VRA explores other options to meet demand
The Volta River Authority (VRA) says it is exploring other
options to meet the increasing demand for electricity by consumers.
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According to the Chief Executive Officer, Mr Kweku Awortwi, the capacity of the authority to generate enough power was currently being thwarted by problems such as low tariffs and the high cost of crude oil on the international market.
Additionally, the VRA was confronted with the huge indebtedness of both the Electricity Company of Ghana (ECG) and the government, he said.
For instance, while the government and the ECG owe the VRA $400 million, the cost of crude oil importation had increased from $225 million in 2011 to $530 million as of 2012, he explained.
Currently, the authority, which is the main producer of the country’s energy, spends $50 million every 20 days to import crude oil to produce power.
Speaking to Graphic Online, Mr Awortwi said notwithstanding the difficulties, the VRA was exploring other options in its quest to generate power to meet the increasing demand.
It is estimated that the demand for power rises by 10 per cent every year, which means that adequate infrastructure must be put in place to meet that demand.
An increase in economic growth also means that adequate power must be available to match the growth.
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Ghana’s economic growth for the first half of 2011 was projected to be the fastest in the world.
Its Gross Domestic Product (GDP), which at the time was estimated to be 20.146 per cent, was far ahead of the 14.337 per cent recorded by Qatar as the next fastest-growing country. Qatar was followed by Turkmenistan, which recorded 12.18 per cent; China, 9.901 per cent, and Liberia, 9.0 per cent.
The ECG began an emergency load-shedding exercise as a result of relative instability in electricity supply in December 2012.
“The ECG has been compelled to undertake emergency load-shedding due to generation shortfall. We regret that this unfortunate situation will continue for some time until advised otherwise by our suppliers,” an official announcement from the ECG had said.
But, according to Mr Awortwi, the VRA was embarking on a number of projects to stabilise and increase the supply of power.
One of such projects, he said, was the installation of a $200-million, 200 megawatts generating facility at Kpone near Tema which was expected to be ready in 2014.
In addition to that was the expansion of the Takoradi ‘T2’ plant from its current capacity of 220 megawatts to 330 megawatts.
Mr Awortwi said the $300 million initiative was expected to take two and a half years to complete.
Furthermore, he said, the VRA was to mount $200 million wind generation facilities along the coast to produce 100 megawatts of power.
Feasibility studies are also ongoing for a 700-megawatt additional generating capacity at Domunli in the Western Region and Tema in the Greater Accra Region.
On the current load-shedding, Mr Awortwi said the exercise was not planned at all.
He said there was power to meet the needs of the population, but due to the lack of gas as a result of the problem with the West African Gas Pipeline, anytime there was maintenance or an outage, power had to be cut in some areas.
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An anchored ship being pulled by pirates in August last damaged part of the pipeline in neighbouring Togo, thereby cutting gas supply to the destination countries. Repair works began in September last year to restore the pipeline.
The gas pipeline transports natural gas from Nigeria to customers in Ghana, Togo and Benin.
The lack of gas as a result of the broken pipeline has affected the supply of gas to the VRA and caused a shutdown of the Sunon Asogli Power Plant.
Moreover, Mr Awortwi said, the Takoradi ‘T3’ facility that should have been ready also had some challenges and “that has delayed a little bit”.
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He indicated, however, that in the next four weeks the facility was expected to be ready to produce power.
Among other things, he expressed the hope that with the repair of the West Africa Gas Pipeline and the subsequent coming on board of part of the Bui plant sometime in April this year, the situation would see some stabilisation and improvement.
Story by Emmanuel Bonney