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Ghana has witnessed sustained economic growth and

macroeconomic stability over the last three years:

-

2.00

4.00

6.00

8.00

10.00

12.00

2006 2007 2008 2009 2010 2011 2012 2013 2014

Trends in Real GDP and per Capitagrowth rates in percent

Real GDP growth Real GDP Per Capita

2009 2010 2011

2012 (F)

GDP Growth Rate (%) 4.0 7.7 14.4 9.4

Inflation (%YoY) 15.6 8.6 8.6 8.7

YearIndicator

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Power cuts are frequent due to significant lower output

from power plants than installed capacity and inefficient

distribution network.

Total Installed Capacity 2,185MW

Hydro Power 1,100 MW

Thermal 1,085MW

Current Consumption 1,400 MW

Expected Annual Growth in Demand 10%

Expected AnnualCapacity Additions 200 MW

National Access 66%

Expected Capacity by 2020 5,000 MW

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Organisation Responsiblities

Ministry of Energy (MoE) Formulating, monitoring and evaluating policies, programmesand projects in the energy sector. It is also the institutioncharged with the implementation of the National ElectricityScheme.http://www.energymin.gov.gh/

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

Public Utilities and

Regulatory Commission

(PURC)

The PURC independent regulatory agency responsible for theeconomic regulation of the power sector with the mandate toapprove rates for electricity sold by electricity distributionutilities.http://www.purc.com.gh/

http://www.energymin.gov.gh/http://new.energycom.gov.gh/http://www.purc.com.gh/http://www.purc.com.gh/http://new.energycom.gov.gh/http://www.energymin.gov.gh/http://www.energymin.gov.gh/http://www.energymin.gov.gh/http://www.energymin.gov.gh/http://www.energymin.gov.gh/http://www.energymin.gov.gh/http://www.energymin.gov.gh/http://www.energymin.gov.gh/http://www.energymin.gov.gh/

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The share of modern renewable energy technologies (Wind, SolarPV, hydro below 100MW, Bio-fuel) for electricity is however verynegligible (

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Wind Energy

The gross wind electric potential is about 5,600 MW.The table shows a summary of gross wind electricpotential for Ghana.

Source: Ministry of Energy

Wind Resource Utility

Scale Wind

Class

Wind Power

at 50 m

(W/m2)

Wind Speed

at 50 m

(m/s)

Total Area

km2

Percent

Windy

Land

Moderate

3

300400 6.47.0 715 0.3

Good 4 400500 7.07.5 268 0.1

Excellent

5

500600 7.58.0 82

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Solar Energy

Ghana is endowed with enormous solar energyresource spread across the entire country.

Daily solar irradiation level ranges from 4 to 6kWh/m2.

The annual sunshine duration ranges between1800 to 3000 hours offering very high potentialfor grid connected and off-grid applications.

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

Generally, Northern Ghana has a better Solarresource than South Ghana.

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Bioenergy

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

generate biofuel:

Municipal and Industrial waste

Waste generated from palm oilproduction

Waste from cocoa production

Other agro-waste

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IPP Undertakes Pre -feasibility study

IPP Identifies a Buyer or an Off-Taker (Bulk Customers).

Detailed feasibility studies to ascertain Technical Feasibility and Financial Viability of Project.

IPP interacts with relevant Regulatory Agencies, such as the Energy CommissionEC

(Licensing and Technical Regulations) and the PURC (Pricing Regulation) IPP obtains Site clearance by Environmental Protection Agency (EPA) & EC.

IPP Obtains Environmental Permit from EPA

Concluding a Memorandum of Understanding between IPP and Off-Taker after securingPURCs No-Objection in principle.

Obtaining License from the Energy Commission

IPP obtains relevant approvals of identified reliefs from Governmental Agencies such as GhanaInvestment Promotion, Ministry of Energy and Ministry of Finance & Economic Planning etc.

IPP concludes Power Purchase Agreement with Off-Taker

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According to Energy Policy, Government plans to increase supply of power

to meet the annual expected 10% growth in demand through investment

and private sector participation, (independent power producers)

Ghana plans to become net-exporter of power by 2015

Ghana plans to achieve universal access to power (electricity) by 2015

Government has also commenced the construction of US$850 million gas

processing plant and infrastructure linked to FPSO to be completed by end

of 2012

The Renewable Energy Bill has been passed by Parliament to provide the

regulatory environment for promoting private sector investments in

Renewable Energy Systems

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A 400 MW hydro-electric power plant at Bui. First phase of 113 MW to be

commissioned by the end of 2012

Increase capacity of the Sunon Asogli Power Plant -(Independent power

producer) by 100 MW to bring total capacity to 200MW by end of 2012

Increase capacity of the Tema Osonor Power Co- (Independent Power

Producer)by additional 126 MW to bring total capacity to 330 MW

Expansion of Takoradi International Co (TICO) power plant by 110 MW to

330 MW by 2013

Government seeking strategic partners to develop the 220 MW Domini

power plant with Volta River Authority

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Access to finance/capital

Difficulty in securing and registering land for business

Insufficient access to technology

Poor linkage between research development and private sector

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The DB Partnership programmesupports setting up long term partnershipsbetween Danish and Ghanaian companies . (http://um.dk/en/danida-

en/activities/business/partnerships/)

The DB Finance programme offers interest free, or low interest loan for larger and

medium sized investments in developing countries (http://um.dk/en/danida-en/activities/business/finance/)

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

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

http://um.dk/en/danida-en/activities/business/partnerships/http://um.dk/en/danida-en/activities/business/partnerships/http://um.dk/en/danida-en/activities/business/finance/http://um.dk/en/danida-en/activities/business/finance/http://um.dk/en/danida-en/activities/business/finance/http://um.dk/en/danida-en/activities/business/finance/http://um.dk/en/danida-en/activities/business/finance/http://um.dk/en/danida-en/activities/business/finance/http://um.dk/en/danida-en/activities/business/finance/http://um.dk/en/danida-en/activities/business/partnerships/http://um.dk/en/danida-en/activities/business/partnerships/http://um.dk/en/danida-en/activities/business/partnerships/http://um.dk/en/danida-en/activities/business/partnerships/http://um.dk/en/danida-en/activities/business/partnerships/