Productive Use of Energy (PUE) in Ghana

From Improving Access to Increase in Access to Social Infrastructure

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Content

2 Improved Access and Increased Access to Social Services

1. Energy Portfolio of GIZ Ghana

a. Capacity for a Successful Implementation of the RE Act (C-SIREA)

b. Project Development Programme (PDP)

c. Energising Development (EnDev)

2. EnDev Contribution to Energy Access

3. Key Results

4. PUE Promotion and Improved Access

5. Recommendations

1a. Energy Portfolio of GIZ Ghana: C-SIREA

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1. Legal, regulatory and economic reviews

RE Act, Licensing Manual, Net Metering Code, Guidelines for RE Fund, Local Content Policy

2. Impacts of vRE and scenarios

Assess technical constraints and impacts (cost, tariff, fiscal, env.)

Inform decisions

3. FiT Scheme and First 20 MW Solar PV Tender

FiT rates, RE purchase obligations, interconnection, standardized PPA

Facilitate design and tender transaction

4. Capacity Development: OD and technical and business training

Training on grid-connected systems, study tours

1b. Energy Portfolio of GIZ Ghana: Project Development Programme (PDP) „renewables – Made in Germany“

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Target

Support of business partnerships between German and Ghanaian companies and the development of joint reference projects

1) Project developers, manufacturers, distributors, operators – in Ghana and Germany 2) Ghanaian policy-makers 3) Ghanaian potential off-takers

Target

Groups

Photovoltaic, biomass and biogas, wind

GIZ professional expertise and large networks including RE companies, associations and policy-makers

Technologies

Added Value

1c. Energy Portfolio of GIZ Ghana: Energising Development (EnDev)

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• A Global Energy Access Partnership programme;

• Supporting 25 Countries

• Funded by 6 Donor Countries – the Netherlands, Germany, Norway, Australia, the United Kingdom and Switzerland

• EnDev Ghana

• Promotes the productive use of energy for micro and small enterprises to enhance the growth of local economies and create jobs and as well to improve food security and address the water-energy-food security nexus.

2 Regional Distribution of EnDev Projects - 25 countries: 15 Africa, 6 Asia, 4 Latin America

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Bolivia

(Guatemala)

Honduras

Nicaragua

Peru

Benin

Burkina Faso

(Guinea)

Liberia

Mali

Ghana

Senegal

(Sierra Leone)

Burundi

(Congo)

Ethiopia

Kenya

Madagascar

Malawi

Mozambique

Rwanda

Tanzania

Uganda

Bangladesh

Cambodia

Indonesia

Laos

Nepal

Vietnam

Solar Biogas Cooking energy Grid extension/

densification Hydro

Improved Access and Increased Access to Social Services

2a. Energy Access Objectives of EnDev

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I. Sustainable access: Targeting people, social institutions and enterprises. Gender equality is respected in providing access and use

II. Health: households use cooking systems that significantly reduce the health burden caused by smoke and soot

III. Job creation : along the value chain of the supported energy technologies

IV. Low carbon development

V. Reducing GHG emissions

2b. Global Results so far? - access -

Expenditures 232,000,000 EUR (EnDev 1 and 2) = per 100,000 EUR:

Sustainable access: 6681 persons , 7.6 social institutions, 14.6 enterprises

(target 5,000 persons, 10 social institutions and 20 enterprises) 8

Productive use of grid-electricity for 250 small-scale farmers for irrigation

Solar PV pumps for 30 small-scale farmers for irrigation through the market development approach

Productive use of thermal energy in agro-processing for 300 small-scale Gari processors to access and use improved institutional cook-stoves

Grid-based electricity for productive use in light industrial areas

2c. Ghana Project Components

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3. Key Results so far

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• Grid irrigation in Keta and Ada

A total of 123 Electricity Connections

A high demand for connections exists (Alternative to diesel/petrol pumps)

An opportunity for farmers doing manual irrigation

• Light Industrial Zones - 1142 MSMEs have been established/relocated

- 3500 employment opportunities have been created

- 330 MSME start-ups with 800 employees

- 375 MSMEs have new access to electricity with 1200 employees

- 1,500 persons have new access to electricity

- 10% of MSMEs are led by women

Key Results so far

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• Solar Pumps for Irrigation

Awareness and interest increasing

Have contracted 3 Installers to benefit from sales based grants to install systems

Technology information readily available

Expecting more interest and openness among dealers and clients for market development

Expecting Increasing interest of MFIs to provide long term financing to farmers

• First Solar Irrigation System has been installed near Nsawam.

Key Results so far

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• Improved Cookstoves on high demand

50 Stoves installed so far

Wood fuel savings of 40%

Health benefits demonstrated (smoke, heat,

other emissions)

Users can even sit on stoves while roasting gari

Business Model in place to increase target achievements

MFI’s to provide financing

4. PUE Promotion and Improved Access

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• Can stimulate local production and increase incomes in the long term

• Provide employment along the value chain within the community

• Increased productivity and incomes promotes affordability and willingness to pay for services

• Stimulate local markets and processing, linkage to energy services in markets and lorry parks assuring viability

• Creating demand for more and better energy services that should lead to increased access to social services

5. Some Recommendations

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• PUE Promotion that leads to increased incomes and productivity needs to be done within the context of Local Economic Development (LED)

• Plan, implement, monitor with a broader stakeholder involvement/engagement

• This attracts complementary investments that enhance energy access and productive uses

• Local Governments and Utilities need to appreciate the long term benefits to the local economy as well as direct and indirect financial benefits to them i.e.

Increased energy usage and increased revenues

Increased demand for public services and increased local revenues

These benefits enable them to expand and improve access consistently

Capacity to operate and maintain social infrastructure and energy services

Thank you for your attention.

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Improved Access and Increased Access to Social Services