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Government Inks Two Power Purchasing Agreements to Boost National Capacity



Government Inks Two Power Purchasing Agreements to Boost National Capacity

In a recent announcement, Minister of Energy, Dr Matthew Opoku Prempeh, revealed that the government has successfully signed two new Power Purchasing Agreements (PPAs), paving the way for an additional 720 Mega Watts (MW) of power to be integrated into the country’s energy grid. The agreements, namely the 370MW AKSA in Tema and the 350MW AKSA in Kumasi, mark a significant development under the revamped PPA policy, replacing the previous “Take or Pay” arrangement.

The shift in policy not only ensures a judicious increase in power generation but also aims to enhance overall efficiency in power generation and distribution across the nation. Dr Prempeh clarified during the Minister’s Briefing that the government has indeed added Mega Watts to the existing capacity through various PPAs. He emphasized that the new agreements have been crafted with a focus on efficiency, setting them apart from earlier arrangements.

As part of ongoing efforts to bolster the power sector, Dr Prempeh highlighted several measures, including the conversion of the 200MW KTPP plant and the 220MW CENIT/TTIPP plant from open cycle thermal plants to combined cycles. Additionally, the retrofitting of the 132MW T3 plant has been undertaken. The minister affirmed that these initiatives are geared towards improving efficiency within the sector.

Ghana’s commitment to renewable energy was also underscored, with an increase in the share of solar energy in the generation mix. Dr Prempeh noted that the share of solar in the mix has risen to 3.2% of the targeted percentage of generation by 2030. Ongoing utility-scale solar projects, including a 100MW Solar Photovoltaic (PV) under construction at Bui and a completed 4MW floating Solar PV on the Bui Reservoir, further solidify Ghana’s commitment to sustainable energy.


Addressing challenges in the power transmission sector, Dr Prempeh assured that issues such as congested networks, overaged infrastructure, and right-of-way encroachment are being actively addressed. He highlighted the completion of infrastructural projects, including the 161KV Volta-Achimota Mallam Transmission line upgrade and the Kumasi-Kintampo section of the 330 Kumasi-Bolgatanga transmission line.

In the realm of reforms, the Electricity Company of Ghana (ECG) is taking strides to enhance efficiency in revenue mobilization. Dr Prempeh noted that boundary metering and distribution transformer metering have been introduced, with ongoing efforts to survey and meter around 16,000 distribution transformers next year.

Turning attention to the petroleum downstream sector, the minister acknowledged challenges arising from excess forex demand for petroleum product importation coupled with increased global prices. Prudent negotiations led to the implementation of a forex auction window for BIDECs, and the establishment of a credit reference bureau for all dealers has been put in place. The introduction of the government’s Gold for Oil policy has significantly reduced forex exposure on entities such as BOST and BIDECs.

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