The Takoradi Thermal Plant is to be expanded to produce an additional 110 megawatts of energy at a cost of $180 million.
The expansion project will be financed by the International Finance Company (IFC) and the Overseas Private Investment Company (OPIC) of the United States of America (USA).
The Minister of Energy, Mr Albert Kan-Dapaah, who announced this when he delivered a paper on “Energy Policy for Ghana-Current Position” at the opening of the 34th annual conference of the Ghana Institution of Engineers (GhIE) in Accra yesterday said the move is to curtail the shortage of energy supply.
The three-day programme is on the theme, “Energy Resource Management and Conservation for Sustainable Development”. Mr Kan-Dapaah said the additional 110 megawatts steam unit will not only increase the capacity of the plant but also reduce its cost of generation by 30 per cent, because it will require no additional crude oil.
This is because the heat generated from the two units already in use will be converted into steam to energise the third unit.
Furthermore, it will expand the thermal generation and increase the diversification of the supply base. Mr Kan-Dapaah said the programmes would have been implemented two years ago but owing to the low tariffs, the financiers dragged their feet, but now that the tariffs are closer to economic rates, they are ready to support the sector.
The Energy Minister said the government is pursuing the West African Power Pool project, under which energy systems in the sub-region will be integrated, adding that it will offer the country the opportunity to access the wider sub-regional power market.
He also disclosed that owing to the obsolete equipment of the Electricity Company of Ghana (ECG), which impedes its ability to meet demand, the government is sourcing $ 80 million to assist the company to carry out a short-term improvement programme of its network to improve the reliability of power delivery.
He, however, expressed concern about the 26 per cent loss in distribution network as well as the 30 per cent wastage in electricity by consumers, adding that “if we conserve energy, we could defer future investment in power plants and also reduce the cost of electricity”.
On fuel, Mr Kan-Dapaah noted that discussions are underway with Samsung of South Korea to build another thermal plant which will be privately owned and whose product will be exported to other countries in the sub-region.
He added that his outfit is also in the process of finalising the financing of the Buipe-Bolgatanga pipeline project so that petroleum products, especially in the northern part of the country, could be distributed via the pipeline and the Volta Lake Transport system.
This, he said, will reduce the cost of transportation and facilitate the exportation of petroleum products to Burkina Faso and other neighbouring countries.
Mr Kan-Dapaah noted that last year, the government achieved success in raising the prices of petroleum products and electricity significantly, though to the displeasure of the public, and said, “It is our intention to continue to pursue cost effective prices for all our energy services in the future.”
He also used the occasion to dismiss claims by the Flagbearer of the National Democratic Congress (NDC), Prof J. E. A. Mills, that the government has introduced a bill in Parliament to increase petroleum prices.
The President of the GhIE, Mr Frederick Adu-Nyako, challenged the authorities to make use of local expertise and materials in solving the nation’s socio-economic problems, since that is the only way to ensure sustainable development and growth.
