Solar Energy in Africa Experiences from Ghana

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1 Solar Energy in Africa Experiences from Ghana AfricaSolar Conference 2015, June 2015, Ouagadougou David A. Quansah Kwame Nkrumah University of Science and Technology (KNUST) Kumasi Ghana 26 June 2015

2 About KNUST Founded in 1951 as the Kumasi College of Technology, Kwame Nkrumah University of Science and Technology (KNUST) is named after Dr Kwame Nkrumah, the hero of Ghana s independence and the great Pan- Africanist of the last century. Our Vision - To be globally recognised as the Premier Centre of excellence in Africa for teaching in Science and Technology for development; producing high calibre graduates with knowledge and expertise to support the industrial and socio-economic development of Ghana and Africa. Our Mission - To provide an environment for teaching, research and entrepreneurship training in Science and Technology for the industrial and socio-economic development of Ghana, Africa and other nations.

3 KNUST - GENERAL INFORMATION Main campus has land area of 16 km 2 with lots of greenery 3

4 KNUST - GENERAL INFORMATION Main campus has land area of 16 km 2 with lots of greenery

5 ABOUT KNUST COLLEGES 1. Agriculture & Natural Resources 2. Architecture & Planning 3. Art & Social Sciences 4. Engineering 5. Health Sciences 6. Science

6 DEPARTMENTS IN COLLEGE OF ENGINEERING 1. Agricultural Engineering 2. Chemical Engineering Chemical Engineering Petroleum Engineering Petrochemical Engineering 3. Civil Engineering 4. Geological Engineering 5. Materials Engineering Materials Engineering Metallurgical Engineering

7 DEPARTMENTS IN COLLEGE OF ENGINEERING 6. Mechanical Engineering Aerospace Engineering Mechanical Engineering 7. Computer Engineering Computer Engineering Biomedical Engineering 8. Geomatic Engineering 9. Electrical & Electronic Engineering Electrical & Electronic Engineering Telecommunication Engineering

8 DEPARTMENTS UNDER COLLEGE OF ENGINEERING 1. Technology Consultancy Centre 2. The Energy Centre Agriculture Natural Resources Architecture Petroleum (Chemical) College of Engineering Materials Hydro (Civil) Distance Learning Planning IEAC (Electrical) SEAL (Mechanical) Biofuels (Chemical) Machinery (Agricultural Eng) GIS (Geomatic) Science Law The Energy Centre at KNUST Economics SMEs (TCC) Business Rural Development (BIRD)

9 THE ENERGY CENTER - SOME PARTNERS

10 Ghana Basic Data (Socio-Economic) Population 29.5 million (2013) GDP billion USD (2013) GDP per capita: 1, USD (2013) Official language English Land area 238,500 km 2

11 Ghana Basic Data (Energy) Electricity Access (Sept 2013): 74% Electricity Installed capacity (2013): 2,847MW Electricity generation (2013): 12,870GWh Total Electricity Consumed/capita (2013): kwh

12 Ghana Basic Data (Energy) TPES increased by 36% between 2000 and 2013

13 Ghana Basic Data (Energy) Petroleum overtook biomass as the largest contributor to Final Energy and TPES in 2010 and 2012 respectively.

14 Generation, GWh Installed Capcity, MW Ghana Basic Data (Energy) Installed Capacity and Electricity Generation in Ghana Electricity supply has increased over the years but has not kept pace with increasing demand, estimated at 10% p.a Year 0 Installed Capacity (MW) Generation (GWh)

15 Ghana Basic Data (Energy) Power sector unbundled with an independent transmission system operator (the Ghana Grid Company Limited - GRIDCo) which guarantees open access to the transmission system. There is significant private sector participation at the level of generation. Distribution is undertaken by three entities Electricity Company of Ghana, the Northern Electricity Distribution Company and Enclave Power (a private company). The Energy Commission is the technical regulator of Ghana's electricity and natural gas industry, and is also the regulator of the renewable energy industry. The Public Utilities Regulatory Commission has the mandate set utility tariffs in Ghana - water, electricity and natural gas The Environmental Protection Agency ensures compliance with environmental regulations.

16 Renewable Energy Sector Policies and Development 2006 Strategic National Energy Plan (SNEP) published The goal of SNEP is to contribute to the development of a sound energy market that would provide sufficient, viable and efficient energy services for Ghana s economic development through the formulation of a comprehensive plan that will identify the optimal path for the development, utilisation and efficient management of energy resources available to the country. Covered both supply and demand sides in an integrated approach. Proposed 10% RE target by 2020 for electricity sector.

17 Renewable Energy Sector Policies and Development 2010 recommendations of the plan formally adopted as national energy policy, with accompanying strategy document.

18 Renewable Energy Sector Policies and Development The Policy is intended to guide the development and management of Ghana s energy sector up to The Energy Challenge Ghana s total energy supply has to grow significantly to help achieve the development agenda goal. The challenge is how to increase the energy supply and also expand the energy infrastructure in the country in a way that is sustainable. Vision The energy sector vision is to develop an Energy Economy to secure a reliable supply of high quality energy services for all sectors of the Ghanaian economy and also to become a major exporter of oil and power by 2012 and 2015 respectively.

19 Renewable Energy Sector Policies and Development Sub-Sector Goals (Selected) Power Sub-sector The goals of the power sub-sector are to increase installed power generation capacity quickly from about 2,000 MW today (2010) to 5,000 megawatts (MW) by 2015, and increase electricity access from the current level of 66% to universal access by Renewable Energy Sub-sector The Renewable Energy sub-sector covers biomass, mini hydro, solar and wind resources. The goals of the renewable energy sub-sector are to increase the proportion of renewable energy in the total national energy mix and ensure its efficient production and use. The national target is 10% by 2020.

20 Renewable Energy Sector Policies and Development The Renewable Energy Law The year after the publication of the National Energy Policy (and Strategy Document), the legislature passed the Renewable Energy Act (Act 832). The object of the Act is to support the development, utilisation and efficient management of renewable energy resources. To achieve this, the Act sought to make provision for: 1. a framework to support the development and utilization of renewable energy resources. 2. An enabling environment for private investment in the Renewable Energy sector.

21 Renewable Energy Sector Policies and Development The Renewable Energy Law Provisions of the Law (inter alia): Licensing procedure Feed in Tariff (FiT) Renewable Energy Purchase Obligation Renewable Energy Fund

22 Renewable Energy Sector Policies and Development The Renewable Energy Law Licensing Procedure Licensing manual was published in 2012 to provide guidance for investors in the wholesale electricity sector. License is issued for 20 years after conditions have been met.

23 Renewable Energy Sector Policies and Development The Renewable Energy Law - Licensing procedure STAGE 1: Acquisition of provisional licence STAGE 2: Prior to Construction A. Acquisition of Siting Clearance (Siting Permit) B. Acquisition of Construction Work Permit (Authorisation to Construct) STAGE 3: Acquisition of Operational Licence (Authorisation to Operate)

24 Renewable Energy Sector Policies and Development The Renewable Energy Law Feed-in-tariff Feed-in tariffs (FiT) were first published in August The FiT rate, fixed for electricity generated from renewable energy sources is guaranteed for a period of ten (10) years and subsequently be subject to review every two years. Based on exchange rate US$1 --> GH (27 th August 2013) FiT for solar PV was US Cents /kWh

25 Renewable Energy Sector Policies and Development The Renewable Energy Law Feed-in-tariff Type of technology Proposed capacity (MW) Solar 2,155 Wind 776 Waste to energy 430 Biomass 68 Hydro 101 Wave 1,000 Total 4,530 Source Energy Commission, Feb 2015

26 Renewable Energy Sector Policies and Development The Renewable Energy Law Feed-in-tariff FiTs were reviewed in October 2014 and caps were announced for variable Res Solar and Wind. Although these caps were meant to assure the stability of the grid, this has understandably upset some investors. FiT Effective 1st October 2014 (GHp/kWh) US$ Cent/kWh RE Technology Wind with grid stability systems Wind without grid stability systems Solar with grid stability/storage system Solar without grid stability/ storage system Hydro 10MW Hydro (10MW 100MW) Biomass Biomass (Enhanced technology) Biomass (Plantation feedstock) PURC, 2014

27 Renewable Energy Sector Policies and Development STATUS OF PV Construction of 20 MW PV plant currently ongoing in the central region of Ghana. VRA commissioned 2.5 MW plant in the north of Ghana in May Total installation reported currently stands at less than 5 MW. This excludes smaller systems installed by individual homes and institutions. Means of data collection on these systems need to be improved.

28 Renewable Energy Sector Policies and Development Solar Thermal The importance of solar thermal technologies (particularly low temperature applications) is duly acknowledged in various Government documents: Strategic National Energy Plan (Energy Commission, 2006) Government supports promotion of solar water heating and drying for demand-side management. Medium-Term National Development Policy Framework: Ghana Shared Growth and Development Agenda (GSGDA), (NDPC, 2010) By virtue of its geographical location, Ghana is well endowed with solar resources which could be exploited for electricity generation and low heat requirements in homes and industries. Sustainable Energy For All Action Plan (Energy Commission, 2012) Ghana is well endowed with solar resources which could be exploited for both on-grid and off-grid electricity generation as well as low heat requirements in homes and industries. Targets: To achieve 1% penetration of solar energy in hotels, restaurants and institutional kitchens using solar water heaters by 2015 and 5% penetration by Strategic National Energy Plan, Unfortunately, not much has been done in support of this technology.

29 Renewable Energy Sector Policies and Development Ongoing Operationalization of other provisions of the RE Law, such as grid interconnection codes, RE Fund, Net metering guidelines, etc. Initiative to install 200,000 solar home systems.

30 Renewable Energy Sector Policies and Development Our Research in Solar Energy PV System Performance Studies (Besides what we know from theory and manufacturer claims, how do various PV Cell Technologies perform under sub- Saharan African climate?) Degradation studies on field-aged PV Systems (with ASU PRL supported USAID/NSF PEER Science programme)

31 Renewable Energy Sector Policies and Development Our Research in Solar Energy Cross-border PV electricity trade in West Africa (Can solar electricity participate in sub-regional power trade? What will it take to make this happen? a study with UNEP under Green Economy and Trade Opportunities Project) Techno-Economics of PV (grid-connected, off-grid, hybrid configurations for Telecoms applications) Potential of grid-connected solar PV in rural electrification What technical benefits could accrue to end-of-line communities with installation of grid-connected PV systems? Concentrating Solar Power Etc.

32 Renewable Energy Sector Policies and Development Some lessons so far Policy predictability imposition of caps after issuance of about 30 licenses has raised concerns among investors. Credit rating of utilities is important. Prospective IPPs are asking for sovereign government guarantee. Inadequate spinning reserve to back intermittent generation plants (solar and wind plants). Reluctance of prospective IPPs to sell power to bulk customers.

33 Renewable Energy Sector Policies and Development Conclusion Financially sound utilities operating in a stable macroeconomic environment is a pre-requisite for successful implementation of market based approaches to solar energy in Africa. This is in addition to some level of technical preparedness of main actors.

34 Thank You David A. Quansah Department of Mechanical Engineering (Fellow, The Energy Center) Kwame Nkrumah University of Science and Technology (KNUST) Kumasi Ghana Visit us:

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