This adds up to 1.1 billion dollars in expenditure in a year, as harsh weather conditions have made hydro power generation a challenge for the country.
Deputy Minister for Power John Abdulahi Jinapor told a news briefing that while the component for Independent Power Producers (IPPs) would be 52 million dollars a month or 630 million dollars a year, the state-run Volta River Authority (VRA) would spend 46 million dollars monthly or 550 million dollars a year to purchase crude oil to run the plants.
Ghana’s projected annual demand for power in 2016 is 2,477 MW, with current generation hitting 1,697 MW, while installed capacity stands currently at 2,047 MW.
“As a result of projects that we have initiated to deal with the challenge in the short term, we expect to inject about 1,000 MW of thermal energy into the national grid,” the deputy minister announced.
Jinapor conceded that the daunting challenge would be to raise enough revenue to cover the huge fuel bill for the thermal plants to deliver reliable and sustainable supply of power this year and beyond.
With the shutdown of the Chinese-built Atuabo Gas Processing Plant last for scheduled maintenance, the country is expected to shed 600 MW of power.
The deputy minister, however, allayed fears of an impending load shedding, saying the VRA had procured 600 barrels of light crude for the running of the thermal plants.
The Chairman of the Load Management Committee, William Amuna, said the country expected to increase installed capacity to at least 4,000 MW by the end of 2016 when all projects currently ongoing would have come on stream.
“If all new generation projects are completed as scheduled and bearing any unexpected plant breakdowns, we should have enough generation capacity to meet the projected demand,” he said. Enditem