ENERGY COMMISSION MEETS THE PRESS
ENERGY COMMISSION
PRESS STATEMENT, TUESDAY 16TH MARCH, 2010
Members of the Press, Invited Guests, Ladies and Gentlemen,
I have the pleasant duty to welcome you all to this Press Conference. On behalf of the Commissioners, Management and Staff of the Energy Commission, I want to say thanks to all of you for responding to our invitation to be part of this press conference.
The Energy Commission was established in 1997 and began operations in June 1998. The new Commission was sworn in by the Honourable Minister for Energy, Dr. Joe Oteng-Adjei, on Friday 3rd July 2009 and we deem it appropriate to inform the good people of Ghana what we have done in a little over eight months in office and in what new directions we intend to take the Energy Commission in the months and years ahead.
WHAT ARE THE FUNCTIONS OF THE ENERGY COMMISSION?
The Energy Commission Law of 1997(Act 541) spelt out our functions very clearly:
1. The Energy Commission is the Government’s energy policy advisor and makes national energy policy recommendations to the Minister of Energy.
2. We advise the Minister of Energy on National Policies for the efficient for the efficient, economic and safe supply of electricity, petroleum products and natural gas having due regard to the national economy.
3. We prepare, review and update periodically indicative national plans to ensure that all reasonable demands for energy are met;
4. We prescribe by Legislative Instrument and enforce, in consultation with the public Utilities Regulatory Commission, standards of performance and technical and operational rules of practice for the supply, distribution, sale of electricity and Natural Gas to consumers by Public Utilities;
5. We promote and ensure uniform rules of practice for the transmission, wholesale supply, distribution and sale of electricity and natural gas throughout the country;
6. We license Public Utilities for the transmission, wholesale supply, distribution and sale of electricity and natural gas;
7. We ensure the compilation of a comprehensive database for national decision making for the efficient development and utilization of energy resources available to the nation; and
8. We administer the Energy Fund for the purposes of
a. Promoting energy efficiency and productive uses of electricity, natural gas and petroleum products,
b. Promoting projects for the development and utilization of renewable energy resources, including solar energy,
c. developing the human resources in the energy sector, and
d. undertake any such other relevant purposes as may be determined by the Commission.
MAJOR ACCOMLISHMENT AS AT JULY 2009.
Some of the noteworthy actions of the Energy Commission in the past may be summarized as follows:
* Premix Fuel – urging the Government in 2006 to make it mandatory for Oil Marketing Companies (OMCs)to have dedicated tankers labeled PREMIX GASOLINE, and for Tema Oil Refinery to introduce colour dye in premix gasoline (this recommendation was implemented in 2009);
* Licensing – development of six standard licenses in electricity and natural gas and granting of four licenses for thermal power generation to entities in Tema and Takoradi as Independent Power Producers (IPPs);
* Performance improvement – enactment of eleven pieces of legislation on Technical and Operational Rules and Standards of Performance of public utilities engaged in the supply and distribution of electricity and natural gas;
* Energy Efficiency – enactment of three regulations covering Fluorescent and Incandescent Filament Lamps, Household Refrigerating Appliances and Air-Conditioners;
* Compact Fluorescent Lamps (CFLs) – recommending the mass adoption of CFLs as the standard lighting device in Ghana and phasing out the incandescent filament bulb;
* Renewable Energy Resources Assessment – securing support of the United Nations Environment Programme (UNEP) for the execution of the Solar and Wind Energy Resource Assessment (SWERA) project in Ghana; and
* Planning – publication in 2006 of a Strategic National Energy Plan (SNEP) for the period 2006-2020.
The Energy Commission’s achievements with respect to CFLs, done in collaboration with the Energy Foundation, are particular worthy of note. It has been established that electricity demand in Ghana was reduced by 124 MW in 2008 as a result of the CFLs, translating into annual cash saving of US$33 million to the economy and carbon savings of 105,000 tons per annum. In simple terms Ghana has been able to avoid the use on one thermal electricity generating turbine as a result of the CFLs programme.
WHAT WE HAVE ACHIEVED SINCE JULY 2009.
Ladies and Gentlemen, one of the first things we did as a new Board was to take note of the practical challenges confronting the Energy Commission. We noted the fact that the public’s perception of the Energy Commission was very low, in spite of the fact that a lot of work has been done in the past. We noted in particular the negative press around the payment of large amounts for office rent and we took a decision to ensure that the Commission quickly acquires its own office accommodation. I am happy to report that we are making good progress in this direction and expect to complete arrangements for property acquisition for the Commission within the next couple of months.
We have structured our Board Meetings such that we often take time to go on field visits to acquaint ourselves with the situation on the ground and once a quarter we hold our meetings outside Accra to enable us learn at first hand the problem and aspirations of all the people of Ghana. Our meeting in Kumasi (October 2009) allowed us to learn from the excellent work being carried out in the Millennium Villages project located near Bonsaaso in the Anansie West District of the Ashanti Region, and the recent meeting in Wa (February 2010) brought us face-to face with the harsh realities that many of our compatriots are subjected to on daily basis.
Ladies and Gentlemen, as far the substantive work of the Commission is concerned, we have submitted a draft Renewable Energy Law to the Minister of Energy for onward submission to Cabinet and eventual passage by Parliament. We have also made progress in the establishment of a Ghana Renewable Energy Fund (GREENfund). To make sure that we do not just remain or appear to remain at the level of talk, we have launched a pilot project on Solar and Wind Grid connected System with a commitment of up to GH¢100,000 from the Energy Fund and the first set of eight(8) projects should be completed within the next month or two.
In the area of Energy Efficiency we have given approval for a project to enforce minimum energy performance standards for fridges and freezers. Only refrigerating appliances that meet minimum energy performance standards and belong to the Sub-Tropical Climate Specifications can be placed on the Ghanaian Market. Importers and manufacturers of refrigerators and freezers will be required to label household refrigerating appliances in such a way that the purchaser knows in advance the annual electricity consumption of the appliance before the first retail purchase.
The National GRID Code to guide the operations of the Electricity Transmission Utility (ETU) has been completed and we launched it in
February 2010. The Natural Gas Transmission Utility Operator has also been appointed.
TARGETS FOR 2010 AND BEYOND.
Ladies and Gentlemen, the Commission is concerned about the unreliable power supply situation in the country and the fact that close to 90% of our countrymen and women do not have access to clean and modern cooking and heating fuels for domestic consumption as well as for productive uses and income generation. We are also committed to assisting the government to achieve its development targets for a better Ghana.
Accordingly, we have set for ourselves the following critical targets for the rest of the year 2010:
1. Passage of Renewable Energy Law;
2. Completion of Grid-connected Solar and Wind pilot projects;
3. Establishment of the GREENfund;
4. Completion of Woodfuels and Biofuels Policy and Legislative Framework;
5. Start-up of the Refrigerating Appliances (Energy Efficiency)Project;
6. Installation of Capacitors to reduce electricity consumption in Public
Facilities;
7. Completion of the Electricity Market Rules;
8. Completion and passage of National Electrical Wiring Regulations;
9. Completion of policy review for improvement of the power sector;
10. Completion of policy review for development of the natural gas sector;
11. Development and initiation of a new LPG Promotion Programme; and
12. Establishment of National Energy Data Processing and Information
Centre.
Ladies and Gentlemen, we will give special attention in the coming months to facilitate passage of the Renewable Energy Law by Parliament and establish the GREENfund to attract Renewable Energy investments especially in the power sector. We will also attach high priority to completion of the woodfuels and biofuels policy and legislative framework to create the environment for bioenergy investments which should contribute towards achievement of President Mills’ agenda for empowerment and employment creation.
We intend to intensify our efforts at reducing energy waste and environmental damage by transforming the Ghanaian market towards the use of efficient energy technologies. As stated earlier, we propose to use mandatory standards and accelerated phase-out of inefficient, obsolete and inappropriate refrigerating appliances. We will also install more capacitors in public facilities to reduce electricity demand considerably in 2020.
Ladies and Gentlemen, the power sector reform programme adopted by the Government of Ghana in 1995 has still some ways to go towards a wholesale electricity market that allows for choice on the part of consumers and competition among the service providers. Our target for 2010 therefore is to complete the detailed market rules to guide the operations of players in the Electricity Market and also complete our power sector policy review to enable us advise Government appropriately.
Following the recent incidences of major fire-outbreaks and the public perception that these are the results of problems associated with wiring in buildings, a committee is currently working on wiring regulations for the country which will lead to the enactment of a legislative instrument on electrical wiring in Ghana.
The Energy Commission is mandated by law to secure a comprehensive National Energy Information Database Management System. Establishment of the National Energy Data Processing and Information Centre will therefore be completed before the end of this year.
Finally, Ladies and Gentlemen, while efforts are being made to improve the energy supply situation, we would like to appeal to the media to collaborate with the Energy Commission in sensitizing the public to be conscious of energy conservation and to use energy wisely.
Thank you for your attention.