Ghana’s energy deficit saps economic strength

Current capacity and energy mix
Power generation, as stated above, is a capital intensive venture and the government alone cannot shoulder this burden. With over 70% of Ghana’s revenues going into the payment of salaries of public sector workers alone, there is very little to spend on such expensive, though hugely important projects as energy generation.

Cognisant  of this fact, the government has lately been seeking private sector support. This Public-Private Partnership (PPP) module which is also being replicated in other areas of the economy, has yielded tremendous benefits to the country in the energy generation sector.

Independent Power Producers (IPPs) have also come on board to augment government’s efforts in energy generation and currently, there are around seven IPPs producing power in Ghana.

The country’s current energy mix is made up of 5% hydro, and 48% thermal and its current installed capacity is 2546.5 MW according to the Volta River Authority (VRA), the country’s major power generation company.

But current energy demands which stand at 10% per annum means that the country will have to continue investing in the sector if its current pace of economic growth is to be sustained. Records show that, for instance, between 1998 and 2008, the country’s electricity consumption grew at an average rate of 8% per annum, and this figure has increased to 10%  presently. Some records even state that demand for last year reached 12%.