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Ghana Plans to Sell Excess Power to Niger, Burkina Faso and Mali

Hon. Boakye Agyarko, Energy Minister, Ghana

On May 16, Ghana Energy Minister, Boakye Agyarko, during his speech at the National Policy Summit, declared that Ghana would have a surplus of over 5,850 Megawatts of the power accumulating from 43 already signed relevant Power Purchase Agreements (PPAs). All these agreements were signed according to the State emergency power program.

He also added that the country would benefit from the arbitrage in the West African electricity market to vend the extra power that would be generated from the Power Purchase Agreements (PPAs).

According to Yen News, these PPAs technically give Ghana over 10,810 megawatts of power, while the real need is fewer than 5050 MW. The Minister declared that if such a situation continued, Ghana would have to pay almost 678 million dollars of capacity charges yearly by 2020.

Boakye Agyarko‘s real goal, as the Energy Minister, is to modify the potential extra capacity. Thus, he is going to export extra power to Ghana`s neighbors at much lower price. These are Niger, Burkina Faso, and Mali.

The Minister also disclosed the following figures. Presently, Ghana generates power at 14-16 cents per KW/h. At the same time, Ivory Coast produces at nine cents per kilowatt hour and sells it to Ghana at eleven cents per KW/h.

“When the 332 km line from Abode reaches Burkina Faso, we will be happy. It is our direction,” the Minister confessed. Moreover, the official added that if all plans went well, the West Africa Power Pool would harmonize energy tariffs in the neighboring region, making them much cheaper.

By the way, during a short media briefing on the negotiations at the World/IMF Bank Spring Meetings (Accra) a month ago, the World Bank moved up the question of the possible extra power capacity. WB strongly recommended Ghana exporting power to neighboring countries.

However, would it be possible to achieve that, as Ghana has high tariffs following on the PPAs, compared to others in the Sub-region? Dr. Mohammed Amin Adam Anta, the Deputy Minister of Energy, agreed that the taxes of the signed PPAs were too expensive. For example, on average the cost is 16-18 cents per KW/h, while in Cote d’Ivoire it is only 11 cents.

From the other side, he added that the Ministry analyzed the situation in neighboring countries (Mali and Burkina Faso) in details and found out that their tariffs are more expensive — over 26 cents per KW/h. That is why Ghana` power is a very attractive proposal for them.

“Ghana wants to benefit from this second market where power is too expensive,” concluded Dr. Mohammed Amin Adam Anta.

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