Mini-Grid Based Electrification
PROJECT DETAILS
Strategic Priority Area:
Mini-Grid Based Electrification
Project Type:
In consortium with other consultants and international collaborators
Location:
Ghana Investor
Country/Client/Sponsor:
SNV Netherlands Development Organisation
Project Scope:
Analysis Of Mini-Grid Based Electrification
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f.kemausuor@morksreidglobal.com
In line with the Viability Analysis Of Mini-Grid Based Electrification in Ghana, this project was conducted in Dodi Adjaade, an island community in the Kwahu Afram Plains North District of Ghana, with a population of about 5,230 people. The Kwahu Afram Plains North District is one of SNV’s target districts for advocacy under the Voice for Change Partnership programme, specifically for mini-grids deployment, as it is one of the few districts with a significant number of Islands in the country. Led by Prof Francis Kemausour under the auspices of the SNV Netherlands Development Organisation, a survey was initially conducted on the island to investigate existing and aspirational electricity demand of households, commercial/light industries, schools, clinics, street/community lighting and religious buildings. Solar radiation and wind speed data for the island were also obtained from NASA Surface Meteorology and Solar Energy Database and analysed using some globally recognised energy tools. Essentially, the project identified that whereas public sector utilities have the luxury of cross-subsidisation for the operation of mini-grids, Ghana’s mini-grid policy does not currently guarantee any compensation package for private sector players, even though they are required to charge only uniform tariffs. Without a compensation package to private sector players, they cannot charge uniform tariffs and remain in business, as lifeline tariffs may not sustain even the operations cost of private sector mini-grids. Getting the right investment arrangement for private sector participation in mini-grids in Ghana depends on getting the right policies and regulations in place. The Government of Ghana is central to making mini-grids work well in the country. A focus on private sector participation would require lowering of operating risks faced by investors to help ensure a sufficient return, and this would happen if tariffs are dispassionately reviewed and made favourable to the private sector, or that there is a capital subsidy scheme that takes care of the shortfalls arising from the uniform tariff structure.




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