E LECTRICITY A CCESS P ROGRESS IN GHANA Clement G. Abavana Noxie Consult, Ghana

E LECTRICITY A CCESS IN G HANA The Present Situation The process of getting to where we are The future 2 Noxie Consult

E LECTRICITY A CCESS S ITUATION 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 Noxie Consult

D EFINITIONS AS USED IN P RESENTATION 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. 4 Noxie Consult

T ABLE 1: E LECTRICITY A CCESS R ATES IN G HANA (2010) Regions PopulationElectricity AccessHouseholds (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, ,497 3,919,911 Central 2,201,863 81% 526, ,679 1,783,509 Brong-Ahafo 2,310,983 67% 490, ,648 1,548,358 Eastern 2,633,154 70% 632, ,434 1,843,207 Western 2,376,021 68% 553, ,472 1,615,694 Volta 2,118,252 65% 495, ,142 1,376,863 Northern 2,479,461 50% 318, ,060 1,239,730 Upper East 1,046,545 44% 177,631 78, ,479 Upper West 702,110 40% 110,175 44, ,844 Ghana Overall 24,658,823 72% 5,467,136 3,936,338 17,754,352 5 Noxie Consult

T HE P ROCESS National Electrification Scheme (NES) National Electrification Programme (NEP) District Capitals Electrification Project Self Help Electrification Programme (SHEP) 6 Noxie Consult

N ATIONAL E LECTRIFICATION S CHEME O BJECTIVES 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. 7 Noxie Consult

N ATIONAL E LECTRIFICATION S CHEME 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 Noxie Consult

N ATIONAL E LECTRIFICATION P ROGRAMME 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. 9 Noxie Consult

N ATIONAL E LECTRIFICATION P ROGRAMME 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. 10 Noxie Consult

M AP OF G HANA 11 Noxie Consult

S ELF H ELP E LECTRIFICATION P ROGRAMME (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 Noxie Consult

Q UALIFYING C RITERIA 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. 13 Noxie Consult

I NSTITUTIONAL A RRANGEMENT The two pillars of the NES: NEP SHEP Both implemented by Ministry of Energy 14 Noxie Consult

I MPLEMENTATION OF R URAL E LECTRIFICATION 15 Noxie Consult National Electrification Fund (NEF), Dedicated donor assistance Material Supplies Procures & delivers to site Contractors & Consultants Hires Rural Electrification Site Install networks on site Ministry of Energy Administers District Assemblies Site selection under SHEP Communicates selected site ECG-VRA-NED Maintains system after completion

A NOTHER M ODEL 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. 16 Noxie Consult

C OSTS AND F INANCING M ECHANISMS NEP connected the last batch of 23 district capitals and over 400 other towns for US$185 million. (1996 – 1998) 17 Noxie Consult

NEP Table 2: Number of Electrified District Capitals and Other Towns ( ) RegionDistrict CapitalsOther TownsTotal Ashanti-15 Central26466 Eastern-42 Volta25456 Western39396 Upper West31013 Brong Ahafo--- Northern & Upper East Total Noxie Consult

F UNDING Table 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 Central Rural and Upper West Regions Danish Govt. (DANIDA Volta Region (Rural) Nordic Dev. Fund (NDF) Eastern, Ashanti (Rural & Urban), Greater Accra, Volta (Urban), Central, Western (Urban) ECG World Bank Western Region (Rural) Dutch Govt. (ORET) Sub-Total Noxie Consult

T ABLE 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 Juabase-Bia and Sefwi- Wiaso GoG Ada-Foah, Sogakope and Adidome and other communities JICA Asesewa and Yeji Areas JICA Greater Accra & Volta regions SIDA Upper East Spanish Government Nyinahin and Surrounding Comms JICA GoG ,000 Gh Cedis Volta Lake Resettlement China EXIM Bank Loan Amasie West DistrictJICA Western RegionEU€ Noxie Consult

N ATIONAL E LECTRIFICATION L EVY / FUND Established in 1989 as a levy charged on all classes of customers to serve as seed funds for the National Electrification Fund. 21 Noxie Consult

A CHIEVEMENT 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. 22 Noxie Consult

T ABLE 5: S TATUS OF SHEP PROJECTS Project PhaseYears Number of Towns electrified Completed Projects SHEP SHEP SHEP 3 – Phase SHEP 3 – Phase SHEP 3 – Phase SHEP 4 – Phase SHEP 4 – Phase SHEP4 – Phase SHEP4 – Phase SHEP Noxie Consult Table 5: Status of SHEP projects Source: MoE December 2011.

T URNKEY E LECTRIFICATION P ROJECTS ( ) Type/Name of Project No. of Communities RegionContractor China Exim Bank funded electrification 419VoltaCWE 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 electrification500Upper East- Extension of grid to selected rural towns (GEDAP) 250GEDAP ECOWAS Bank for Investment and Development (EBID) Electrification Project 106 Brong Ahafo and Ashanti - Eltel Phase II electrification of communities 140EasternELTEL Total no. of Towns3, Noxie Consult Projects Commenced in 2011 but not completed:

F INANCING National Public Funding– Budgetary allocation from the consolidated Fund Community Contributions (PPP) - SHEP External Donor finance – Loans and grants 25 Noxie Consult

F UNDING A GENCIES Govt. budgetary support of about US$9 m/yr over (Average between ; 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) 26 Noxie Consult ProjectFunding AgencyType of funding NEP JICA, DANIDA World Bank, Dutch Government (ORET), SIDA, FINNIDA, NDF, GEF Grants & soft loans SHEPIndian Ex-Im Bank US Ex-Im Bank, SIDA, FINNIDA & South African Govt. Chinese Ex- Im Bank Grants & Soft loans

T ECHNICAL I NNOVATIONS 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 27 Noxie Consult

R ENEWABLE E NERGY – S OLAR PV UNDP/GEF/GoG project/Spanish Government (RESPRO) Fee-for-service Un-sustainable Danida Battery charging stations in Northern Ghana 28 Noxie Consult

T HE F UTURE : P OTENTIAL TO INCREASE R ENEWABLE E NERGY CONTRIBUTION National Policy: 10% - RE Volta River Authority (VRA) 10MW solar PV project (2MW started in Navrongo in the Upper East Region) 29 Noxie Consult

K EY I SSUES AND C HALLENGES 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. 30 Noxie Consult

Thank you for your attention 31 Noxie Consult