SOLAR potential EDIT 2

Investment opportunities in Solar Energy in Ghana
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STANDOUT CONSULT
INVESTMENT OPPORTUNITIES IN SOLAR ENERGY IN GHANA
Ghana has since independence depended heavily on hydro power as its primary source of grid
energy. Unfortunately, the supply of energy by hydro in the country is no more sustainable.

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Energy is a major requirement for economic growth and development. Over the years, a number
of thermal plants have been installed to append the supply from the hydro plants. There is a
direct link between energy use, economic growth and standard of living. At the same time energy
supply has serious financial and environmental implications to such an extent that uncontrolled
energy consumption will have adverse consequences on the economy and the environment.
At a time when the Ghanaian economy is achieving sustained growth in excess of 6 per cent
annually, with ambitions to raise this further, there is a risk that misguided and inappropriate
policies will lead to the power sector becoming a drag on the economy. A major, avoidable
power crisis in 2006/2007 is estimated to have cost the country nearly 1 per cent in lost growth
of gross domestic product during those years. Five years later, Ghana once again was plunged
into power shortages, which also could have been avoided if lessons from the past had been
learned and decisions taken to ensure that adequate dual-fuel generation capacity was built. The
present recent power shortages, arising from a cut-off of imported gas from Nigeria, could have
been mitigated if Ghana's own gas from the Jubilee field had been developed in a timely manner
in parallel with oil production that began in 2010(World Bank's 2013 energy sector report). In
most countries, energy sector investments are mostly carried out by governments. However, the
Ghanaian energy sector rather possesses numerous opportunities for private investments with
regard to the heavy shortfall in supply.
Ghana relies on two primary types of generation facilities: hydroelectric plants and thermal.
Presently, there are ten major generation facilities in Ghana, three hydroelectric and seven
thermal. The recently commissioned Bui Hydro plant is expected to add 400MW when fully
operational. Historically, Ghana has been largely dependent on hydroelectric power.
OVERVIEW OF GHANA’S ENERGY SITUATION

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Electricity access (September 2013) 80%
Electricity installed capacity 2013 3,170mw
Electricity generation 2013 12,200gwh
Crude oil production (2013 av) 90,000b/day
Energy resources: solar energy 4.5- 6.0kwh/m2/day
Wind energy along coast 5.0m/s at 12 meters height
Hydro 3,500mw (1580 exploited)
Bui hydro power 400mw1
CURRENT ENERGY FORECAST (DEMAND AND SUPPLY)
1 Energy Commission Annual Statistics 2014

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Ghana already started investing in renewable energy even if it is still in a slow process.
Aside from the Bui, Kpong and Akosombo Dams in Ghana, the first Solar Power plant was introduced at
Navrongo, in the Upper East Region of Ghana in May 2013. The Navrongo Solar Power Plant cost the
Volta River Authority an estimated 8 Million US Dollar Budget.
It is already reported that the plant is not working efficiently. Problems have occurred while
storing energy and delivering energy to the households. Another big investment planned is the
Pwalugu Multipurpose Hydropower Dam, in the Upper East region at the White River in Ghana.
The construction of this project will start in 2017 and is planned to finish in 2022.
The Pwalugu Dam is considered to function as a multipurpose dam for several purposes, such as
for generating electricity as the major function, and for flood Control. The construction and
operation of the dam will provide many job opportunities as Planned.
It will however also affect the surrounding environment with traffic noise, dust and Exhaust
emissions. Many people might feel threatened by that and have to relocate, for which the Volta
River Authority plans on consulting the public and raise awareness of the project, its benefits and
its effects.
Renewable energy is one arguable topic on whether it could succeed in Ghana or not. Many
Steps are however being taken and using renewable energy would mean the prices of electricity

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And heat would decrease, since the energy comes from an infinite source. Electricity would not
only become cheaper, but also more regularly provided than at the current state. It is in fact an
expensive investment for the government and the investor companies, but with the financial
Support coming from developed countries it is not farfetched, even solar street lights are being
used in several areas in Ghana, and seen as a step forward to an eco-friendlier country.
In order to promote and invest in renewable energy resources, and support our climate, several
countries hence donate or support foreign governments in financing and training to take the
step towards an eco-friendly environment. One major investor in Ghana is Germany. In the
Previous year, Germany has boosted Ghana’s energy sector with 1.8 million Euro via the
Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) after the ratification of the
Renewable Energy Act in 2011.The German-Ghanaian bonds grow stronger through the
Frequent financial investment in biomass projects and climate change opportunities as well. It
is important to mention that financial support and investment alone cannot aid the environment
and help the Ghanaian climate if there are no awareness campaigns and projects.
.2
2 Energy Commission strategic report 2014

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CURRENT ELECTRICITY CHARGES IN GHANA
Tariff category Tariff
Residential :
0 – 50 exclusive GHp/kwh
51 – 300 GHp/ kwh
301 – 600 GHp/ kwh
601+ GHp/ kwh
Service charge GHp / kwh
17.1998
34.5072
44.7836
49.7596
324.5190
Non – residential:
0 – 300 GHp/ kwh
301 – 600 GHp/ kwh
601+ GHp/ kwh
SERVICE CHARGE
49.6081
52.7884
83.2932
540.8649
SLT- LV:
Max demand
Energy change
Service charge
3028.8436
51.7067
2163.4597
SLT- MV
Max demand
Energy charge
Service charge
2596.1516
40.0240
3,028.8436
SLT-HV
Max demand
Energy charge
Service charge
2596.1516
36.7788
3,028.8436
SLT-HV MINES
Max demand 3028.8436

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Energy
Service charge
58.4134
3028.84363
4
3 PURC ( public utility regulatory commission)
4 PURC ( Public Utility Regulatory Commission)

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SOLAR INVESTMENT POTENTIAL
ADVANTAGES AND DISADVANTAGES IN GHANA
Advantages of solar investment
in Ghana
Disadvantages of solar
investment in Ghana
 High patronage of power in
Ghana
 High capital requirement
 Climate friendly  High political procedures
 Profitable investment in the
rural areas
 Bureaucratic procedures
 Resources are infinite  Inadequate experts
 Public private partnership
advantage by government
 High cost of maintenance
 High demand for power in
Ghana
 Unreliable sources of power
in Ghana

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The potential drivers for electricity consumption
Under contemporary circumstances, we project that the potential drivers for
electricity consumption would be the same as in 2012 and are as follow:
and influenced by gold production;
Other or general Industrial share also growing;
-going national electrification scheme;
-stream and mid-stream ac

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Demand Drivers Minimum Maximum
VALCO One more Plotline Two more Potlines
600 GWh5 1,200 -1300 GWh
Gold mining Surface mining Deep mining
200-232 GWh 400 -450 GWh
Other Industries 320 350
National
Electrification
172 GWh 375 GWh
Natural GDP
growth
NationalAverage
2000-2012electricity
growth
2010-2012electricity
growth
121 GWh 978 GWh
Gas processing
construction
100 GWh 200 GWh
Demand-side
management
-10 -23
Total 1,503-1,535
5 Energy commission

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Generation system, accounting for 1,180 MW of generation capacity or 60 per cent of the
national total.
The thermal plants, two located at Takoradi and four located in Tema, and the Mines Reserve
plant, represent the remaining 40 per cent of generation capacity. The Takoradi plants, one

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simple cycle combustion turbine plant and one more efficient combined cycle plant, provide a
total maximum capacity rating of 550 MW. These plants can be operated on light crude oil
(LCO) or natural gas (NG); at present they are run mostly on LCO due to challenges vis-à-vis
natural gas availability. The remaining three plants are one LCO/NG dual-fired plant and two
diesel generators located in Tema, which together provide an additional 213 MW of capacity.
Currently power supply from Sunon Asogli Plant is not available due to lack of gas supply as a
result damage to the West Africa Gas Pipeline (WAGP).
The total electricity generated in 2012 was 12,024GWh; as against 11,200GWh in 2011. The
2012 generation comprised 8,071GWh (67.1 %) hydropower and 3,953GWh (32.9%) of thermal
power. Even though hydropower generation share decreased by about 0.4 percentage points over
2011, total energy produced increased by about 824GWh. This increase was due to significant
water inflows into the Akosombo reservoir in the year 2012. Currently, Ghana as a nation has
exhausted her major hydroelectric power.
To meet the increasing power demand and making up for the heavy shortfall, non-hydro power
options will seriously be considered by government.
Before the power sector reform, Ghana’s market was highly regulated, with generation and
transmission vertically integrated in VRA and distribution handled by ECG, a fully state owned
enterprise, and NED, a subsidiary of VRA. ECG delivered power to customers in the southern
half of the country while NED delivered power to customers in the northern half.
Like many developing nations, Ghana needed outside capital to help develop its power sector. As
part of the power sector reforms, Ghana commenced the process of unbundling generation,
transmission, and distribution functions into separate markets, with immediate competition in
generation and eventually distribution.
As a result of reform, utilities have become specialized entities focusing on one of three areas.
VRA maintained its generation assets including Akosombo, Kpong and Aboadze, and now
focuses almost exclusively on generation. ECG and NED continued to focus exclusively on
distribution. As a new public utility, GRIDCo was essentially spun out of VRA and has the sole
responsibility for operating transmission in an open and non-discriminatory manner. The PURC
and EC were purposefully formed to jointly oversee the electricity sector. The PURC sets rates
and tariffs, monitors performance, promotes fair competition, and works to balance the interests

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of utility providers and consumers. The EC issues licenses and establishes performance standards
for utilities.
The new structure enables and encourages the free entry of independent power producers (IPPs)
into the generation market, creating a competitive generation market which, when combined with
open access to transmission, also facilitates a bulk power trading market. The structure also
emphasizes decentralization at the distribution level, with plans for eventually adding more
distributors, each operating in a defined geographic service area. While the reform process has
formally been completed, the power sector is still undergoing transition in terms of achieving the
designed structure. At present VRA accounts for about 85 per cent of all grid-connected
generation, with only the remaining 15 per cent of generation coming from other producers.

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THE ENERGY SUPPLY ORGANOGRAM IN GHANA
POWER CONSUMPTION
Currently, Ghana’s electricity sector has a customer base of about 4 million residential and
commercial customers and 4,153 industrial customers. In 2013 these customers contributed to a
peak power demand of 1,729 MW which indicates a 4 percentage rise over the previous year.
Peak demand is the maximum amount of electricity that customers consume instantaneously.
Until 1998, the supply of electricity in Ghana was exclusively from hydroelectric sources. Since
then about 1,000 MW of thermal generation capacity has been added. Currently, the installed
nameplate generation capacity is 2,412 MW. The current dependable generation capacity of
2,125 MW in Ghana is made up of about 50 per cent hydro and 50 per cent thermal.
World Bank, 2013, Energizing Economic Growth in Ghana: Making the Power and Petroleum

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Ghana, with its attractive emerging economy, is seeking for more Independent Power Producers
(IPPs) to boost up national electricity production. There is potential for electricity generation
from renewable energy sources such as solar, wind, biomass and small hydro to connect
communities that are currently off-grid. In the renewable energy bill currently before parliament,
the country aims to supply 10 per cent of its domestic demand through modern renewable
technologies by 2020.
The key challenges facing the energy sector are the following:
 Rapidly growing demand for energy by all sectors due to the expanding economy and
growing population.
 Risk of significant imbalance between energy production and indigenous sources of supply.
 Inadequate investments to match the growing energy demand due to lack of capital.
 Risk of over reliance on imports to meet local shortfalls of conventional fuels, which could
threaten the country’s supply security, making it vulnerable to external pressures.
 High levels of end-use inefficiency culminating in waste of final energy forms.
 Inefficient pricing of energy services resulting in poor financial positions of the energy
providers, but also high cost of tariff, which would not encourage maximum use of energy
for wealth creation and could threaten the country’s growth in prosperity and modern way of
life.
 Operational inefficiencies of the utilities leading to high energy losses and consequently
increasing cost of supply and distribution.
 Solar energy, which is relatively abundant, is barely exploited to supplement the commercial
energy requirements of the country.

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This document presents some historical energy use patterns in Ghana and how the future energy
scenery would look like for the period 2006 – 2020. The energy projections were based on GPRS
projected economic growth rates. Possible interventions in the energy supply-demand chain, i.e.

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from energy production and transportation to the demand sectors of the economy have been
discussed in the annexes to this main text.
Strategic targets and plans and recommended policies for the energy sector have been provided.
Sectoral strategic targets and plans are also available in the annexes.
The primary indigenous energy comprised 90-95 percent wood fuels (generally called biomass),
5-10 percent hydro energy and less than one percent solar energy. The hydro energy was
supplied from Akosombo and Kpong hydroelectric dams in the form of electricity. Solar energy
was used for the sun-drying of crops; mainly cocoa; cereals consisting of maize, paddy rice,
sorghum and millet; vegetables consisting of groundnuts and pepper and other exportable
commodities requiring drying. Solar energy for production of electricity was relatively
negligible; about 150 tons of oil equivalent.
Government Energy Objective Five 2015
Accelerate the development and utilization of renewable energy and energy efficiency
technologies so as to achieve 10 percent penetration of national electricity and petroleum
demand mix respectively by 2020.
Strategies
Government recognizes the advantages of indigenous and renewable energy resources to
complement the existing conventional and traditional energy mix of the country.
The nation therefore target 10 percent of renewable in the electricity supply mix in terms of
installed capacity and 10 percent of renewable in terms of petroleum fuel supplies by 2020.
The renewable energy for electricity is expected to come mainly from solar, small and medium
sized hydro plants, wind, biomass and municipal solid wastes.

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Renewable energy to supplement petroleum supplies is expected to come from bio-fuels.
Government Energy Objective Six
• Enhance private sector participation in energy infrastructure development and service delivery.
Strategies
Private sector investment is a critical ingredient in the development of all aspects of the energy
sector. In this regard the Government is; Pursuing the requisite legal and regulatory reforms and
mechanisms to facilitate the participation of Independent Power Producers in electricity delivery
.Establishing ‘Access Code’ that will guarantee open access to electricity transmission
infrastructure. This could be done either as public-private partnership project or a wholly private
sector investment. Facilitating the expansion of electricity supply capacity in the sub-region
under the West African Power Pool (WAPP) protocol.
Ghana’s total energy supply has to grow significantly to help achieve the development agenda
goal. The challenge is how to increase the energy supply and also expand the energy
infrastructure in the country in a way that is sustainable
The Energy Resources and Vision
Ghana is well endowed with a variety of energy resources including biomass, hydrocarbons,
hydropower, solar and wind. It has the capacity to produce modern bio-fuels and is exploring
options to develop nuclear energy.
The energy sector vision is to develop an “Energy Economy” to secure a reliable supply of high
quality energy services for all sectors of the Ghanaian economy and also to become a major
export. The goals of the power sub-sector are to increase installed power generation capacity
quickly from about 2,000 MW today to 5,000 megawatts (MW) by 2015, and increase electricity
access from the current level of 66% to universal access by 2020.
The challenge is how to attract investments to build the necessary infrastructure for the
generation, transmission and distribution of electricity throughout the country. This is key to
ensuring the sustainable development of the sector.
Apart from financing, the policy focuses on institutional and human resource capacity
strengthening as well as regulatory reforms required creating a competitive electricity market.

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Creating the right environment for private-public partnerships in the development of new power
plants is essential to the growth of the power sector. The biggest obstacle to achieving this is the
issue of cost-recovery, a challenge that this policy tries to directly address.
QUALIFICATION AND APPLICATION FOR LICENCE
Any investor venturing into the RE( Renewable Energy) industry must be registered under
Ghanaian law either as a limited liability company under the Companies Act, 1963 (Act 179) or
under the Incorporated Private Partnerships Act, 1962 (Act 152). In addition to the incorporation
requirement, investors must take note of the Ghana Investment Promotion Centre Act, 1994
(478) (the “GIPC Act”) and the Ghana Free Zone Act, 1995 (Act 504) (the “Free zone Act”).
The GIPC Act provides the framework under which companies having foreign participation may
register to obtain specified benefits:
Unconditional transferability through any authorized dealer bank in freely convertible currency
of:
o Dividends or net profits attributable to the investment
o Payments in respect of loan servicing where a foreign loan has been obtained
o Fees and charges in respect of any technology transfer agreement registered under
the GIPC Act
o The remittance of proceeds (net of all taxes and other obligations) in the event of
sale or liquidation of the enterprise or any interest attributable to the investment
 Guarantee against expropriation. Expropriation can only be done in the public interest or
for a public purpose. The law requires that the expropriation must only be made upon the
payment of fair and adequate compensation (which is subject to judicial review as to the
adequacy of the compensation paid). The compensation must be paid without undue
delay and authorization for its repatriation in convertible currency shall be issued
 Companies have the benefit of being able to have their disputes settled by International
arbitration. More importantly, where there is disagreement between the investor and the

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GoG as to the method of dispute settlement to be adopted, the choice of the investor shall
prevail
 The GIPC provides assistance and guidance to companies and acts as liaison between the
company and relevant GoG departments, agencies and any other public authorities
 Expatriate employees engaged in a company to which the GIPC Act applies, are entitled
to utilize banking facilities through authorized dealer banks for the purpose of making
remittances abroad where the remittances do not exceed the total official wage of the
expatriate personnel
 Subject to application to the GIPC, exemption of import duties, sales tax or excise duties
are available on the plant, machinery, equipment or parts thereof where the plant,
machinery, equipment or parts of the plant machinery or equipment are not zero-rated
under the Customs Harmonized Commodity and Tariff Code scheduled to the Customs,
Excise and Preventive Service Act, 1993.
Similarly, the Free Zone Act sets the legal regime for the establishment of free zones for the
promotion of economic development and related matters. To operate in a free zone or to produce
power geared towards power customers outside of Ghana the investor must register under the
Free Zone Act. In view of the mechanisms operational under the West African Power Pool
(WAPP), export of power may be a viable option for potential investors.
The Free Zone Act provides, among other things, the following benefits:
 Exemption from the payment of income tax on profits for the first ten years from the date
of commencement of operations and taxable at a rate not exceeding 8% after the tenth
(10th) year
 An investor may hold 100% shares in a free zone enterprise
 An investor in a free zone shall be guaranteed unconditional transfer through an
authorized dealer bank in free convertible currency of
o Dividends or net profits attributable to the investment
o Payments in respect of loans servicing where a foreign loan has been obtained
o Fees and charges in respect of a technology transfer agreement

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o The remittance of proceeds net of the taxes and any other obligations, in the event
of the sale or liquidation of the enterprise or an interest attributable to the
investment
 Guarantee against expropriation and in the event of any such expropriation, the Act
makes provision for the payment of adequate compensation
Entities seeking to engage in any commercial activity designated under the Act require a license
from the Commission. For the purposes of the Act, commercial activity encompasses production,
transportation, storage, distribution, sale and marketing, importation, exportation and re-
exportation and installation and maintenance.
According to the Licensing Manual for Service Providers in the Renewable Energy Industry,
published in September, 2012 (the “RE Manual”) and issued by the Commission, entities that
engage in different commercial activities require different licenses for each activity.
All applications for licenses will receive notification of grant within sixty (60) days unless
refused. Refusals may only be based on grounds of inadequacy of technical data, issues of
national security, public safety, food security, health and environmental safety. The wholesale
electricity supply license is granted for twenty (20) years and licenses once acquired are only
transferable with the written approval of the Commission.
According to the Licensing Manual for Service Providers in the Renewable Energy Industry,
published in September, 2012 (the “RE Manual”) and issued by the Commission, entities that
engage in different commercial activities require different licenses for each activity.
All applications for licenses will receive notification of grant within 60 days unless refused.
Refusals may only be based on grounds of inadequacy of technical data, issues of national
security, public safety, food security, health and environmental safety. The wholesale electricity
supply license is granted for 20 years and licenses once acquired are only transferable with the
written approval of the Commission. For the purposes of acquiring the wholesale electricity
supply license, the acquisition process is divided into three broad stages. These stages illustrate
the kinds of information that will be required by the EC in order to grant approval for

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progression to subsequent stages. The stages are as follows: Stage 1. Acquisition of provisional
license, Stage 2. Prior to construction, Stage 3. Acquisition of operating license.
It is important for RE developers to initiate their projects far in advance. Bureaucratic
bottlenecks may hamper attempts to sail through the entire process; it is advisable for developers
to involve the Ministry of Energy & Petroleum (MoEP) early on in the process to facilitate
meetings with the various stakeholders in the energy sector. This method has been put to
effective use in other projects in the energy sector.
Qualification for a Licence
4.1 A license may only be granted to:
(a) a citizen of Ghana; or
(b) a body corporate registered under the Companies Code, 1963 (Act 179) or under any other
law of Ghana; or
(c) a partnership registered under the Incorporated Private Partnership Act, 1962 (Act 152).
Application
4.2 An application for a license shall be made in writing addressed to the Executive Secretary of
the Energy Commission and shall be submitted together with all relevant information as
specified in the respective chapter for each license type.
4.3 An application for a license shall be made on forms approved and supplied by the
Commission. The application form can also be accessed from the Commission’s website
www.energycom.gov.gh. A sample of the form is provided as Schedule 1: “Application Form”
of the Manual.
4.4 The applicant shall complete the appropriate application form in its entirety and submit all
required attachments, affidavits, and evidence of capability specified by the form at the time an
application is filed.
4.5 An incomplete application will not be processed or may be rejected. All specified exhibits
required under Part A of the filing instructions shall be submitted together with the formal duly
signed application form for consideration for the issue of a license to undertake the prescribed
operations in the electricity supply industry in Ghana.

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4.6 Separate applications are required from an applicant to engage in different market activities
that fall within different segments of the industry. The Commission will accept a single
application from an applicant in respect of multiple activities in the same segment of the
industry. While the Commission will accept applications in this form, separate licenses will be
issued for each market activity and for each facility where the activity is carried out and the
appropriate fees charged.
4.7 An application shall be deemed to have been successfully lodged only if all relevant
supporting documentation required as indicated in the respective chapter for each license type is
attached in addition to full payment of the required application fee.
4.8 The Commission shall acknowledge receipt of an application for a license within 5 working
days of submission of an application and indicate whether the applicant’s submissions fully
satisfy the requirements expected for the relevant type of license.
4.9 An applicant may be required to furnish the Commission with additional information when
necessary.
Application Fee
4.10 The applicant shall pay to the Commission an application fee prescribed under LI …..
4.11 The application fee to apply is stated in Schedule II: Schedule of Licence Fees. The
application fees as stated in the Schedule shall be valid for the period from January 1 through to
December 31 of each year.
4.12 Application fees may be revised.
4.13 Application fees are also payable for an application to transfer a license.
4.14 The stipulated application fee shall be payable in respect of each type of license sought,
regardless of whether or not applications are made separately or are aggregated into a single
application document.
4.15 A license application shall not be assessed unless the appropriate Application Fee is paid by
the applicant.

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4.16 Application fee paid at the time of submitting an application shall cover all the stages in the
licensing process.
4.17 An amendment application filing fee shall be charged for a request to amend an approved
license, sitting clearance, construction work permit or authorization to operate.
4.18 The amendment application filing fee shall be determined by the Commission based on the
amount of work involved with the amended
Obligation to be licensed
1.9 Section 8 of the Renewable Energy Act, 2011 (Act 832) provides that a person must not
carry on operations in Ghana's Renewable Energy Industry for which a license is required unless
the person either:
(a) Holds a license granted under the Act authorizing the relevant operations; or
(b) Is exempted from holding a license.
1.10 A breach of this requirement is an offence under the Renewable Energy Act, 2011 (Act 832)
and may be sanctioned accordingly.
Table 1: Duration of Licence Type of
Licence
Term of Licence
Wholesale Electricity Supply Licence 20 years
Biofuel Production Licence : Small,
Medium & Large scales
20 years
Bulk Biofuel Transportation Licence 5 years
Bulk Biofuel Storage Licence 20 years
Biofuel Export Licence 5 years
Charcoal Production Licence 20 years
Bulk Charcoal Transportation Licence 5 years
Charcoal Wholesale/Storage Licence 5 years
Charcoal Export Licence 1 year
Briquettes/Pellet Production 20 years

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Briquettes Export Licence 10 years
Importation Licence 10 years
Installation and Maintenance Licence 10 years
6
WHOLESALE ELECTRICITY SUPPLY LICENCE TO GENERATE ELECTRICITY
FROM RENEWABLE ENERGY SOURCE
Acquisition of Wholesale Electricity Supply Licence
STAGE 1: ACQUISITION OF PROVISIONAL LICENCE
Required Submissions
Exhibit WS1- Scope of Operation
Exhibit WS2- Company Registration
Exhibit WS3- Principal Officers, Director and Partners
Exhibit WS4- Ownership and Corporate Structure
Exhibit WS5- Cross-ownership and Ring Fencing
Exhibit WS6- Disclosure of Liabilities and Investigations
Exhibit WS7- Financial Capability and Proposed
Financial Plan
Exhibit WS8- Statement of Assets
Exhibit WS9- Feasibility Report
Exhibit WS10- Business Plan
Exhibit WS11 - Company History and Existing Activities
Exhibit WS12- Industry Participation
Exhibit WS13 - Operational Experience and Expertise
Exhibit WS14 - Specific Licence Conditions and
Exemptions
6 Ministry of energy licensemanual

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Exhibit WS15 - Indicative Implementation Plan
Exhibit WS16 - Commercially Sensitive Information
Exhibit WS17 - Generating Plant Technology and Type of
Renewable Energy Resource
7
CONCLUSION AND RECOMMENDATIONS
For several decades, electricity generation, transmission and distribution in developing countries
especially Ghana, have been monopolized by agencies mostly controlled and funded by
governments. These agencies, for lack of adequate funding, have not been able to provide
adequate and reliable services for most rural areas. Several developing countries have taken bold
initiatives to restructure their electric power sector, with remarkable improvements in the
availability and quality of electric power supply. The India experience through the Indian
Renewable Energy Agency has shown that renewable energy resources and in particular, solar
PV, have the potential to meet the electricity needs of developing countries in a deregulated
electricity industry. Several constraints exists which hinder the dissemination of PV systems but
these can be surmounted through policy, regulatory and financial provisions and the political will
to achieve the millennium development goals, through the adoption of environmentally friendly
technologies for electricity generation. In view of this, the government of Ghana is considering
the alternative source of energy to beef up the existing inadequate one. The government of
Ghana over the years have turn serious attention on the solar energy with serious participation of
the private sector through the Public Private Partnership iniative (PPP).
7 World Bank Report 2013

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Opportunities
The political and economic stability of Ghana, as well as favorable environmental conditions
afford a good basis for investment by Independent Power Producers (IPPs) to get into the Ghana
RE market.
Results from a study commissioned by the EC indicate that “… there exist wind regimes with
speeds between the range of about 5.5m/s and 6.2m/s. An evaluation by experts from Risoe of
the potential of the wind regime to generate electricity established a potential of about 300-500
MW. The average annual solar irradiation in different parts of the country ranges from 4.4
kWh/m2/day to 5.6 kWh/m2/day. This large solar potential can be harnessed for electricity and
process heating purposes.”3
It is therefore no surprise that a number of IPPs are attracted to this area. A 155MW plant (being
developed by Blue Energy, a UK based renewable energy investment company) and several
other solar plants (over 100MW) are at various stages of development by IPPs. There are yet to
be any major project developments in wind generation though.

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CURRENT SOLAR
DEVELOPMENT
A 2MW solar plant has been installed in Navrongo, Upper East of Ghana.
A 315kW solar plant has also been installed at Noguchi Memorial Research Institute at
the University of Ghana, Accra.
Licence Manual for the Service Providers in the Renewable Energy Industry has been
developed.
Companies have been granted provisional licenses for wholesale Renewable Energy
electricity generation.
The European Union has supported the Energy Commission to prepare a framework for
resourcing and operationalisation of the Renewable Energy Fund.
Draft Guidelines for net metering has been prepared.
Standardized PPA is being developed.
Guidelines for connecting RE plant to the distribution
The government of Ghana over the years have been looking at the alternative sources of energy
to curtail its persistent energy problem in the country, however much attention is turn to the solar
energy which will be more efficient and serve as the alternative for the current shortage, but the
main problem with this is the large capital needs in setting up the plant and its operations. The
government of Ghana seeing the need and potentials solar can contribute to help augment the
current energy needs is looking for private investors who have the means to set up the plant and
its operation through its Public Private Partnership Initiative (PPP).8
The Government has established a target of 10% of power generation coming from renewable
sources (which includes under-100 MW hydro plants) by 2020. So far, Ghana only has a 2MW
grid-connected renewable energy plant in operation. Both solar and wind are at early stages of
development, and the wind resource in Ghana is limited.
8 Ministry of energy strategic plan for 2014

IMEXTRA Page 33
Further, both solar and wind power are expected to require significant tariff premiums over
Conventional generation to be financially viable. Thus, the target of 10% for 2020 is unlikely to
be achieved.
Nonetheless, global trends in the solar photovoltaic (PV) manufacturing industry, with sharply
declining investment costs per kilowatt installed, suggest that medium- to large-scale grid-
connected solar plants (without storage) have a role to play in Ghana. VRA could consider solar
projects close to its reservoirs so that solar and hydropower could complement each other, and
there would no additional costs of connecting the solar power to the grid. PURC’s announcement
of the feed-in tariff for solar power has removed an element of uncertainty for potential private
project developers.
Further, it is also likely that stand-alone solar systems in the remotest rural areas are likely to be
much cheaper than conventional rural electrification, whose subsidy requirements are a major
burden for NED co and ECG. There are several opportunities in the solar energy production in
Ghana but the key challenge is the capital requirement to set it up, any investor who is interested
in the industry could take advantage of the PPP Policy Ghana government is offering.

IMEXTRA Page 34
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in emerging markets: entry and negotiation strategies. Sage Publication Inc. ISBN
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Dovi, E. (2007). Africa’s major aluminumproducercloses amid Ghanaenergy
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