AGI endorses nuclear power to boost energy security

The Association of Ghana Industries (AGI) has expressed strong support for including nuclear energy in the country’s energy mix, emphasising its potential to strengthen energy security and reduce the cost of power – particularly for businesses and industries.

The endorsement was made against a backdrop of the country’s ongoing search for reliable and affordable energy solutions to fuel industrial growth and broader economic development, which includes nuclear and renewable energy sources.

Speaking at the ‘Energy Day’ during the 2024 Ghana Industrial Summit & Exhibition (GISE) in Accra, AGI president Dr. Humphrey Ayim-Darke emphasised the strategic importance of nuclear energy in ensuring a stable and continuous power supply.

He noted that energy reliability is critical to industrial performance and competitiveness; and nuclear power offers a long-term solution to current challenges facing the sector.

Energy security, he indicated, is at the heart of industrial growth and the inclusion of nuclear energy in the power mix will provide the stability needed. This, he said, will not only ensure consistent supply but also help reduce the cost-burden on industries.

The country’s industrial sector has long been constrained by high electricity costs, which limit competitiveness both domestically and internationally.

Dr. Ayim-Darke referenced Ghana’s historical efforts toward nuclear energy, dating back to the visionary leadership of the country’s first President, Dr. Kwame Nkrumah. But despite significant progress, realising nuclear power as a key energy source remains elusive.

The AGI president, therefore called on stakeholders and power consumers to support the Volta River Authority’s (VRA) initiatives aimed at enhancing the cost-effectiveness of current energy solutions while nuclear plans are still being s.

Nuclear energy is a critical part of the country’s energy transition plans, but while its yet to be realised Dr. Ayim-Darke entreated power consumers to support ongoing efforts by VRA to improve cost competitiveness in the power sector.

Government, through the Ministry of Energy and Ghana Atomic Energy Commission (GAEC), has been working toward incorporating nuclear power into the national energy mix. This initiative is aimed at diversifying energy sources to meet the growing demand for electricity and reduce dependence on hydro and thermal energy, which are susceptible to fluctuations in supply and cost.

GISE 2024 was organised by AGI under the theme ‘Promoting value for competitive industrial development’.

In a speech on behalf of the Minister of State at Energy Herbert Krapa at the event, he noted that “energy is the foundation of everything we do” – in view of which the ministry is dedicated to providing clean, affordable sustainable and reliable energy to fuel the country’s socio-economic growth.

He stressed that clean and renewable energy technologies are pivotal for the country’s industrial growth and can potentially accelerate manufacturing across the African continent.

While recognising the manufacturing sector’s significance to global economic growth, he noted that the country is yet to fully harness benefits from industrialisation – pointing out the continuous reliance on raw material exports and imported consumer goods.

This, he said, has hampered sustainable development, and therefore urged a shift from this model while leveraging energy transition to redefine the country’s economic strategy by focusing on value-chain development and value-addition through manufacturing.

“This shift will not only create much needed jobs but also boost export revenues and ensure sustainable development,” he stated.

To this end, he emphasised the needed to address key challenges such as limited technological capacities, inadequate skilled labour, energy deficits and low productivity, among others, which undermine the country’s progress.

“We need robust cross-cultural policies and regulatory reforms as well as fiscal market development to achieve sustainable production and consumption at all levels,” he stated.

He entreated the private sector to leverage the Africa Continental Free Trade Area’s (AfCFTA) presence to drive the country’s industrial revolution while expressing his commitment to fully implementing the renewable energy master plan aiming to achieve 10 percent renewable energy penetration by 2030.

As a key partner of the event, Volta River Authority (VRA) took the opportunity to showcase its value-added services to power consumers. VRA’s Deputy Chief Executive-Engineering and Operations, Ing. Edward Ekow Obeng-Kenzo, announced several energy solutions designed to enhance the efficiency and utilisation of power across industries.

Obeng-Kenzo emphasised that the VRA’s streamlined operations aim to provide innovative energy solutions that not only reduce operational costs for businesses but also contribute to Ghana’s broader goal of energy transition.

VRA’s new offerings include enhanced power management systems, renewable energy integration and technical support to ensure maximum efficiency in energy consumption.