ELECTRICITY ACCESS PROGRESS IN GHANAClement G. Abavana

Noxie Consult, Ghana

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ELECTRICITY ACCESS IN GHANA

The Present Situation The process of getting to where we are The future

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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.

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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.

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TABLE 1: ELECTRICITY ACCESS RATES IN GHANA(2010)

Regions Population Electricity Access Households (HH)

HH with access

Pop with access

Greater Accra 4,010,054 97% 1,036,426 1,005,333 3,889,752

Ashanti 4,780,380 82% 1,126,216 923,497 3,919,911

Central 2,201,863 81% 526,764 426,679 1,783,509

Brong-Ahafo 2,310,983 67% 490,519 328,648 1,548,358

Eastern 2,633,154 70% 632,048 442,434 1,843,207

Western 2,376,021 68% 553,635 376,472 1,615,694

Volta 2,118,252 65% 495,603 322,142 1,376,863

Northern 2,479,461 50% 318,119 159,060 1,239,730

Upper East 1,046,545 44% 177,631 78,158 460,479

Upper West 702,110 40% 110,175 44,070 280,844

Ghana Overall 24,658,823 72% 5,467,136 3,936,338 17,754,352

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THE PROCESS

National Electrification Scheme (NES) - 1989 National Electrification Programme (NEP)

District Capitals Electrification Project Self Help Electrification Programme (SHEP)

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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.

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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.

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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.

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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.

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MAP OF GHANA

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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.

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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.

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INSTITUTIONAL ARRANGEMENT

The two pillars of the NES: NEP SHEP

Both implemented by Ministry of Energy

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IMPLEMENTATION OF RURAL ELECTRIFICATION

National Electrification Fund (NEF), Dedicated donor assistance

Material Supplies

Procures &delivers to site

Contractors &Consultants

Hires

Rural ElectrificationSite

Install networks on site

Ministry of Energy

Administers

District Assemblies

Site selectionunder SHEP

Communicates selected site

ECG-VRA-NED

Maintains system

after completion

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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.

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COSTS AND FINANCING MECHANISMS

NEP connected the last batch of 23 district capitals and over 400 other towns for US$185 million. (1996 – 1998)

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NEP

Table 2: Number of Electrified District Capitals and Other Towns (1996 - 1998)

Region District Capitals Other Towns Total

Ashanti - 15 15

Central 2 64 66

Eastern - 42 42

Volta 2 54 56

Western 3 93 96

Upper West 3 10 13

Brong Ahafo - - -

Northern & Upper East

13 129 142

Total 23 407 430

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FUNDINGTable 3: Number of Electrified District Capitals and Other Towns

Component of NEP Funding Agency

Amount(US$

Millions)

Total # of Towns including District capitals

Completion Date

Brong Ahafo, Northern and Upper East (VRA-NED)

World Bank 35.5 142 1998

Central Rural and Upper West Regions

Danish Govt. (DANIDA

24.35 55 1999

Volta Region (Rural) Nordic Dev. Fund (NDF)

6.88 35 1999

Eastern, Ashanti (Rural & Urban), Greater Accra, Volta (Urban), Central, Western (Urban) ECG

World Bank 42.5 67 2000

Western Region (Rural) Dutch Govt. (ORET)

31.0 96 2000

Sub-Total 140.23 395

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ltTABLE 4. OTHER BI-LATERAL FUNDED

ELECTRIFICATION PROJECTS

Area/District/Region

Funding Agency

Amount US$(millions)

Total # of Towns including District capitals

Completion Date

Bekwai, Kuntenase and other Communities

JICA 7.8 31 1990

Juabase-Bia and Sefwi-Wiaso

GoG 34 1994

Ada-Foah, Sogakope and Adidome and other communities

JICA 17.1 22 1995

Asesewa and Yeji Areas JICA 10.2 34 1999Greater Accra & Volta regions

SIDA 10.77 110 2001

Upper East Spanish Government

10.0 51 2001

Nyinahin and Surrounding Comms

JICAGoG

6.3750,000 Gh

Cedis

24 2003

Volta Lake Resettlement

China EXIM Bank Loan

32.8 144 2003

Amasie West District JICA 2.6 10 2004Western Region EU €10.0 108 2004

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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.

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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.

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TABLE 5: STATUS OF SHEP PROJECTSProject Phase Years Number of Towns

electrifiedCompleted Projects

SHEP 1 1990-1992 50

SHEP 2 1993-1995 250

SHEP 3 – Phase 1 1996-1998 280

SHEP 3 – Phase 2 1998-2000 494

SHEP 3 – Phase 3 2000-2002 700

SHEP 4 – Phase 1 2002-2004 193

SHEP 4 – Phase 2 2006 226

SHEP4 – Phase 3 2007 229

SHEP4 – Phase 4 2008 269

SHEP 2009 146

Table 5: Status of SHEP projectsSource: MoE December 2011.

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TURNKEY ELECTRIFICATION PROJECTS (2011 - )

Type/Name of Project No. of Communities

Region Contractor

China Exim Bank funded electrification

419 Volta CWE

US Exim Bank funded electrification project

1,200 Country-wide

Weldy Lamont

China Exim Bank funded electrification

500 Northern Reg

Hunan

New Electrification project for communities

400 Upper West

CWE

NED Bank funded electrification 500 Upper East -Extension of grid to selected rural towns (GEDAP)

250 GEDAP

ECOWAS Bank for Investment and Development (EBID) Electrification Project

106 Brong Ahafo and

Ashanti

-

Eltel Phase II electrification of communities

140 Eastern ELTEL

Total no. of Towns 3,515

Projects Commenced in 2011 but not completed:

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FINANCING

National Public Funding– Budgetary allocation from the consolidated Fund

Community Contributions (PPP) - SHEP External Donor finance – Loans and grants

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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)

Project Funding Agency Type of funding

NEP JICA, DANIDA World Bank, Dutch Government (ORET), SIDA , FINNIDA, NDF, GEF

Grants & soft loans

SHEP Indian Ex-Im Bank US Ex-Im Bank, SIDA, FINNIDA & South African Govt. Chinese Ex-Im Bank

Grants & Soft loans

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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

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RENEWABLE ENERGY – SOLAR PV

UNDP/GEF/GoG project/Spanish Government (RESPRO) Fee-for-service Un-sustainable

Danida Battery charging stations in Northern Ghana

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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)

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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.

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Thank you for your attention