GHANA S BLUE PRINT FOR A SUSTAINABLE ENERGY FUTURE HON. SHERRY AYITTEY, MINISTER FOR ENVIRONMENT, SCIENCE AND TECHNOLOGY GHANA

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1 GHANA S BLUE PRINT FOR A SUSTAINABLE ENERGY FUTURE By HON. SHERRY AYITTEY, MINISTER FOR ENVIRONMENT, SCIENCE AND TECHNOLOGY GHANA

2 Renewable Energy in Ghana: Prospects and Challenges Renewable energy resources include: Solar Power Photo Voltaic (PV) and Thermal Bio Energy Biomass and Biofuel Wind Power Hydro Power Tidal Power and Wave Power Geothermal Power Fuel Cells Hydrogen generation and storage Renewable energy is site specific and technology driven. Renewable energy that can be exploited in Ghana include: Hydro power (mini, micro) solar, biofuels, wind and energy derived from waste (agricultural and municipal)

3 Challenges to Future Energy Development Worldwide Future energy development faces great challenges due to Increasing standards of living worldwide Demand for cleaner energy associated with less pollution Depletion of fossil fuel Without energy, the infrastructure which forms the basis of development would collapse: agriculture, transportation, information technology, communication and most of the basic needs of life depend on energy. Ghana s Energy Challenges With an expanding economy and growing population, Ghana faces major challenges in providing: the required amount of energy with reliability and sustainability

4 Ghana s Energy Challenges Wood fuel consumption is expected to rise almost five times from 14 million tones in 2000 to 66 million tones by 2020 Total petroleum demand is projected to grow from about 1.6 million tones in 2000 to 4.5 million by 2020 Electricity demand for the domestic market is projected to exceed 4,400 MW in 2020

5 Renewable Energy Resources in Ghana Wind Energy The availability depends on the geographical location of country relative to the equator: Countries located further from the equator are known to have relatively high wind energy potential compared to countries cose closer Another challenge is the storage of energy produced during blustery periods Wind speeds below 5m/s are considered to be too low for commercial exploitation Along the cost of Ghana wind speeds of 3 9 m/s have been recorded and could sustain economic exploitation of wind energy

6 Renewable Energy Resources in Ghana Geothermal Energy Geothermal energy as in energy derived from heat in the earth crust has been harnessed for more than a century. Ghana has no known geothermal energy resource Solar Power The sun is the most abundant source of energy in the universe which can be harnessed in the form of heat or light. The challenge associated with usingsolar solar energy especially for a developing country like Ghana has been the initial cost of procuring the solar panels. Biofuel This is fuel that is derived from biomass. Unlike petroleum, biofuel is a renewable resource. Uncertainties in the price of fossil fuel and concern for the environment has precipitated the need for biofuel. Experiences fromcountries such as Brazil, Malaysia and Germany show show considerable potential for biofuels.

7 Renewable Energy Resources in Ghana Fuel Cell The technology involves the conversion of chemical hydrogen and oxygen into water and in the process generate electricity. This holds considerable potential for addressing the energy needs of the world in the future Challenges to the Development of Renewable Energy in Ghana Limited i Renewable Energy Resources Renewable energy sources in Ghana consisting of small and mini microhydro, wind, solar, biomass and municipal solid waste would only be able to supply between 380 and 500 MW delivering between 2,500 and 3,500 GWh competitively. This will form about a tenth of the energy requirement of Ghana by More than 10% of renewable energy in the energy mix would increase the cost of generation significantly ifi

8 Challenges to the Development of Renewable Energy in Ghana (Continue) The potential of generating grid electricity from Solar PV is limited by capital rather than resource. Wind may have the largest capacity for development among the options and has the potential ti of contributing tib ti significantly ifi to grid power by about MW producing 600 GWh Cost per Kilowatt Hour One of the critical challenges to the adoption of renewable energy sources is the cost per unit to consumers compared with energy from other sources (fossil fuels). The cost of grid connected tdsolar energy per kwh is over US$0.30 compared to US$ 0.04/kWh The cost of a solar panel facility in Ghana is about US$ 7000/kW compared to US$ for a gas fired thermal power plant

9 Challenges to the Development of Renewable Energy Investment Risk The volatility in the pricing of oil and gas on the international market increases the risk of investment in renewable energy facilities. A drop in hydrocarbon prices erodes enthusiasm for investment in renewable energy sector Competing Technologies There is intense competition to achieve hegemony within the sub sectors of the renewable energy market. In biofuels, lobbyists for a corn based solution vie with those championing cellulose, ethanol, biodiesel. Within the solar market, ktconcentrating ti solar power systems compete with the much more popular photovoltaic systems

10 Challenges to the Development of Renewable Energy (Continue) Not In My Backyard Syndrome Renewable energy although provide less pollution compared to energy from fossil fuel, there have been significant backlash from communities ii regarding the constructing of facilities i to produce renewable energy. Intermittent Nature of Renewable Energy and Storage Difficulties Many renewable energy sources are often dismissed because they can not be stored and also because they are intermittent. Constraints to Biofuel Development The development of an alternative to existing fuel requires policy directives i and strategies. The main constraints are: Feedstock availability, local processing capacity, technologydevelopment relating to end use, consumer acceptance of new fuel and cost competitiveness

11 Challenges to the Development of Renewable Energy (Continue) Feedstock for Biofuel Production Different feedstock are used for biofuel production in different countries. The general trend is that countries choose feedstock plants which are already being produced on large scales locally and which have other commercial value other than the production of fuel. In Ghana, Palm oil, Jatropha curcus and Sugar cane offer significant advantages for biofuelproduction. Cost Competitiveness of Biofuel The biofuel market worldwide is not well developed and biofuels are not competitive even with crude oil at US$73.00 per barrel. The global market for biofuel is politically driven and relies on tax rebates.

12 Conclusion Renewable Energy can be harnessed to support and supplement conventional energy supply. However, significant ifi cost, technology and attitudinal barriers need to be surmounted before any meaningful penetration could be achieved. THANK YOU.

13 Ministry of Environment, Science and Technology (MEST)

14 MEST Mandate The Ministry of Environment, Science and Technology is mandated by government to support national socio economic i development goals for the country to attain middleincome status through the promotion of science, technology and innovation, human settlement planning and management as well as sustainable management of the environment at all levels of society and in all sectors of the economy. Institutions Town and Country ilf Environmental Council for Ghana Atomic Planning Protection Agency Scientific and Energy Department (EPA) Industrial Commission (TCPD) Research (CSIR) (GAEC)