2016 Budget inspires confidence in energy sector
For most businesses, the relevance of the 2016 budget statement of the government will be its focus on outlining policies to end the never-ending power crisis that has plagued the country.
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For the greater part of 2015, the power crisis, caused by a generational deficit, negatively affected every aspect of businesses, resulting in a cut in industrial productivity and economic growth.
Power generation from hydro sources has slumped significantly, while thermal sources, which rely on gas, have also not been stable due to unreliable gas supply.
It was, therefore, refreshing, to a large extent, for businesses, when the Minister of Finance, Mr Seth Terkper, announced that as part of measures to address the ongoing power supply challenges, the government was working on selected fast-track projects, two of which are the much-talked-about 250 Megawatts (MW) Ameri and the 225MW Karpower projects.
The budget, which was read on November 13, had the theme, “Consolidating Progress Towards a Brighter Medium Term.”
In 2016, government is expected to continue pursuing its objective of increasing the installed generation capacity of the country to meet the growing demand for electricity. In this regard, a total of 1,053MW installed capacity is scheduled to be added to the existing installed capacity of the country.
Generation from TICO, Kpone Thermal Plant, Sunon Asogli, and the Volta River Authority’s (VRA’s) Siemens plant is also expected to increase the power supply in 2016.
This announcement, will make Ghanaians, especially businesses heave a slight sigh of relief as the medium-term prospects of the energy sector in the country look bright, especially at a time that the country has secured a World Bank Partial Risk Guarantee (PRG) to support the Sankofa Gas fields expected to come on stream in 2017.
The gas-processing plant at Atuabo in the Western Region was commissioned and commercial production has started in earnest. Gas from this plant is expected to complement the supply from Nigeria Gas (N-Gas) to power the country’s thermal plants to supply electricity.
The GRAPHIC BUSINESS believes a stable power supply is a requisite if the government intends to create an enabling environment for businesses to operate and thrive. It must therefore find a long-term solution to the power crisis as the situation keeps recurring over time.
While commending the government for inspiring hope in the energy sector, the paper believes it is not enough to outline all the ‘beautiful’ plans and still move round in circles without a lasting solution to the energy crisis.
The Ministry of Power must, therefore, live up to its mandate to ensure that safe and reliable supply of electrical energy is generated to meet Ghana’s developmental needs in an efficient, competitive and environmentally sustainable manner.
