Page 11 - AfrElec Week 22

AfrElec NEWS IN BRIEF AfrElec

POLICY of Ghana also showed that at the end of “common carrier” and obliging it to transmit
2000, electricity access rate stood at 45 electricity on behalf of other players on agreed
Ghana’s grid coverage percent, suggesting an annual growth rate of terms and conditions, Reuters reported.
approximately 2 percent.
CEC, formerly a state-owned firm before it
stands at 85% achieved an access rate of 67 percent; was privatised in the 1990s, said the statutory
By the end of 2010, the country had
instrument and other steps taken by the
Ghana’s current electrification rate is about indicating an annual growth rate of 2.2 government amounted to expropriation.
85 percent, a bit far off the target, with no percent. Zambia’s Energy Regulation Board (ERB)
improvement in sight, the Executive Director Also, the annual growth rate between the wrote to CEC on May 31 establishing a new
of the Institute of Energy Security has said. next six years that followed (2010 and 2016) charging arrangement, known as a wheeling
According to Paa Kwasi Anamua Sakyi as recorded by the Energy Commission, was tariff, equivalent to about 30% of the current
(Nana Amoasi VII), after 31 years after 2.7 percent. tariff for using the firm’s network, the
the establishment of a 30-year National The trajectory, Mr Anamua Sakyi said, company said.
Electrification Scheme (NES), there still exists shows an incremental annual growth in CEC said the government’s actions had
a substantial deficit in electricity access in electricity access. taken away the company’s commercial and
Ghana. However, over the last three years (between property rights and had prevented it from
The 30-year National Electrification 2016 and 2019) the annual electricity access taking viable business decisions.
Scheme (NES) was instituted in 1989 to growth rate has seen substantial decline from The energy minister said the infrastructure
achieve universal access to reliable electricity 2.7 percent to a paltry 0.6 percent. remained CEC property but others could use
supply by 2020. The baseline at the time the As of the end of 2019, the country had it on agreed terms and conditions.
policy was rolled out, showed a national obtained a national electricity access rate of 85 “It is their property and we have got no
electricity access of about 25 percent, with percent. intention of taking it over,” Nkhuwa told
only 5 percent rural penetration. Reuters. “They will charge but their charges
In a write-up on the need for Ghana will have to be in line with the Southern
to deploy renewables to achieve universal African Power Pool and ERB regulations.”
electricity access by 2025, Mr Anamua Sakyi GRID CEC said on Sunday it would stop
said: “It is evidently clear that with the current supplying power to Vedanta’s Konkola Copper
growth rate, it is practically impossible to Zambia denies power firm Mines (KCM) unit after talks to extend a
achieve universal access by end 2020”. supply agreement broke down over debt owed
“And the admission of this fact is what has CEC claims of expropriation to CEC.
led to the government of Ghana revising its However, the government intervened
target, and seeking to develop new strategies Zambia’s government said on Wednesday it and said KCM would now receive its power
to push the boundaries to achieve the goal of had no intention of taking over Copperbelt directly from state-owned utility Zesco, which
universal access by year 2025.” Energy Corp (CEC), after the company previously sold electricity to CEC for onward
“Thirty-one years after the policy was accused the government of expropriating its supply to KCM.
instituted, there still exists a substantial deficit power lines by saying others must be allowed Nkhuwa said the bulk electricity supply
in electricity access in Ghana. The current to use them if they paid. agreement between Zesco and CEC, which
electrification rate is about 85 percent, a bit far Energy Minister Matthew Nkhuwa issued expired on March 31, would not be renewed.
off the target, with no improvement in sight”. a statement, known as a statutory instrument,
Data from the Energy Commission on Friday declaring the CEC power lines a

INVESTMENT
Evolution II Fund back

management buy-out of Red

Rocket

The management of South African IPP
Red Rocket has joined Inspired Evolution’s
Evolution II Fund to close the buy-out of
Building Energy’s Africa and Middle East
business to launch the newly branded Red
Rocket Group.
The new joint venture will see the re-
capitalisation and positioning of Red Rocket
to become one of Africa’s leading emerging
renewable energy independent power
producers (IPPs).
Evolution II holds a majority shareholding
in the reconfigured IPP platform alongside

Week 22 04•June•2020 www. NEWSBASE .com P11