Ghana Signs Two New PPAs to Boost Power Generation by 720MW

In a significant step towards enhancing Ghana’s power generation capacity, the government has signed two new Power Purchasing Agreements (PPAs) with AKSA Power Generation. These agreements, with a combined capacity of 720 Mega Watts (MW), will significantly augment the country’s power supply.

The two PPAs, namely 370MW AKSA, Tema and 350MW AKSA, Kumasi, were signed under the new PPA policy, which replaced the earlier “Take or Pay” policy arrangement. This new policy is designed to promote efficiency in both power generation and distribution.

Addressing concerns about the government’s efforts to expand power generation, Energy Minister Dr. Matthew Opoku Prempeh clarified that the government has been actively working to increase power capacity. He emphasized that while previous PPAs were signed under the “Take or Pay” policy, the new agreements have been negotiated within the framework of efficiency.

In addition to the new PPAs, the government has undertaken various measures to improve power sector efficiency. These measures include:

  • Conversion of the 200MW KTPP plant and the 220MW CENIT/TTIPP plant from open cycle thermal plants to combined cycles.
  • Retrofitting of the 132 MW T3 plant.
  • Increased focus on renewable energy, with solar power accounting for 3.2% of the country’s generation mix.
  • Ongoing utility-scale solar projects, including a 100MW solar photovoltaic (PV) plant at Bui and a 15MW solar PV phase II plant at Kaleo.

The government is also addressing challenges in the power transmission sector, such as congested networks, overaged infrastructure, and right of way encroachment. Several projects are underway to upgrade and expand the transmission system.

To improve revenue mobilization within the Electricity Company of Ghana (ECG), the company has implemented measures such as boundary metering and distribution transformer metering.

Regarding the petroleum downstream sector, the government has implemented measures to mitigate the impact of rising global fuel prices, including negotiating forex auctions for BIDECs and establishing a credit reference bureau for all dealers. Additionally, the introduction of the Gold for Oil policy has significantly reduced forex exposure on BOST and BIDECs.

The government is taking comprehensive steps to address Ghana’s power sector challenges and ensure a stable and reliable supply of electricity for both domestic and industrial use. The new PPAs, along with various efficiency measures and transmission system upgrades, are expected to significantly enhance the country’s power generation capacity and distribution network.

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