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General News of Monday, April 8, 2019
Source: Gabby Asare Otchere Darko
2019-04-08
Gabby Asare Otchere Darko
The NPP allowed Ghana to save more than $ 7 billion that we would normally have paid because John Mahama decided to appeal to us for a power that we had to pay even though we could never have l & # 39; use!
Below are the facts about the financial and legal costs that the nuclear power plant has inherited as a result of NDC's strange decision to accept more than 7,000 excess capacity contracts:
By the end of 2016, ECG had signed 14 operational power purchase agreements (PPAs) with a total capacity of 1104 MW. ECG, with a combined capacity of approximately 6,000 MW, has signed 18 more signed PPAs and 8 PPAs under negotiation with a total capacity of 2116 MW.
This in addition to the existing hydropower generation capacity, the Aboadzi and Tema VRA plants; and TICO will generate a total installed capacity of approximately 11,000 MW if all committed capacity is deployed. This will be far more than the current peak demand of 2400 MW. Even with an annual growth in demand of 10%, our country will not be able to use this capacity in two decades.
The outsourcing of capacity has imposed serious financial and legal obligations on the government and energy consumers.
To remedy this, the Ministry of Energy commissioned a committee, led by the Energy Commission, to review all PPAs signed by the Ghana Electricity Corporation (ECG). for conventional thermal energy projects. The committee reviewed 26 of the 30 EFAs proposed by the ECG. The other 4 were not examined because they were already operational. The combined production capacity of the 26 PPAs examined was 7,838 MW.
The review found that the planned capacity additions to the PPAs far exceeded the required additions, including a 20% system reserve margin from 2018 to 2030, and would result in the payment of capacity charges for the plants shipped. . The review recommended that:
I. 8 PPAs with a combined capacity of 2070 must continue without modification;
II. 4 power purchase contracts with a combined capacity of 1,810 MW are carried forward to 2018-2025;
III. 3 PPPs with a combined capacity of 1,150 MW are deferred beyond 2025; and
IIII. 11 PPPs with a combined capacity of 2,808 MW are terminated.
As a result of this review, the government should realize substantial savings through the postponement and / or termination of the PPAs reviewed.
The estimated cost of termination is US $ 402.39 million, compared with US $ 586 million average annual capacity or a cumulative cost of US $ 7.217 billion from 2018 to 2030. This represents an estimated savings of US $ 6.8 billion over 13 years.
* These are the facts. *
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