Alfred Ofosu Ahenkorah, Executive Secretary of the Energy Commission, says the country requires US$ 3 billion to improve the energy sector.
“The country is faced with a broad challenge of lack of regulations, institutional framework and incentives for investment. The sector is under-capitalised.
“The nation is faced with multi-faceted challenges to get the energy sector into proper shape for efficient delivery throughout the country.”
The country currently produces approximately 2000 megawatt of power and expects to generate 5000 megawatt by 2015.
Mr. Ahenkorah dropped this hint at a three-day capacity building exchange programme for Director-Generals of the West African Power Pool (WAPP) members, aimed at proposing strategic reforms and finding ways of making real progress in the various countries.
“Over the years, the distribution sector has not seen massive investment. The system has been saddled with over-aged and obsolete equipment, overloads, high losses, low voltages and evacuation constraints among others,” he said.
Kwaku Awotwi, Chief Executive Officer, Volta River Authority, indicated that Ghana has been at the forefront of WAPP, focusing on reforms.
Amadou Diallo, Secretary General, WAPP, explained that the drive towards obtaining a fully operational regional network is dependent on the successes of individual national systems, and as such this has being the objective of WAPP-- to push for excellent cooperation between member utilities to enable countries share and learn from challenges and success stories.
He indicated that power-sector reforms have offered viable options for response to challenges faced in the power industry, and these have invariably catalysed the growth of the sector.
He observed that Ghana and Nigeria have in the last years successfully carried out reforms in the power sectors, unbundling key major utilities into various units in order to derive the maximum benefits therein.
“As other sister utilities have embarked on the journey to reform their electricity sub-sectors, and others consider following these steps, this exchange programme offers us the chance to interact on the opportunities and challenges uphill,” Diallo remarked.
Meanwhile concerns have been raised that leaders need to end the routine electricity blackouts occurring in almost all West African countries.
In West Africa, the bulk of power plants and transmission facilities were built in the 1950s and 1960s. Little investment and maintenance has left the infrastructure creaking at the seams. Nigeria, a prime example, operates at one-third of its installed capacity due to aging equipment.
ECOWAS estimates that 5,600 kilometres (km) of electricity lines connecting segments of national grids will be put in place.
About US$11.8 billion will be needed for the necessary power lines and new generating plants. This infrastructure would provide the ECOWAS sub-region an installed capacity of 10,000 megawatts (mw).
Under the WAPP agreement, countries hope to develop energy production facilities and interconnect their respective electricity grids.
The major sources of electricity under the power pool would be hydroelectricity and gas to fuel thermal stations. Hydropower would be mainly generated on the Niger (Nigeria), Volta (Ghana), Bafing (Mali), and Bandama (Côte d'Ivoire) rivers.
Assistance from donor governments is critical. Some donors willing to finance ECOWAS's WAPP project include the Agence Française de Développement, World Bank, European Investment Bank, West African Development Bank and the Nordic Fund.
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