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5thWestAfricanCleanEnergy&EnvironmentExhibi:on&Conference2016, 15thofSeptember2016attheAccraInterna:onalConferenceCentre,Ghana LINKINGENERGYPOLICYTOGROWTH,PROSPECTSANDLIMITATIONSFOR RENEWABLEENERGY(RE)TECHNOLOGIES,ASPOTENTIALSOLUTIONFORENERGY: SPECIALEMPHASISONBATTERIES BYPAULOKAN-ADJETEY,DELEGATIONOFGERMAN INDUSTRYANDCOMMERCEINGHANA ? Implementa:onofSurvey: Inpartnershipwith: REmeasurespolicyCoverageworldwide Globalperspec:veofREinvestments 2015,itisreportedthatGlobalInvestmentsinto REhadincreasedby5%since2011,amounSngto USD285.9billion. AfricaandMiddleeastupto58%USD12.5billion Source:FrankfurtSchoolofFinance&ManagementGmbH(2016) Purposeofthesurvey Theneedforalterna:veenergy supplyinGhana • Lowwaterlevels,duetoinsufficientrainfall paYernsinthecountriesmajorhydroelectric powerplant(Akosombo) • Absenceofnaturalgastofirethecountries thermalpowerplants Jus:fica:onforasolu:on • 2%to6%ofGhana’sannualcostofGDP (GhanaWholesalePowerReliability AssessmentReport)-PowerSystemsEnergy ConsulSngandGRIDCo • Averageof4%annualcostofGDP $1.5billiontofixthepowercrisiswhat percentageofthisisfromourGDP-VRAin 2014 Ghana’sGDPinDumsoryears • 2010 Ghanamade$48,678million=$1.94712million • 2013 Ghanamade$32.18milliondollars=$1.2872million • 2014 Ghanamade$38.61million=$1.5444million • 2015 Ghanamade$37.86million=$1.5144million (GDPSource:worldbank) DriversofGDP ElectricityConsump:onbyCustomerclassGWh 6% ResidenSal 48% 28% Non-ResidenSal 18% Industrial Streetlights Source:EnergyCommission2016 Sector Annualcontribu:onofGDPinpercentage(%) Agriculture 2014 28.2 2015 27.2 2016 12.2 Industry Services 24.7 47.1 22.4 50.4 27.7 60.1 Source:GhanaStaSsScalService2016 DumSor! Ghana’s GDP ? Alterna:veenergy solu:ons Nuclear RE Coal ExploringAlterna:ves • Understandingoftheprospectssuch alternaSvespresent • Whatiscurrentlyhappeningtodemandand supply(marketforthosealternaSveswe desperatelyneed)? • AlternaSvescannotoperateinisolaSon,they areguidedbypolicy(whatpolicyfavours thesealternaSves) ExploringAlterna:ves • Doespolicyeffec:velyguidethegrowthand developmentoftheRE-subsectoritwasbuilt toenhance? • Ifitdoeswhatarethestrengths,weaknesses, opportuniSesandconstraintsinitsguidance • HowcanthesealternaSvesbeexploredin solvingapowercrisisthat’simpedinggrowth intheGhanaianeconomy R&D Linkingpolicytogrowth EnergyPolicy Exploringprospects andlimita:onsforRE (effec:vegrowthofRe sector) “EnergyEconomy” InducedGrowthofGDP drivers GrowthofRenewable energySubsector Sufficientandreliable power Provisionofalterna:ve powerfordriversof GDP “InclusiveRegula:on” SWOTAnalysisofcurrentEnergyPolicy REandCross-cu_ngpolicysubsectors • Overarchingenergysectorgoal:Todevelopan“energyeconomy”tosecureareliable supplyofhighqualityenergyservicesforallsectorsoftheGhanaianeconomyandalso tobecomeamajorexporterofoilandpowerby2012and2015respecSvely(EP(2010), p.5) • RESubsector:ToincreaseproporSonofREinthetotalenergymixandensureits efficientproducSonanduse -EngagingGhanaianengineersandscienSststocooperatewithinternaSonalexpertsto bringdownthecostofsolarandwindtechnologies -CreaSngfiscalandpricingincenSvestoenhancethedevelopmentanduseofRE • Managingthefuture:TobuildatransparentandeffecSveregulatoryenvironmentas wellasstrengthentheregulatoryinsStuSonstofulfilltheirmandateeffecSvely • EnergyandGender:Tomainstreamgenderconcernsintheenergysectorandalign themwithpropersafetyandenvironmentalstandards • EnergyEfficiencyandConserva:on:Toremoveobstaclesthathaveconstrainedthe promoSonandimplementaSonofEnergyEfficiencyandconservaSonmeasures through:1.FiscalincenSves2.AwarenesscreaSon3.InsStuSonalandhumanresource capacitydevelopmentand4.FinancialintermediaSon SWOTAnalysisofcurrentEnergyPolicy StrengthsforRE • ECOWASsub-regionalREtargetsof10%by2020 and19%by2030-Overarchingenergysectorgoal • Ghana’ssignatorytotheWAPP • RenewableEnergyActof2011(fantasScfour) -Netmeteringcode -FeedInTariff(FIT)schemes, -EnergyFund -RenewableEnergyPurchaseObligaSon(REPO) SWOTAnalysisofcurrentEnergyPolicy StrengthsforRE • IncreasingInternaSonalinvestmentinterestinGhana’s energysector-RESubsector • TheavailabilityofinsStuSonsnecessaryforthe implementaSonofpolicyprovision’s(e.g.Energy Commission,PublicUSlityandRegulatoryCommissionetcManagingthefuture • AnEPthatfactorsgendermainstreamingasasub-sector- EnergyandGender • ImpactsofsuccessfullyexecutedEnergyEfficiencyand conservaSon-EnergyEfficiencyandConserva:on SWOTAnalysisofcurrentEnergyPolicy WeaknessesforRE • LackofsovereignguaranteesforuSlityscalePPA’sOverarchingenergysectorgoal • Thelackofacreditworthyofftakertoguaranteefuture paymentofPowerPurchaseAgreements-RESubsector • DelaysinimplemenSngsecSonsoftheRenewableenergy Acte.g.REPO-RESubsector • Lackofbothlocalandforeigninvestmentinterestinthe manufactureofcomponentsforREtechnologies-RE Subsector SWOTAnalysisofcurrentEnergyPolicy WeaknessesforRE • LackofaproperandeffecSvecoordinaSonof informaSonamongstateinsStuSonsfor efficientlycarryingoutcustomduSesandtax incenSves-Managingthefuture • Restrictednumberofwomeninenergyservice provisionandmanagement-EnergyandGender • Absenceofclearlydefinedpolicyor comprehensivelawsonEnergyEfficiencyacross- EnergyEfficiencyandConserva:on SWOTAnalysisof currentEnergyPolicy Opportuni:es • AstableandpoliScalatmosphere-Overarching energysectorgoal • Successivepowercrisisthathave demonstratedtheunreliablenatureof convenSonalsourcesofenergy-RESubsector • Lawsthatfavortheestablishmentof manufacturingindustriesinGhana (ExempSonfromEquityrequirementsperGIPCAct865) -RESubsector SWOTAnalysisof currentEnergyPolicy Opportuni:es • PotenSaltogeneraterevenuetopublicinsStuSons,boosSng theREsectorandtheEconomyasawhole • Ghana’spotenSalofservingasadriverofREtechnologiesto othercountriesinthesub-regionManagingthefuture • TheexistenceofanenSreministrycapableofsupporSng energyandgenderprogrammesinGhanaifiniSated-Energy andGender • Powercrisisofrecentyearsserved asawake-upcall-EnergyEfficiencyandConserva:on SWOTAnalysisof currentEnergyPolicy Threats • DisconSnuaSonofpolicieswiththepotenSalpoliScal changeingovernments-Overarchingenergysectorgoal • PotenSalpoliScalinterferenceintheappointmentof competentandacceptedmanagersformanaginguSliSes (VRA,ECG,NEDCO)-Overarchingenergysectorgoal • LackingreadinessofgovernmentstoembraceUSlityscale REtechnologiesasacrediblealternaSveforsolvingour powercrisis-RESubsector • HighcostofimportduSes,ifrawmaterialsareimported separatelytobeusedinREsystems-RESubsector SWOTAnalysisofcurrentEnergyPolicy Threats • Growinglocalserviceproviderscannotmeet commercialbankrequirementsforassessingloan schemes-RESubsector • Seeminglackofinterestbyfemalesinthemale dominatedtechnicalREvaluechain-Energyand Gender • UnjusSfiedpolicydirecSvesandinstabletax environment(eg,CET,5%onsolargeneraSngsets/ 20%duty+17.5%VATonLEDsarenotstreamlinedRE Act)-EnergyEfficiencyandConserva:on Exploringprospectsandlimita:onsof theREsubsector -27licensedserviceproviders -55End-user/clientsofService providers Growthof Renewableenergy Sub-sector • AgrowingglobalroleandraSonalfor baYeries • CharacterisScsofHighcostcomponentsof anySolarPV/back-upsysteminGhana (Prospects,LimitaSonsandMarketpotenSal) • Supplysideprospectsofserviceprovidersofsolar PV/windinGhana Sowhatdidwefind? MarketLoca:onsofREserviceproviders. Sowhatdidwefind? SolarPVInstallaSoncosts–end-userresponses Sowhatdidwefind? ClientbaseofREserviceproviders Sowhatdidwefind? End-userresponsesonhirepurchaseofsolarbaferybackupsystems Sowhatdidwefind? (RecommendaSons-servicepoviders) “TheGovernmentmustendeavourtoraisetheawarenessofthepeopleinthe countrytopatronizerenewableenergysoastorelievetheNaSonalgridofsome load” “duSesontheimportaSonofrenewableenergyproductsareveryexpensive” “AccesstocreditisverydifficulthereinGhana.Weexpectgovernmenttoprovide soscreditfaciliSesandtaxincenSvesforsolarbusinesses.Welostan opportunitytorepresentaUKCompanyastheirsoledistributorofsolar productsinGhanaduetolackoffundstoprocureourfirstorder” “SubsidizaSonthroughanincometaxsystem,whereapercentageoftheincome taxcanbelowered/abated,andthatspecificpercentage,givenasataxholiday foraperiod,toenablethetaxpayertoallocatethegivenpercentagetothe purchaseofsolarsystem.Inthelongrun,consumpSonwouldbeloweredand thesurpluscanbeusedforproducSveuseofelectricityinindustry. “ThereshouldalsobetheregistraSonofsolarimporters,tobeabletoimport differentcomponentstobeimportedfromdifferentcountries.Therecanbe verystrictpenalSesputinplace,suchthatifcomponentsareforusedfor otherpurposes,theycanbepenalizedseverelyinaddiSontopayingforallthe taxestheseparatecomponentsimported” RecommendaSons • Registeredserviceproviderscouldbeallowedto importhighcostcomponentsseparately,but underclosescruSny • ConSnualdialogueandacSonandcoordinaSon ofefforts/acSonstowardsachievingtherealisSc goalsofthepowersector. • PolicyharmonisaSonandinter-sectorial/ ministerial/industrydialoguesarekeysuccess factorsforthebenefitsoftheenergypolicytobe realised. RecommendaSons • Policieswouldhavetofactorandproperly regulatehirepurchaseagreementstoensure standardproceduresarefollowed,andnot representedintheREAct. • Policieswouldhavetofactorinenforcement ofstandardsforREcomponentstoensurethe qualityofsystems Linkingpolicytogrowth D R& EnergyPolicy Exploringprospects andlimita:onsforRE (effec:vegrowthofRe sector) “EnergyEconomy” InducedGrowthofGDP drivers GrowthofRenewable energySubsector Sufficientandreliable power Provisionofalterna:ve powerfordriversof GDP “InclusiveRegula:on” • GhanaCandotoREwhatIndiadid toIT,wehavetheenablingenvironmenttodoso,and wecanexploretheeverincreasinginvestor intereststoourbenefits,tocreatesynergiesfor efficientgrowthofoureconomyandthat’show youlinkpolicytogrowth Acknowledgements • • • • • IshmaelEDJEKUMHENE FrederickAppiah EliezerOdei-Lartey Lara-MariaKULLAK-UBLICK EnochYeboahAGYEPONG THANKYOU!