The Government of Ghana has indicated that, Power Purchase Agreement (PPA) renegotiations are currently ongoing. This, it says, is to help reduce capacity charges and the overall cost of power generation in the country.
According to the 2021 financial budget presented to Parliament yesterday March 12, 2021, the third round of negotiations have commenced. Its following approval of the recommendations submitted by the negotiating team.
The government made known that, subsequent renegotiations were concluded with CENIT Energy Limited. And discussions with AKSA Energy Company Limited are nearing completion.
Following the approval of the Pwalugu Multipurpose Dam Project (PMDP) by Parliament; government also made known that, the pre-commencement activities; as well as the engagement of the Owner’s Engineer to provide technical support to the Volta River Authority (VRA) to supervise and manage the EPC Contract, has commenced.
Strengthening The National Grid
Touching on how to strengthen our national grid, government stated that, projects which are at various stages of completion will continue in 2021.
“Mr. Speaker, Lot 1 of the 330kV Kumasi-Bolgatanga Transmission Line Project is nearing completion; 161kV Volta-Achimota-Mallam Transmission Line Upgrade Project has an overall works completion rate of 53 percent for the Volta-Achimota section, and 31 percent completion rate for the Achimota-Mallam transmission line.
2021 Budget
“Remedial works on the Aboadze – Prestea 330kV Transmission Line is 90 percent complete. And construction works on the A4BSP Pokuase Bulk Supply Point is 92 percent complete.”
2021 Budget
Also, Government in the quest to stabilize the national grid says it will relocate the Ameri plant to Kumasi in the Ashanti region.
“Mr. Speaker, in 2020, the country had adequate generation capacity to meet the demand for domestic, commercial and industrial customers. The 200MW Amandi Power Project was approximately 98 percent complete and is currently at the last phase of commissioning. Phase 1A of the 400MW Early Power Project (147MW) is currently going through commissioning. In 2021, the Ameri Plant will see a relocation to Kumasi to help stabilise the national grid.”
2021 Budget
Touching on other projects in 2021; the government noted that, there will be a construction of a new substation at Dunkwa-on-Offin; reconstruction of the over-aged 161kV transmission lines from Aboadze through Dunkwa to Asawinso with higher capacity; and the reconstruction of the existing 330kV and 161kV Aboadze Switchyards.
Rural Electrification Programme
According to government, a total of 388 out of 560 communities were connected to the national grid under the Rural Electrification Programme. It says the National Electricity Access rate increased from 84.98 percent in January 2020. to 85.17 percent by end December2020 with over 10,000 communities connected to the grid so far.
Additionally, it says the Energy Ministry this year will ensure and monitor the completion of ongoing SHEP-4 & SHEP-5 projects. Moreover, various electrification projects across the country will be undertaken with 766 towns expected to be connected under these projects in 2021.
Green Energy Commitment By Government
Furthermore, the budget says, due to its commitment for a green economy, a total of 26MWp out of the 50MWp solar project by Bui Power Authority is complete. The remaining 24MWp and a 1.0MWp floating solar plant will see completion by the third quarter of 2021.
