We have called you here this morning to share a few thoughts with you on the ever worsening electricity crisis facing this nation. We will also like to draw your attention again to the insensitivity of the government in increasing the prices of fuel, water and electricity at a time like this.
Ever since the NPP government, without any notice to the people of Ghana, embarked on a load shedding exercise on August 27th 2006, the electricity situation, instead of improving has grown from bad to worse.
From a load shedding schedule of 12 hours light-off every 5 days, we have retrogressed to a 12 hour light-off every other day and are currently being subjected to a 15 hour lights off every other day even though this latest move has not been officially announced.
The planned load shedding exercise is operative when electricity is available but as all of us can testify, we are being subjected to the most erratic supply of electric power ever.
One can count himself or herself very lucky if electricity supply is not interrupted at least three times during the day.
Ladies and Gentlemen, let us ponder over how Ghana, a country which used to have surplus electricity and was therefore a net exporter of power came to this stage. A very brief history of electricity generation in this country would be refreshing.
On January 22, 1966, Osagyefo Dr Kwame Nkrumah inaugurated the 588 MW Akosombo power plant. The Acheampong regime increased the capacity from 588 MW to 912 MW by adding two more turbines.
The SMC/Dr Limann Government undertook the construction of the 160 MW Kpong hydroelectric facility which incidentally was inaugurated by the then PNDC Chairman J. J. Rawlings. The NDC Government under Rawlings moved away from the solely hydro-based power system and constructed the 550 MW Aboadze thermal power plant. By end of 2000 the installed electricity capacity in the country was 1640 MW made up of 1090 MW hydro power and 550 MW thermal power.
As previous Governments were increasing the installed electric power capacity, the Ghana demand was also increasing at a rate of about 10% per annum. It had also been established that the hydrology of the Volta Lake was such that every 7-10 years it went through a cycle of drought which led to low water inflows into the Volta Lake. In 1983, 1993 & 1998-1999 the lake experienced those low water inflows. It was therefore expected that between 2006 and 2008 the low water inflow into the lake would repeat itself.
Ladies and Gentlemen of the Press, with this background, it was proposed in December 2003 that the Aboadze thermal Plant capacity must be expanded with the addition of the 110 MW steam component by end of 2006.
It was also proposed that the ‘Osagyefo’ power barge project be made operational to produce 125 MW of power by the end of 2005.
In its 2002-2003 annual report, the Energy Commission correctly predicted the current energy crisis and made a number of recommendations to deal with it. The Commission warned that under no circumstance should the Akosombo Dam be operated below 240 feet. It also recommended that in order to avoid any future electricity problems: (i) A 200 MW thermal plant be installed by end 2003. (ii) By end of 2004 another 200 MW thermal plant should also be installed (iii) By the end of 2007 an additional 200 MW plant should also be commissioned.
Ladies and gentlemen, if the NPP government had implemented the very sound proposals it was given, Ghana would have had an additional installed electric power capacity of 835 MW by 2007. However, in typical fashion the NPP government paid no heed to the sound technical advice of its own energy experts. This is a clear case of incompetence and bad governance. In almost 7 years in power they have not added even 1 MW of power to the electricity sub-sector.
The NPP government, instead of telling Ghanaians about the gravity of the electric power crisis and the time it would take to solve the problem, has been engaged in strenuous efforts to deceive Ghanaians that all will be well within months.
First the President himself looked Ghanaians in the face and told us on February 8th 2007 that within a fortnight Nigeria would supply Ghana with 200 MW of power to help resolve our power crisis. The fortnight has turned into 11 weeks and no power has been received from Nigeria. Even if Nigeria had power to supply the government ought to have realised that there is no interconnectivity between Ghana and Nigeria.
The NPP government in its state of confusion and desperation attempted to deceive, confuse and create the impression to Ghanaians that to solve the immediate, very short term electricity crisis, the solution lay in long gestation period projects.
The Bui dam, a project which would take 7 years from day one of construction to day of delivering any power at all is being presented as a solution to the current crisis.
The Nuclear Power Project which would take 10 years before it delivers any power is also being presented as the solution to the current crisis.
The West African Gas Pipeline Project (WAPP), a project under which one source of fuel for firing thermal plants would be substituted for other types of fuel, is being presented as the solution to the current crisis. The truth is that until and unless additional thermal plants are put in place the WAGPP would fuel only the 550 MW Aboadze thermal plant.
The transmission network currently operated by the VRA is to be hived off and set up as an independent company. This does not help to resolve the current crisis. The transmission lines would not carry any more electric power than what is available in the system.
Ladies and Gentlemen, the electricity crisis has seriously affected the economy. Industries have either closed down, dismissed workers so as to cut down on production cost or are generating their own electric power at such high cost that their products have become uncompetitive on the market.
Medical personnel performing surgeries work in constant fear of losing their patients on the operating table as a result of unplanned power cuts. Household appliances are being destroyed due to frequent brown-outs and voltage fluctuations. Those who cannot afford generators have had to rely on unsafe lighting systems such as candles and hurricane lamps which in several cases have caused fires and loss of lives and property.
In the face of all these problems and difficulties, the insensitive NPP government has decided to increase electricity and water tariffs. They have also increased prices of petroleum products. These increases will no doubt worsen the plight of Ghanaians in all walks of life. The increases in the prices of petroleum products are even more insensitive, having regard to the fact that businesses and individuals have been compelled by the current electricity crisis to rely on generators for their electricity supply. The increase in petroleum prices will reduce the capacity of businesses and individuals to cope with the electricity crisis.
It is also important to recognise that the fuel price increases will have ripple effects in all sectors of the national life and lead to increases in the prices of all commodities and services. The increases in the prices of petroleum products (more than 600% since 2001 when the NPP came to power) are unwise. Our ability to tolerate such insensitivity is being stretched beyond limits.
Ladies and gentlemen, the current shortfall in the supply of electricity is about 700 MW. Many groups have made proposals to the government on solutions to the electricity crisis. We of the CJA would like to make the following suggestions to the government:
As a quick fix solution, the government should import more emergency power plants to help deal with the situation.
The 80 MW generating sets imported by the mining companies must be made operational immediately.
VRA must be resourced to enable it to complete the construction and installation of its 126 MW thermal plant at Tema.
Although expansion of the Aboadze single cycle power plant to a combined cycle plant by the addition of the steam component would take 18 months to complete, this project must start now so as to reduce the cost of power generated from the Aboadze plant.
Effective mechanisms must be put in place to encourage Ghanaians to shift to the usage of compact fluorescent lamps (CFL bulbs). More strenuous efforts should be made towards electricity conservation.
Ladies and Gentlemen of the press, there is need to separate long term solutions to the energy crisis from the very short term solutions which are required now to get the country out of the current crisis. The NPP government must not give false hope to Ghanaians where no hope exists.
Thank you very much.
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