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• Ilunga 1 year ago

  Privatization has always been touted as the only way to get things done in Ghana. Yet when state owned enterprises are privatized, the managers find it difficult to cope with competition and resort to lobyingfor all forms of ...
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  Privatization has always been touted as the only way to get things done in Ghana. Yet when state owned enterprises are privatized, the managers find it difficult to cope with competition and resort to lobyingfor all forms of protection to make them private companies operated much more like state owned entities.
  Why is it that in some countries, the government sector is more efficient than the private sector in managing power plants?
  VRA's TICO etc plants, the writer must clearly see the difference between a dual-fuel thermal power plant and a single fuel power plant. Comparing TICO which was built to use two alternative fuel (unless I am not abreast with current technologies in use) to SAPP which (I believe) is purely a natural gas plant is a non-starter. It is like comparing applesto oranges.
  By the way why aren't the private sector who are ready to invest setting up their own efficient plants unless the are offered the VRA's plants?

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• Gyatabi Ole 1 year ago

  The argument is weak. Ask the question why? Fix the underlying problem. Who would buy a lemon? If the person is going to make lemonade, then the lemon seller might as well make the lemonade to start with.
  This is all ...
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  The argument is weak. Ask the question why? Fix the underlying problem. Who would buy a lemon? If the person is going to make lemonade, then the lemon seller might as well make the lemonade to start with.
  This is all state capture in action.

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• C'tus 1 year ago

  The so-called doc is doing a diservice to academics doing clear, objective and fair work and giving them a bad name.
  
  Efficiency Comparison
  1. Doing spot analysis of fuel efficiency of various thermal plants is misleading ...
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  The so-called doc is doing a diservice to academics doing clear, objective and fair work and giving them a bad name.
  
  Efficiency Comparison
  1. Doing spot analysis of fuel efficiency of various thermal plants is misleading and mischevious. VRA's thermal plants built in 1997 has efficiency class quite different from new plants built with newer technologies. This is normal industry phenomenon which has nothing to do with mismanagement. If fact having plants of different efficiency classes and configuration in a power network is the norm to guarantee electric grid stability. However the fact is that the thermal plants operated by VRA outperform similar plants built elsewhere in sub-saharan africa at similar period due to prudent management. It will be hard to find such well maintained plants elsewhere lasting for this long. VRA thermal plants having operated for for 27years are still healthy in service operating within the efficiency class as provided by the OEM. This is enviable due to many operating cycles endured by the station running a mixed fuel and dispatch regime i.e, Crude Oil, Diesel and Natural Gas for peak and continuous operations which normally would have led to rapid deterioration of the assets.
  Most IPPs would resist such operational regimes raising concerns.
  2. The fair discussion should be to compare VRA TAPCo plant with Asogli Phase 1 plant which uses similar old tech accross a reasonable period of time to really begin an objective analysis. Just conveniently picking a day to do spot analysis is cherry picking and pure misinformation.
  3. VRA plants in Tema are simple cycle plants which have a role to play in the national power system. Most power systems have emergency plants with quick startup times to support emergency grid challenges, the focus here is not efficiency but quick startup times to salvage sudden voltage/frequency deterioration. Comparing simple cycle plants and Combined Cycle plants are convenient and mishevious
  4. The greatest misinformation is that privatizing VRA will inherently benefit the final consumer of electricity through lower costs due to “ efficiency gains”
  a. Currently So-called “ highly efficient IPP Plant” total cost to the consumer is much higher than VRA’s “highly inefficient” simple cycle plants. There is no where in the world where simple cycle plants are cheaper than combined cycle plant except GH
  b. So the so-called “debt burden” alluded to by the writer due to efficiency challenges by VRA’s thermal plants is a figment of his imagination. The fact remain that VRA’s plants are the cheapest out there comparing with IPP total delivered costs.
  c. What is going to happen as usual is these private elements will connive with state actors to sell the assets at a pittance and turn around to charge outrageous tariff supposedly to recover their investments at very high returns. This will ultimately lead to higher electricity cost for the final consumer
  5. The elephant in the room is that electricy supply is a national security issue. Allowing private actors to control 100% thermal generation is a recipe for disaster providing no leverage to the state when threats of shutdown are received leading to the country being held in ransom to these IPPs. Case studies from Indonesia and Malaysia clearly show the net impact of IPP in the energy market.
  6. Additionally, VRA thermal plants perform various ancillary roles to support the power system for which IPPs will not do. All these help the system to function properly. These include providing expert services in LCO//DFO procurement for the use of IPPs, procuring additional gas to support power system during periods of supply disruptions. All this are done by VRA silently to sustain the system.
  7. The fundamental issue of the power system in Ghana is the inability of ECG to collect and declare enough revenue to service the entire electricity value-chain. The main reason for such interest in VRA’s thermal plants to inherit the export access VRA has for private gain.

  reply
• C'tus 1 year ago

  The so-called doc is doing a diservice to academics doing clear, objective and fair work and giving them a bad name.
  
  Efficiency Comparison
  1. Doing spot analysis of fuel efficiency of various thermal plants is misleading ...
  read full comment

  The so-called doc is doing a diservice to academics doing clear, objective and fair work and giving them a bad name.
  
  Efficiency Comparison
  1. Doing spot analysis of fuel efficiency of various thermal plants is misleading and mischevious. VRA's thermal plants built in 1997 has efficiency class quite different from new plants built with newer technologies. This is normal industry phenomenon which has nothing to do with mismanagement. In fact having plants of different efficiency classes and configuration in a power network is the norm to guarantee electric grid stability. However the fact remain that the thermal plants operated by VRA outperform similar plants built elsewhere in sub-saharan africa at similar period due to prudent management. It will be hard to find such well maintained plants elsewhere lasting for this long. VRA thermal plants having operated for 27 years but are still healthy in service operating within the efficiency class as provided by the OEM. This is enviable due to many operating cycles endured by the station running a mixed fuel and dispatch regimes i.e, Crude Oil, Diesel and Natural Gas for peak and continuous operations which normally would have led to rapid deterioration of the assets.
  Most IPPs would resist such operational regimes raising all kinds of concerns.
  2. The fair discussion should be to compare VRA TAPCo plant with Asogli Phase 1 plant which uses similar old tech accross a reasonable period of time to really begin an objective analysis. Just conveniently picking a day to do spot analysis is cherry picking and pure misinformation.
  3. VRA plants in Tema are simple cycle plants which have a role to play in the national power system. Most power systems have emergency plants with quick startup times to support emergency grid challenges, the focus here is not efficiency but quick startup times to salvage sudden voltage/frequency deterioration. Comparing simple cycle plants and Combined Cycle plants are convenient and mishevious
  4. The greatest misinformation is that privatizing VRA will inherently benefit the final consumer of electricity through lower costs due to “ efficiency gains”
  a. Currently So-called “ highly efficient IPP Plant” total cost to the consumer is much higher than VRA’s “highly inefficient” simple cycle plants. There is no where in the world where simple cycle plants are cheaper than combined cycle plant except GH
  b. So the so-called “debt burden” alluded to by the writer due to efficiency challenges by VRA’s thermal plants is a figment of his imagination. The fact remain that VRA’s plants are the cheapest out there comparing with IPP total delivered costs.
  c. What is going to happen as usual is these private elements will connive with state actors to sell the assets at a pittance and turn around to charge outrageous tariff supposedly to recover their investments at very high returns. This will ultimately lead to higher electricity cost for the final consumer
  5. The elephant in the room is that electricy supply is a national security issue. Allowing private actors to control 100% thermal generation is a recipe for disaster providing no leverage to the state when threats of shutdown are received leading to the country being held in ransom to these IPPs. Case studies from Indonesia and Malaysia clearly show the net impact of IPP in the energy market.
  6. Additionally, VRA thermal plants perform various ancillary roles to support the power system for which IPPs will not do. All these help the system to function properly. These include providing expert services in LCO//DFO procurement for the use of IPPs, procuring additional gas to support power system during periods of supply disruptions. All this are done by VRA silently to sustain the system.
  7. The fundamental issue of the power system in Ghana is the inability of ECG to collect and declare enough revenue to service the entire electricity value-chain. The main reason for such interest in VRA’s thermal plants to inherit the export access VRA has for private gain.

  reply