MINISTRY OF ENERGY
Republic of Ghana
MEET THE PRESS
“ENERGY FOR A BETTER GHANA”
BY
DR. JOE OTENG-ADJEI
MINISTER FOR ENERGY
6TH SEPTEMBER 2012
INTRODUCTION
Honourable Minister for Information,
Colleague Ministers of State,
Ladies and Gentlemen of the Press,
Chief Executives and Staff of the Energy Sector Agencies,
Invited Guests,
First and foremost, let me thank the Ministry of Information for providing this
platform to enable me update Ghanaians on progress made by the NDC
Government in the implementation of programs and projects in the energy
sector as outlined in the Ghana Shared Growth and Development Agenda
(GSGDA), a medium-term policy framework which seeks to concretise the
Better Ghana Agenda of the NDC Government.
Mr Chairman, Ladies and Gentlemen of the Press, you may observe some
repetitions of issues that I have spoken of in the recent past, as we outline our
achievements. This is because this is likely my last encounter with you for this
year and for our first term in office. As such, I need to provide a holistic
account of our stewardship for the four years.
ENERGY SECTOR VISION AND POLICY DIRECTIONS
Ladies and gentlemen, the NDC Government’s vision for the energy sector 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 become a
major exporter of oil and power by 2012 and 2015 respectively. The
Government remains focused on this vision and has through the Ministry of
Energy, published the National Energy Policy document and the Energy
Sector Strategy and Development Plan to provide a better understanding of
Ghana’s Energy Policy framework as captured in the “Better Ghana
Agenda”.
These provide concise outline of the Government’s policy
direction that seeks to ensure universal access to electricity and choice of
alternative modern forms of energy to all Ghanaians without exception by
2020.
DEVELOPMENT IN THE PETROLEUM SECTOR
Mr. Chairman, the economic significance for Ghana of Jubilee production,
the resultant level of public interest in the petroleum sector, sustained
increase in global energy prices and the spectacular Macondo oil spill in
2010 has stimulated a re-evaluation of the sector and brought about some
changes.
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UPSTREAM ACTIVITIES
Industry Reforms
Following the oil discoveries it has become necessary to restructure the
industry to reflect the vision for the energy sector and to bring it abreast with
international norms and best practice. The year 2011 was thus a watershed
year for policy, legislative and institutional reforms designed to ensure that
benefits of O&G development are maximized for Ghanaians. The review has
included the establishment of a Petroleum Regulatory Commission,
formulation of the Local Content Policy, review of the Exploration and
Production Law 84, and the enactment of the Petroleum Revenue
Management Act (PRMA, Act 815).
The establishment of the Petroleum Commission to regulate the upstream
sector has left the Ministry to focus on policy issues and GNPC playing the
commercial role. The law establishing the Ghana National Petroleum
Corporation (GNPC) is thus being reviewed to focus it on its commercial role.
The aim is to enable GNPC undertake roles in the whole value chain in the
petroleum upstream sector as an operator, with its own resources, in the near
future. A restructuring of the organization is currently underway to enable it
fulfill the above aim.
GNPC continues to improve on its record of public engagement in spite of
the challenges that it has to confront given the deliberate decision and
complete shutdown in 2001 of its Corporate Affairs department without due
regard for the Company’s future as a pioneer of oil production in Ghana.
GNPC’s communications machinery used to be the envy of many
organizations in the 80s and 90s.
With the significant discoveries and commencement of production in 2010,
the public demand for information and analysis of the sector has grown
exponentially. GNPC has responded to the public demands by making it a
responsibility to regularly inform and engage with various stakeholders on
most aspects of its operations that are of interest to the public.
The Ministry wishes to assure the public that it remains relentless in ensuring
that GNPC
remains compliant with its constitutional and statutory
transparency and accountability reporting obligations.
The Model Petroleum Agreement which is the template/basis upon which all
Petroleum Agreements are negotiated is also under review.
This review will result in the following:
1. A concise Model Petroleum Agreement
2. Ease of Petroleum Contracts Monitoring and Management.
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3. Drawn lines of distinction between Regulations/Guidelines and
Agreements
4. predictability of the upstream sector
ACHIEVEMENTS
Apart from the Jubilee discovery in production, GNPC and its partners have
been hard at work and sixteen (16) new discoveries have been made up to
date. These discoveries are at various stages of appraisal and development.
The appraisal and development of discovered fields provides opportunities
for public private partnerships to support increasing activity including
pipelines and processing plants, new oil refining capacity, power generation,
fertilizer production and petrochemicals to feed both domestic and export
demand.
I will mention a few of them.
Jubilee Field
Jubilee commenced production in November 2010 at 25,000 Barrels of oil per
day (BOPD). Production ramped up to October 2011 with an average daily
production rate of 80,000 BOPD. Jubilee field started experiencing premature production decline from November 2011. The field production
declined from the October 2011 average daily production rate of 80,000
BOPD to about 63,000 BOPD end July 2012.
GNPC and the Jubilee Partners have successfully arrested the pre-mature
production decline of the Jubilee field and increased daily production rates
to 87,000 barrels of oil per day. This improvement is as a result of successful
acid stimulation operation performed on five (5) of the nine (9) Jubilee
production wells.
As of 31st August 2012, Jubilee field had produced over 41.3 Million barrels of
oil (MMBO) and exported over 41 MMBO. The Ghana Group (i.e. Government
and GNPC) lifted 6.9 MMBO representing 16.85% of total crude oil exported.
In order to improve production and extend the production plateau
considerably, an addendum to Jubilee Field Phase 1 Plan of Development
(Jubilee Phase 1A PoD) is being implemented with the drilling of additional 8
wells (made up of 5 oil producing wells and 3 water injection wells), and the
installation of additional subsea facilities. It is worth noting that some of the oil
producing wells has been designed as horizontal wells to enhance well
productivity.
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The Phase 1A project is estimated to cost approximately $1.2 billion and will
take a total of eighteen (18) months to complete. It is expected that three (3)
of the five (5) oil production wells and one (1) of the three (3) water injection
wells will be drilled, completed and hooked up to the FPSO Kwame Nkrumah
by the end of 2012.
Recoverable resource estimates within the field remain unchanged.
I am well informed that 3 of the first batch of 5 wells have been drilled to their
designed total depth. Other activities such as fabrication of the
aforementioned infrastructure are going on smoothly.
Deep Water Tano – TEN DEVELOPMENT
Appraisal work on a cluster of discoveries on the Deepwater Tano block
namely “Tweneboa”, “Enyenra” and “Ntomme” is far advanced. GNPC and
the Contractor parties have proposed to develop them as one integrated
field under the name “TEN Development Project”. Originally thought to be
largely gas-condensate, appraisal work demonstrated that TEN holds
(hydrocarbon-in-place) of about 706 MMBO, 729 BCF of non-associated gas
and 51 MMBO condensate for the mid case. TEN appraisal drilling and flow
testing is almost complete. We expect First Oil within approximately 30
months after approval of the PoD in the fourth quarter of 2012.
The NDC government is taking the Local Content aspects of this project
seriously. We are looking at the possibility of upgrading the Tema Shipyard to
enable some major fabrication works like the offloading buoy and jumpers to
be fabricated locally. This will create employment opportunities for
Ghanaians.
West Cape Three Points – MTAB
GNPC and the WCTP partners have agreed to continue with the appraisal
program on the Mahogany extension, Teak, Akasa and Banda discoveries
with the plan to develop as a unit.
Offshore Cape Three Points Block - Sankofa-Gye Nyame
Technical appraisal work has been completed establishing combined gas
resources of in-place volume of 2.36 TCF. The commercial assessment on the
Sankofa and Gye Nyame gas discoveries has been conducted and the
report submitted to me. It is expected that first gas from Sankofa – Gye
Nyame field will be in 2017.
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Other Discoveries
Apart from discoveries that are currently undergoing appraisal and
development activities, there are six (6) other discoveries that are at various
stages of post well study at the end of August 2012. They include Odum
(GNPC), Dzata (LukOil/Vanco), Paradise, Hickory North and Beech (Hess),
and Wawa (Tullow.
Exploration Activities
Exploration activities such as acquisition, processing and interpretation of
seismic data are being carried out in TAP block, LukOil block, ENI/Afren block,
Oranto block and Hess block.
Petroleum Agreements
The production, development and appraisal work above relate to only a
relatively small portion of one of Ghana’s sedimentary basins and reflects
activity under only three Petroleum Agreements. Consistent exploration effort
by GNPC and its partners and the recent successes have significantly derisked our offshore sedimentary basins and stimulated increased interest and
investment in the upstream industry over the last 5 years. There are currently
10 active Petroleum Agreements across our 3 coastal basins. Companies
operating Petroleum Agreements include Kosmos Energy, Tullow Oil Plc,
Vanco Energy, Lukoil, Hess Exploration, Vitol Upstream, Tap Oil, Oranto Oil,
Lushan Eternit and Afren Plc. There is good reason to believe that the blocks
under licence hold significant resources of oil and gas waiting to be
discovered and harnessed.
Each Petroleum Agreement represents a
potential farm-in opportunity for qualified investors. For example, as you
might have heard, Statoil is farming into the Hess block in the Tano/Cape
Three Points basin. There are other farm-in processes underway which will be
made public at the appropriate time.
Greenfield Opportunities
Ghana has over 36,000 km2 and 103,600 km² of open acreage offshore and
onshore respectively. The Saltpond and Accra/Keta sedimentary basins and
relinquished acreage in the Tano/Cape Three Points basins are candidates
for licensing activity as are the large onshore Voltaian basin, the onshore
Tano basin where seepages of oil have been known for over a hundred years
and the onshore Keta basin which is attracting significant interest.
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Jubilee Crude Oil Production And Liftings
Total crude oil production by the Jubilee partners from start-up on 28th
November 2010 to 31st August 2012 was 41,309,206 barrels; for the same
period, total crude oil liftings was 41,071,292 barrels. Total Jubilee crude oil
stocks as at 31st August 2012 is 237,914 barrels.
From January 2011 to August 2012 a total quantity of 6,919,556 barrels was
lifted by the Ghana Group with a total net value of US$ 770,744,733.11. In
2012 a total quantity of 2,989,367 barrels was lifted with a total net value of
US$ 326,620,009.43.
Sustaining Petroleum Operations
Participating in oil exploration, development and production comes with an
obligation to contribute to the costs incurred during the process. Without
these contributions the bulk of revenues that are currently being received
would not be earned and there would not be enough and sustained revenue
inflow to fund the other needs of the country.
Given all of the programmes and projects that I have outlined, there is the
need to sustain investments to increase and sustain oil and gas production
and continue to add up to petroleum reserves. In this direction the
Government will continue to resource GNPC to enable it to meet our existing
financial obligations in an efficient manner and to maintain and increase our
level of participation in petroleum operations.
Countries are today strengthening their national oil companies to be the
cash cows of their economies and Government supports the goal of GNPC to
become lead Operator in order for Ghana to increase its revenue and other
dividends from oil. Funding GNPC to increase its stakes in oil blocks will
enable the country to take the commanding heights of the oil and gas
production process and strengthen the sector to ensure that the bulk of the
revenue comes to Government, instead of going to international oil
companies.
We continue to do this in a disciplined manner as laid down by law by
ensuring that programs and budgets of GNPC are always submitted to the
Minister of Energy, who in collaboration with the Minister of Finance and
Economic Planning submits it to Parliament for approval.
Let me also correct some impressions that GNPC has encroached upon the
roles of others, going as far as issuing blocks which should be in the domain of
the Petroleum Commission, therefore stifling development in the area. GNPC
does not issue licenses for blocks. GNPC’s discussions with international oil
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companies are only in keeping with its legal mandate to partner entities who
intend to operate in Ghana. The role of licensing continues to rest with the
Government of Ghana and the Petroleum Commission. No blocks can be
issued without the final approval of Parliament.
MIDSTREAM
To maximize the exploitation of the gas from the Jubilee Field and other
future gas discoveries the Government of Ghana has moved to actualize this
intention by initiating the processes of ensuring the development and
utilization of natural gas that would be produced.
We have set targets to:
 Commence the Gas commercialization project.
 Commission the first 60km of the gas pipeline system, and
 Build an environmentally and structurally safe site for locating the gas
processing plant and ancillary equipment.
I am happy to report that the site at Atoabo in the western region has been
cleared and it is under preparation. The Environmental Impact Assessment
Scoping Report on the project has been completed.
The gas processing plant has been fabricated and will be shipped to Ghana
in the next few weeks, whilst 30KM of 20inch pipes have been delivered to
Ghana Gas. The remaining 80Km pipeline has also been delivered.
DOWNSTREAM
Mr Chairman, the Government of the NDC has drastically relieved the Tema
Oil Refinery (TOR) of its debt burden. We have supported the Bulk Oil Storage
and Transportation (BOST) Company to enhance its role as keeper of the
nation’s petroleum Strategic Reserves. Measures are being instituted to make
LPG shortages a cancer of the past.
BOST:
The NDC Government has demonstrated its commitment to increasing the
capacity of the Bulk Oil Storage and Transportation Company to store and
transport bulk petroleum products and transmit natural gas nationwide. The
Government has been working with BOST to achieve this objective. In this
regard tank expansion projects are underway in most of their depots. In
addition the company has constructed barges, a pusher-tug and a floating
dock to facilitate the transportation of bulk petroleum products by the Volta
Lake to the northern sector of the country. BOST is constructing the largest
petroleum terminal in the Western region as part of the national petroleum
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storage and distribution network. The terminal will have the capacity to
receive, store and deliver 150 million litres of petroleum products and 20,000
cubic metres of LPG. The infrastructure will significantly expand our strategic
stock storage capacity and will ensure the universal access to adequate,
reliable and cost effective LPG.

TOR:
Government, over the years has been saddled with debt of the Tema Oil
Refinery (TOR). At the end of December 2008, the total debt in the books of
TOR was GHc1, 678 million increasing to GHc 1,789 million at the end of 2009.
As part of NDC Government’s efforts to find a lasting solution to the TOR debt,
Government in 2010 made a payment of GHc445 million to the Ghana
Commercial Bank to help reduce the indebtedness of TOR.
Government again, in March, 2011 restructured TOR debt by securitizing the
debt through the issue of Medium Term Government Bonds.
To date government has made payment on behalf of Tema Oil Refinery
to the tune of GHC1, 137,832,874.37. Total outstanding debt is GHC
610,928,790.72.
In our quest to find a lasting solution to the perennial financial challenges of
TOR, a technical, operational and financial diagnostic review of TOR was
commissioned. The audit has been completed and the recommendations
will be implemented to ensure that TOR operates efficiently and on financially
sound basis.
LPG
Ladies and gentlemen, we all do recall that last year as a country we
encountered some challenges with respect to the supply of LPG to
consumers. Though there have some challenges in the past few weeks
because TOR shutdown operations because of some technical challenges, I
am happy to observe that we have been able to considerably stabilize the
supply of LPG in the country by an arrangement for a vessel to be dedicated
for Ghana supply as interim measure whiles government continuous to seek
approval for the use of Takoradi JETTY as a second point for receiving LPG
into Ghana infrastructure.
Government is also seeking funding to resuscitate the TOR LPG infrastructure
to improve on the receipt and discharge into trucks so that we can increase
the daily deliveries to the various outlets of the country.
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The Ministry of Energy has obtained approval from the Public Procurement
Agency to commission Ghana cylinder manufacturing company to
manufacture 5kg cylinders and stoves for a rural LPG promotion programme
as part of government policy objective of making clean fuel available to the
under privileged in our society. Under this programme rural communities will
only pay for the LPG. The cylinders would be supplied to them free of charge
from a pool of cylinders that would be re-circulated and maintained to
ensure that safety standards are met.
Governance, Regulatory & Legal Frameworks & Institutions
Mr Chairman, the Government of the NDC is fully aware that strong
institutions and legislation are imperative to ensuring that the exploitation
of our petroleum resources delivers lasting benefits. We have therefore;
put in place a number of policy and legislative frameworks and institutions
to assure good governance in the oil and gas sector. Some of the
legislative frameworks developed include:
Petroleum Revenue Management Act (Act 815) to guide transparent
and accountable management of revenues from the upstream
petroleum sector
 Petroleum Commission Act (Act 821) to establish an independent
upstream petroleum regulatory authority
 Draft Petroleum & Exploration, currently before parliament for
consideration and ratification.
 Local Content and Local participation in Petroleum activities policy, to
ensure enhanced locally retained value.
 Draft legislation and regulations, with local content schedules, to
provide legal backing to the local content policy (awaiting
parliamentary ratification.) Draft National Gas Pricing Policy which
forms part of the Gas Master Plan has been developed and submitted
to cabinet awaiting approval. The gas Pricing Policy is essential to
guarantee full participation in the Gas industry by oil companies and
Ghana National Gas Company. Procurement processes underway for
the development of a Gas Master Plan.
Government has extended the Extractive Industry Transparency Initiative
(EITI) to the oil and gas sector. Reporting templates for the oil and gas sector
have been developed and an Independent Aggregator recruited to
reconcile payments in the oil and gas sector for 2010 to 2011.

Capacity Building Initiatives in the Oil & Gas Sector
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The production of Ghana’s first oil represents the fastest ever full scale
comprehensive deep water development, about 40 months from discovery
to production. Consequently, it became very imperative for Ghana to
quickly develop local capacity and capability, in order to fully participate
and support the Oil & Gas industry..
In December 2010, the Government of the NDC received the World Bank’s
approval to implement a US$38m Oil & Gas Capacity Building Project
(OGCBP), which officially began in March 2011. The objective of the Oil and
Gas Capacity Building Project is to improve public management and
regulatory capacity while enhancing transparency; and strengthen local
technical skills in Ghana’s emerging oil and gas sector.
The Project has targeted, over the next 4 years, to train over 200 public
officials in several key subject areas, to improve policy formulation and
regulatory capacity in the Oil and Gas sector. Key institutions have been
equipped with vehicles, modern office and ICT equipment, as well as other
logistics as part of the capacity building interventions. The institutions are also
benefitting from both postgraduate course and short training programmes
abroad and within country.
Beneficiary institutions include the Ministry of Energy, Ministry of Finance,
Petroleum Commission, Ghana National Petroleum Corporation and the
Environmental Protection Agency. Others are the Economic and Organized
Crimes Unit (EOCO), the Attorney General’s Department, selected Technical
and Vocational Institutions and the KNUST.
The Project is also supporting the Regional Maritime University, Takoradi
Technical Institute and Kikam Technical through curriculum development to
meet industry standards, and the provision of modern equipment for the
training of middle-level manpower for the Oil and Gas industry, and it is
envisaged that over 500 students would benefit from this initiative. The
Government has already contributed US$1 million towards the construction of
a state-of- the –art Petroleum Engineering laboratory at the Kwame Nkrumah
University of Science and Technology (KNUST) which is expected to train
about 300 students over the period of the Project.).
DEVELOPMENTS IN THE POWER SUB-SECTOR
Colleague Ministers, need we be reminded of the situation of the power sub
sector, when we took over the administration of this country the power sub-
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sector was beset with severe challenges underpinned by high erratic power
supply, generation, transmission and distribution deficiencies.
We promised to sustain power generation capacity expansion, as well as
rehabilitate and reinforce the transmission and distribution infrastructure to
meet the projected growth in power demand of about 10% per year in the
medium-term and among other measures to ensure increased access to
reliable electricity by majority of Ghanaians and to increase export of power
to our neighbours. :
Mr Chairman, at the time of assumption of office, the country did not have
updated Generation and Transmission Master Plans and at the instance of
the Ministry of Energy, GRIDCo undertook the preparation of these Plans
which were issued in November 2011 and February 2011 respectively. The
generation master plan is a fifteen-year (2011-2026) period. The plans provide
a guide to investments in the generation and transmission for both public and
private sector based on a detailed load forecast study, optimal technology
options, determination of capacity reserve margin and a least-cost
approach to meet electricity demand while ensuring the system security and
reliability.
Recent Damage to the West African Gas Pipeline
Mr Chairman, as you may be aware, information reaching us from the West
African Gas Pipeline Company (WAGPC) indicates that a vessel has
punctured the West African gas pipeline at Lome, Togo. The challenge was
observed on August 28, 2012 when the gas supply pressure began to
dwindle. WAPCo therefore cut gas supply to Ghana and began
investigations on the matter.
The effect of this is a power supply deficit of about 300MW at peak time (i.e.
6pm to 11pm) and about 100MW during the day (i.e. off peak). Currently, the
Sunon Asogli Power Company has completely shut down and the VRA dual
fuel power plants have been switched on to run on liqht crude oil (LCO) as a
short term measure. Cote D’Ivoire is also providing Ghana with between 30 to
50MW of power to support Ghana.
The shortfall in power generation means that ECG should embark on a load
curtailment programme (power rationing) to prevent complete system
collapse. Therefore power supply to electricity consumers (i.e. residential and
non-residential customers) will be curtailed every other day until the pipeline
is fixed and gas supply is restored to the affected power plants. The utilities will
sufficiently inform the public on all arrangements for the programme.
Meanwhile, industrial customers will not be affected because they are
excluded from the power rationing programme. Industries which may be
affected are those cited in areas which make it difficult to isolate.
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A vessel which is fully equipped to address all kinds of faults on gas pipelines
has been dispatched from Gabon to identify the problem and quickly
address it for gas supply to be restored to Ghana.
In the long term, the focus will be to exploit and use natural gas from the
Jubilee Fields for power generation. That explains why Government is seriously
working round the clock with Contractors of the Gas Processing Plant at
Atuobo to ensure that they (Contractors) complete the project on schedule.
This will reduce our reliance on Nigeria for natural gas to fire our power plants.
Additionally VRA is considering the construction of a Liquefied Natural Gas
(LNG) terminal to allow the importation of LNG to Ghana. This will guarantee
a more secured power supply to the people of Ghana.
Generation
Ladies and gentlemen of the Press, the total installed generation capacity in
the country has been increased from 1,810 MW in 2009 to the present
2,185.5MW by the close of 2010 by the addition of 375.5MW of thermal
generation. The additional capacity is from:
 Tema Thermal 1 Power Plant
126MW;
 Tema Thermal 2 Power Plant
49.5MW;
 Sunon Asogli Power Plant
200 MW
Ladies and gentlemen, it is envisaged that by the end of the year the
installed generation capacity will be increased to 2,445.5MW by the addition
of 260MW. These additions will come from:
 Takoradi (T3) Thermal Project
132MW
 CENIT Power Plant
126MW
 Solar Plant at Navrongo
2MW
In addition, you will recall that last month when we met here to discuss the
current power situation in the country I did promise that the TAPCo steam
turbine was due to come on-stream in the 3 quarter of this year. I am happy
to report that this unit will be restored this month and will increase the
available capacity by 110MW. The increase in available capacity will enable
the system to withstand a contingency in the event of the loss of a unit.
Colleague Hon. Ministers, the NDC Government will bring on stream another
710MW within the next twelve to eighteen months from:
 Bui Hydro Power Project
400MW
 TICo Expansion Project
110MW
 Alstom Units at Kpone
200MW
The above is exclusive of generation projects from Independent Power
Producers (IPP). There are a number of projects at various stages of
development and we expect that between approximately 340MW and
1190MW would be available.
Ladies and gentlemen, we are certainly on course to meeting our policy goal
of expanding Ghana’s power generation capacity from the 2009 level to
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5,000MW in the medium-term with the completion of significant projects
underway.
Transmission
In my last encounter with you, I outlined some ongoing projects aimed at
addressing the transmission challenges through progressive replacement of
over-aged and obsolete equipment and reinforcement of others including
the construction of 161kV and 330kV transmission lines, construction of new
substations across the country and the expansion of some existing substations
and the installation of capacitor banks. I am happy to inform you that:

The construction of 60 km 161kV transmission line between Kumasi –
Obuasi to reinforce and increase the power transmission capacity to Kumasi
and northern Ghana has been completed and in operation.

The construction of a 330kV Aboadze – Volta transmission line and
substations Ghana’s first 330kV transmission line and substation facilities
covering 220km of 330kV transmission line from Takoradi to Tema to increase
the power transmission capacity between the Aboadze power generation
enclave and Accra/Tema has also been completed.

The upgrade of the capacity of the existing transmission lines between
Volta and New Tema substations from 340MVA (2 x 170MVA) to 728MVA (2 x
364MVA) to increase the power transmission capacity to Tema and provide
adequate power evacuation infrastructure for the VRA thermal Plants at
Tema. Project has been completed and in operation.

The provision of a fourth 161kV transmission line between Tema and
Accra to increase the power transfer capacity and reliability to Accra.
Project has been completed and in operation.

The upgrade of transformer capacity at Ho, Asiekpe, Techiman,
Kumasi, Tema, Winneba, Achimota, Akwatia, Takoradi and Techiman to
increase the power transfer capacity and improve reliability to ECG and
NEDCo. Project has been completed.

The Installation of capacitor banks at Achimota, Kumasi, Takoradi,
Sunyani, Kpando, Bogoso and Smelter substations to improve upon system
voltages, reduce transmission losses and also reduce the demand for
reactive power from power plants. Project has been completed and in
operation.

The construction of a 161/34.5kV 25MVA substation at Buipe to supply
power to the Savanna-Diamond Cement factory and the Buipe Township
and its environs. Project has been completed and in operation.

The expansion of the existing Mallam substation by the incorporation of
two (2) additional transformers, two (2) 161kV transmission lines and two (2)
34.5kV, 21.6MVA Capacitor Banks to meet the increasing loads in Accra and
parts of the central region. 1No. 66MVA transformer was commissioned in
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August 2011, while the second transformer was commissioned in June, 2012.
The entire works will be completed by the end of 2012.
In addition to these projects outlined above, we are also embarking on the
following projects to reinforce the transmission network even more and also
improve its reliability.

Kumasi Second Bulk Supply Point (K2BSP): This project involves the
provision of three (3) fully equipped diameters for the termination of two (2)
161kV transmission lines and two (2) 161/34.5kV, 25/33MVA power
transformers together with their associated 34.5kV feeder structures, all other
auxiliary equipment for a fully functional 161/34.5kV substation including
Protection, Control (Mosaic Mimic), SCADA and Communication systems. It
also includes the construction of all associated civil works (control building,
relay rooms, security gatehouse, water supply, sewage facilities, peripheral
drains, embankment and fencing).
It also involves modification works at the existing Kumasi BSP. The works are
expected to be completed by September 2012.

Accra Third Bulk Supply Point (A3BSP): The project involves the provision
of four (4) fully equipped diameters for the termination of two (2) 161kV
transmission lines and two (2) 161/34.5kV, 25/33MVA power transformers
together with their associated 34.5kV feeder structures, all other auxiliary
equipment for a fully functional 161/34.5kV substation including Protection,
Control (Mosaic Mimic), SCADA and Communication systems and all
associated civil works (control building, relay rooms, security gatehouse,
water supply, sewage facilities, peripheral drains, embankment and fencing).
The project also involves the Expansion of the Achimota Substation works for the
termination of the transmission line from Akosombo to Achimota Substation.
The entire 161/34.5kV Substation is expected to be commissioned into service
by December, 2012. The first transformer will be energized by end of
September, 2012.
Smelter II Substation, Tema: The project involves the provision of eleven (11)
fully equipped diameters for the termination of eleven (11) 161kV transmission
lines and two (2) 161/34.5kV, 25/33MVA power transformers together with
their associated 34.5kV feeder structures. The project among others would
facilitate the effective evacuation of power from thermal plants which are
being constructed or planned for implementation in the Tema and Kpone
area. It would also provide an additional transformer substation for ECG in
Tema, thereby reducing the dependency on the New Tema substation as the
only Bulk Supply Point for Tema and its environs.
The project is currently on-going and expected to be commissioned into
service by December 15, 2012.
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
Kintampo substation: The project involves the construction of a
substation to serve Kintampo and its environs and also for the termination of
one of the Bui hydro power plant lines to allow for power evacuation from the
Bui Hydro Dam. The substation is expected to be commissioned early next
year.

Tumu-Han-Wa 161kV Transmission Line and Related substations
Next week, the sod cutting ceremony on the Tumu-Han-Wa Transmission
Project will take place at Wa to commence work on the project which
involves the construction of 161 kV transmission line between Tumu, Han and
Wa to close the “northern loop” of Techiman-Tamale-Bolgatanga-Tumu-WaSawla-Techiman. This would improve the reliability of power supply to the
Northern parts of Ghana, as well as improve upon the system’s performance
and make possible export of power to Burkina Faso.
Parliament has already approved a Societe General support of 82.2 million
Euros for the implementation of this long outstanding 161kV Tumu-Han-Wa
Transmission loop Closure Project and a further 34.1 million Euros for the
rehabilitation and replacement of equipment in 21 substations built in the
1960s under the Substation Reliability Enhancement Project (SREP).

The French Agency for Development (AFD) is also supporting GRIDCo
with a US$ 175 Million (€141M) non sovereign credit facility for the
development of electricity transmission infrastructure in Ghana in
addition to a 4.8M€ grant from the Infrastructure Trust Fund of the
European Union. The facility will be used for the construction of a 530
km 330 kV Kumasi - Bolgatanga transmission line, and co- finance a 40
km 225 kV transmission line and associated substations within Ghana’s
section of a proposed Bolgatanga (Ghana) - Ouagadougou (Burkina
Faso) interconnection aims at
(i) increasing the transmission capacity of GRIDCo with the construction
of the 330kV transmission line and substations in Kumasi, Kintampo,
Tamale and also Bolgatanga,
(ii) reinforcing the Ghana transmission network to ensure the reliable
transfer of power within the network, as well as reduce transmission
losses,
(iii) increasing Ghana’s capacity to be a net exporter of energy to
WAPP countries by co-financing, with the World Bank, the
interconnection line between Bolgatanga and Ouagadougou (Burkina
Faso) and
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 Mim Substation: The project involves the construction of a substation to
provide feeders to NEDCo for Mim and its environs and also to enable the
extension of the NITS to the western parts of the Western region to support
GoG rural electrification programme. This substation is being constructed
with the same facility as the Kintampo substation i.e. US$350million from the
US Exim Bank and will be completed in early, 2013,
I also wish to inform you; ladies and gentlemen that Cabinet and Parliament
have approved various facilities to GRIDCo for the following projects:

Kpando-Kadjebi 161kV Transmission Line
This project will enable GRIDCo to improve on the reliability of power
supply to the Electricity Company of Ghana (ECG) and the Northern
Electricity Distribution Company Limited (NEDCo) by extending the NITS
from the existing Kpando Substation to Kadjebi and the construction of
a
69/34.5kV substation at Kadjebi for supply to Kadjebi township and its
environs. Presently, all northbound power transmission is routed through
the west and centre of the country. The Kpando-Kadjebi Power Project
(KKPP), ultimately, will form part of the 161kV line from the south to the
north of Ghana through the eastern corridor.

Substation Reliability and Enhancement Project
GRIDCo will utilise this facility from Societe Generale of France to
upgrade and enhance the operational reliability of its equipment at
the Bulk Supply Points (BSPs) by replacing obsolete and faulty
components, at various substations, that are contributing to unreliable
and low power quality in the power network.
Distribution (ECG Component)
Over the past three and half years, the Electricity Company of Ghana has
continued to strengthen and improve reliability of the electricity distribution
grid. The objectives of the company’s interventions are to:





Provide alternative sources of supply;
Increase supply capacity within the 33kV, 11kV and LV networks;
Address the issue of high system losses (both technical and non-technical);
Ensure the provision and availability of electricity services closer to the
door steps of customers; and
Improve information flow, data transfer and communication systems.
The specific activities have been grouped into completed and on-going
projects.
A. Completed Projects
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1. Sub transmission Works (GEDAP, French & Norwegian Credits, GoG/ ECG
Funded Projects, etc).
 8no. new primary substations have been commissioned ( Sowutuom,
Kwabenya, Cantoments, Nmai Dzorn, Nungua, Swedru, Koforidua &
Akim Oda)
 All 33kV interconnecting circuits for the primary substations
commissioned have also been completed
 Upgrade of 33kV lines (e.g. Mallam – Tuba, Tuba – Kasoa, Tafo Koforidua lines)
 2,500 new secondary substations have also been commissioned across
operational areas.
 12no switching stations commissioned (i.e. Kasoa, Akuse Junction,
Jasikan, Doodowa, Bawdie, Bogoso, Kuntunasi, Ejisu, etc.)
 6no. District Offices have been commissioned (they are Bortianor,
Achimota, Roman Ridge, Kwabenya, Korle Bu, Lashibi, etc.)
 Secondary automation works for Greater Accra, Central, Eastern, and
Western Regions completed.
 30% of ECG customers are currently on prepayment metering
 So far, about 12,590 new direct jobs have been created.
2. Rural Electrification Projects (GEDAP, US Credit & Chinese Credit)
 A total of 170,000 new customers located within about 1,800
communities have so far been connected.
 About 132,600 more customers from 1,261 communities are earmarked
for connection by the close of this year.
 So far, about 8,690 new jobs have been created. It is expected that
over 15,000 indirect jobs will be created through the project.
B. Ongoing Projects
 3no. new BSPs are under construction (3 BSP in Accra, 2BSP in Kumasi,
Smelter II in Tema)
 11no. new primary substations are currently under construction
(Dansoman, Adabraka, La, Darkuman, Dahwenya, Awudome,
Fawode, Achiase, Takoradi Free Zones, Akuapem mampong, etc.)
 All associated 33kV interconnecting circuits are also under
construction.
 Upgrade of about 8no primary substations including Mallam, Winneba,
etc.
 About 1,500 new secondary substations are earmarked for completion
this year.
 SCADA for all operational areas are ongoing.
 Customer service centres are under construction to get services to the
door step of customers.
C. Interventions for Technical and Non-Technical Loss Reduction
 High voltage distribution system at Madina/Adenta and Suame
Magazine
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




ECG system loss and network improvement project being undertaken
by FXXC of China is underway in the Western part of Accra and Teshie.
Under the project, metering and network reconfiguration would be
done to reduce total system losses to 10%
Secondary substation metering and an intensive energy audit to
properly address system losses
Consultants have been employed to check the wiring and service
connections of our customers
Meter enclosures are under installation to help protect ECG meters and
avoid meter tampering and by-passing.
Rewiring of the major markets in Accra, Tema and Kumasi to check
energy theft, and provide safe electricity supply.
D. Revenue collection interventions
 Prepayment metering to be expanded to all urban communities within
the next two years.
 Automatic meter reading and billing equipment (AMR) have been
deployed for industrial customers to support remote meter reading and
associated activities.
 Deployment of data loggers in meter reading to shorten the length of
time for meter reading and billing.
Customer appreciation programmes are being organized to reward
disciplined customers and encourage recalcitrant customers to change their
behaviour
Distribution (NEDCo Component)
To improve upon power distribution in the northern sector of the country, the
Northern Electrification Distribution Company (NEDCo) is undertaking a series
of projects, some completed and others on-going. The projects include the
following:

Construction of 34.5kV Pwalugu Substation Project: This project which was
undertaken in Pwalugu to improve power supply quality to customers was
completed in October 2011.

Wa Administrative Block Expansion Project: The number of customers in
NEDCo has increased overwhelmingly, partly due to government’s
desire to extend electricity to all parts of the country. This has resulted
in a corresponding increase in operational activities thereby
necessitating the employment of additional staff. The NEDCo Office
and Residential Accommodation project which comprise the
construction of office accommodation in Sunyani, Techiman, Wa and
Bolgatanga and the housing accommodation in Sunyani, Techiman
and Wa was therefore initiated. The Wa Administrative Block Expansion
Project was completed in February 2012.
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
Construction of New Area Commercial Office at Bolgatanga: This
project was completed in February 2012 to take care of the increase in
operational activities.

Ghana Energy Development and Access Project (GEDAP) - NED
Intensification Component: The GEDAP project in NED involves the
construction of both high Voltage (HV) and low voltage (LV) networks
extensions and injection of HV and LV lines in existing networks as well
as the installation of additional distribution transformers of various
capacities and connections of more than 20,000 additional customers
in NED. The project is about to be completed.

Techiman Control Building Expansion
scheduled for completion in June 2012.

Distribution Network Rehabilitation Project (DNRP): This project is aimed
at rehabilitating the distribution network by upgrading or changing
conductors and transformers, injecting new transformers and lines and
connecting new customers. This project is to make the NED distribution
network capable of providing better quality service and adding new
customers. It will also improve customer supply voltages to comply with
LI 1816 (8). Project has been scheduled for completion in September
2012.

Sub-transmission Upgrade Project (Supply Improvement and
Rehabilitation Project): The NED Sub-transmission upgrade project aims
at rehabilitating some of the existing Medium Voltage/Sub-transmission
networks and substations in the NED operational areas namely; Airport
Substation, Dalun Substation, Wa substation and Savelugu Township
network. Project has been scheduled for completion in February 2013.

Navrongo PV Solar Project: The project involves the design,
procurement, manufacture, supply, transportation to site, erection,
testing and commissioning of 1.9MWp Solar PV plant, a reference
weather and solar monitoring facility, communication and control
equipment, grid interconnection including sub-transmission line to the
Navrongo substation and other associated works. Project has been
scheduled for completion in January 2013.

Protection System Improvement Project (Sunyani and Techiman Areas):
This project is aimed at improving the protection system of the NEDCo
network through the replacement of obsolete protection equipment
and the installation of autosectionalisers and autoreclosers. Project is
ongoing and is expected to be completed before the end of the year.

Procurement of Prepayment Meters: This project is aimed at replacing
the credit meters in NEDCo with prepayment meters in order to reduce
Work:
Project
has
been
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the NEDCo receivables and improve revenue collection. Project has
been scheduled for completion in December 2012.

Construction of 34.5kV Buipe Substation: This project involves the
construction of a new 34.5/11.5kV substation in Buipe to improve power
supply to customers. The works also include the construction of control
room building, customer service center and other ancillary services. The
project is scheduled for completion in May 2013.
National Electrification Scheme (NES)
We equally made good our pledge to increase access to modern forms of
energy to the poor and vulnerable especially in the rural areas through the
extension of the national electricity grid
We increased the national electricity access from 54% in January 2009 to 72%
as at December 2010. Since then we have connected many other
communities to the national grid. We are therefore currently in the process of
updating the access rate which should be higher than 72%.
Despite this
impressive increase access to modern forms of energy to the poor and
vulnerable especially in the rural areas through the extension of the national
electricity grid, the three northern regions; Northern, Upper East and Upper
West regions have relatively lower coverage of 43.52%, 30.39% and 31.95%
respectively. The NDC is committed to ensuring that the accessibility rate in
the three northern regions is drastically improved. It is in this connection that a
total of 1300 communities in these three regions (i.e. Northern: 500, Upper
East: 500, Upper West: 400) are been hooked to the national grid at a total
costs of about 300 million US dollars. These projects are at different levels of
completion.
Ladies and gentlemen, based on the schedule of the Government, a total of
2242 communities would have been connected to the national grid from 2009
to 2012 as compared to 2,211 communities connected in eight years by the
NPP (2001 – 2008).
Street lighting
The Government has made considerable strides in the area of provision of
street lights through implementation of the Regional Capitals Street Lighting
Programme.
In the meantime the NDC Government has presented a street lighting policy
for the consideration of Cabinet. The policy seeks to provide street-lighting
facilities in the Regional, Metropolitan, Municipal and District Capitals. It also
seeks to harmonize standards for best practices through partnerships among
Government, Utility Companies and Regulatory agencies within the power
sub-sector of Ghana, and also come up with time-bound schedules for the
implementation programmes.
Governance
As part of the Power Sector Reform, under this Administration we continued
the unbundling of the vertically integrated power sector. As a result, the
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Ghana Grid Company (GRIDCo) was separated from the Volta River
Authority (VRA) and Northern Electricity Department (NED), which was a
subsidiary/department of the VRA has been transformed to a company,
Northern Electricity Distribution Company Limited (NEDCo.), with a
mandate as the electricity distributor in the four (4) Northern regions
namely, Brong Ahafo, Northern, Upper East and Upper West Regions.
DEVELOPMENT IN THE RENEWABLE ENERGY SUB-SECTOR
In my last encounter with the press in October 2011, I indicated the
commitment of Government in the development of the renewable energy
sector, by first upgrading the Renewable Energy Unit at the Ministry of Energy
to a full Directorate similar to the Petroleum and Power Directorates. I also
informed you about a Renewable Energy Bill which was under parliamentary
consideration and further outlined some ongoing projects in the renewable
energy sector.
Mr. Chairman, permit me to outline some of the achievements in the
renewable energy sector from October 2011 to date.
Renewable Energy Act 2011 (Act 832)
The Renewable Energy Bill was passed by Parliament and has received
Presidential assent which has since been gazetted - The Renewable Energy
Act 2011 (Act 832). The Act is aimed at providing the fiscal incentives and the
regulatory framework to encourage private sector investment into the sector.
Among the key provisions in the act are




Feed-in-Tariff Scheme under which electricity generated from
renewable energy sources will be offered a guarantee price.
Renewable Energy Purchase Obligations under which power
distribution utilities and bulk electricity consumers will be obliged to
purchase certain percentage of their energy requirement from
electricity generated from renewable energy sources.
Licensing regime for Commercial Renewable Energy Service Providers
among others to ensure transparency of operations in the renewable
energy industry
The establishment of the Renewable Energy Fund to provide incentives
for the promotion, development and utilization of renewable energy
resources.
The Policy of Government is to achieve at least 500MW or 10% contribution of
modern renewable energies (excluding large hydro) in the electricity
generation mix by 2020.
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Solar Electrification Program
Between October 2011 and June 2012, additional 4,300 solar systems have
been installed which brings up the total solar systems installations in deprived
off-grid communities to 9,536 since 2009. The solar systems provide basic
power for vaccine refrigeration, lighting and operating communication
equipments including radio, computers, mobile phones TV etc. The remote
public facilities include rural clinics (Chip compounds), schools and security
outpost. About 80 Districts have so far benefited from this programme.
Notable among them are Sene in the Brong Ahafo Region, Kwahu North in
the Eastern Region, Krachi East and West in the Volta region. Others are Builsa
and Kassena- Nankana in the Upper East Region, Sisala East and West in the
Upper West Region and Dangbe East in the Greater region among others.
Interestingly only 160 public facilities (mainly schools) were provided with solar
systems by the NPP during their 8 year term.
Regarding grid-tied solar systems, 10 additional public and private facilities
have been supported with grid connected solar systems between October
2011 and June 2012 bring it up to 15 public and private facilities install with a
total of 100KW grid-tied solar facilities since we took over in 2009..
Construction works for the 2MW grid-connected solar farm at Navrongo in
the Upper East Region by VRA has also begun.
Construction is also underway on the installation of the 700KW grid
connected solar system at Noguchi Memorial Institute of the University of
Ghana.
Solar for Kerosene Lantern Project
Government has developed a program which will soon be launched to
replace kerosene lanterns with solar lanterns in remote off-grid communities
nationwide. We are aware of the erratic supply shortages and high price
volatility of kerosene which has been due largely to diversion of the
subsidized product for adulteration with diesel and also for other economic
uses such as solvent for industrial and commercial activities. The cost benefit
of this program is enormous as the annual subsidy on kerosene is enough to
provide over 400,000 solar lanterns to poor rural households.
Wind program
In December 2011, Government through its GEDAP project installed five
standard wind measuring masts at 60m height above the ground along the
coast of the Central, Greater Accra and Volta regions to collect wind speed
and direction data for establishing the technical and economic feasibilities of
commercial wind power development in these locations.
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The private sector has also initiated similar wind measurement activities
towards utility-scale power development in selected wind potential sites
nationwide.
Mini-grid Electrification Program
Government underscores the technical and economic challenges in
connecting island and some riverside communities in the country to the
national electricity grid. Such communities would be better served through
off-grid and mini-grid electrification schemes. Government has therefore
initiated the mini-grid electrification program to enable such “overseas”
areas have access to reliable electricity. To that effect, Government in 2012
completed socioeconomic studies on seven (7) lakeside and island
communities in the Greater Accra, Volta and Brong Ahafo regions. Contract
has also been awarded in 2012 to undertake wind measurements at 34m on
these islands and lakeside communities to establish their wind potential for
hybrid mini-grid electricity generation.
Small and Medium Hydropower Development
The Renewable Energy Law 2012 (Act 832) makes provision for the
development of all hydropower resources with capacity not more than
100MW under a feed-in-tariff arrangement. Government in 2012 has initiated
studies with support from the French Agency for International Development
for the development of the 50MW Pwalugu Multipurpose Hydropower Dam
on the White river in the Upper East region.
A Joint Project Coordination Team has also been inaugurated in this year by
the governments of Ghana and Togo for the development of the 84MW
Juale Hydropower Dam on the Oti River.
Feasibility studies are also underway for the development of the 90MW
Hemang hydropower plant on the Pra River. These projects are expected to
be completed and add additional 264MW of clean and renewable energy
to the electricity generation mix by 2020.
Bioenergy program

Cookstoves
The Ministry has signed on to the Global Alliance for Clean Cookstoves,
(GACC), which is a new public-private partnership established by the
UN Foundation to support developing countries in the promotion of
clean cookstoves.
Ghana has also developed a National Action Plan for the UN
Sustainable Energy for all which was presented at the just ended Rio+20
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conference in Brazil. It is heart warming to note that Ghana is the Only
African nation to have presented an action plan for sustainable energy
development.
Energy Efficiency and Conservation Program
Recognizing the very important role energy efficiency and conservation plays
in ensuring security of energy supply, the Government further developed
Energy Efficiency Standards and Labels for Refrigerating Appliances similar to
that for Room Air Conditioners and Energy Saving Lamps. A Refrigerating
Appliance Market Transformation Project has also been initiated to reduce
the energy consumption of refrigerating appliances from the current average
of 1,200kWh to 600kWh per appliance per annum. Under the project,
consumers who turn in their old refrigerating appliances will be supported
financially to pay part of the cost of a new efficient refrigerator. The
consumers who opt for higher efficiency refrigerating appliances will also
receive further rebates depending on the level of efficiency of the
appliance. Financial support from the UNDP, Global Environment Facility and
the Multilateral Fund of Canada has been secured for the implementation of
the project. Legislative Instrument LI 1958 (The Energy Efficiency (Refrigerating
Appliances) Regulations, 2009) is also in place to provide the legal backing
required.
The Government has also installed Automatic Capacitor Banks (ACB) at
selected government institutions to reduce Government expenditure on
electricity. The pilot project implemented in six government institutions
including the Ministry of Defence, Korle-Bu Teaching Hospital, the Office of
the President, Food and Drugs Board, Accra Sports Stadium and Parliament
House has resulted in the reduction of power consumed from 11,743kVA to
9,889kVA. This translated in monetary terms to a total savings of about
GH¢39,145 a month or GH¢469,740 per annum. The project will be extended
to other public buildings while encouraging the private sector to undertake
similar energy saving measures.
Nuclear
In 2012, Government established a permanent desk at the Ministry of Energy
to coordinate activities associated with the planning and implementation of
a nuclear power programme in the country. The Ministry is actively pursuing
this in collaboration with the Ghana Atomic Energy Commission and the
International Atomic Energy Agency (IAEA). To that effect, the Ministry in
25
June 2012 signed an MOU with the State Atomic Energy Corporation of Russia
ROSATOM to assist the country in this venture.
CONCLUSION
As a Government, we expect to do more to ensure that the energy resources
in Ghana are harnessed for the development of the economy and enhance
the wellbeing of its citizens. We will continue to count on the support of
Ghanaians to achieve the targets we have set together and God willing,
next year by this time, when the NDC government would have had its
mandate renewed by the good people of Ghana, we will have even
happier stories in the energy sector to tell together. I thank you for your
attention.
May God richly bless us all.
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