Electricity Access Progress in GHANA

1. Electricity Access Progress in GHANA Clement G. Abavana Noxie Consult, Ghana

2. Electricity Access in Ghana • The Present Situation • The process of getting to where we are • The future Noxie Consult

3. Electricity Access Situation now • Ghana has presently (2010) an electrification access rate of over 72%. • The government has set an ambitious target of universal access of 100% by 2020. Noxie Consult

4. Definitions as used in Presentation • There are two definitions of electrification: • a. Electrification (penetration) rate: percentage of Communities connected with electricity, either grid or off-grid. • b. Access rate: percentage of Households connected with electricity. Noxie Consult

5. Table 1: Electricity Access Rates in Ghana(2010) Noxie Consult

6. The Process • National Electrification Scheme (NES) - 1989 • National Electrification Programme (NEP) • District Capitals Electrification Project • Self Help Electrification Programme (SHEP) Noxie Consult

7. National Electrification Scheme Objectives • To connect all communities with a population above 500 in 1989, to the national grid: there were 4,221 communities in Ghana that had a population higher than 500 of which only 478 had access to electricity supply; • To construct new and reinforce existing generation and transmission facilities to support and sustain the scheme; • To promote the productive uses of electricity in order to improve upon people's standard of living and accelerate poverty alleviation; • To encourage the development and establishment of local indigenous industries to support and sustain the scheme thereby creating employment and increasing productivity; • To enhance activities in other sectors of the economy such as agriculture, health, education and tourism; and • To increase the overall socio-economic development of the country. Noxie Consult

8. National Electrification Scheme • National Electrification Planning Study (NEPS) was done by Acres International Ltd of Canada with Canadian Government grant in 1988/89; • Master Plan outlined six 5-year implementation phases (1990 – 2020) - 30 years; • In 1989 Government of Ghana endorsed the NES with overall goal of universal access by 2020. Noxie Consult

9. National Electrification Programme At the start of the NEP the electrification rate was 28% Phase I • District Capitals Electrification Project • Extension of national grid to all 110 political Districts capitals (at that time) and towns and villages en-route to the District capitals. 46 out of the 110 district capitals were connected at the start of the NEP. Phase II and onwards • Electrification of communities based on the most economically viable projects. Noxie Consult

10. National Electrification Programme NEP (ii) • NEP was designed to cater for the first two phases of the NES as recommended in the NEPS report and this covered 455 communities including the 64 district capitals. • The District Capitals Project was to enhance the official government work and commercial businesses of the districts. • This was done with annual budgetary allocations and bi-lateral and multi-lateral loans. Noxie Consult

11. Map of Ghana Noxie Consult

12. Self Help Electrification Programme (SHEP) • This is a Government of Ghana (GOG) complementary programme to speed up the process by electrifying towns and villages which were prepared to help themselves. i.e. Contribute to the cost of electrification of their communities. • With the active implementation of SHEP the Access rate had rose to 54% by 2005. Noxie Consult

13. Qualifying Criteria for SHEP • Community should be located within 20km of an existing 33kV or 11kV source of supply; • Community must be willing and able to procure and erect the required number of standard LV poles needed for the LV distribution network within the community; • At least 33% of houses in community must be wired and ready for service. Noxie Consult

14. Institutional Arrangement • The two pillars of the NES: • NEP • SHEP • Both implemented by Ministry of Energy Noxie Consult

15. Ministry of Energy Administers Communicates selected site National Electrification Fund (NEF), Dedicated donor assistance District Assemblies Procures & Hires delivers to site Contractors & Consultants Material Supplies Install networks on site Site selection under SHEP ECG-VRA-NED Rural Electrification Site Maintains system after completion Implementation of Rural Electrification Noxie Consult

16. Another Model examined but not adopted • Set up a Rural Electrification Agency (REA) and a Rural Electrification Fund (REF) outside the Ministry of Energy as an autonomous body to implement rural electrification. • Not adopted because of the creation of another level of bureaucracy. Noxie Consult

17. Costs and Financing Mechanisms • NEP connected the last batch of 23 district capitals and over 400 other towns for US$185 million. (1996 – 1998) Noxie Consult

18. NEP Noxie Consult

19. Funding Noxie Consult

20. Table 4. OTHER BI-LATERAL FUNDED ELECTRIFICATION PROJECTS Noxie Consult

21. National Electrification Levy/fund • Established in 1989 as a levy charged on all classes of customers to serve as seed funds for the National Electrification Fund. Noxie Consult

22. Achievement of the NES • NES began as scheduled in 1990 • At the end of 2004 access rated had reached 54% corresponding to 11 million people (at that time) • In mid- 2005, 3,026 towns and communities (including all district capitals) were electrified. This figure includes towns/villages that were not captured by NEPS. Noxie Consult

23. Table 5: Status of SHEP projects Noxie Consult • Table 5: Status of SHEP projects • Source: MoE December 2011.

24. Projects Commenced in 2011 but not completed: Turnkey Electrification Projects (2011 - ) Noxie Consult

25. Financing • National Public Funding– Budgetary allocation from the consolidated Fund • Community Contributions (PPP) - SHEP • External Donor finance – Loans and grants Noxie Consult

26. Funding Agencies • Govt. budgetary support of about US$9 m/yr over 2001-2004 (Average between 1990-2005; about US$5m/yr) • PS: About US$130million was used for off-shore electrical materials for the SHEP-3 (1,400 communities) • About US$350 million was used for the SHEP-4 (2,500 communities) Noxie Consult

27. Technical Innovations • Shield-Wire Scheme on the 161kV transmission line • 30 kV and 20kV system (1989) • Additional cost (in 1989): US$300.00/km • Cost of an independent 34.5 kV line: US$20,000.00/km Noxie Consult

28. Renewable Energy – Solar PV • UNDP/GEF/GoG project/Spanish Government (RESPRO) • Fee-for-service • Un-sustainable • Danida Battery charging stations in Northern Ghana Noxie Consult

29. The Future: Potential to increase Renewable Energy contribution • National Policy: 10% - RE • Volta River Authority (VRA) 10MW solar PV project (2MW started in Navrongo in the Upper East Region) Noxie Consult

30. Key Issues and Challenges • Long planning horizon (30 years) • National resolve and commitment • Rural Electrification to be put on the national political agenda to get Members of Parliament of all political parties interested . • Steady national budgetary allocation for rural electrification • Community willingness and ability to participate. Noxie Consult

31. Thank you for your attention Noxie Consult