Government has assured investors it will review electricity tariff to encourage private participation in order to make the sector competitive.
The review of the tariff is aimed at creating an enabling environment for both state and non-state actors to add to Ghana’s generation mix as the production of Akosombo falls.
By December this year, Ghana’s largest hydro Dam which used to be the main source of power to homes and industries will only constitute 38 percent of the VRA’s generation mix.
Speaking at the 2015 Powering Africa-Ghana Summit in Accra, the Power Minister, Dr. Kwabena Donkor stressed the need to review the electricity tariff to encourage private investors to participate in Ghana’s energy mix.
“The tariff question is being addressed and that the government would not shy away from taking the tough decisions that need to be taken”, he said.
He stated that government is also encouraging both conventional and non-conventional forms of generation in the areas of new gas-fired plants, biomass, fuelled plants, solar and wind farms, tidal powered generation as well as clean coal fuelled generation.
To support the generation with adequate transmission systems, Dr. Donkor stated that government has rolled out a robust expansion of transmission and distribution capacity.
“Currently, 330KV and 16KV transmission lines are being expanded at an unprecedented pace across the country to enable evacuation of new generation capacity”, he said.
He noted that the expansion works is being undergirded by reforms and restructuring of institutional arrangements to make it respond proactively to the changing landscape of customers’ demand.
In connection with this, a committee set to advise the Ministry is expected to submit its report by end of September this 2015.
He mentioned that key government institutions undergoing the restructuring include the Electricity Company of Ghana with the assistance of the US Compact.
He stated that the Grid Company of Ghana (GRIDco) is examining its internal processes with the aim of the improving performance with the Northern Electricity Distribution Company (NedCo) also slated for customer reforms.
As part of short term measures, the government is bringing in a number of generating assets that include the commissioning of 220MW Kpone thermal Plant operated by the VRA and the commissioning of the 110MW steam component of the TICO expansion.
