers being new mining loads and increased domestic consumption. The main domestic customers are projected to have the following growth rates over the medium term ECG 4.7% Mines supplied by VRA 11.3% Other VRA Direct Customers 3.3%

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Projected Medium Term Electricity Demand (2005 - 2010)

14000

12000

10000 Energy (GWh)

8000

6000

4000

2000

0 2005

2006

2007 Years

2008

2009

2010

Total Domestic

Valco

CEB Supply

CEB Wheeled

SONABEL

System Usage

Figure 2.5: projected medium term electricity demand (2005-2010)

Technical Issues Affecting Supply Reliability There is a tight demand/supply situation requiring draw down of the Volta Reservoir below the minimum recommended level of 240 feet; power generation from T1 is lower than expected due to an outage of one combustion turbine unit; there is inadequate transmission capacity in the western sector resulting in stability problems during maintenance outages. Also aged transmission lines and substation equipment and reduction in scheduled imports are some of the technical issues that have all contributed towards the present predicament we find ourselves in. Ongoing system enhancement activities are the T1 Performance Enhancement Project including conversion to natural gas operation, development of additional thermal plants and reinforcement and retrofit of the transmission system network.

12

Generation projects that have been outlined by the VRA for the next few years include: - 2007: 70-100 MW Tema Diesel Upgrade 126 MW Tema Thermal 1 Project 125 MW OECF Osagyefo Barge - 2008/9: 300 MW Tema Thermal project - 2009: Expansion of TTPS to 660 MW - 2012: 400 MW Bui Hydro

The power generation system reserve of over 20% in 2003 has been steadily eroded over time and is now about 10%. Strong demand for electricity is projected to continue with expected economic growth and improved access to electricity. This means that if additional generation is not implemented, all the system reserves would be eroded which would result in severe deterioration of supply adequacy and reliability.

Financial Issues and challenges Tariffs have not been adjusted to reflect the increased cost of supply with the introduction of thermal generation which has significantly increased the cost of power production. History of bulk supply tariff and average cost of supply of electricity in Ghana from 1990 to 2005 is shown in Figure 2.6. At existing Bulk Supply Tariff (BST) of 425/kWh (4.7 cents/kWh), net loss for 2005 was 749 billion for a generation mix of 74% hydro and 26% thermal & Imports. There is an increasing thermal proportion in the generation mix with 2006 mix projected to be 62% hydro and 38% thermal. Meanwhile draw down of the Volta Reservoir to minimum level brings aboard the issue for a significant investment into higher thermal power generation than exists at the moment. This increase in thermal energy production will further increase the cost of energy in the country. Unfortunately there has not been any tariff adjustment to reflect the higher fuel cost and current generation mix.

13

History of Bulk Supply Tariff and Average Cost of Supply

0.070 0.060 0.050
Bulk Supply Tariff Average Cost of Supply

$/kWh

0.040 0.030 0.020 0.010 0.000

97 02 03 99 00 98 94 90 91 92 93 96 95 01 04 20 19 19 19 19 19 19 19 19 19 20 19 20 20 20 20 05

Year

Figure 2.6: History of bulk supply tariff and average cost of supply

Currently, the total Monthly billed receipts are about US$28.0 million while Monthly cash requirement for the purchase of Light Crude Oil (LCO) fuel alone is US$31.5 million, based on cargo size of 450,000 bbl and delivered price of $70/bbl. We can therefore safely conclude that the current total monthly revenue cannot meet even the monthly fuel purchases alone. Strategic actions to be taken to curb the energy crisis and its associated low tariffs include the following. - Implementation of planned power projects should be carried out without delay - Government support and the support of multilateral and bilateral donor agencies are critical for project funding - Private investments should be encouraged to partner the public sector in project implementation - Electricity pricing should be urgently reviewed to provide the correct price signals and dampen growing demand

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Funding of required infrastructure for power generation will be a challenge if pricing policies are not reformed to ensure that power utilities are financially viable. Significant capital requirements imply that both public and private sector financing is needed to be able to curtail the situation. VRAs experience with CMS and WAGPCo in energy infrastructure projects indicates that Rates of Return would be in order of 15% with upward pressure on tariffs. The sector should progress into a regime such that legitimate costs are passed on in a sustainable manner. Attaining and sustaining cost reflective prices will ensure effective development of required infrastructure and efficient operations. There is also the need to clarify roles as well as responsibilities for the different players in the sector. Conclusions Major thermal based infrastructural developments are needed and the WAGP and current thermal plants are the backbone for future production facilities. Future operation and development of the power sector will increasingly involve the private sector. The major challenge however is how to sustain the operational and capital requirements to ensure reliable electricity supply into the future. Meeting this challenge successfully will ensure that ample production facilities are developed to meet future demand for electricity Addendum: Discussion Arising out of Lecture As a country, only 40% of our population has access to electricity1. At the moment we are growing at a GDP of 5-6%. To become wealthy, we need to be growing at between 8-10% and these growth rates require significant amount of electricity. We have significant numbers of people who come in with the intention to invest in the country but who require stable electricity supply in order to do so. We also have a problem in this country where the industries tend to subsidise the residential customers but this is not supposed to be so; it does not happen like that in the industrialised countries. When some of these structures are changed, it will encourage investors to come into the country to invest and hopefully the power crisis in Ghana will become a thing of the past.

Some estimates put the current rate of access to electricity in Ghana at about 50%.

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3. Potential for Energy Savings

Alfred Kwabena Ofosu-Ahenkorah

In 1975, the world experienced what has been known as the energy shock when the Arab oil suppliers decided to use oil as a weapon and therefore stop production knowing the effect it will have on the non-oil producing western economies. Prices shot up and there was a general shortage and panic, prompting countries such as Ghana to start learning some lessons. Before 1975 energy was in abundance in Ghana. Electricity was in abundance and people were encouraged to freely use electricity, to the point that they were even advised not to switch lights off. The utilities, deliberately as expected at the time, promoted the use of electric boilers, furnaces and kilns in industry so as to promote electricity consumption. Since then things have changed drastically. The population has increased, economic growth rates have increased steadily but the energy supply base has not caught pace with the growth. In the case of wood fuel the supply base has dwindled below sustainable levels as a result of deforestation.

The total electricity consumption in Ghana increased from 782 GWh in 1970 to about 1,328 GWh in 1980 at an average annual growth rate of 5.50%. The average annual GDP growth rate for this period was 0.2%. As a result of a drought in 1983, electricity consumption decreased from 1,361 GWh in 1981 to 1,007 GWh in 1984 at an average annual rate of minus 6.5%. During this period, the average annual GDP growth rate was minus 2.0%. Thereafter, total electricity consumption increased from 1,251 GWh in 1985 to 5,286 GWh in 2004 at a steady average annual growth rate of 8.86% compared to an average annual GDP growth rate of 4.46%.

Figure 3.1 shows the shares of final energy consumption in 1970 and 2004 whilst figure 3.2. shows the sectoral shares of total energy consumed in Ghana in 2004.

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Share of Final Energy Consum ption (1970)

Electricity 1 0% Fo ssil fuels 23%

Share of Final Energy Consum ption (2004)

Electricity 8%

Fo ssil fuels 30%

Wo o dfuel 67%

Wo o dfuel 62%

Figure 3.1: Share of Final Energy Consumption (1970 and 2004) In 2004 the residential sector accounted for 59% of total energy consumption. This refers to electricity, petroleum fuel and woodfuel which makes about 88% of the total residential sector final energy consumption. Transport in Ghana is mostly petroleum based and that accounted for 16% of total energy consumed. Agriculture took some firewood and petroleum, whilst energy consumed in industry is made up of electricity, petroleum and wood fuel. These have been the trend since the year 2000. In 2004 the total energy consumption was 6.16 million tonnes of oil equivalent. The breakdown in terms of electricity, petroleum and wood fuel is shown in Figure 3.2. Wood fuel is by far the largest contributor to energy in this country.

Taking 2004 alone and breaking it into actual figures, electricity constituted only 7% of total energy consumption as shown in Figure 3.4.

There has been some dynamics in the share of energy to the various sectors. In the 70s and 80s, wood fuel was about 79% but things are now changing and very fast for that matter. Comparing the years 2000 and 2004 in Figure 3.5 VALCO was in operation in 2000 and consumed a greater proportion of electricity. In 2004 VALCO was not in operation and the whole industrial sector took only 39% of electricity.

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Sectoral Shares of Total Energy Consumed in 2004

Transport 16% Agriculture 4% Industrial 10% Commercial 11%

Residential 59%

Figure 3.2: Sectoral shares of total energy consumed in Ghana in 2004

Energy Consumption by Type of Fuel (2000 - 2004)

7
Level of Consumption (MTOE)

6 5 4

5.48

5.60

5.84

5.83

6.16

Woodfuel

3 2 1 0
2000 2001 2002 2003 2004

Petroleum Electricity

Year

Figure 3.3: Energy consumption by type of fuel

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Shares of Fuels in Total Energy Consumption 2004

Electricity 7%

Petroleum 30%

Woodfuel 63%

Figure 3.4: Shares of fuel in total energy consumption in 2004

Distribution of Total Electricity (2000)

Distribution of Total Electricity (2004)

Valco 36%

Household 34%

Industrial 39% Household 51 %

Industrial 23%

Commercia l 7%

Commercial 1 0%

Figure 3.5: Comparing 2000 and 2004 consumptions

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It is trite knowledge that any economy where households are taking a bigger percentage of the energy than the industries is in for trouble, because households dont produce anything from the electricity they consume. They use energy only for their comfort and convenience. Therefore if the household consumption is greater that the industrial consumption, then there is something fundamentally wrong with the economy. For the sake of comparison, South Africa has 80% industrial energy consumption and 20% household consumption. A striking observation that has been made in the electricity sector is the rapid expansion in the power demand of the residential sector by 23% in 5 years from 1,585GWh (26%) in 2000 to 1,957GWh (37%) in 2005. In contrast the share of power consumption in the industrial sector, which includes agriculture reduced by 37% from 4,026.4GWh (67%) in 2000 to 2,542.6GWh (49%) in 2005. Within the same period system losses increased by 20% from 1,177GWh to 1,418GWh in 2005. This trend is worrying especially since the residential sector whose contribution to GDP is minimal is subsidized by the other sectors which have been paying near economic rates for electricity.

The energy supply figures for Ghana in 2005 are presented below.

Domestic Energy Supply Electricity Generation: Hydro generation Thermal generation Energy Imports Electricity: Crude oil and Petroleum Products: tonnes Import dependency for Commercial Energy Supply Import dependency for Electricity Supply

6787.91 GWh 87.5 % 12.5 % 814.62 GWh 2.2 million 83 % 10.8%

The bulk of our commercial energy supply is imported including 10.8% of electricity from Cote dIvoire. Ghanas energy consumption for 2005 was slightly less than 2004 but it hovers around the same 6 million tonnes and each time, electricity and petroleum are the most commercially consumed energy sources. Wood fuel is taken out because it is difficult to commercially quantify firewood and charcoal, as many people produce this by themselves. Commercial energy consumption per capita is

20

only 113kg of oil equivalent which is in line with international standards and does not look so huge if compared to countries like the United States. Our electricity consumption is 174kWh per person while it is 1000kWh per person in other countries. These consumption rates do not only consider residential electricity consumption but takes the whole economy into consideration. The energy consumption indices of the Ghanaian economy are presented in Table 3.1. The percentage of commercial energy is very low.

Table 3.1: Energy Consumption indices of the Ghanaian economy Item Total Energy Energy per capita Electricity Per capita Total Energy Intensity Total Commercial energy Percent Commercial Energy Unit of Measure 2000 2001 2002 2003 2004 TOE 5,968 6,101 6,265 6,326 6,633 kgOE/ca kWh/ca kgOE/$1000GDP TOE % 324 404 668 323 409 820 324 382 928 319 294 944 326 294 962

1,073 1,229 1,311 1,239 1,257 18 20 21 20 19

Energy-Development Nexus There is a direct link between energy supply and development and yet a complex relationship with economic growth indicators. In order to develop, every country requires adequate, reliable and efficient energy supply. The per capita energy consumption in Africa is 25,000-30,000kcal per day, less than the average per capita consumption in England in 1875. This means that more energy is needed to propel African economies if we decide to develop by the business as usual scenario. It has been projected that Ghana will need more than 7 times its present electric power capacity by 2020 if we are to succeed in developing Ghanas economy into a middle income economy. Development by the old path will require massive injection of energy with its implications on climate change, supply resources and cost. Adequate Energy Supply is necessary but not a sufficient condition for economic growth. Increased energy use must go with improved end-use efficiency, otherwise the supply will become inefficient and a burden on

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consumers which will slow down economic growth. The increased use of energy also has its environmental implications. There is evidence that end-use energy efficiency is highly possible and it has been used in many countries such as Japan, Germany, USA and UK.

Energy Productivity Measure There is an index that measures energy productivity in an economy and this is generally referred to as the energy intensity ratio. It is the energy that is used to produce 1000 dollars of GDP. This figure is critical because it gives an indication of how the economy is structured. Unfortunately many African countries have high energy intensity ratios with the reason being that most of our industries are extractive. We use a lot of energy and produce semi-finished products which have very little commercial values. In Ghana as in many other developing countries, this measurement is high primarily due to the fact that these countries produce mainly primary products with high energy input but low value added. We export these and they are reprocessed abroad where very little energy is used but the value added is very high. In the year 2000, Ghanas energy intensity ratio was 668kg of oil equivalent per 1000 dollars of GDP and this rose to 962 in 2004. It has been rising and is about three times what is observed in the developed countries. For lack of current data, available indices for 1989 were for Brazil - 640 kg, USA - 370kg, England - 260kg, France - 210kg and for Japan - 150kg. But even in 1989, the technology that was being used was not as efficient as it is today which means that these countries could be doing better today. If we compare these figures with Ghanas own in 2004, it means if we are buying energy with these countries on the same market, then we are out of the competition. If we use 668kg to produce 1000 dollars of GDP, then if the price of energy goes up such that 668kg of oil equivalent of energy is going to be 1000 dollars, then we are really not doing anything. Fortunately for us we use lots of charcoal and firewood which is not purchased and some of which we dont consider commercial, but the trend is not good enough.

Energy efficiency Energy efficiency is the use of the minimum amount of energy to produce the largest amount of energy service possible. Energy is used to provide a service and

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some of these services are refrigeration, air conditioning, transportation, lighting, etc. Energy Conservation comes from the English word conserve which means to save some of what you have today for future use. Conserve does not mean do not use but to use in such a way as to save a part for the next day. Energy efficiency measures cut operating costs and makes available money for companies to be more competitive and institutions to reach their goals. In other words, energy efficiency reduces cost and improves a companys environmental performance. In the 70s when the energy efficiency and conservation was introduced people dissected this word to mean so many things. Some people even referred to conservation as non-usage. But the English word conserve means to keep some for the future. There is a tremendous scope for energy saving, in lighting, in industry, residential areas, entertainment, etc. To highlight a few of these things reference is made to a Residential Energy Profile survey that was undertaken in 2003 by the Energy Foundation in collaboration with KNUST. The survey captured a cross section of households in Ghana and found out that 54% of all lighting is incandescent lamps; florescent lamps are 32% and the Compact Fluorescent Lamps (CFL) were 15%. In terms of energy consumption, the 54% of incandescent accounted for 63% of electricity that was used per day. The 32% fluorescent lamps also took 32% of the energy and the 15% CFLs used only 4% of electricity. Now talking of lighting itself which is measured in terms of lumens, the 54% of incandescent lamps that consumed 63% of electricity gave 38% of the lighting, the 32% of fluorescent lamps which consumed 32% of the electricity produced 52% of the lights whiles the 15% of CFL which consumed only 4% of electricity gave 10% of the lighting.

Power factor improvements This is a measure of the electricity demand to the use. KNUST was selected as one of five tertiary institutions to benefit from a power improvement programme. The initiative was from 2004 but as of now we have not installed the equipment for KNUST yet even though that for the University of Ghana is in operation. I will present the results of the equipments performance in the University of Ghana as we carry on. Ghanaians have the habit of buying high capacity electrical motors for corn mills and other milling machines and wastes energy in the process. When these motors malfunction and are sent for repairs, the mechanics put in any coil

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they have available without considering the power ratings of these coils. These cause the motor to consume even more energy. An unpublished survey results show that most refrigerators in Ghana uses more that 4kWh per day. In a month, 120kWh of the bills will be coming from the refrigerator alone. If we compare this to what happens in Europe and the US, the average is less than 2kWh a day and their refrigerators are even much bigger than ours. The reason for this is the use of inefficient refrigerators with worn out seals, and wrong placement of refrigerators in our homes. We push them in corners where they do not get ventilation and therefore draw more electricity than necessary. Many people start life with battery operated radios, progress gradually and end up with remote controlled appliances. The remote control is very convenient but some of the early types of these devices have standby power as high as 10W. If for example you have four appliances at home such as a TV, stereo, fan and an air-conditioner each with a standby power of 10W, that makes 40W standby power for a single house. That is equivalent to a 40W bulb burning in the house for a whole year. Standby power is an issue that must be tackled seriously in Ghana. Many countries have already enacted legislation limiting standby power to about 2W. The power factor correction case study for the University of Ghana is presented in Figure 3.6. The period from October 2004 to November 2005 was the period when the old system was in place and was monitored. A decision was taken to improve power factor at the university and the installation was completed in November 2005. Let us compare the bill of the university before and after the intervention.

On the Y-axis is the cost of electricity to the university. The cost fell from over 1.2 billion to 600 million within a month of implementation. It went further down when students were on vacation. Data up to October 2006 reveals that the university has reduced its electricity consumption by 50%. Power factor in Legon was 0.8 before the installation was done and after the installation, it moved up to 1 which is the ideal power factor.

Bottlenecks to Efficient Energy Utilisation Lack of information on efficient methods and technologies in energy conservation is a handicap to decision makers who often lack the knowledge and access to energy efficiency information.

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Electricity Cost, Legon

1,400,000,000

1,200,000,000

1,000,000,000

Cost, GHC

800,000,000

600,000,000

Total Levies P.F. Surcharge kWh, Charge kVA Charge

400,000,000

200,000,000

Oct-04 Nov-04 Dec-04 May, 05 June, 05 July, 05 Aug, 05 Months Sept, Oct, 05 05 Nov, 05 Dec,05 Jan, 06 Feb, 06

Figure 3.6: Electricity cost for Legon before and after power factor improvements

The information gap can be attributed to - Shortage of skilled energy management professionals - Absence of energy efficient technologies on the local market - High initial cost of energy efficient technologies - Difficulty in accessing financing for energy efficiency projects - Absence of clear policy and regulations on performance of industrial and commercial equipment and appliances.

Institutional arrangement to promote efficiency In every country there are institutional arrangements to promote energy efficiency. The United States have what they call the Demand Side Management which they charge the utilities themselves to do. Unfortunately they have found out that the utilities use the money but do not do exactly what they are supposed to do. The utilities are more interested in selling more kWh of energy and are not happy to

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reduce sales but they are forced by the regulatory bodies. This ensures that there is some reserve energy to use when energy demand is high or when fresh energy productions are not able to meet existing demands. Demand Side Management as pertains in the United States was not taken as the way forward in Ghana because of the state of the utilities. The consciousness of efficiency grew in Ghana right from 1973 to 1979 during the Nigerian oil embargo on Ghana.

There are several energy efficiency projects which have been initiated and are currently going on. Some of these are - Power factor correction - Monitoring and targeting energy management - Targeted technical services - Building energy management retrofits - Energy management training - Energy service development

To monitor how productive you are, you must always measure what amount of energy you use. Some companies measure this daily or weekly and therefore keep track of what they are doing. If the specific energy consumption (energy used to produce a unit of a product) changes, it will help to detect whether or not something is going wrong. If for example a company uses 100 kWh to produce 10 units of a particular product and this proportion changes in a way, the company will know instantly that something is wrong. Many surveys have been done to find out what effort Ghanaians were making at conserving energy. One such survey was the 1999 vehicle ownership survey. This survey determined that 76% of vehicles in Ghana were private cars as compared to about 2% buses. If you are running an economy in which a lot of vehicles are private and there is a subsidy on petrol it means that you are rather subsidizing the individuals with the private cars. Some of the other surveys which were done in the bid to promote energy conservation are as follows: - 1998/1999 Appliance Ownership Study - 1999 Electric Motor Efficiency Improvement Study - 1999 Vehicle Ownership/Transport Sector Study - 2000 RAC Penetration & Efficiency Studies - 2000 CFL Penetration Study

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2000 Industrial Energy Intensity Survey 2001 Energy, Poverty & Sustainable Livelihoods Study 2002 Mini hydro potential study 2003 Household Energy Consumption Profile Study 2003 CFL Penetration Study

The industrial intensity survey in the year 2000 showed that Ghana used 807kWh to produce a tonne of steel in an electric arc furnace (EAF). India was then using 550kWh; US 450kWh; Germany and Japan were using 350kWh. When it came to beer brewing, we realized the power usage was quite similar to the developed countries. This does not mean Ghanaian breweries were doing better in any way, the management of these companies get instructions from their principals and it force them to perform as their mother companies abroad There are many measures that can be taken to ensure that energy efficiency is adopted by the whole population. Public education is one of these measures and price signal is perhaps the most effective. If electricity is very cheap, people dont care how much they use because they end up paying cheap prices anyway. If someone else pays your electricity bills like it happens in the government institutions, you dont care because you may not even see the bill, as the Ministry of Finance collects the bills and pays on your behalf. The other measure which has proved very effective is to introduce regulatory measures and that is introducing standards and labels. Energy efficiency standards, like any standard sets a minimum threshold below which whatever appliance is considered to be non-permissible is not allowed. We have defined energy efficiency standards for some equipment and have started with air conditioners. The 2001 air-conditioners energy consumption study and the results are presented in Figures 3.7, 3.8 and Table 3.

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$1,800 $1,600 $1,400 US$ $1,200 $1,000 $800 $600 $400 2 2.25 2.5 EER 2.75 3 3.25
RAC Units

Figure 3.7: Purchase Price vs Efficiency for air-conditioners in Ghana, 2001

On the x-axis in Figure 3.6 is the energy efficiency ratio which is the input energy divided by the cooling that is given by the equipment. It is measured in watts of energy input per watt of cooling. Interestingly, the circled unit is the most popular air-conditioner in Ghana. It is still the most popular. In 2001 it accounted for 32% of the market and I believe it is still so. Meanwhile the unit with the square box around it just appeared in the market, it was not very well known and it was being sold at that time at a very reasonably low price and was very efficient as well. Yet its market penetration was very insignificant. Between 2001 and now, the price of air conditioners have dramatically fallen and they are now about half or less what they used to be in 2001. A lot of people can now afford air conditioners and they are buying them without any idea of how much it is going to cost them to operate. Based on this information, we tried to find out how much it will save Ghana if we adopted legislation to guide the importation and sale of air conditioners. We found out that if we did nothing, and the economy grew at 6% - being the high benefit - as compared to maybe 4% as we were growing at that time, then one air conditioner in its lifetime of 15 years would consume US$ 4,213 worth of electricity. However if we adopted energy efficiency standard, say 2.8 energy efficiency ratio, you will realize that the amount of energy we use comes down. In order not to push too high, we adopted a 2.8 EER and by 2020, this is supposed to save 8,522GWh.

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Table 3.2: Energy savings from standard setting Standard High Benefits 2.8 EER up to 2010 up to 2020 up to 2030 3.0 EER up to 2010 up to 2020 up to 2030 3.2 EER up to 2010 up to 2020 up to 2030 1,453 GWh 8,522 GWh 19,497 GWh 2,555 GWh 15,430 GWh 38,296 GWh 3,520 GWh 21,174 GWh 53,841 GWh

Low Benefits 1,200 GWh 6,764 GWh 15,109 GWh 2,121 GWh 12,222 GWh 29,554 GWh 2,931 GWh 16,713 GWh 41,292 GWh

Cost and Saving of New Room Air Conditioners

2000

2005

2010

2015

2020

2025

2030

3.0 2.5 2.0 1.5 1.0 0.5 0.0 Per-C apita 2001 D ollars

Energy Saving Price Change Net Saving

-0.5

Figure 3.7: Cost and saving of new room air conditioners

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The hydro power plants at Akosombo and Kpong in a year produces 6,000MWh and comparing this to the energy savings in 2020, we are going to be saving a great deal of energy. The graph in Figure 3.7 shows the savings and per capita if we adopted those standards. That standard was supposed to have come into effect in 2002; unfortunately we couldnt do that until 2005 when the law was passed. Effective 30th November 2006, every air conditioner that is coming to Ghana must meet 2.8 EER and it must be labelled. The standard is a market push instrument. It will Eliminate inefficient products from the market Push manufacturers to produce more efficient appliances and lighting and Ensure that importers bring efficient air-conditioners into the country The label which we consider as a market pulling instrument will Stimulate consumer demand for energy efficient products Help manufacturers of appliance and lighting products to overcome investment and market barriers. While the standard will raise the floor, the label will raise the ceiling so that you have a higher efficiency band to play within. The label which will be affixed to all the air conditioners is shown in Figure 3.8. The more stars the label has, the more efficient the air conditioner is. Whoever is selling must tell you what type of air conditioner it is, the cooling capacity, the manufacturer, the model, the type of refrigerant inside and the efficiency ratio. Gradually we will get the importers and manufacturers to move away from the less efficient air conditioners. What weve realized is that the same companies produce different types of air conditioner units. They export the grade A to countries where there are standards and labels and export the low grade ones to countries like Ghana where there are no standards and labels. In reality it wont cost the companies extra but it will save Ghana extra money.

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Figure 3.8: Ghana Air Conditioner Label

There is a similar label for lighting. In lighting the measure for efficiency is called efficacy and that tells you how many lumens of light you get for a watt of energy or power that is demanded by the light. The Ghana standard is that it should not be less than 33. So for every watt of electricity, you should get the equivalent of 33 candles of lighting. It should tell you how much electricity you are going to use in a year assuming you use it for five hours a day. In terms of the industry, measures have been taken to check energy usage and to advise the industries accordingly.

Addendum: Discussion Arising out of Lecture To be able to install the power factor for KNUST, we need to measure the load on each of the present transformers and their power factors. The equipments to carry out these activities are quite sophisticated and expensive, about 9,000 euros each. We have realized that most of the transformer stations in KNUST have broken doors and there are no roofs on them. Meanwhile the equipments must be installed for a minimum period of a week and installing them in a ramshackle

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building is quite dangerous as the equipments will be exposed to the weather and thieves. The university may need to provide 24 hours security service until the end of the seventh day or to repair the buildings which house the transformers. The KNUST security section is not able to provide the human resources to guard the equipments. The repair of the buildings will also cost 40 million and KNUST is still not been able to raise the money for that purpose. As soon as the necessary measures can be put in place, the power factor correction programme can be carried out on KNUST. In order to ensure that traders are using the correct labels on air-conditioners, the Ghana Standard Board (GSB) and the Energy Commission have been empowered by parliament to pick appliances from various stores at random and to send these to laboratories for testing. If the labels are found to have been wrongly used, the importer will be taken to task. A test facility is being built at the Ghana standards board which will be used for these testing purposes. The requirement for labels is not only for new air-conditioners but for secondhand appliances as well. Second hand air-conditioners will have to meet the standard and labels must be placed on them as such. The label is supposed to be pasted in front of the appliance so that the consumer can easily see for himself the information on it. The label is colourful and attractive and was designed in this way so that it will attract consumers. The label system is currently for airconditioners and CFLs but other appliances such as refrigerators will be factored in as time goes on. GSB is been empowered to return all air-conditioners coming into the country at the ports that do not meet the efficiency standards. Legislation in Ghana takes a long time. If the Energy Foundation had not taken time to find out that bad air conditioners were dominating the market (controlling 32% of the market), parliament would have thrown the labelling law out. The Energy Foundation had to carry out a socio-economic analysis to determine what sort of efficiency level would not hurt the economy. If the level were too high, people may not be able to afford the appliances at all and that is also not a very good situation. We have called gatherings to inform them of our findings on energy efficiency. The Energy Foundation has started educational campaigns on the labelling programme and we are hoping that the public will come abreast with the issues. Information is also available on the website of the Energy Foundation: www.ghanaef.org. A copy of the law is available on the website. Information on energy savings and conservation are also available from the Energy Foundation.

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Projections have shown that if we could use a million CFLs in the country, it will bring energy demand down by 41MW. A project has been initiated with the ministry of finance to stop incandescent lamps from coming into the country and to get CFLs sold at the price of incandescent lamps. The country hope to be able to change all the incandescent lamps to CFLs within one year and hopefully things will improve for the better.

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4. Planning for Implementation

Rudith King and Imoro Braimah

We will begin this discussion with the rational for planning. First of all we need to ask ourselves why we need to plan. We live in a changing world and the only way to ensure that the dynamism in human society is well managed is to plan. It is important that careful decisions are taken about the general directions in which change should occur. The careful decisions we need to make can be achieved through planning. For example we take it for granted that the wind and the sun are around us and abundant and so we misuse and abuse them anyhow. But because we live in a very dynamic society, we need to take cognisance of the fact that even these seemingly abundant things are not just there for the sake of it because they can positively or negatively affect our well being if we do not plan how to use and manage them.

Planning is seen both as a tool for resource allocation and a procedural method for decision making about the development of the economy irrespective of the scale of planning and the subject matter. We all plan in our homes on daily basis but then we do this unconsciously. We begin planning from somewhere and at the end of the day we either commit time or money to implement our plans though we may do that unconsciously.

Planning is a process that goes with procedures. But one may ask: what right do we have to plan as human beings? If the world is free for all, why dont we enjoy it and then when we deplete everything that we have, we just say thank you God, die one day and vanish from the surface of the earth. But it doesnt happen that way and there are several other questions that people would always want to ask. What moral right do we have to make decisions that will affect the future or posterity? Are we knowledgeable enough to make decisions that affect the future, because planning is about decisions and whatever decisions we make can affect us positively or negatively? We need to make sure that we take decisions that are going to benefit us and not affect us negatively. Perhaps we have to revisit the

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decision to build the Akosombo dam, a decision that was taken 50 years ago. Did the leaders think about 50 years after? Did they factor in what would happen to the electricity sector 100 years after the construction of the dam? The planning could have taken cognisance of what would happen after fifty or maybe hundred years.

How can we ensure that we are making the right decisions? This is something that planners do: they have the tools and the techniques that can help them analyse and diagnose in order to make the right decisions. What happens if they make the wrong decisions? When we make wrong decisions or take things for granted we suffer the consequences. We are using a generator today for this seminar and paying so much because we either made the wrong decisions or took electricity from Akosombo for granted. Most of these genuine worries today could have been taken care of by the way planning was done i.e. using the right processes and procedures. Whether the planning process is for settlement planning, energy planning or even agricultural planning, the methods and procedures are all the same. The bottom line is that decisions have to be taken about how best resources can be used. The planning process basically comprises of three main phases which could be subdivided into several stages as indicated in Figure 4.1 below. These include the Analysis/Diagnosis Phase, the Design or Planning Phase and the Implementation (including Monitoring and Evaluation) Phase. .

Phase 1: Analysis/Diagnosis Before any planning is done we need to go through what is called the analysis phase. The analysis phase is to understand the environment within which the development problem is situated; it goes with what is termed the problem analysis. Tools such as problem tree analysis, the problem matrix and the problem mapping could be used to understand the nature of the problem. We need to understand where we are before we can think of where to go. If it is an energy problem such as we are facing now, we need to understand the energy situation in the country in its entirety to be able to diagnose the energy problem. This means that we are not just going to look at one area like electricity and assume that, that is where the problem is and therefore that is enough. Impliedly the solution of the problem does not rest with the Ministry of Energy alone! Planning must be very comprehensive and this means bringing in many other components. The situational analysis is a tool that helps us to go through the process of analyzing

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the causes and effects of the problem. This definitely involves human beings, institutions, natural resources and processes for the utilisation of resources.

The first phase which is termed analysis involves carrying out a very intensive background study. Such studies must include the political framework because it influences the decisions that will be made for implementation. The political situation could lead to either a total rejection of the plan or limited commitment to the implementation of the Plan. In view of these circumstances we cannot assume that the politics of the country or organization/institution does not matter. Therefore we need to analyse the political environment carefully. This should be extended to include a very intensive socio-economic analysis of all projects situations within the plan. If we are considering energy for domestic use then obviously we would have to know what is happening in peoples homes and it will take a study to find that out. What are their preferences or choices? Why do they opt for A and not B etc? These are all issues that we need to understand from the perspective of the society because at the end of the day we are planning for people and therefore we must understand their way of life and how they use energy. We can conclude from here that there are socio-economic conditions within which to work.

In trying to understand social and political issues we must look at the culture and the religion of the people. Some people may question what culture has to do with energy. But let us take a look at one example. Can we propose the use of cow dung to provide energy in cultures that use cow dung as painting material for housing or cultures where the cow is almost worshipped? If it is these animals that are going to provide the dung we need to generate the energy, then it becomes a religious matter and it has to be dealt with as such. We need to understand the culture and the religious environment within which we are going to work. Thus in trying to understand the problem several issues have to be considered before we can move on to the design or prescription of what is to be done to solve the problem and the implementation of those prescriptions.

As part of the analysis we need to do what is called the needs assessment because we are planning for the satisfaction of the needs of the people. Its not just a matter of assuming that they will need A, B or C. The right procedures and techniques should be employed in order to determine the actual needs of the people.

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PHASES Diagnosis/Analysis

TASKS
Problem Diagnosis/ Analysis

TOOLS
Situation Analysis Needs Assessment Problem Matrix Problem Map

Potential Analysis

Basic Development Potentials and Constraints Derived Potentials Potential Map

Policy Formulation

Define Goals and Objectives State Formal positions in support of the Goal(s) State Means (Strategies) to implement the Policy and accomplish the Goal(s) Projections Prioritization Selection of Projects /Phasing Intervention Scenario Ranking and Evaluation Logical Framework (PPM)

Planning

Implementation

Plan of Operation Monitoring and Evaluation

Gantt chart M & E Working Scheme Programme Results Evaluation Results & Impact Evaluation

Re-planning Strategy Figure 4.1: Planning Process in Phases

Flowchart

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As part of the analysis there is the need to carry out what is called a stakeholder analysis or interest group analysis. The interest groups to be analysed should include even those who benefit from the existence of the problem. This is necessary in order to determine both allies and enemies. We need to know what their interests are and the effects that our decisions are going to have on their lives. Each step, tool or technique used in the analysis should ideally generate outputs which can be used to guide the actions to be undertaken to solve the development problems. The outputs in this phase will be fed into the next phase. They feed directly into the Policy formulation stage which actually links the first phase to the main theme of the second phase i.e. the Plan Design Phase.

Phase 2: Plan Design This begins with Policy Formulation. Policy here does not mean national policy alone; it is actually institutional/organizational policies that reflect the goal or objectives. In this case or phase also there is the need for some analyses. Goals and objectives that will lead to the solution of the problems have to be formulated and they must not conflict with the regional, national, local and institutional goals. The energy policies of say KNUST as an institution should fit well within the context of the national energy policy and the national energy policy should be derived from the regional (ECOWAS or AU) energy policies. For instance, policies on energy of the sub-region will have to be looked at to ensure that the policies we are formulating as a nation fit into the sub-regional one before we can talk of a gas pipeline for the sub-region. Now we have the Millennium Development Goals (MDGs). They are much bigger regional goals and all that we do as UN member countries will have to fit into the MDGs. A question that must be answered by a country for example Ghana when formulating development plans will be: do they fit into the Millennium Development Goals? If they dont fit, then it means that we cant even work to achieve what we have in our Ghana Poverty Reduction Strategy (GPRS) now called Growth and Poverty Reduction Strategy. All our policies should be derived from the national document and those in the national document should conform to the MDGs or the sub-regional goals. We always carry out a test called the compatibility analysis to find out whether these goals are compatible or whether there are conflicts because these must be resolved right at the onset before moving ahead.

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Strategies and actions based on standards are then designed, phased and programmed in terms detailed activities. Several of these are normally designed and prioritised to facilitate the allocation of resources.

Phase 3:

Implementation, Monitoring and Evaluation

A useful plan is the one that has been implemented. If a plan is very beautiful but has not been implemented, it is of no use to anybody including the planners themselves. Since we are much interested in the implementation of the plan as the very last and most important phase of the planning process, it is necessary to worry about the tools and the tasks that are employed to come out with a plan that can be implemented. No matter what level of planning, the tools and processes outlined are telling us that if we follow these tasks and use the necessary tools, the plan that will ultimately come out will be feasible enough and can be implemented to meet the goals and objectives that were set.

The whole planning process is a cycle; it is not just an activity to be executed and terminated afterwards. It is a self perpetuating process of actions and one big chunk of this process is the implementation. There have been instances where we have very nice plans, plans that if they were to be implemented, all the problems that we have now would have been history and maybe we would be thinking of fresh and new problems and not the very same problems that the plans sought to solve in the initial stages. But why does it happen like that especially with regard to the energy problem that we have been discussing in these series of seminars? Is it that the plans were not good enough, thoughtful enough or they were not correct in their technical feasibility? These are the questions that we want to answer in the implementation design and it is worth emphasising again that if the implementation design is wrong, no matter the product of the first two phases, the whole process will be wrong because the implementation aspect will not be well done if at all and the problem will remain.

It is like the process of the development of a human being from conception to maturity as an adult. If good care is ensured in the initial phases of conception, delivery and child care then the probability that the adult person will be a

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successful adult is greater. However if the conception and delivery were excellent but the child care faulted the excellence in the first two phases would be in vein. That is why managing the implementation is very critical but we planners together with other stakeholders often make a very big mistake. We tend to think that because we are technical people, our concern is to come out with a plan that meets all the technical standards and we are satisfied that we have a plan that is excellent by our technical judgment that can meet all the criteria in the stages and the processes that we have stated. But we forget that the implementation aspect is the most important technical aspect. If that technical aspect is faulty, then the whole process from the beginning to the implementation is going to fail.

What do we mean by the implementation design? Whatever plans have been drawn, there are certain activities that must be undertaken and there are some people who should undertake those activities. Carrying out these activities cost some money as well. In the implementation design, we have to make sure that for every activity that has been outlined; there are responsible people who will be assigned to execute them. The activities that have been planned must have realistic time frames that can be implemented. If we assign timeframes that are unrealistic for particular activities, then we shouldnt be surprised when the implementation is derailed or stalled. The implementation phase does not end with the implementation design. It should continue through to the implementation of the activities through monitoring to the evaluation of the completed activities for information to be fed into the process of re-planning. Monitoring is to cater for our human weaknesses in deciding exactly what the future should be, so that as we carry out the activities one after the other, we monitor things closely in order to determine the need for redesigns as things become clearer and more obvious. This is done so that if we forgot to do something at the time of the planning, we can quickly make room for it. If there were certain things that we thought would take a certain direction and they didnt take that direction, in the course of the implementation, we can realise that aspect and then make sure that the implementation is not swayed to an unintended direction. This is where the monitoring and evaluation puts an important component into the implementation design.

Sometimes we get so carried away about the beauty of our plans that we forget that there are some people that have been assigned to monitor whatever activities are being implemented. We sometimes assume that the technical persons that we

40

assign responsibility to undertake certain activities can at the same time monitor whatever is going on. But we all know that when you are over excited about carrying out a certain activity, you dont think about the need for your activities to be monitored. There is the need for somebody to monitor our progress. That is one aspect of the implementation design that we normally have to emphasise and if we dont emphasise it then no matter how beautiful our plan has been designed, it is going to stagger or fail in the course of the implementation.

Budgeting and Finance The activities that we have planned to do cost time and money but we tend to think that the implementation will come as a matter of course because we have built in mechanisms technically feasible to be carried out and we think about only the cost of the equipment. If it is just a dam, we think of the cost of building it but what about the cost of operating and maintaining it. We must plan for those who will implement and make sure that you get power in your house and pay your bills so that money can be earned and re-cycled for the energy production to be sustainable. If we dont think about them in terms of the fact that they will cost money, then we are going to put a system in place and when the system starts working and the mechanisms are not there, we would now have to find money to ensure that sustainable generation and distribution of power. If we have to go somewhere to find the money for implementation after the plan has been designed then what will happen when the money is delayed or when it does not come at all.

Most planners assume that implementation will come as a matter of course and therefore we do not even count the cost of monitoring the implementation, restricting the cost of implementation to other components. It does not take broad cognisance of what can happen in the course of the implementation and so we leave out the financial plans. Normally the financing of a plan is the most critical in implementation design because that is where we mainly falter. If the financing of the plan is not forth coming then the beautiful plans will simply remain stashed in the drawers and shelves.

How can we design a plan without thinking about the financing aspect of the plan? There are several reasons why people plan; we often plan so that we can make the decision very rational. Secondly, planning is a tool of resource allocation. If we understand that planning is a resource allocation tool or

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mechanism, then we should start thinking about financing of the plan right from the day we took the decision to plan for whatever project we want to engage ourselves in. The financial aspect should be number one. Where are we going to get the money to support the decisions that we are coming out with? We should think about where to get the money to implement the decisions. If we dont find out where we are going to get money to implement these decisions then we should not think about the decisions. It is useless to take a decision and only to ask somebody else how much the implementation of the decision will cost and to find the finance implementation.

Most of the plans that achieve results start with the financing aspect. However because most often we dont have the money ready at hand for the implementation of the planned activities we must take serious considerations regarding the financing right from the beginning of the decision to plan. Most often planners are told not to think about the money but to go ahead and develop the plan. You will often hear phrases like: when it comes to implementation we will find the money. When we are faced with situations like these we deal with the technical aspects alone just to make sure that whatever we are deciding will meet the objectives and aspirations of the people. All that is good, but then the planning process is incomplete until we come up with a feasible implementation designs that can be implemented and part of that implementation design is the costing of the plan and costing of the implementation as well. As part of the costing, we need to find out categorically where we are getting the funding for the implementation of the project. If we cannot do this, then the whole planning process should not even start. If you postpone the decision in the beginning, when it comes to implementation, you will be forced to revisit it because that is where you have to assign not only responsibility to people but also the finance to carry out the responsibilities. If you tell somebody to monitor something without giving him the resources to do the monitoring, there is no way that activity will be achieved.

Conclusion It is the financial aspect that we want to emphasise here; that implementation design is about assigning responsibilities, coming out with clear and realistic responsibilities, and realistic resource mobilisation or flows in terms of time and finance. In the beginning we said that planning was a resource allocation tool, if we dont think of the resources, there is no way we can think of how to allocate them. If we decide to postpone the decision about the resources to a later stage,

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when it comes to implementation, we will have to revisit that issue again and come out clearly with how we are going to get those resources to fund the implementation of the plan.

Addendum: Discussion Arising out of Lecture The technical aspect of a project is different from the planning aspect. Then also the planning and implementation are different issues. All these are process activities that come in at various stages of the project. If such stages are assigned to different people and these people are not able to effectively coordinate, the whole project is likely to collapse. Take for example large-scale national projects, the technical aspect of the plans are usually done very well. But it is the politicians who take decision about resource allocation so that if they are not committed early enough to make decisions about financing, the project may fail as the technical aspect of the plan alone cannot be built. This is quite common in our part of the world. Private enterprises are more successful with plan implementation because they use planning as resource allocation tool. Either they acquire the resources before planning or immediately they start planning, they start thinking about the funding issues as well. They do not plan in isolation. The approval of a plan in the private industry goes with approval of funds. However in the public sectors, plans are used for other purposes including implementation. Some Plans are referred to as shopping lists because they are often used to beg for money from external and internal donors. Countries such as Ghana often make the mistake of planning when they know they have no funds for the plans and these happen because of our status on the development ladder. Most of our donors would like to see that we have concrete plans and that we are not going to spend the money on something else. Because of this, most people are in the habit of making plans and keeping them in their bags just so they can flash them to the next available donor on the shortest notice. If it happens that they get a sponsor, they implement the plans and if there is no sponsor, the plan goes back into the bag and continues being a shopping list. But then we need to develop our plans with different scenarios and be ready to explore various alternatives for funding. A plan with a single funding plan is likely to fail if that option of funding is not available.

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It is good to know stakeholders interests when seeking for funds. It is wise that we develop our financial resource mobilisation skills very well, so that we know where to go at what time. If you go to a group interested in poverty reduction to seek funds for a road construction project, it may be difficult to obtain these funds. You may have to convince the donor that constructing the road will enable you implement poverty reduction projects.

There are several plans in the Colleges that have failed to go into implementation. Institutions such as universities have ways of earning revenues but these revenue earning areas are not matched with the activities that they want to implement. Because resources are limited, the decision makers usually one or two people decide in their own wisdom where the available resources should go. They usually want to put resources where people can see physical structures. When resources have to be spread across board, people are usually happy but when resources are limited to very few projects, people begin to grumble. During the preparation of the Universitys Strategic Plan for example, they thought they were going to get money from somewhere to implement the plan but then forgot to look for funds to take care of daily recurrent activities. Once the recurrent demands become greater, they tend to take money from the strategic plan to solve the recurrent problems which are deemed more important. That was a wrong step in the preparation of the strategic plan in the first place. The recurrent problems such as cost of managing the institution, cost of electricity, etc. should have been taken as part of the whole plan and not left aside as problems to be solved by somebody else. We tend to think that the strategic plan is limited to physical structures and that it should not include the recurrent problems that we face everyday. As such sitting allowances for meetings and other recurrent activities are often not well projected and considered as a component of the plan. The danger here is that when these are due for payment, we are most likely to resort to divert resources allocated for some activities for these purposes whilst those activities are put on hold.

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5. Role of Renewables
Fred Ohene Akuffo

Energy and Development The Ghana Growth and Poverty Reduction Strategy (GPRS II) is the framework guiding Ghanas overall development. It aims at bringing the country into middle income status by the year 2015. In other words, hopefully average income per person will be 1000 US dollars per annum by this target date. From the noneconomists point of view, I will say we are currently earning on the average about half this amount. The economic experts have predicted that we have to grow anywhere between 7-10% per annum over the next eight years in order to achieve this aim.

Energy is a very critical factor in the development process of any country and if the economy is to grow, people will consume more energy. We will have to produce energy for industries to increase the output of goods and services which is what economic growth is all about. We have to work harder and it does not matter how many people we may put out there in the field, we shall need more machines electrical machines to achieve this dream. We need to really increase the energy use and therefore this development process hinges critically on the availability of adequate energy provided in a timely fashion. Not just energy at any time but it should be available at the right time and it should be reliable. Modern energy electricity is what we are all talking about mostly and then we are also talking about transportation and about fuels since all these are necessary for the economy to grow. The economists describe this relationship in terms of elasticity: if the economy has to grow 1%, the energy consumption may have to grow about 2% or more and so if we are asking for a growth of 7 to 10%, then the energy demand especially electricity will be very high. That is the challenge that we face in terms of our energy generation and I will not go into details.

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The role of renewable energy in GPRS Renewable energy can be defined as an energy source that can be regenerated within a human life time. If we can generate energy within a lifetime then it is renewable and this is a period of 70 years since humans are known to live to an average of about 70 years. Solar energy is regenerated in 24 hrs and so it is renewable; the wind is quite seasonal and therefore renewable. Petrol is not renewable because it takes a lot of centuries to make crude oil and this can be exhausted in the long run: it is finite and will fade away with time. When we talk about renewable energy, then we are talking about an energy source that can be regenerated within the human lifetime; we can use it now and still our children can also benefit from it. This is called Sustainable development: development that meets the needs of today and further makes room for the future generations to meet their needs. If we begin planting trees today, by the time we are dead and gone our children will be having a forest that they can use.

What can renewable energy do to support Ghanas development? Strategic National Energy Plan 2005 - 2020 This question was addressed in a very big study called the Strategic National Energy plan (SNEP). The study was supported by DANIDA and it was implemented by the Energy Commission between the years 2000 to about 2004. The final report of SNEP is being released. The purpose of the study was to show the way in which Ghanas energy can be developed in order to meet economic growth objectives in all the various sectors. The study was carried out on the demand: how much energy we would need till the year 2020 and on to the year 2030: how much in terms of electricity, petroleum, etc. The study dealt with every energy source, renewable and non-renewable. Fortunately the College of Engineering of KNUST participated in the activity at a time when it was the School of Engineering. We got consultancy to do the indigenous resources assessment including solar energy, wind and biomass resources. We did that and all these were documented giving us knowledge about our wind, solar and biomass potential.

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Universal Access Policy We have been measuring solar energy on KNUST campus for the past 10 years and many students have analysed this data in the past. But what can we use all this data for? Let us first look at the electricity situation. Ghana has a policy; the National Electrification Scheme which has as an objective of achieving 100% electrification by the year 2020. The Policy was initiated in 1989. The National Electrification Scheme stipulated that every community with a population of more than 500 will have electricity by the year 2020. Currently the level is 54% and this includes the regional capitals, district capitals, big towns, the commercial towns, etc. We are now left with the small communities that are not economically very dynamic. The authorities are trying to go through the SHEP, the Self Help Electricity Programme in order to get electricity to those places. We are now having difficulties because we do not have adequate generation to support this National Electrification Programme. If we were to put the Grid everywhere in this country, it will require something more than what we have now.

We are having difficulties with our hydropower generation and for those who are aware, just across in Cote dIvoire, some hydro power plants have died: they have died in the sense that the level of water is not adequate to generate anything. At the moment the water level in the Volta Lake is at its minimum ever and if we keep on draining the water, Akosombo can stop functioning. This is because we drain far more water than what comes into it and very soon there wont be enough water in there to support power generation. There are a lot of difficulties and challenges. What we have to do is to generate additional electricity to support the National Electrification Scheme. It is a technical and intellectual issue and sample graduate studies could look at some of the resources. The planning has been done and we are heading towards using lots of gas for power generation. We shall need large volumes of gas from the West Africa Gas Pipeline to generate additional power every year in order to meet the demands. The Bui Dam is somewhere in the plan; some people are also talking about nuclear energy as a way out which is there in the plan but we have a problem with generation and we will have to put additional generation in place in order to meet the requirement of the National Electrification Scheme.

Increasing Access to Rural and Peri-Urban Communities Increasing access to electricity by rural and peri-urban communities is the challenge as the cities are quite okay. There is a different problem in the cities, at

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least the power is there but it is unreliable, the rural areas have the unfortunate situation of not having access to any power source at all. It has been suggested that renewable energy can play a very significant role in this context. Already the Government has used solar energy to provide electricity for clinics, Junior Secondary Schools and public facilities in some parts of the country. The policy at the moment is that wherever the grid is not available for clinics, health facilities and schools, we should use solar photovoltaic to provide lighting so that healthcare can be provided, midwives can deliver babies and children can have access to lighting in their classrooms as part of our poverty reduction strategy. Most people in the National Electrification scheme feel that this is the best way and for about 10 years now the demonstration has shown clearly that solar photovoltaic systems can provide limited lighting just lighting economically for house holds, clinics and for public facilities to enable children go to school, to enable clinics work and to do this effectively within the context of the National Electrification Scheme. How we push these things with the scheme and the overall planning have been addressed in the Strategic National Energy Plan.

Meeting MDG Timelines Time is a critical factor and so the issue is not that people in the rural areas will only be given access to inferior electricity like 12 volts DC; there are plans for a standard electricity access provision and it might take up to 20 years but it is possible to have some limited electricity immediately in order to overcome the poverty issue and in order to give electricity access to people who need them, so that children can go to school and other events can take place. When the load builds in 10 years and it is possible to extend the grid, that can be easily done and we will show how these things can be integrated to the grid in time. In this regard JICA, the Japanese International Co-operation Agency has carried out a very intensive study in the northern part of the country to develop a master plan for rural electrification based on the solar photovoltaic system; the report is available for those who are interested.

Enhancing Supply Security and Reliability The second area in electricity development is improving supply security and reliability and that is where we are at the moment. Most people in business are very nervous about electricity supply and whether it is going to be reliable. Reliability in terms of voltage is a critical issue as voltages become lower at night.

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Solar backups at home will help in this regard and this can also help you reduce your unit of consumption to bring you into the low cost zone where you can save some money those in the cities could certainly do that. The other option is that it is also possible to connect the grid to the solar system and in the industrialised countries some of these are in place. You can buy solar modules for your house and connect to the grid so that when the grid is off and you are generating more than is necessary for your home, you can sell some to ECG. There is a meter that runs both ways so that at the end of the month you can find out whether ECG owes you or you owe ECG. The electrical engineers are familiar with those things and it is possible now for us to perhaps think of doing something like that, something that is real, not fictitious: it is done all over the world for those who want much reliability and can afford it. The only requirement and the barrier therefore is the policy and regulatory framework. What are the rules for connecting to the grid? The ECG or the Energy Commission must come out with some regulations to show how this can be done. Once the rules are put in place, there are a lot of private companies that can do this in Ghana: we just need the regulation to empower it.

Transportation sector/petroleum Petroleum is a major challenge and the prices will be increasing as it has been in the past few years. In 1973 when the energy crisis occurred and the prices jumped from $3 a barrel to $15 a barrel, everybody knew it was not going to come down again, it was going up. It was not because of the ArabIsraeli conflict or because somebody was playing some games, it was the economics. If the price attempts to come down, Nigeria will cut back the supply so that prices will go high again.

The policy option is first of all to diversify the sources of our oil supply and secondly to seek effective alternatives to imported fossil fuels. We really have to look for effective alternatives. Apart from trying to find oil in our own backyard, we need to find other alternatives. Work started some time ago in the area of biofuels. German fuel stations are now serving biofuels on a small scale and these are supposed to be out commercially by 2010. We have all the conditions in Ghana to grow the plants. Jatropha and palm oil can help us develop some of these things. Biofuels are real and through fuel cells we can develop hydrogen to generate power and a whole lot of other things. Studies are

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going on in the College of Engineering, KNUST on Jatropha oil but here again regulations must be put in place to promote these things.

Traditional fuels/fire wood 60% of energy consumed in this country is from fire wood, petroleum 30%, and 10% electricity. Wood fuels are used in the households for cooking so nobody really pays attention to that. SNEP shows that for the next 20 to 30 years wood fuels will still be the major source of fuel in this country because if we decide not to use wood fuels, there are not many alternatives available anyway. How are we going to use gas to cook when the price is so high? Some people use wood fuel because it is cheap and always available and so we have no option except to focus on wood as a resource that God has given us and find ways to use wood in a very modern way. Wood wholly and also in the form of charcoal is used in so many places: chop bars, bakeries, university canteens, secondary school canteens, etc. Wood fuels are very important and as part of the Strategic National Energy Plan, a very specific plan was devoted to it. We may not like it but those are the facts.

What are the challenges? Let us come back to the College of Engineering and the Centre for Energy Research and Development. The biggest challenge that we face in Ghana is policy implementation. How do we implement the policies? We talk and write so much but do not act. The biggest challenge for us in the College is to show by demonstration on this campus how these things can be done as a first option. Most people want to see things done because they are tired of reading. We have heard enough and our biggest challenge in the energy sector is to demonstrate. We can do this with private enterprises who want to do it on a commercial basis. In that wise we can do it in the form of consultancy in partnership with the private sector who would want to implement them. Implementation does not come from the government: governments make policies and companies implement them. We need to work with the people who are ready to implement these policies because that is what engineering is all about: to design and implement and make life easier for people. You might ask me where the money is going to come from and so before I end, let me quote what President Kennedy once said: Dont ask what your country can do for you but what you can do for your country.

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Addendum: Discussion Arising out of Lecture Can photovoltaic be made mobile? How possible could they be connected to lecturers bungalows and lecture theatres in the universities with a costspreading mechanism? Photovoltaics come in modules that are mobile and can be carried anywhere. They are usually connected in various modules to have a complete unit and this could easily be moved. It is worth trying the connection in lecture theatres and bungalows as this will prune down the electricity bills. Because of investment cost into high capacity photovoltaics, the university could try this with the use of lighting and communication electronics but not with very high consuming appliances like freezers, at least not at the moment. The sun gives its light for free but tapping the light into solar energy is actually not as cheap as people may conceive it. It is more expensive than hydropower and thermal energy, especially during the first few years of installation. It may not therefore be the brightest solution to Ghanas energy crisis. It has been emphasized that solar power generation is a short term measure to solving some of our essential rural power needs. We may have to blend the different sources of energy at this time based on location and available resources. A single source of power may not bring out the solution we want. The biggest problem with solar power generation is the storage of power. The batteries for storing the power are quite expensive and replacing them frequently might be a problem for the average Ghanaian. Ghanaians seem to have problems with managing our municipal waste and there is a technology for converting waste into energy plasma gasification. It should do us some good to try to explore some of these technologies and find out how feasible they could be. Government policy frameworks must however aid the exploration of some of these sources. Currently the KMA and a Canadian company have signed an agreement to go into electrical power generation from municipal waste. The only principal hindrance is the issue of tariff which has always been a problem in Ghana. This issue of tariffs must be dispassionately addressed if we are to get private investors into the renewable energy industry. Energy conservation is very important to us as Ghanaians and our young economy. Unfortunately, government agencies are not leading the way in energy conservation: they may even be the worst. For example, the principal users of airconditioners in Ghana the government ministries do not see the energy bills at the end of the month and so most of them do not see the need for conservation. If

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people were made to pay for some of these bills, they may be forced to conserve energy in order to reduce their bills. One of the options for electricity expansion is to look at nuclear energy. We would be better off however if we tackled the nuclear energy plans on a regional level. This is because we have to invest in a larger nuclear power plant if we want a cost effective plant. Ghana alone may not be able to handle this and may probably approach the ECOWAS to see how possible it could be implemented on the regional level. The road to nuclear energy is quite far and we need to put some plans in place today to realize the dream in the future. Electricity is cheaper for industries than residential areas in the industrialised world. This is to help the industries create more employment opportunities and it is hoped that people will then get money and afford their residential bills. If there are no jobs in the system, then no matter how cheap tariffs may be perceived to be, some people can still not afford it anyway. VALCO is now principally owned by Ghana with the government of Ghana having 90% shares and so it may not be wrong to have VALCO pay cheaper tariffs. It should be better to have cheaper tariff for the industries and create more jobs in Ghana with better salaries so that we may be well off to pay our residential bills. However it must be said that one of the biggest issues at stake in Ghanas energy sector and in all other programmes in Ghana is the problem of implementation. The government of Ghana will always have very beautiful plans on paper, but these have always remained on paper. Implementing them has been a real big task. If people have great ideas and plans for energy development in Ghana, they should send this to the Centre for Energy Research and Development and the centre will take it up with the right authorities.

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6. Private Sector Participation

Ebow Essandoh and Selom Akaba

We are talking here about the private sector and the energy business in a country where currently we have an energy crisis. When we look around us in the world, we see the developed countries such as England, America, Germany, etc. scouting the world and looking for energy sources for the future. These countries are looking forward to business opportunities with countries who will supply them with gas and other sources for generating their energy needs. We have not taken precautions like some of these developed countries and now we are faced with this energy crisis situation in our country. The question we need to ask ourselves is how do we attack it?

The energy problem that the world is facing now has something to do with reliability at source and then with the environment. If you go deep into obtaining all the energy, you would want to integrate the environment and so environmental issues come into play. Then there are the political issues surrounding energy as people go to war and try to fight over oil resources for energy generation. One would say therefore that politics also play a big role in energy generation but the biggest issue at stake is capital to develop the energy sources in advance. The developed countries do have the capital, and this capital plays a significant role in their efforts to obtain energy. Mankinds energy involves political, environmental and economic considerations but the solutions will necessarily be based on technology.

As technologists, we can think of so many sources of energy around us. we can talk of the stars, the moon, the wind, the ocean, the plains, the mountains, etc. and the things we can dig and pump from beneath the earths surface like fusion power, direct collection of solar power, tidal power as extension of hydroelectricity, windmill generators and somehow the currents or temperature gradients of the ocean. I am mentioning so many sources here and we have to look to these sources and choose the best for the future. The common sources we hear about in our everyday lives are coal, oil, gas and uranium. We have a wealth of options and opportunities for solving the energy crisis and in fact with too many choices, it is becoming a problem now to locate the best source for the

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future in terms of reliability and sustainability. We must seek long term answers for future generations: but without some short term answers there wont be much for the future to worry about.

Now instead of the energy sources let us look at the problem from a different point of view. Let us inspect the way we use energy in Ghana and the best way to meet our requirements. Most of our industries are looking for gas oil to use in their heating processes for manufacturing. There are commercial needs also for heating and arc-electric welding purposes; residential needs for cooking, heating and cooling; transportation needs which require oil and gas. Since we do not have oil or gas in Ghana, almost all the energy for the top three choices industrial, commercial, and residential are electricity based. We shall therefore concentrate our discussion on mostly electricity. We are going to address the opportunities that energy present to us and the challenges that we get in terms of producing energy. Energy insufficiency is general but our discussion will address power generation issues as seen from GECADs point of view and look at mainly the opportunities and challenges.

I will like to present some statistics on our energy situation from the year 2000. The total generation of power for Ghana in the year 2000 was 1748MW. The population of Ghana was then 20 million and the generation per person was therefore 87W which is equivalent to 1 bulb. In 1965, the total generation capacity was 1198MW when Ghanas population was 8 million and that gave the generation per person as 150W. To industrialise, we would be needing about 5001000W per person but not a single wattage has been added to the grid since 2000. The demand deficit is quite high as demand for power is growing at 5-6 percent annually. In addition to this, there are some areas that have not been served with electricity but which can propel growth if they had electricity. This energy deficit situation clearly offers new areas for Ghanaian companies to invest as available estimates present the opportunity for us to add 100MW every year for the next 10 years.

Challenges The resources that are needed to respond to this crisis situation are capital, manpower, Access to technology and government policy initiatives. GECADs objective is to become an engineering, procurement and constriction expert and we plan to do this by Raising capital locally in the equity market.

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purchasing the know-how, i.e. obtain the technology by partnering with others building local capacity seeking government support for the indigenization process Money spent on thermal plant projects from 1995-1999 has been coming from loans and the usage had been as follows. For every $100 coming to Ghana in the form of a loan, $80 was spent on importing equipment/parts, $15 on expatriate labour, $3 on logistics obtained locally for expatriates and $2 on local labour. The goal of GECAD is to target $20 to remain local. GECAD has a lot of projects in place which can resolve some of the electrical power generation problems in Ghana and this we shall now discuss. GECAD as a business body is the authorised sales representative and distributor for General Electric International Incorporated. The agreement with General Electric covers sales of parts, service provision, repairs and turbine-generator uprates. GECADs main business is in power generation and we supply parts and services for installations, operations and maintenance on gas turbines. Some of the projects we undertook recently included - Supply of parts & services for the TTPS - Hot gas path inspection on gas turbine at the TTPS - Compressor rotor swap on frame 9E gas turbine - Gas conversion and - Gas turbine uprates

Currently the Takoradi Thermal Power Station has Four (4) GE Frame 9E gas turbines installed and 2 of these units are in combined cycle operation, using a Heat Recovery Steam Generator (HRSG). The other two units are in simple cycle operation. GECAD also deals with gas conversion issues and current activities include - Interconnecting piping from WAGPCO R&M (Regulating & Metering Station) - Interconnecting wiring from Off Base and On Base equipment to DCS (Distributors Control System) and Mark V - Installation of Off Base and On Base Equipment

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A typical WAGPCO R&M station currently under construction is shown in Figure 6.1. A schematic diagram showing the West African Gas Pipeline is shown in Figure 6.2 and properties of the gas are presented in Table 6.1.

Figure 6.1: Typical R&M Station Set Up

Figure 6.2: The West Africa Gas Pipeline

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The gas fuel system is designed to deliver gas fuel to the turbine combustion Chamber at the proper pressure and flow rate to meet all of the starting and loading requirements of the gas turbine operation.

Table 6.1: Properties of Gas from the WAGP Property Unit Density Kg/Nm3

Value 0.824 approximately2

Gas conditions at inlet terminal point Peak fuel gas capacity Operating pressure Operating temperature Design pressure Design Temperature Nm3/h bar (g) C bar (g) C 84,000 35-45 20-30 47 0-50

Gas Conditions after pressure regulating Peak fuel gas capacity Operating pressure Operating temperature Design pressure Design Temperature Gas Conditions for each Gas Turbine Peak fuel gas capacity Operating pressure Operating temperature Design pressure Design Temperature
2

Nm3/h bar (g) C bar (g) C

84,000 24.5 25.4 38 - 45 47 0-50

Nm3/h bar (g) C bar (g) C

42,000 24.5 24.4 38 - 45 40 0-50

Natural gas, noon-aggressive, with gas composition and H2S content as per tender specification

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Prospects for the private sector There are prospects for the private sector covering various sections of energy provision in Ghana. Some of the prospects include: - The need for new power plants - Local natural gas distribution - Alternate and renewable sources of energy - Solar, wind turbines and bio fuels exploration

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7. Tariffs and the Poor

Ishmael Edjekumhene

I will first of all like to show how tariffs have impact on poor peoples access to electricity and then because of the focus of the seminar series I would go on to look at how government policies whether directly or indirectly, are affecting the ability of the utilities to deliver reliable energy services. I will start briefly by looking at some basic principles. We need to understand that energy, just like any other product must be produced and sold. Every good or service that is sold has a price and the price of electricity is usually called tariff. Like every good and service, the price should reflect or cover the full cost of production and supply, otherwise if any deficits are incurred the service provider will ultimately be out of business. Failure to correct deficits will inevitably lead to the collapse of businesses. These principles apply to the production and supply of electricity.

Relationship between tariffs and the poor Access to electricity is a function of availability and affordability, which means that if we make electricity available and people cannot afford it, we cannot confidently say that the people have access. The two functions are interlinked and interrelated. You need to price electricity in such a way that whoever is providing the electricity will recoup his investment and also be mindful of the fact that there is a segment of the population who by virtue of their income levels will not be able to pay if services were provided on a cost reflective basis. What I mean here is that if you are pricing an energy service and you dont take into consideration income differentials, you might miss the point and use only economic principles to price energy making it unaffordable to the poor. For poor households, subsidies are inevitable. Subsidy is a universal instrument that governments everywhere have been using and are still using to ensure that poor people have some reasonable and limited access to modern energy service. But there is a situation here; in trying to introduce the subsidy scheme, we have to be careful to ensure that it is well targeted and cost effective; subsidies shouldnt distort the market but it should help foster the market for energy services, otherwise you will end up distorting the market and subsidizing for people who should be able to pay for the

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energy anyway. This creates a problem because if you take huge sums of money to support or to subsidize the use of energy services for people who are well off, then you are not allocating resources well. Pricing Electricity in Ghana I will like to show how electricity has been priced in Ghana and I am sure most of us are aware because we hear the Public Utility Regulatory Commission (PURC) announcing tariffs. The PURC are in charge of setting and approving tariffs and in doing so, they need to strike a very delicate balance because they represent the interest of different groups. They are supposed to safeguard the interest of consumers and providers and must approve enough tariffs that will attract private investors into the sector. When you set up a body like the PURC and tax it with several roles, at the end of the day in trying to satisfy one group they will be affecting the ability of the other to deliver in the sector. The question is: has the PURC been able to maintain this all-important balance? They have to strike that balance because it is delicate. Meanwhile the issue of tariffs is a political issue and governments tend not to allow an independent regulatory body to make them unpopular through tariff setting. The PURC in setting tariffs categorises users of electricity into: - Residential usage in our homes - Non-Residential usage in commercial application - Special Load Tariff (SLT) SLT Low Voltage SLT Medium Voltage SLT High Voltage Each of these categories has their different tariffs set by the PURC. How are we doing in this country in terms of residential tariffs? I am focusing more on residential tariffs because we are looking at tariffs and the poor and most of the times, the poor use power at home. Figure 7.1 shows that tariffs have been increasing in Ghana over the years.

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1000 944 900

800 775 700 623 697

600 Cedi/kWh

500 462 400 390 359 300 264 200 192 196 194 313 285 412

494 450

100

97 55 42

97 95

0 1 2 3 4 Tariff Review BST DSC EUT 5 6 7

Figure 7.1: Trends in Residential Tariff: 1998-2006 (cedis/kWh) From 1998 that the PURC started announcing tariffs, End User Tariffs (EUT) the sum total for the Bulk Supply Tariff (BST) that VRA gets from ECG and the Distribution Service Charge (DSC) that ECG charges its customers has been increasing steadily from 97/kWh in 1998 to the most recent level of 944/kWh but which we are not paying fully because of government subsidies. A similar picture can be seen when you look at tariffs for commercial users, shown in Figure 7.2. Their tariff in cedi terms is also showing an upward trend.
1600 1400 1200 1000 800 600 400 200 0 Feb-98 Sep-98 May-01 Aug-06 Years 51-300 300-600 > 600 Mar-06 Oct-06 Nov-06

Cedi/kWh

Figure 7.2: Trends in Commercial Tariff: 1998-2006 (cedis/kWh)

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A look at the dollar denominated tariffs however show that its not been a linear curve, there was a dip in 2000 even though in nominal terms tariffs were increased. The value of the tariffs was eroded by currency fluctuation to the extent that by 2000 the real value of the tariff that we were paying in this country which was 8.2 cents/kWh in 1998 had reduced to 2.5 cents/kWh. Thereafter weve had a very stable currency as a result of which we can see that in dollar terms our average end user tariff is now increasing. The current level that was approved by the PURC in August 2006 is 10.98 cents/kWh, as shown in Figure 7.3.

12 10.98 10 cents/kWh 8 6 4 2 0 1998 2000 2001 Year 2002 2003 2006 2.5 8.2 5.2 7.8 8.2

Figure 7.3: Trends in End-User Tariff (cents/kWh): 1998-2006 The question now is whether electricity pricing in Ghana has been propoor and if it has, what has been its effect on the revenue of the utilities and subsidy burden of the pro-poor policies. The lifeline tariff is the only direct mechanism that the PURC put in place to help low-income users of electricity if its available. When it was set in September 1998, the lifeline tariffs for the first 50kWh of electricity was 4,000 and then increased in May 2001 to 9,000, then increased further in August 2002 to 14,000. This is illustrated in Figure 7.4.

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25000 Tariff Level (cedis) 20000 15000 10000 5000 0 Sept. 98 May, 01 Aug. 02 Mar. 03 Oct. 03 Tariff Review Period Lifeline Tariff Lifeline Tariff minus Subsidy

Figure 7.4: Lifeline tariffs from 1998 to 2003

In 2002 when the tariff increases were announced, the government decided to absorb 5,000 out of the then lifeline tariff of 14,000 and so in effect users who were on the lifeline were paying 9,000 instead of the 14,000, as shown in Figure 7.4 (August, 2002). When the lifeline was further increased to 18,000, the end users were only made to pay 13,000 as the government still absorbed 5,000. Tariffs were further increased in October 2003 but we realise we do have a flat curve because the government just absorbed the increase and the lifeliners did not pay any increase. This is the main mechanism which the government through the PURC is using to protect the poor but we also have a lot of cross subsidisation going on within various tariff bands. Table 7.1 shows that tariff bands from 0 through to 300kWh/month are in most cases paying below the average end user tariff. For example the tariff band from 151-300kWh/month is supposed to be costing 944 per unit but users are currently paying only 700 per unit. The higher consuming customers are subsidizing customers who are consuming fewer units and the argument is that those who are consuming fewer units are supposed to be poorer. The assumption is that if you consume electricity of more than 300 units per month, then you are not considered a poor man and must therefore pay more.

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The question at this stage is: is the lifeline tariff really benefiting the poor and what kind of burden is it imposing on the utilities? We conducted a study for the World Bank on the Poverty and Social Impact Assessment of Electricity Tariffs, looking basically at the impact of tariff increases on the poor. One of the things that we set out to investigate was whether the targeting of the lifeline was correct and whether those who are actually on the lifeline were poor people. At the time we did this study (2003/2004) there was a problem because there was no income data in the utility data.

Table 7.1: Cross-subsidization Within Tariff Bands

Feb 98 Sep 98 May 01 Aug 02 Mar 03 Oct 03 Nov 06 Residential KWh/Month 0 50 (Flat Rate) End-User Tariff 0 50 51-150 151-300 301-600 > 600 Commercial End-User Tariff 51-300 kWh/month 300-600 kWh/month > 600 kWh/month Service charge 2000 97 87 50 50 75 180 97 80 80 180 3000 4000 192 174 120 150 220 350 192 220 220 320 5000 7800 390 339 242 304 570 570 9000 623 391 400 400 960 960 13000 13000 N/A 697 775 944 565 565 700 550 610 700 550 610 700 960 1065 1200 960 1065 5000

390 623 697 775 944 436 750 800 888 1029 645 980 980 1088 1250 645 980 980 1088 1450 10000 20000 20000 22198

What we did therefore was to look for proxies and we used the GLSS 4 which had set an upper poverty line of 900,000 and lower poverty line of 700,000. We took hold of the raw GLSS data and run analysis to see the percentage of those who were below the poverty line and were using electricity. What we found out was that not all the lifeliners are poor going by the definition of those having a net income of up to 900,000 per annum as being poor. If we say poverty in Ghana is 42%, it means that 42% of Ghanaians have only 900,000 (or less) that they live

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on the whole year and the majority of electricity consumers were not poor by that definition. We found that 24% of total residential customers in the ECG database were lifeliners but we looked at those 24% and there were only 12% of them who fell below the upper poverty line. The conclusion we drew at the time was that there are some leakages in the system, in the sense that about 103,000 non-poor customers were receiving lifeline tariffs. There was a problem because if the intention of the lifeline was to ensure that only poor people benefit, then it is quite unusual to have as many as 103,000 non-poor people as customers actually enjoying the lifeline. We looked at some other things as well and realised for example that a lot of people who were supposed to be lifeliners were using mobile phones and spending lots of money on credits for their phones.

What is the burden that the lifeline was putting on the utilities? We found that the impact wasnt that significant. Even though there were 25% of ECG customers considered to be lifeliners, they were consuming less than 3% of the ECG power sales. In terms of nominal cost of the lifeline, we found out that it was less than 1% of ECG revenue. It could be small in percentage terms but the money itself was about 1.5 million dollars in 2004. We said then that the impact was not significant because if they are going to change the lifeline, how much is it going to cost for them to administer another mechanism which will seek to target the poor? In this wise, we found the financial burden on the utilities to be quite insignificant. We have a situation where in an attempt to ensure that we dont overcharge people from the PURCs point of view, we have most often kept tariffs low in this country and there are times when scheduled reviews of tariffs have not been allowed to pass. There are a lot of political undertones which we dont know.

What are the impacts of the tariffs on the utilities? The utilities are of the view that tariffs approved by the PURC are mostly inadequate. Figure 7.5 shows VRAs average cost of producing a unit of electricity and the bulk supply tariffs that the VRA received from the PURC between 1998 and 2003. VRAs analysis which the Energy Commission confirms is that with the exception of 1998 when we had tariffs higher than their cost of production, theyve consistently received lower than expected tariffs. Anytime they make

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B ulk S upp ly C ost V rs Tariff

6.0 5.0 4.0 3.0 2.0 1.0 0.0 1998

C o st T a riff (B S T )

Cents/kWh

1999

2000

2001

2002

2003

Y e ar

Figure 7.5: Bulk supply cost vs tariff

their proposals to PURC, there is a disparity between how much they ask for and how much is approved. The PURC in 2002 did agree that tariffs were below economic efficient levels but disagreed with the utilities regarding the difference. The PURC did concede that tariffs were low but they wanted to minimize the impact of a huge increase in tariffs. To this cause they devised a Transitional Plan in 2002 to phase-in economic tariffs over a three year timeframe. The PURC claimed that the Transitional Plan will create a financing gap that needed to be plugged by direct government subsidy. PURC did say that most of the tariffs that they were giving to the utilities were a fraction of what they believed to be the most effective economic tariffs. This is presented in Table 7.2. The lifeliners were paying about 43% of PURCs assessment while the other residential customers were paying about 50%. But a look at the special load tariff consumers, show that they were paying close to the economic levels at the time. At the extreme end of the table are the tariff proposals from the utility to the PURC. There were some significant differences between what the PURC thought to be the most economic tariff level and those proposed by the utilities.

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There hadnt been any major reviews until 2005 which led to the recent announcement of new tariffs. The PURC did not agree to increase tariffs and kept telling everybody they were not going to do so because the utilities had to improve on their performance. The PURC therefore tied the approval of tariff increases to improvement in service quality and impressed upon the government to provide the needed capital to recapitalise the utilities. ECG simply doesnt have the money to do any improvements and the VRA is even better than the ECG as they stand now. We may say that the ECG is not doing well but we also know that their systems are obsolete and that their current performance should even be applauded based on the equipments they have.

Table 7.2: Divergent Stakeholder Assessment of Economic Tariffs

CUSTOMER CLASSIFICATION CURRENT TARIFF (AS AT JUNE, 2002) (CENTS/KWh) EFFICIENT PURC TARIFF (CENTS/KWh) CURRENT TARIFF AS % OF ECONOMIC TARIFF AS PROPOSED BY UTILITY (CENTS/KWh)

RESIDENTIAL: Lifeline Others NON-RESIDENTIAL: INDUSTRIAL/ COMMERCIAL: Low Voltage Medium Voltage High Voltage OVERALL AVERAGE TARIFF (CENTS/KWh)

1.95 3.99 7.21

4.58 8.01 10.80

43% 50% 67%

6.80 10.05 14.56

6.85 5.98 4.54

10.60 6.33 5.11

64% 94% 89%

11.23 10.09 8.94

5.00

8.60

58%

10.60

Source: PURC Transitional Plan, 2002

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The consequences of these inadequate tariffs is that losses of the utilities were consistently increasing and in 2002, these losses were in the region of US$204 million, equivalent to about 11% of total government spending and 4% of GDP in 2002. When we were carrying out the study, the losses were projected to rise to 17% of government spending and 6% of GDP in 2003. We need to clarify however that all the losses were not from poor tariffs alone as the system losses of 26% include both technical and non-technical losses. The result is years of underinvestment in the power sector, obsolete equipment and unreliable power supply, especially within the distribution network. The engineers are trying their best to work with obsolete equipment and it is no wonder we experience unreliable power supply even when there is no load shedding. Sometimes when an underground cable goes down in Kumasi, ECG would have to bring a van from Accra before they can detect where the fault is. That accounts for the poor distribution network since there is only one van for this purpose which is stationed in Accra. Recently there was this news that may have made the utilities happy because they were granted tariff increases. The average End-User Tariff has been increased from 9.8 to 10.98cent/kWh which appears cost-reflective although it still fell short of what the utilities expected ECG got only 43% of recommended Distribution Service Charge (DSC). Could this have helped solve some of the financial problems of the utilities? I would say yes, if government had allowed them to pass on cost to the consumers. Discussions we have had with ECG indicate that subsidies are in the region of 40 billion every month which is equivalent to about $4.5 million. A subsidy of about 54 million dollars per year is the kind of responsibility the government has taken upon itself. This subsidy is not for lifeliners alone as every user of electricity gets that subsidy. The PURC Chairman is on record to have said that government has provided 204 billion in subsidies to cover the cost of absorption between May and August 2006; this could include the subsidy for GWCL as well. The ECG said it is yet to receive any payment under the new subsidy arrangement but they expect something soon.

This raises the question as to whether the current subsidy would be sustainable. Government has increased the subsidy burden from average monthly estimates of US$1.5million which it was supposed to pay on the lifeline to about US$4.5m. The policy of paying US$1.5million per month was introduced in August 2002.

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At the end of 2003 the government owed ECG about US$123million on subsidies alone. - How would they then be able to finance this huge debt? - Would the government be able to afford the amount and if yes for how long? - Would the government be able to pay this subsidy that should have been borne by consumers (including the rich) and still find money for the ECG to recapitalize? This subsidy is independent of the recapitalisation that the government has committed itself to paying.

Should consumers be rejoicing yet because we are not paying the increases in the tariff? It looks like we are deferring something that should be inevitable. If that is the case, would there ever be an end to the power crisis? I dont think the power crisis is just about the dams water level that is going down but there is some serious underinvestment in the sector. Some money would have to be found for this venture. If God were to be so gracious and we should have a lot of water in the Akosombo dam, would the power outages cease? I would like to raise a few more public policy issues.

Is the poor protected under the current tariff arrangement now that the lifeline has been scrapped altogether? Currently the lifeline has been taken out and there is no lifeline tariff anymore. Everybody pays the same amount as per consumption. The lifeliners who are supposed to be poor are paying more than the consumers in the next tariff bracket of 50-200. The PURC took off the lifeline but there is still some cross subsidisation.

Should the government continue to subsidize electricity for only 50% of the population while kerosene price keeps soaring? Kerosene prices are going up and anytime the government tries to bring it down there is a problem because of adulteration and other issues. In terms of equity, are we sure we are fair to those who dont enjoy electricity? Thats a question for the government to figure out.

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Are we prepared to pay more for reliable services? Those who are running generators in their homes would have become aware of how expensive it is to generate power. As to whether we are prepared to pay more or not, I dont have the answers and we need to find that out. Addendum: Discussion Arising out of Lecture The equipments of the ECG are not very effective and they must obtain money to be able to put these equipments in good structures. Consumers must be made to pay for what they consume as government has consistently failed to pay the subsidies it has promised. Now that the lifeline is been scrapped however, the authorities will have to observe what effect this will have on both the utility and the consumers and then find the way forward. The PURC is supposed to be an independent body but they are funded by the government which creates doubts about their independence. Proposals to extract funds from the utilities for the PURC to be self funded have not been approved by parliament. Currently government is trying to ensure full cost recovery whilst they protect the poor. This is however a difficult task. The best policy may be for government to target subsidies very well and isolate those who need to be subsidized so that direct subsidy could be provided them. A comparative study of tariffs in the sub-region Benin, Togo, Burkina Faso, Cote dIvoire and Ghana came out with the interesting fact that tariffs in Ghana were the lowest. A special comparison was made between Ghana and Cote dIvoire because they had a similar generation mix with thermal and hydro-power and both countries had about the same assets. Social tariff mechanisms in all the countries were also considered and Ghana had the most generous, in terms of the lifeline mechanism. A look at the GDPs of these countries show that Ghanaians are not poorer than the other countries in consideration. Whenever tariffs are increased government comes out to say that even though it is aware that the poor are using kerosene, it is not able to reduce the prices of kerosene as some people are known to be adulterating petrol with kerosene. Some others are also in the habit of smuggling kerosene out of the country when it becomes cheaper in Ghana. But the government must find a way of solving the kerosene problem instead of making the poor suffer. There is no dispute as to whether the poor should be subsidised or not but the question is how it should be done so that the real (poor) people benefit. The more mechanisms are introduced, the more complex the administrative issues become.

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8. Energy and Gender

Rose Mensah-Kutin

Introduction We are going to discuss energy and gender issues, so let us start with a few things on women and some of the myths that surround gender relations especially in our part of the world. We are aware that women and men are born through the same biological process. When you enter the labour ward of a hospital and there are two babies both covered with sheets, you cannot determine whether the babies are males or females just by seeing them wrapped in sheets. You will have to remove the sheet and observe the sexual organs before you can tell the difference. There is no way you can make a distinction between the two unless the sheets are taken off them.

Clearly then, the differences between women and men are ascribed by society. When we look at the structure of the household for example, girls and women are the ones who perform many of the chores in the house such as the provision of water, energy, and food. All these chores are usually classified as womens work even though it is obvious that anyone, that is either women or men, can perform them. Such activities are not valued and are unpaid. They are also supposed to be performed by women as part of their social and traditional responsibilities while similar expectations are not expected of men and boys.

In the area of access to resources as well, women experience different forms of inequalities with their male counterparts. We live in a society where women do not have direct access to various facilities and assets. Women usually have to go through male relations or husbands in order to gain access to critical resources such as land, capital and technology. Certain activities are said to belong to men and women are not traditionally expected to participate in those fields even though women have shown over the years to be as capable at these things as their male counterparts. For example, if you come to the Kwame Nkrumah University of Science and Technology (KNUST), you are likely to find out that even though women are studying engineering, the majority of engineering students are boys.

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Boys are supposedly good in the engineering fields and women are believed to be more caring and therefore good in the service provision careers such as catering, teaching children, and nursing the sick and the elderly. This is basically the result of socialisation, socio-cultural conditioning and more fundamentally the practice of patriarchal ideology in all societies. Women are excluded from many high profile activities including participation in public decision making even though they actively participate in household decision-making. In being excluded from such arenas, women often lose the chance for voicing out their concerns on vital issues of well-being and national development.

This situation is obvious in all sectors of the economy including the energy sector. There is a growing consensus that energy is critical for development and this is an issue that cannot be over emphasised. At the same time, it has become clear that energy development, access and use are critical for the well-being of both women and men. Poor people are especially affected in times of energy crisis as they usually cannot afford expensive alternative sources such as the standby generators that we see in our communities being used by relatively high income earners during this energy crisis period. When this happens, women have to bear the brunt of a disproportionate share of the burdens of energy provision.

There have been attempts to address the high incidence of poverty among African populations. Currently we have the Growth and Poverty Reduction Strategy Paper (GPRSP) which is the main economic policy document for addressing poverty in Ghana. In spite of its many flaws including the charge that it is donor driven and rooted in the neo-liberal economic framework, it is expected that the document provides direction for addressing the needs of the 40% of Ghanaians who are currently referred to as constituting the core poor of the population in Ghana. Women form the majority of this category and since energy, is a key component of the experience of poverty, it is important that we address the linkages between gender and energy. We must draw out the relationships between social inequalities and the ability to access cleaner and affordable fuels and energy technologies.

Critical Issues on Energy Energy usage is said to have moved faster than population growth in many parts of the world except in Sub-Saharan Africa where expansion of services has not moved at the same pace as population growth. This is in spite of the fact that the

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region has some good stock of energy resources with Nigeria being one of the highest producers of crude oil in the world. Hydropower potential in Sub-Saharan Africa is at 13% of the worlds total; oil, gas and coal are at 9.4%, 7.9% and 5.5% respectively of the worlds total which compares with 8.5%, 4% and 2.2% respectively for South and Central America (2005 figures).

Energy is critical to the development of any establishment or country. The majority of people in the developed world do have access to energy services but in developing countries, a greater percentage of the people and especially poor women and men do not have access to reliable and affordable energy services (i.e. electricity and gas). The Strategic National Energy Plan (SNEP) report of 2003 did state that Ghana has its fair share of energy resources including fossil fuels and renewables which can be harnessed to support economic and social development. This means that the experience of energy poverty is unacceptable within the Ghanaian context.

89% of the population in Sub-Saharan Africa relies on traditional biomass fuels and in Ghana, wood fuels contribute over 70% of energy supply even though this is not captured in the national budget. Many households in the country spend about a third of their budgets on fuel costs. The price paid for fuel which on many occasions is ineffective and of poor quality is too high and these have negative implications for women and girls who are mainly responsible for the provision of this kind of energy used in most homes in Sub-Saharan Africa. Modern energy such as electricity, natural gas, clean cooking fuels and mechanical power are critical for agricultural productivity enhancement, to improve the health of women and girls and lower transaction and transportation costs. All the petroleum we use in Ghana is imported and electricity is mainly hydro-based from the Akosombo and Kpong hydro-dams, with a small percentage coming from the recently built thermal plants. This is similar to many SubSaharan African countries. Solar energy is used a lot for drying of agricultural produce; however the current use of the solar, geothermal and wind energy for power generation are insignificant in terms of meeting the specific energy needs of majority of women and men. This is creating a high reliance on biomass/dung as fuel for cooking and heating; kerosene wick lamps, batteries and candles for lighting. We rely greatly on human power instead of energy based mechanical power for tilling our lands, weeding, crushing, agro-processing, grinding and transport. Lack of sufficient and reliable power affects expansion of enterprises in

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terms of range and intensity of activities, hence the low output from our farms and businesses. This brings us to the term energy poor: those who are both financially poor and additionally lack access to modern forms of energy. These people are found mainly in Sub-Saharan Africa, which make up 13.1% of world population but consume only 5.5% of the worlds total energy.

Gender Issues in Ghana We can see all around us that biological differences between women and men have been extrapolated into social differences. Social practices, relations, institutions and identities make up a gender system which through a sexual division of labour, transform gender differences into inequalities. Thus there are inequalities between women and men in terms of their access to and control over resources, task allocation and participation in decision-making. These have negative consequences for women bringing about: economic decline, rising levels of poverty and aid dependency wars, civil strife, disease and famine high incidence of maternal and infant mortality limited health and social security systems with consequences for the HIV/AIDS pandemic undemocratic cultures and low voice of women non-compliances with relevant international instruments to promote gender equality

Women are overburdened by heavy responsibilities in the face of economic crisis and low social security. There is therefore the need to promote gender equity and for governments to accept and understand the inequalities that gender systems generate between women and men and to promote policies for addressing them. There are wide ranging implications for us in Ghana as far as discussions of critical policies to mobilise resources such as energy to address poverty are concerned. Womens concerns and rights have to be factored into policies of energy resource mobilisation and utilisation. They must be given space to participate in energy decisions and in the allocation and distribution of energy resources. In fact opportunities should be created for women to increase their economic rights and well-being.

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Energy and Gender Issues Currently, efforts at enhancing increased access to modern energy services are quite slow. Factors which bring this about include: low income levels of those who lack access lack of financial resources for service providers to build the needed infrastructure and reduce barriers to access weak institutional, financial and legal structures lack of a long term policy vision lack of political will and commitment to upscale services a fundamental problem of conceiving and implementing energy policies and programmes from a gender blind perspective. This is in spite of the many international agreements and conventions that government (including African governments) have signed to promote sustainable development, gender equality and environmental protection

The 1992 UN Conference on Environment and Development (UNCED) created global consensus on sustainable development and also underlined the importance of addressing social inequalities and environmental sustainability to promote sustainable development. There have since been many international conferences on women which culminated in the production of the Platform for Action (PfA) a blueprint for promoting actions to enhance the well-being of women after the 1995 Beijing conference. Subsequent meetings after 1995 have made it clear that there will be no re-negotiation of the Beijing proclamations, but that governments should live up to their commitments to promoting gender equality as outlined in the PfA.

The Millennium Development Goals (MDGs) adopted by the UN General Assembly include a target to reduce by half the number of people living in poverty by 2015. The MDGs did not specifically target energy supply but access to affordable energy services is however an unavoidable requirement for achieving social and economic development and reducing poverty, one of the key issues in the MDGs. There is a high incidence of poverty, particularly in Africa and women are known to suffer most from the worst forms of poverty. The 2004 review of poverty projections shows that sub-Saharan Africa has witnessed a growth rather than a reduction of poverty from 41% to 46% of the population (World Bank). Ghanas incidence of poverty has worsened since the implementation of the Poverty Reduction Strategy Papers (PRSPs) in areas such

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as infant and maternal mortality: from 57 in 1998 to 64 deaths per 1,000 live births in 2003; child mortality also rose from 108 to 111 per 100,000 live births in the same period, while UNDP figures for maternal mortality for the year 2000 shows 540 per 100,000 live births. HIV/AIDS is also another issue that brings gender inequalities to the fore. The Ministry of Health in Ghana indicates that more than 90% of all HIV/AIDS cases are among women and men of ages 15 and 49, and two thirds of those infected with the virus are female. Thus to achieve targets set to address poverty, the particular energy concerns of women in Africa and Ghana must be addressed through gender sensitive policies and programmes. Such policies must question the underlying assumptions and biases of macroeconomic frameworks.

Energy planning is usually undertaken from a top-down perspective and seeks to increase supplies of fuels or electricity for industrial and urban uses, with a generally low interest in womens specific energy needs and concerns. Energy policies have been rooted in neo-liberal economic policy frameworks since the 1980s and these frameworks ignore prevailing socio-economic realities, laws, customs and practices in individual countries which prevent or restrict women from actively participating in decision-making. Women also have limited access and control over independent income and ownership of property. Markets, labour and capital are not well developed and existing policies have negative impacts on women. Meanwhile women provide products, labour, and services as part of household and family obligations, reciprocal relationships and mutual support and these are often done as unpaid work and treated as of no value in national accounts.

Public decision-making is largely in the hands of men. The role that women play such as bearing and rearing of children, preparing and growing food for the household, gathering fuel and water is seen as invisible and insignificant in the understanding of economic development. But a lot of labour is required to provide the energy needed to meet the above responsibilities. Women therefore find themselves bearing a disproportionate share of the physical, emotional and spiritual strain to provide such energy resources. Many Ghanaians live in rural and peri-urban communities where current levels of modern energy services and resources do not meet basic requirements. Unfortunately, current policy options of rationing of modern fuels have made it necessary for urban dwellers to suffer as well. There is therefore the need for increased access to electricity and cleaner cooking fuels in both rural and urban communities especially in terms of meeting

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the needs of the poor. This creates the need for extensions of grid electricity, decentralised small-scale energy systems powered by diesel fuel or by renewable technologies using solar, mini-hydro, and wind or biomass resources into the rural communities. The effective distribution of these energy sources and the use of efficient technologies are also critical for minimising total fuel and electricity requirements in such communities. Liquefied petroleum gas (LPG) and other cleaner fuels are also needed to provide affordable alternatives to traditional biomass-based cooking and heating fuels. This is problematic however, given the current policy direction and prices and their implications for women.

Energy For Domestic Use Women and girls spend long hours collecting wood, agricultural residues and dung for cooking and heating purposes. A disproportionate amount of time and effort spent gathering such fuels could be used for productive activities such as income generation, agricultural production or education. There are variations in looking at this issue in terms of geographical location, land ownership, time of year, climatic events, and loss of control over local resources. Increased access to improved energy services will benefit women and girls and it is important therefore for energy policies to target women as well as involve them actively as decision-makers on enhanced energy services. The need for water from long distant sources and the fact that women carry products to and from markets mean women and girls have energy needs. There is unreliable access to water in our communities which makes it necessary that women and girls walk long distances to fetch and carry water in plastic containers from wells, rivers, taps and streams. Again such labour and time could be used more productively if there were mechanical power such as windmill, diesel generators or electrical motor for some of these activities. Electric or fuel operated pumps could ensure closer access of water supply than is the case at the moment. It is estimated that women spend on average 134 minutes a day collecting water for their households. This is clearly unproductive especially when there are proven ways of ameliorating such burdens. A shift from using traditional fuels for cooking and water heating will enable women utilise the time currently spent in collecting firewood and other biomass sources and create space for girls to attend school and also reduce pressure on soils and forest resources.

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Large electrification programmes have been implemented in Africa through grid extensions to rural communities in countries like Ghana and Swaziland, but experience has shown that there has been low connection rate among rural households. While we can say that these schemes do have significant impacts on women, they dont have any specific gender considerations.

Health The health of women is also directly related to energy use. A World Health Organisation (WHO) study in 2006 has shown that the impact of indoor air pollution on morbidity and premature deaths of women and children is a main public health issue in Africa, especially among the poorest sections of the population. This is known to cause 1.6 million deaths every year through pneumonia, chronic respiratory diseases and lung cancer. Other diseases include asthma, bronchitis, tuberculosis, cataracts, low birth weight and heart disease. Majority of the victims are women and children as cooking is done in smoky environments with young children and babies being attended to right there in the kitchens. There is therefore the need to provide energy related services for reducing exposure levels to advance the health of women and children because when women have good health they can maximise their capabilities and participate more effectively in political, social and economic activity to enhance their well-being and status.

Transport and Clean Air There is a general lack of reliable, efficient and affordable transportation systems especially in the rural areas of Sub-Saharan Africa. These have resulted in women and girls having to carry heavy loads and walk far distances to markets to sell food and other goods. Rising costs of petroleum products worsens the situation as most subsidies are removed and heavy taxes charged on them as is happening in Ghana at the moment. It is important to note that without considering how women suffer from petroleum price increases, women who produce the bulk of the nations food in rural communities will be forced to reduce their productivity which will adversely affect the countrys food balance. In Ghana, women have to use unreliable public transport services which charge high fares and thus worsening the already vulnerable situation they find themselves in. Income generated through improved methods of fish smoking also suffers with increases in pre-mix fuel prices.

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In urban areas, cars, trucks, buses and other public transport vehicles emit substantial quantities of carbon monoxide, hydrocarbons, nitrogen oxides and fine particulate matter. The use of lead gasoline also adds to the source of lead in urban air with effects on human health. Women own fewer cars than men and tend to use public transport the most. Thus in terms of travel and health costs, women are more likely to suffer than men in this respect. Initiatives such as SUSTRAN-Africa (Sustainable Transport Action Network for Africa) which is being promoted as an environmentally friendly programme is good but since it has no specific considerations for women it is unlikely to have measures specifically seeking to address womens transportation needs.

Cookstoves and LPG LPG has not been prioritised in the majority of African countries except in a few countries such as for example Senegal where it is easily available and affordable for household users. Theres been a gradual increase in the use of LPG in Ghana but the success has been minimal because of the projectised nature of interventions. Meanwhile the expensive nature of LPG means the rural and urban poor have to still depend on charcoal and fuelwood.

Case Studies There have been a few initiatives at promoting gender responsive energy projects. These include: - The Mphaphati Solar Village in Swaziland - Upesi Rural Stoves Project in Kenya - Improved Biofuel and Shea butter extraction Project at Gbimsi in Northern Ghana These projects have generally been gender sensitive in the sense that they have: - Targeted women directly or as critical beneficiaries - Actively involved women in decision-making process at all levels of the project cycle - Support from policy environment - Empowered women as leaders of the projects - Integration of income opportunity - Focus on enhanced access, affordability and cleaner fuel - Opportunities for learning for women - Promoted equality principles between men and women

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Such initiatives show that it is possible to provide affordable and easily accessible energy options that lessen womens burdens and empower them as equal citizens in their communities.

Key Issues and Recommendations In the light of the foregoing, there is the need for regional, national and local institutions on energy to play a critical role in defining clearly the policy options that would democratise energy use among women and men as equal citizens in the society. But the questions energy policy makers need to address include the following|: - Should energy service provision focus on profit and/or for easy and affordable access, improving reliability for current users and expanding services to benefit new users in line with MDGs goals and objectives? - How can areas where women predominate (domestic tasks, informal activities) be factored into energy policy initiatives?

Economic policies like the GPRSP pay little attention to energy and its implications for health, education and other social services (i.e. there is little connection between energy services and addressing poverty and there is little interest in gender issues of such policies). Transformation of gendered relationships is missing in many development processes including energy policies. There is lack of sufficient participation of women in energy sector decision-making and lack of sufficient knowledge and awareness. Thus, there is the need for women to own policy spaces at the national level. There must be political will on the part of government to provide incentives for promoting alternative and modern fuels for poor women and men. There must also be more interest in renewables and energy efficiency measures.

The following recommendations should be considered in energy policy planning process: Gender sensitive energy planning is required to identify energy services of primary importance to women and consider options for providing those services with emphasis on affordability to modern fuels and reduction in reliance on traditional fuels Integrated approach to energy with emphasis on health, education, job creation and agriculture

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Need for awareness creation on gender issues among policy makers at all levels Encourage active participation of women in all decision-making levels Data for energy policy should be disaggregated by sex and other social and economic variables to address issues of specificities of contexts Financial resources should specifically target womens specific energy requirements (e.g. gender budgeting as a means of scaling up access to modern services) Regional and international commitments on energy as well as on gender issues should be complied with Energy development should focus on enhanced accessibility, affordability, reliability especially for poor rural women. Energy is a resource that should enable women and men to participate more effectively in development. In the effort at democratising the governance system in Ghana, it is important that all resources are developed to promote easy accessibility and affordability for all citizens irrespective of their socio-economic background or genders. That is the only way the country can be said to be truly democratic.

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About the Authors and Other Contributors

Selom Akaba is currently the Manager of Engineering Services with GECAD GH Ltd. He has coordinated the supply of parts and services for the Volta River Authoritys Takoradi Thermal Power Station and he is highly knowledgeable in outage planning and integration. He worked closely with General Electric (GE) on the Gas Conversion Project for the Takoradi Thermal Power Station, and he is part of the design and implementation team for the Tema Thermal Power Project. Mr Akaba has in-depth knowledge on gas turbines and associated components and has training from the GE Energy Sales Channels University in product knowledge and compliance training. He holds a BSc degree in Mechanical Engineering from the Kwame Nkrumah University of Science and Technology, Kumasi, Ghana.

Fred Ohene Akuffo is currently Associate Professor, on post retirement contract, in the Department of Mechanical Engineering, Kwame Nkrumah University of Science & Technology, Kumasi, Ghana, where he has worked since 1973. He was educated at Harvard University, where he obtained an AB degree with a major in Applied Physics and Engineering Science, and he also holds MEng and PhD degrees in Mechanical Engineering from the University of Toronto, Canada. He has accumulated over 30 years experience as lecturer, energy researcher, administrator and consultant in Thermo-fluids and Energy Systems Engineering. He is an expert in alternative and renewable energy including education, training, research, technology and policy. He is a senior member of the Ghana Institution of Engineers and Board Member/ Commissioner of the Ghana Energy Commission, with oversight responsibilities for renewable energy.

Imoro Braimah is a Senior Lecturer in the Department of Planning at Kwame Nkrumah University of Science and Technology (KNUST), Ghana and Director of the Postgraduate programme, M.Sc. Development Planning and Management (SPRING). He has taught several courses including Development Theories and Strategies, Population and Development, ICT and Development, Infrastructure Planning, Planning Process etc. His research interests include ICT Policy, Strategic Planning, Policy Studies, Educational Planning, Local Level Governance and Development, Population, and Infrastructure Provision and Management. He holds a BSc in Planning from KNUST, plus an MSc in

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Development Planning and Management and a PhD in Institutional Planning from the University of Kassel in Germany.

Abeeku Brew-Hammond is an Associate Professor in the College of Engineering at Kwame Nkrumah University of Science and Technology (KNUST), Kumasi, Ghana. Until recently he served as Manager of the Global Village Energy Partnership (GVEP) Technical Secretariat based at ITDG/Practical Action, Rugby, England. He previously also served as the Director of KITE, a Ghana-based non-governmental organisation with a regional outlook specializing in energy policy and project development. He has a DPhil in Science and Technology Policy Studies from Sussex University as well as Masters and Bachelors degrees in mechanical engineering from McGill University (Canada) and KNUST, respectively.

Ishmael Edjekumhene Ishmael Edjekumhene is a Senior Projects Manager in KITE, a Ghana-based non-governmental organization with a regional outlook specializing in energy policy and project development. He has undertaken several energy and environment research projects with funding from international organizations such as DfID, the World Bank/ESMAP and the UNDP. Mr. Edjekumhene has several publications to his credit including a recent one titled Energy for Poverty Reduction Action Plan for Ghana: A Roadmap for Targeted Delivery of Modern Energy Services to the Poor which he co-authored with some colleagues. He holds a Masters degree in Economics (Public Policy) from the University of Hull, the UK and Bachelors Degree (First Class Honours) in Land Economy from Kwame Nkrumah University of Science and Technology, Kumasi, Ghana.

Ebow Essandoh, founder and Chairman of the GECAD Group, is a seasoned entrepreneur who has provided effective leadership in the conceptualisation and execution of major energy infrastructure projects in West Africa. Mr. Essandoh played key roles in the implementation of the Akosombo Hydro Power Station Retrofit Project, the Takoradi Thermal Power Station Project, Conversion of the Vridi Plant in Cote dIvoire from heavy oil to natural Gas, and the Tema Thermal Power Project which is currently nearing completion. He is an Electrical Engineer by profession and spent almost 15 years as a Design Engineer and Business Development Director for GE Energy Systems in the US. He holds MS and BS degrees in Electrical Engineering from Cornell University, Ithaca, USA.

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Francis Kemausuor is an independent researcher in sustainable energy based in Kumasi. He holds an MPhil in Engineering for Sustainable Development, a course organised by the Cambridge-MIT Institute in the University of Cambridge as well as a Bachelors degree (First Class) in Agricultural Engineering from Kwame Nkrumah University of Science and Technology (KNUST). The College of Engineering, KNUST is at an advanced stage of the process to appoint Francis as a lecturer in the Department of Agricultural Engineering. Francis publications include Feasibility Study into Jatropha Oil Production in Ghana (forthcoming).

Rudith King is a Senior Research Fellow and Head of the Department of Human Settlement Studies of the Kwame Nkrumah University of Science and Technology (KNUST) in Ghana. She has expertise in Gender Planning, Policy and Development and she has done several research projects on livelihoods particularly for women in the informal economy. Dr Rudith King teaches Organization & Management and Research Methods in the Department of Planning and School of Business, and her areas of research interest include policy issues, monitoring and evaluation, social accountability and energy studies. She holds a BSc in Planning from KNUST, an MSc in Development Planning and Management and a PhD from the University of Sussex, UK.

Rose Mensah-Kutin is the Regional Programme Manager of ABANTU for Development, a gender and policy advocacy organisation working to ensure that policies in Africa take the concerns of women and gender equality into account. She previously worked in the erstwhile National Energy Board of Ghana, as a policy analyst looking at the socio-economic and cultural dimensions of energy policies, programmes and projects. She holds a Masters Degree in Gender and Development Studies from the Institute of Social Studies, The Hague, The Netherlands, and a PhD in Gender and Energy Studies from the University of Birmingham, U.K. Dr. Rose Mensah-Kutin is also a trained journalist having worked for several years with Ghanas largest circulating newspaper, The Daily Graphic.

Francis Momade is the foundation Provost of the College of Engineering, KNUST and former Dean of the School of Mines, Kumasi. Before joining KNUST in 1987 Francis Momade served a Research Fellow in the Institute of Inorganic Chemical Technology, University of Veszprem, Hungary and a Chemical Engineer at the Ajka Alumina Plant and Aluminium Smelter in

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Hungary. Prof Momade is currently a Council Member of both the Ghana Institution of Engineers and the African Network for Scientific and Technological Institutions (ANSTI). He holds PhD, MSc and BSc degrees in Chemical Engineering from the University of Veszprem in Hungary and has published widely in mineral processing, extractive metallurgy, environmental assessment and materials science and engineering.

Alfred Kwabena Ofosu-Ahenkorah is the Acting Executive Secretary of the Energy Commission, the main energy sector regulatory institution in Ghana; he previously served as Executive Director of the Energy Foundation, a publicprivate partnership institution established to promote energy efficiency in Ghana. Dr. Ofosu-Ahenkorah Ha many other national and international responsibilities including serving as a member of the Governing Board of the National Petroleum Authority and Deputy Chairman of the Renewable Energy & Energy Efficiency Partnership (REEEP) which is based in Vienna. He holds an MSc in Engineering, a PhD in Technical Sciences (Energy Efficiency) and an EMBA (Finance). He is also a Certified Energy Manager and has to his credit over 10 scientific and energy related publications, some of which have won international awards.

Theo Sackey currently heads the Generation Planning Unit in the System Planning Section of the Engineering Services Department, Volta River Authority (VRA). He is involved in Generation Expansion Planning, Operational Studies and Reservoir Management of VRAs hydro resources. This includes the development of generation expansion plans to meet projected demand, operational planning for VRAs mixed hydro/thermal generation system and feasibility studies for thermal and hydro power facilities. He holds a Masters Degree in Public Policy and Administration from Harvard University as well as an MSc in Electrical Engineering from the Belarus Polytechnic Institute. He is a Board Member of the Ghana Meteorological Agency.

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Energy Crisis in Ghana

Drought, Technology or Policy?
This book is an attempt to get to the bottom of the current power crisis in Ghana, the fourth in less than three decades! Experts drawn from all sectors of the economy, public and private, academic and NGO, analyse the crisis with a view to identifying the fundamental causes. The book puts forward many factors that have led to Ghanas current predicament and argues that, in essence, the current power crisis is due more to the shortage of generation capacity in the country than to a drought in the Volta Lake Basin. The book also argues that given a favourable policy environment and economic tariffs, the private sector should be able to help address many of the critical issues including the establishment of new power plants using both conventional systems and renewable energy technology.

THE EDITORS Abeeku Brew-Hammond, lead editor of this publication, is an Associate Professor at the Kwame Nkrumah University of Science and Technology in Kumasi, Ghana. His co-editor, Francis Kemausuor, recently completed an MPhil programme at the Cambridge-MIT Institute in the University of Cambridge, England.

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