Reconsider decision to freeze licensing of new PPI – IES to government

Economic news for Wednesday 13 January 2021

Source: Goldstreet Company

01/13/2021

The Energy Security Institute (IES) calls on the government to reconsider its decision to freeze discussions and the issuance of licenses to new independent power producers (IPPs), including cheaper and more environmentally friendly renewables. environment.

According to the IES, a review of the decision is needed as it has blocked many renewable energy projects, some of which have obtained all technical permits from the relevant government and district agencies.

Their appeal comes days after President Akufo-Addo, during his swearing-in ceremony, pledged to ensure 100% electricity coverage in Ghana by the end of his second term.

A statement issued by the IES, noted that, “While the IES is pleased with the government’s renewed willingness to act on this mandate, it remains cautious in the hope as recent history does not inspire the trust. Accordingly, IES urges the relevant authorities to make the necessary investments and regulatory mechanisms to ensure that the promise is fulfilled. “

He further stated that “the government must increase its current 1 percent renewable energy in the national power mix to the 10 percent target of the Renewable Energy Act 2011 if it is certain of this task.

Access to electricity in the country is declining

The need for universal electrification led to the adoption of the National Electrification System (NES) in 1985, at which point access to electricity was 25 percent in the country.

The program was projected for universal electrification in Ghana by 2020. By 2000, access to electricity had increased to 45% with an annual growth rate of 2%.

The annual growth rate stood at 2.2% from 2000 to 2010, with national access to electricity reaching 67% nationwide. From 2010 to 2016, Ghana’s access to electricity experienced an annual growth rate of 2.7%, expanding national access to electricity to 83% of the country.

However, from 2016 to 2020, the country experienced the weakest growth in access to electricity in the past two decades. The annual growth in access to electricity over the past 4 years is around 0.6%, bringing national access to electricity to just over 85%. This slow growth from 2017 to 2020 led to the extension of the target date for universal electrification to 2025.

“With the current goal in mind, the government must work to increase access to electricity by at least 3.5% per year by 2025. Growth must also come from sources of electricity. renewable energy because cities without electricity are in difficulty. reach areas, mainly lakes and islands, ”the statement said.

The government must increase its renewable energy by the current 1 percent in the national power mix to the 10 percent target of the Renewable Energy Act 2011 if it is certain of this task.

With the increase in Ghana’s population and the current need for economic growth, the prospect of universal access to electrification is essential to build confidence in local markets, especially for the many people without access to electricity. because this will make them viable markets for industries. .

Access to electricity as promised will mainly be in rural areas of the country. Their access to electricity will also ensure that their economic activities are improved and that their products are adequately stored and marketed to a wider community.

The government, by guaranteeing access, must also guarantee the reliability and accessibility of the electricity that it is supposed to extend to the rest of the country. These are key elements in reaching many people who live mainly in rural areas of the country.