Trends in Real GDP and per Capita growth rates in percent

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2 Ghana has witnessed sustained economic growth and macroeconomic stability over the last three years: Trends in Real GDP and per Capita growth rates in percent Indicator Year (F) GDP Growth Rate (%) Inflation (%YoY) Real GDP growth Real GDP Per Capita

3 Total Installed Capacity Hydro Power Thermal 2,185MW 1,100 MW 1,085MW Current Consumption 1,400 MW Expected Annual Growth in Demand 10% Expected Annual Capacity Additions 200 MW National Access 66% Expected Capacity by ,000 MW Power cuts are frequent due to significant lower output from power plants than installed capacity and inefficient distribution network.

4 Organisation Ministry of Energy (MoE) Responsiblities Formulating, monitoring and evaluating policies, programmes and projects in the energy sector. It is also the institution charged with the implementation of the National Electricity Scheme. Energy Commission (EC) The Energy Commission, in addition to being responsible for technical regulations in the power sector, also advises the Minister for Energy on matters relating to energy planning and policy. Public Utilities and Regulatory Commission (PURC) The PURC independent regulatory agency responsible for the economic regulation of the power sector with the mandate to approve rates for electricity sold by electricity distribution utilities.

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6 The share of modern renewable energy technologies (Wind, Solar PV, hydro below 100MW, Bio-fuel) for electricity is however very negligible (<0.1%). Target by 2020 is 500 MW (10% of energy mix) Investment Requirements to achieve target of (500 MW) Energy Source Source: Ministry of Energy Exploitable Potential (MW) Investment Requirement US$ (million) Wind Solar Medium small Hydro Waste to energy Total 500MW 640-1,000

7 Wind Energy The gross wind electric potential is about 5,600 MW. The table shows a summary of gross wind electric potential for Ghana. Wind Resource Utility Scale Source: Ministry of Energy Wind Class Wind Power at 50 m (W/m 2 ) Wind Speed at 50 m (m/s) Total Area km 2 Percent Windy Land Moderate Good Excellent <0.1 Excellent <0.1 Total 1,

8 Solar Energy Ghana is endowed with enormous solar energy resource spread across the entire country. Daily solar irradiation level ranges from 4 to 6 kwh/m 2. The annual sunshine duration ranges between 1800 to 3000 hours offering very high potential for grid connected and off-grid applications. Over 6,000 solar systems with an installed capacity of 3.2 MW have been installed in the country mainly for off-grid applications. Generally, Northern Ghana has a better Solar resource than South Ghana.

9 Bioenergy The potential for production of bioenergy from waste is great. Waste generated from the following sources could be used to generate biofuel: Municipal and Industrial waste Waste generated from palm oil production Waste from cocoa production Other agro-waste

10 IPP Undertakes Pre -feasibility study IPP Identifies a Buyer or an Off-Taker (Bulk Customers). Detailed feasibility studies to ascertain Technical Feasibility and Financial Viability of Project. IPP interacts with relevant Regulatory Agencies, such as the Energy Commission EC (Licensing and Technical Regulations) and the PURC (Pricing Regulation) IPP obtains Site clearance by Environmental Protection Agency (EPA) & EC. IPP Obtains Environmental Permit from EPA Concluding a Memorandum of Understanding between IPP and Off-Taker after securing PURC s No-Objection in principle. Obtaining License from the Energy Commission IPP obtains relevant approvals of identified relief s from Governmental Agencies such as Ghana Investment Promotion, Ministry of Energy and Ministry of Finance & Economic Planning etc. IPP concludes Power Purchase Agreement with Off-Taker

11 According to Energy Policy, Government plans to increase supply of power to meet the annual expected 10% growth in demand through investment and private sector participation, (independent power producers) Ghana plans to become net-exporter of power by 2015 Ghana plans to achieve universal access to power (electricity) by 2015 Government has also commenced the construction of US$850 million gas processing plant and infrastructure linked to FPSO to be completed by end of 2012 The Renewable Energy Bill has been passed by Parliament to provide the regulatory environment for promoting private sector investments in Renewable Energy Systems

12 A 400 MW hydro-electric power plant at Bui. First phase of 113 MW to be commissioned by the end of 2012 Increase capacity of the Sunon Asogli Power Plant -(Independent power producer) by 100 MW to bring total capacity to 200MW by end of 2012 Increase capacity of the Tema Osonor Power Co- (Independent Power Producer)by additional 126 MW to bring total capacity to 330 MW Expansion of Takoradi International Co (TICO) power plant by 110 MW to 330 MW by 2013 Government seeking strategic partners to develop the 220 MW Domini power plant with Volta River Authority

13 Access to finance/capital Difficulty in securing and registering land for business Insufficient access to technology Poor linkage between research development and private sector

14 The DB Partnership programme supports setting up long term partnerships between Danish and Ghanaian companies. ( The DB Finance programme offers interest free, or low interest loan for larger and medium sized investments in developing countries ( The Industrialisation fund for Developing Countries offers capital in the form of debt or equity investments in developing world with a Danish partner ( Eksport Kredit Fonden offers reinsurance, working capital guarantees and export loan for company transactions in developing countries (