1. ENERGY SECURITY By RICHMOND OSEI-HWERE FACULTY OF LAW, KNUST

2.  Definition and Significance  Core Issues of Energy Security  National Energy Policy of Ghana  Law’s Role  International Law  Domestic Law

3.  IEA describes energy security as the uninterrupted physical availability of energy at a price which is affordable, while respecting environmental concerns.

4.  Consumer nations – security of supply.  The availability of sufficient supplies to meet needs at reasonable price.  Producer nations – Security of Demand  The availability of sufficient demand to allow exploitation of resources for a reasonable return.  For both – energy security is required for broader security, economic development and stability.

5.  Energy Market Stability  Security of energy infrastructure, materials and personnel  Investment  Energy Efficiency  Diversification of energy source  Environmental Protection

6.  Some causes of instability:  High and volatile oil prices  Growing demand for oil by transiting economies especially China and India  In 2004 global oil demand increased by 3m barrels a day, a level of demand not seen since the 1990’s  Instability in recent times is demand driven  Interrupted supply of energy through transit disputes etc.

7.  Energy market stability can be ensured by:  Protecting the interest of producing nations  An efficient, economic and regular supply of petroleum to consuming nations  Investment protection in the petroleum sector – fair returns on investment  Dialogue between consuming and producing nations on energy security.  Increase in production ceiling  Demand restraint measures such as energy saving

8.  Infrastructure –  Energy installations,  tankers,  pipelines etc.  Threat of Terrorism  Piracy  Hijacking ▪ Disturbances in the Niger Delta Region of Nigeria

9.  Investment promotion and protection in the energy sector is key to energy security.  National Policies on energy investment promotion

10.  Production of energy in a cost effective manner  Energy saving mechanisms

11.  Switch of the British Navy from coal to oil by Winston Churchill during the first world war.  Recognition that “Safety and certainty in oil lie in variety and variety alone”  Since then diversification is a must for energy security.  Presently, investment in renewable energy source is key to diversification.

12.  Energy sources such as hydrocarbons are significant sources of environmental pollution.  For instance, gas flaring contributes to the global warming phenomena – a direct consequence of accumulation of greenhouse gases (GHG) i.e. CO2, methane and nitrous oxide.

13.  Producing energy without harming the environment is at the heart of energy security.  CLEAN ENERGY is the mantra.  Solution lies in investment in technology that will mitigate the harmful effect of energy production.  E.g. Carbon capture and storage

14.  Energy security is central to the energy sector policy objectives of Ghana which is spelt out in the national energy policy document. See Section 1.6 of the Policy Document.

15.  Key Areas  Developments of the petroleum sector  Efforts to increase the amount of renewable energy in the energy mix.  Conversion of waste into energy  Efficient supply and usage of energy  Limiting the adverse effects of energy production and usage on the integrity of the environment.  Investment promotion in the energy sector

16.  International Law  Treaties  Multilateral treaties ▪ Energy Charter Treaty (ECT) is the most significant international legal instrument in the energy sector.  Bilateral treaties  Domestic Laws  Laws of Ghana  Laws of other jurisdictions.

17.  On energy markets  The law’s role is to support the market in the form, for example, of contract, competition law, and market regulation. ▪ See Energy Commission Act, 1997, Act 541  International agreement ▪ Bilateral treaty between a producing nation and a consuming nation. ▪ Multilateral treaties – ECT, OPEC Statutes etc.

18.  Pipelines ▪ Bilateral and multilateral treaties to resolve rights and responsibilities of producer, transit and consumer states ▪ International Law of the Sea (UNCLOS 1982) where maritime pipelines are involved  Tankers ▪ Environmental considerations – Marine Pollution Convention; IMO standards and Guidelines ▪ Safety considerations –IMO and UNCLOS provisions regarding piracy  Offshore Installations ▪ Sovereign rights and exclusive jurisdiction of coastal states established by UNCLOS

19.  Domestic Criminal Legislations  For example Anti-Terrorism Act of Ghana, 2008

20.  Expropriation must be backed by prompt and adequate compensation.  See Article 2 of the UN Charter of Economic Rights and Duties of States 1974  See Article 13 of ECT  Stabilization Clauses exempt investment contracts from changes in applicable law.  International Arbitration Clauses undertake to settle disputes between the investor and the State in a neutral forum.

21.  Refer to the Ghana Investment Promotion Centre (GIPC) Act 1994 esp. Sections 28 and 29.  Bilateral Investment Treaties such as Ghana/UK Investments Promotion and Protection Treaty

22.  Queen’s Speech, 25 th May, 2010  “Legislation will be introduced to improve energy efficiency in homes and businesses, to promote low carbon energy production and to secure energy supplies.”  Energy Commission Act, Act 542 :- Section 42  Legislative Instrument (L.I.) 1815  Clean Energy Act of US, 2007

23.  Laws promoting the development of renewable energy sources.  Refer to the Energy Commission Act, Act 541

24.  Kyoto Protocol, 1997 – fallout of the Kyoto Climate Change Conference.  Developed countries undertook to reduce GHG emission by at least 5.2% as compared to the year 1990.  US is yet to sign up to the Kyoto Protocol.  In Ghana, an operator must comply with the environmental laws and regulation specifically:  Environmental Protection Agency Act, 1994, Act 490  Environmental Assessment Regulation, L.I. 1652

25.  Non ratification of treaties  Russia and ECT  Article 11 and 75 of Ghana’s Constitution, 1992  Lack of enforcement of laws and regulations  Legislative loopholes