Hydroelectricity is the primary source of Ghana's power. Ghana's current hydroelectric capacity of 1.072 GW is located at Akosombo (912 MW) and Kpong (160 MW). The Ghanaian government is considering additional hydroelectric projects to be built on a Build Operate Transfer (BOT) financing scheme. The $700-million, Bui hydroelectric project would be located on the Black Volta. The Bui project would have a generation capacity of 400 MW. In addition to increasing the domestic electricity supply, power generated from Bui could be exported to Burkina Faso, Mali and Cote d'Ivoire. A second BOT facility, located on the Pra River, would have a total generating capacity of 125 MW. Recent low rainfall has forced power cuts from Ghana's hydroelectric facilities, similar to the power shortages experienced in 1997/1998.
Ghana plans to reduce its reliance on hydroelectric power by increasing and expanding thermal generating capacity. Current thermal facilities are located at Tema and Takoradi. Additional capacity is planned at Tano (gas-fired barges) and at Tema. VRA and GNPC have constructed transmission lines and substations at Essiama and Elubo in the Western Region to feed the power generated at Tano into the national grid. The VRA is currently in the process of installing 110 MW at the Strategic Reserve Plant (SRP), near the Electricity Company of Ghana (ECG) main substation in Tema. In April 2003, U.S.-based CMS Energy announced that it is planning a $100 million expansion of its thermal power plant at Takoradi. The upgrade would convert the plant from burning crude oil to natural gas which it would receive from Nigeria through the WAGP. CMS Energy has a 90% stake in the Takoradi facility, and the VRA holds the remaining 10%. ECG is responsible for electricity distribution to the Ashanti, Western, Central, Eastern, Greater Accra and Volta regions. VRA is responsible for generation and for the distribution of electricity in the Brong Ahafo, Northern, Upper East and Upper West regions. When the WAGP is completed, VRA plans to convert oil-fired facilities at Takoradi and Tema to natural gas.
An ambitious plan by the Ghanaian government to transform the country into a middle-income nation has targeted the power sector as a key area for reform. Structural and regulatory reforms are hoped to encourage private investment in the development of the power industry. Energy sector parastatals have been earmarked for change to bring them in line with international standards. The government has also committed itself to the development of a West African Power Pool (WAPP), where generation capacities and inter-country connections can be expanded among the 16 West African member nations.
Takordi thermal power station has been completed and now supplies 650 MW of power to the VRA, who distribute the power. The plant was constructed by CMS Energy Corporation, who have a 90 % share in the plant. The VRA owns the remaining 10 % and have an option to increase their stake to 50 %. Takordi, located near Aboadze, uses both light crude or natural gas as fuel, with dependence on the latter growing once the proposed West African Pipeline from Nigeria is completed.
Reduced rainfall over recent years has hampered the performance of hydropower stations in Ghana. In order to reduce the country’s dependence on this form of power, the government is installing gas and diesel replacement generators.
The capacity of the Akosombo Dam power plant is expected to increase by 15 % after renovation of its turbines, supported by the World Bank.
A 125 MW, barge-mounted gas turbine power plant at Effasu is under construction for the Ghanaian government and the GNCP.
A loan of US$ 29.5 million has been offered to Ghana’s Ministry of Mines and Energy for the electrification of a number of towns along the Volta Lake. The China International Water and Electric Corporation’s loan will cover 90 % of the cost of the first phase of the project.
The U.S. Trade and Development Agency has approved a US$ 165 000 loan to fund 50 % of a feasibility study for the installation of a gas turbine power station at Esiama. A 150 MW, combined cycle power plant will be constructed and operated by ARS Ghana Ltd, affiliated to US-base ARS International. As part of the deal, US$ 60 million worth of contracts will go to American companies. This project, together with two other power stations at Effasu, make use of gas from the South Tano offshore field.
Union Fenosa, a Spanish power company, agreed with the ECG to develop an electrical project to improve the electrical supply around Tema. The US$ 100 million committed to the project will be used to build an 80 MW power co-generation station and improve the distribution network.
A 10 million Euro loan was made by the European Development Fund for the completion of Ghana’s electrification before 2020.
The Ghanaian government have asked Cummins Power Generation to supply 30 MW of electrical power using a large multi-generator installation. They will use thirty-nine 900 kW diesel-powered generators operating in parallel.
A joint Japanese-U.S. project worth US$ 200 million is being run by KMR Power and Japan’s Marubeni Corporation. The 220 MW power station in Tema will be run on a build, own and operate contract. The plant will utilize oil until natural gas becomes available from Chevron. Ashanti Goldfields will purchase approximately half the plant’s power, with the remainder being sold to the ECG.
A number of hydroelectric projects to be run on a Build Operate Transfer (BOT) scheme are also under consideration. Brown & Root of the United Kingdom are negotiating with the Ghanaian government for the development of a hydroelectric plant at Bui on the Black Volta. The 400 MW of power generated from the plant could be used both domestically and for export to Burkina Faso, Mali and Côte d'Ivoire. Another BOT facility has been proposed for the Pra River with a capacity of 125 MW.
In October 2000, the 14 members of the Economic Community of West African States (ECOWAS), of which Ghana is a member, signed an agreement to launch a project to boost power supply in the region of West Africa. The West African Power Pool (WAPP) agreement reaffirmed the decision to develop energy production facilities and interconnect their respective electricity grids. According to the agreement, the WAPP will be accomplished in two phases but is planned to be fully implemented by 2005. Ghana, along with countries such as, Nigeria, Benin, Burkina Faso, Cote d’Ivoire, Niger and Tog, will actively be involved in the first phase of the WAPP Agreement.
