Energy Industry

Demand for electric power in Ghana is projected to grow from the level of 1,400MW in 2005 to about 3,500MW in 2020. The increase in capacity is expected to be financed mainly by the private sector and the Ministry of Energy has been encouraging investors to adopt Build Own Operate and Transfer (BOOT) and other innovative financing arrangements.

Besides power generation, other investment prospects in are in petroleum exploration. Ghana's offshore sedimentary basin covering about 50,000km2 and the interior Voltain Basin of about 103km2 have remained largely unexplored. Ghana is part of the West African province, where giant oil and gas discoveries continue to be made, and there are clear indications of the existence oil and gas in the country.

Other areas of potential investment are crude oil refining, bulk petroleum products pipelines and storage, alternative transportation fuels such as biofuels and, with the anticipated commissioning of the West African Gas Pipeline in 2007, natural gas secondary market infrastructure, development of wind farms, manufacture of solar panels, and of electrical appliances and equipment, including cables, transformers, and lighting, such as compact fluorescent lamps (CFL).

All these are geared toward the Ministry's objective of providing reliable energy supply to support the nation's development. For, without adequate and reliable energy supply, Ghana's middle-income status objective will be an uphill task.

About 99% of the total electric power is generated from hydroelectric sources at two stations - Akosombo and Kpong. The Akosombo plant has 6 turbines with a total installed capacity of over 912 megawatts. Kpong's capacity is over 160 megawatts. Tema has a thermal plant with capacity of over 30 megawatts. A 300-megawatt thermal plant near Takoradi is almost completed. As a result of increased industrial activity, current demand for power far outstrips supply. Opportunities in the energy market include: -

Gas transmission network in Ghana - possibility for investors to participate as equity partners in the establishment of a National Transmission Company. Investors could sell "excess" power on long term negotiated contract with strong mining companies or into the National Grid at "avoided cost".