Business News of 2014-07-15

Swedish company to produce more power

The Electricity Company of Ghana (ECG) has signed an agreement with a Swedish company, TC Energy, to produce 1000 megawatts of power using the tidal wave technology.

The Acting Divisional Manager in charge of Regulatory and Governmental Affairs of the ECG, Mr Ebenezer A. Baiden, who made this known, explained that a power generation plant would be placed under the sea at the Ada Estuary, where the tidal wave is very high for the pressure emanating from the waves to be used to generate power.

He was speaking at a workshop for journalists in Tema at the weekend. The workshop was organised by the ECG to educate journalists on the operations of the company. Mr Baiden said the technology was new and added that a similar plant had been installed in Peru, where the tidal wave was not even as strong as what existed in Ada.

He noted that the Ada site was the most ideal place for the siting of the plant. Giving details of the terms of the agreement which was signed last week, Mr Baiden said TC Energy would by December, this year, produce five megawatts of power and subsequently add 200 megawatts periodically until 2016, by which time it would have produced 1000 megawatts.

He said a team visited Sweden about two weeks ago to ascertain more facts for the ECG, which culminated in the signing of the agreement. "What we have told them is that we guarantee demand.’Come and build, supply us and we will pay you," he said.

"The natives in the area have even told us that they are unable to fish in the area we plan to site the plant," he added. Mr Baiden said there was huge demand for power in the country and the initiative would ensure that more power was available for use by businesses and homes.

He also said the company had contracted two independent power producers (IPPs), which had technology for producing power on ships, to produce 225 megawatts each of electricity for distribution.

A contract to that effect, he explained, had been signed. An engineer of the ECG, Mr George Yaw Marfo, noted that most of the outages experienced in the country were as a result of inadequate power generation. He said unfortunately for the ECG, because consumers dealt directly with the company, it was always vilified.

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