Mines and Energy Ministry signs second agreement to ease energy crisis.

The Ministry of Mines and Energy yesterday signed the second agreement with an independent power producer to ease the energy crisis that has hit industrialists, mining companies and domestic consumers very hard. Under the agreement with Faroe Atlantic Limited of the United Kingdom, Ghana will receive 70 megawatts of power that will be connected to the emergency generation facility for industrial and mining concerns. According to the sector Minister, Mr Fred Ohene-Kena, who disclosed this, the mobile generating plant will be ready in 10 weeks. The Minister was speaking to journalists on board "Dodi Princess" during a six-hour cruise from Akosombo to Dodi Island on the Volta Lake during which several aspects of the current energy crisis came up for discussion. With Mr Ohene-Kena was the top brass of the Ministry of Mines and Energy, Volta River Authority (VRA) and Electricity Company of Ghana (ECG). The second agreement brings the total output from the two independent power generating companies to 100 megawatts which would be ready in May and June. The first agreement with a British Company, Aggreko PLC, earlier this month was for 30 megawatts. Mr Ohene-Kena would not say how much the power generated from these sources would be sold at, but explained that the final figure would be agreed after VRA/ECG add their charges. However, reliable sources said the Faroe Atlantic would sell at 8.5 cents per unit.

The Ministry of Mines and Energy yesterday signed the second agreement with an independent power producer to ease the energy crisis that has hit industrialists, mining companies and domestic consumers very hard. Under the agreement with Faroe Atlantic Limited of the United Kingdom, Ghana will receive 70 megawatts of power that will be connected to the emergency generation facility for industrial and mining concerns. According to the sector Minister, Mr Fred Ohene-Kena, who disclosed this, the mobile generating plant will be ready in 10 weeks. The Minister was speaking to journalists on board "Dodi Princess" during a six-hour cruise from Akosombo to Dodi Island on the Volta Lake during which several aspects of the current energy crisis came up for discussion. With Mr Ohene-Kena was the top brass of the Ministry of Mines and Energy, Volta River Authority (VRA) and Electricity Company of Ghana (ECG). The second agreement brings the total output from the two independent power generating companies to 100 megawatts which would be ready in May and June. The first agreement with a British Company, Aggreko PLC, earlier this month was for 30 megawatts. Mr Ohene-Kena would not say how much the power generated from these sources would be sold at, but explained that the final figure would be agreed after VRA/ECG add their charges. However, reliable sources said the Faroe Atlantic would sell at 8.5 cents per unit. The Minister said his target is to see the end to the energy crisis by the end of the year. He said they are trying to get 400 megawatts by the end of the year, adding that talks with other independent power producers and supplies from VRA's Aboadze thermal plant would help reach that target. The Ministry said it has received and evaluated proposals from about 10 independent power producers. Mr Ohene-Kena cautioned that thermal power is not cheap and consumers should accept to pay for the cost of the commodity. Answering a question on privatisation of ECG and VRA, the Minister said reforms in the sector show that the process is in progress. The Public Utilities Regulatory Commission (PURC) has been set up and ECG has been turned into a company. On consumption of electricity, Mr Ohene-Kena said government is looking for a soft loan to buy pre-paid metres for consumers to reduce waste in consumption, among other things. Government is also looking at the possibility of streetlights using solar energy.