Ghana Energy Commission urges firms to produce own power

Ghana Energy Commission urges firms to produce own power

The Ghana energy commission plans to fully implement an initiative of supporting industrial firms to generate their own power. The commission targets steel and mining companies.

However, the commission plans to kick off the implementation procedure before the end of 2016 in order to achieve Ghana’s 10% renewable energy target for the nation’s energy mix come 2020. Additionally, companies will as well be able to purchase renewable energy for their operations.

The Association of Ghana Industries (AGI) has described the initiative as a cheaper option when it comes to power consumption by the massive production companies. However, AGI urges Ghana government to support its members with either direct or indirect financial support due to  enormous initial installation cost.

According to Dr Nii Darko Asante, Technical Regulations Director, the only obstacle towards the industrial self-power generation is the uncertainty among the firms given that there is no resistance as well as adoption, everybody has to be cautious. In this case, he further explained that people are very thoughtful when it comes to signing a 20-year agreement power purchase.

The cautiousness in signing a 20 year power purchase agreement is brought about by the fear of the unknown and that is why the regulation is encouraging them to embrace the self-power generation initiative and that it is not a pipe dream, it can happen, work best and it is also cost sufficient.

In the meantime, the Africa Centre for Energy Policy (ACEP) has criticized the Energy Commission for failing to regulate the importation of renewable energy technology into the country. ACEP has described Energy Commission’s failure as an abuse of its authority.

Infact, Ben Boakye, ACEP Deputy Executive Director, blames the commission for the country’s inability to effectively supply renewable energy.

The move by Ghana energy commission to urge industries produce their own power caomes in the back of a recent move by Ghana National Gas Company (Ghana Gas) to reduced gas supply to Aboadze power enclave raising fears that Power blackouts in Ghana could further deepen.

 

 

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