Renewable energy pundits want products subsidised
The Renewable Energy Association of Ghana (REAG) has begun talks with the government and other stakeholders aimed at getting the latter to reduce import duties on imported renewable energy products to facilitate the adoption of clean energy solutions in the country.
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“The clean energy sources such as solar, biomass and wind are fast becoming the centre of attraction across the world in delivering sustainable energy supply, but unfortunately Ghana has been left behind,” the Secretary of REAG, Mr Enoch Yeboah Agyepong, told the Graphic Business on February 22 in Accra.
For this reason, he said, REAG and its partners were currently on an advocacy project, with the aim of cutting the tax component on renewable energy and encouraging the adoption of such technology in the country.
“Reducing import duties on imported renewable energy products will make it affordable in order to facilitate the adoption of clean energy solutions in the country. The introduction of the Common External Tariff (CET) last year, coupled with the uncertain environment, makes it difficult for businesses in the renewable energy trade to operate. Technically if you slap 17.5 per cent Value Added Tax (VAT) and a 10 per cent import duty, it makes it disingenuous for people to operate in such an environment,” he added.
He was speaking to the paper on the sidelines of a workshop organised by DENG Ghana, a solar engineering company, to educate farmers on how to use solar pumps for their activities.
Renewable Energy Act 2011
Mr Agyepong said to ensure the full utilisation of renewable energy, Ghana passed the Renewable Energy Act 2011 to provide for the development, management, utilisation, sustainability and adequate supply of renewable energy for generation of heat and power and related matters.
However, he said, for the past seven years, the penetration of the technology had been very slow.
A section of the Act also provides for the establishment of the Renewable Energy Fund, which is yet to be operationalised to serve the purpose of providing financial resources for the promotion, development, sustainable management and utilisation of renewable energy sources.
For the purposes of achieving the objective of the fund, monies from the fund shall be applied primarily to the provision of financial incentives, feed-in-tariffs, capital subsidies, production-based subsidies and equity participation for grid interactive renewable electricity, mini-grid and off-grid renewable power systems for remote areas and islands, renewable energy projects for non-electricity purposes, among others.
Monies from the fund may also be applied for the promotion of scientific, technological and innovative research into renewable energy and the establishment of standards for the utilisation of renewable energy.
Intensify education on renewable energy
The President of the association, Mr Jens Schmidt, indicated that it was important for the country to intensify education on renewable energy.
He said although the initial investments in those facilities were quite expensive, they would be more sustainable than hydro and thermal in the generation of power for our growing economy.
“Ghana has sunshine virtually throughout the year, which can be tapped to produce energy to power domestic and industrial activities. Wind energy is also an option,” he said.
The country’s reliance on hydro and thermal sources for the generation of electricity has not been very helpful over the years. Either the water level in Bui, Akosombo and Kpong dams are always below the minimum operating levels, compelling the Volta River Authority (VRA) to regulate its operations, or the thermal plants are faulty or there is no fuel to power the thermal plants.
Mr Schmidt said for more than a decade, Ghana has always experienced load-shedding exercises, and the last one which began in 2011 has continued until recently.
“The challenges posed by the persistent load shedding are enormous and require immediate action. It is sad that in these trying times, we have not been able to explore renewable energy such as solar and wind,” he added.