Mini-grid electricity service based on local agricultural residues: Feasibility study in rural Ghana

Peer ReviewedPostprint (author's final draft

Solar PV rural electrification and energy-poverty: A review and conceptual framework with reference to Ghana

In spite of the intention of governments to increase the use of renewable energy in electricity supply, particularly the use of solar photovoltaic (PV) for energy poverty reduction in rural and peri-urban areas of Africa, there is relatively little information on how solar PV electrification impacts on energy poverty reduction. Therefore, there is a gap in the literature and hence the need for continuous research. Using Ghana as a reference country, the historical trend, donor cooperation and other aspects of solar PV rural electrification are discussed . The paper illustrates the intersectoral linkages of solar PV electrification and indicators on education, health, information acquisition, agriculture and micro-enterprises. It also reviews sustainability related issues including costs and market barriers, subsidies, stakeholders involvement, political and policy implications, which are critical factors for sustainable market development of solar PV and other renewables. Finally, a common framework is developed to provide a basic understanding of how solar PV electrification impacts on energy-poverty. This framework provides a structure of the interrelated concepts and principles relevant to the issues under review.Rural electrification; solar PV electrification; energy-poverty; renewable energy; economic development; Ghana; Africa

Does the Politics Matter? Legal and Political Economy Analysis of Contracting Decisions in Ghana’s Upstream Oil and Gas Industry

Funding Information: Research grant from the STAR Ghana Foundation, under the Executive Sessions on the Politics of Extractive Industries (ES-on-PEI) project, is gratefully acknowledged. The authors declare no known conflict of interest that could have appeared to influence the work reported in this paper.Peer reviewedPublisher PD

The role of agroforestry in fuelwood for domestic and income generation activities : a case study of three communities in the Sunyani district of Brong Ahafo region Ghana

Paper presented at the 12th North American Agroforesty Conference, which was held June 4-9, 2011 in Athens, Georgia.In Ashton, S. F., S.W. Workman, W.G. Hubbard and D.J. Moorhead, eds. Agroforestry: A Profitable Land Use. Proceedings, 12th North American Agroforestry Conference, Athens, GA, June 4-9, 2011.Residents of the Tain II forest fringe communities of Sunyani district located in the forest transition zone continually experience forest fires and fuelwood shortages. There is tendency to depend on neighboring towns for cooking energy supplies. Using survey data from 240 respondents; the study's objective was to identify and investigate the forms, sources of and constraints to fuelwood supply and income generation; and why they tend to be so. Evidence showed that availability and price are the most important determinants of fuelwood choice. Distance and transport challenges constrain gathering readily available forest floor prunings to meet the rising household demands. This stimulates the fuelwood business. Sawmill waste from Sunyani and charcoal from Wenchi and Kintampo is heavily relied on in time of shortages. Sunyani charcoal burners loose the market due to tree species preferences for charcoal. Nonetheless, many fuel based businesses stifle due to high cost of fuelwood among other factors. Average weekly expenditure on fuelwood was found to be 27.7 percent of cash income. 14.5 [percent] of respondents were found to be engaged in the fuelwood supply business. Celtis zenkeri was the most prefered fuelwood tree species. Tectonia grandis was considered a must have component of woodlots for timber cash. The study concludes that the fuelwood supply business opportunity is underexploited in these communities. It consequently recommends agroforestry interventions such as privately managed woodlots and home gardens to suitably supplement and ensure a sustainable year round fuelwood supply and help improve rural incomes.Nana Esi Egyirba H. Amuah, James S. Quashie-Sam Department of Agroforestry, Kwame Nkrumah University of Science and Technology, Kumasi, Ghana.Includes bibliographical references

Assessing the Economic Impact of Oil and Gas Production on Ghana's Economy

Since the discovery of oil in the offshore coast of Ghana in 2007, the nation has had increased expectations on possible accelerated economic growth and development. This oil and gas if managed well has the possibility to transform a structurally week economy into a self-sustain economy. Likewise, if not well managed can lead to social, economic and political instability as it can be seen in some oil rich countries where their economies are characterized by corruption, poverty and conflict.The aim of this study was to find out the economic impact of oil and gas production on Ghana’s economy. The research employed the analysis of secondary data from the World Development Indicators, World Bank. Data were processed and analysed using SPSS statistical software. Simple linear regression analysis was performed to analyse the impact of oil rents on Ghana’s economy.The study revealed that revenue accruing from oil rents affect GDP growth positively and therefore considered impactful on Ghana’s economy since it represents net addition to capital stock. Averagely, Ghana has been experiencing GDP growth of 6.1% per annum with average contribution of oil rent being 1.8% per annum (2000-2018). The regression analysis shows that a percentage increase in oil rents will lead to a corresponding increase in GDP growth by 0.788 % per annum, which is approximately 1% per annum. It was also revealed that there has been a paradigm shift in Ghana’s economy from an agrarian to a more industrialised and service oriented economy with gradual increase in oil discoveries since 2011. Keywords: Oil and Gas production; Economy; Capital Accumulation; Oil rents; Ghana DOI: 10.7176/JESD/12-14-08 Publication date:July 31st 202

Improving electricity supply security in Ghana—The potential of renewable energy

For decades, Ghana’s economy has been fuelled by abundant inexpensive hydropower. As a developing economy, Ghana’s electricity demand has long been relatively low, though rising in recent times due to increasing economic growth, urbanization and industrial activities. However, the rapid demand growth, as well as periodic hydrological shocks, leaves the country increasingly reliant on expensive oil and gas-based generation power plants, with a resultant drain on the national economy. The main electricity generation company, the Volta River Authority, is not able to generate enough electricity for all the demand sectors. The electricity supply-demand margins - the difference between peak demand and available supply - of the country fall short of the recommended engineering practice and thus presents a high supply security risk. The country has been experiencing an increase in the frequency of power cuts over the last ten years. It is clear that Ghana will have to expand and diversify its generation capacity in order to improve supply security. This paper provides a review of the assessed potential renewable energy resources, their current exploitation status, and their potential contribution to the electricity supply of the country. The paper also presents the barriers to their utilization and the existing policy and regulatory instruments to overcome those barriers, plus the current and expected future impacts of these instruments. The results show that Ghana has several RES, such as wind, solar PV, mini hydro and modern biomass that can be exploited for electricity production. While their exploitation for electricity generation is currently very low, providing just 0.13% of the country’s generation, the review shows a great potential for RES generation to increase substantially over the next decade, looking at the government commitment and legal frameworks that are being put in place

Prospects of distributed electricity generation and services based on small scale biomass systems in Ghana

Access to energy is crucial to human welfare; no residential, commercial or industrial activity can be conceived without energy supply. At the same time, current dependence on fossil fuels and their negative effects on global climate claim for urgent alternatives. The situation in Sub-Saharan Africa is poignant: over half of the population, mainly in rural areas, live without access to electricity services. Crop residues from farming communities in those areas are unused; while technology for electricity production from agricultural biomass is progressing, managing decentralised rural electricity projects is still a challenge, especially in developing countries like Ghana, given the variety and complexity of the factors conditioning biomass to energy supply chains. Such complexity has been previously formulated in academic exercises, but with limited practical applicability for energy planners, practitioners and investors. This research has deployed a holistic approach to biomass-to-energy planning, yet flexible to adapt to different regulatory scenarios and energy supply configurations. A qualitative framework has been developed, taking into consideration four critical components: social development, organisational/institutional, technical, and financial, with their respective metrics. Then, the framework has been applied to three real case study configurations in Ghana, involving primary data collection, sustainability modelling and discussion of the techno-economic feasibility results with policy makers and practitioners. The first configuration consists in decentralised power generation using crop residues from clustered smallholder farms in 14 districts in Ghana; the number of clustered farms, reference residue yields, and residue densities are determined to assess the distances within which it would be feasible to supply feedstock to biomass power plants. The findings show that a minimum of 22 to 54 larger (10 ha) farms would need to be clustered to enable an economically viable biomass supply to a 1000 kWe plant. Financial analyses indicate that such investment would not be viable under the current renewable feed-in-tariff rates in Ghana; increased tariff by 25% or subsidies from a minimum 30% of investment cost are needed to ensure viability using internal rate of return as an indicator. Carbon finance options are also discussed. The second configuration focuses on co- and tri-generation from clustered crop residues. Techno-economic results show that 600 kW and 1 MW biomass fuelled plants to generate power, heating (for cassava or maize drying) and cooling (to refrigerate tomatoes) are feasible, considering a minimum 20% yearly profit for investors’ equity. Additional income between 29 and 64 US $/tonne of crop residue would be possible for farmers if a minimum of 60% of the heat produced can be traded. The consideration of carbon financing under the most common traded prices has little impact on the project results; if more favourable schemes (like the Swedish carbon tax) are considered, the viability of co- and tri-generation plants run on agro residue can be possible even with a low level of residual heat sales. The third configuration analyses minigrid electricity generation and services based on biomass gasification in five Ghanaian communities. Results show that the projected electricity demand compares favourably with the potential supply from available crop residues. Project financing via 100% private funding would not be viable under current national uniform tariffs; however, by applying an end-user tariff equal to the current expenditure on electricity-equivalent uses in the communities, a subsidy of about 35% on initial investment would enable a private entrepreneur an internal rate of return of 15%, whereas a 60% subsidy could enable internal rate of return of 25%. The outcomes of this research have triggered the interest of Ghanaian and international policy makers, developers and private investors.L'accés a l'energia és crucial per al benestar humà, no es pot concebre cap activitat residencial, comercial o industrial sense subministrament d'energia. Alhora, la dependència actual dels combustibles fòssils i els seus efectes negatius sobre el clima global reclamen alternatives urgents. La situació a l'Àfrica Subsahariana és punyent: més de la meitat de la població, principalment rural, viu sense accés a serveis elèctrics. Tanmateix, en aquestes zones abunden les restes agrícoles. Tot i que la tecnologia per a la producció d'electricitat a partir de biomassa agrícola avança, la promoció de l’electrificació rural descentralitzada continua sent un repte, especialment en països en desenvolupament com Ghana, atesa la varietat i la complexitat de factors que condicionen l’aprofitament energètic de la biomassa. Aquesta complexitat s'ha tractat en exercicis acadèmics, però amb poca aplicabilitat pràctica per a planificadors d'energia, promotors i inversors. A fi de contribuir a una millor planificació i presa de decisions, aquesta Tesi desplega un marc integral d’anàlisi tenint en compte quatre components (desenvolupament social, organitzatiu/institucional, tècnic, i financer), flexible per adaptar-se a diferents configuracions de subministrament d'energia i escenaris reguladors. Aquest marc s'ha aplicat a tres casos reals a Ghana, recollint dades de camp, modelitzant la viabilitat tecno-econòmica i debatent els resultats amb promotors públics i privats. La primera configuració consisteix en la generació elèctrica a partir de restes agrícoles de petites plantacions rurals, en 14 districtes a Ghana, on s?ha determinat la biomassa disponible i la seva localització per calcular les distàncies màximes que permetrien la rendibilitat de petites centrals elèctriques. Els resultats indiquen que un mínim de 22 a 54 plantacions (de 10 ha. cadascuna) haurien d'agrupar-se per permetre un subministrament de biomassa econòmicament viable a una planta de 1000 kWe. Financerament aquesta inversió no seria viable amb les tarifes actuals d’injecció a xarxa; un increment d’aquesta tarifa en un 25%, o bé una subvenció mínima del 30% del cost d'inversió són necessàries per garantir la viabilitat. La segona configuració se centra en la co- i la tri-generació a partir de restes agrícoles. Els resultats de l’anàlisi tècnic-econòmica mostren que centrals de 600 kW i 1 MW per autogenerar electricitat, calor (per assecar mandioca o de blat de moro) i fred (per refrigerar tomàquets) són factibles, fins i tot aportant un retorn anual mínim del 20% per a inversors externs. A més de l’electricitat, en cas de poder vendre com a mínim un 60% de la calor produïda, es podria pagar entre 29 i 64 USD per tona de biomassa. La consideració de bons de carboni a preus habituals de mercat internacional té poc impacte en els resultats del projecte; si es consideren esquemes més favorables (com els bons de carboni a Suècia), la viabilitat de les plantes de co-i tri-generació a partir de restes agrícoles seria possible fins i tot amb un baix nivell de vendes de calor residual. La tercera configuració tracta el servei elèctric amb microxarxes basades en la gasificació de restes agrícoles de comunitats rurals. Els resultats de l’anàlisi en 5 comunitats mostren que el potencial de generació elèctrica a partir de la biomassa disponible supera la demanda elèctrica projectada. El finançament només a partir d’aportacions privades no seria viable amb les tarifes nacionals de consum elèctric actuals; en canvi, si s’aplica una tarifa de consum igual a la despesa actual en usos equivalents a l’electricitat (p.ex. llanternes i piles, bateries de cotxe), una subvenció del 35% sobre la inversió inicial permetria una taxa interna de retorn del 15% a inversors privats, mentre que un 60% la subvenció permetria una taxa interna de retorn del 25%.Els resultats d'aquesta investigació han estat considerats pels grups d'interès de Ghana dins de la formulació de polítiques i regulacions d'electrificació rural, i perspectives de trigeneració i els minigresos de biomassa també han desencadenat l'interès dels inversors privats internacionals i ghanesosPostprint (published version

Prospects of distributed electricity generation and services based on small scale biomass systems in Ghana

Access to energy is crucial to human welfare; no residential, commercial or industrial activity can be conceived without energy supply. At the same time, current dependence on fossil fuels and their negative effects on global climate claim for urgent alternatives. The situation in Sub-Saharan Africa is poignant: over half of the population, mainly in rural areas, live without access to electricity services. Crop residues from farming communities in those areas are unused; while technology for electricity production from agricultural biomass is progressing, managing decentralised rural electricity projects is still a challenge, especially in developing countries like Ghana, given the variety and complexity of the factors conditioning biomass to energy supply chains. Such complexity has been previously formulated in academic exercises, but with limited practical applicability for energy planners, practitioners and investors. This research has deployed a holistic approach to biomass-to-energy planning, yet flexible to adapt to different regulatory scenarios and energy supply configurations. A qualitative framework has been developed, taking into consideration four critical components: social development, organisational/institutional, technical, and financial, with their respective metrics. Then, the framework has been applied to three real case study configurations in Ghana, involving primary data collection, sustainability modelling and discussion of the techno-economic feasibility results with policy makers and practitioners. The first configuration consists in decentralised power generation using crop residues from clustered smallholder farms in 14 districts in Ghana; the number of clustered farms, reference residue yields, and residue densities are determined to assess the distances within which it would be feasible to supply feedstock to biomass power plants. The findings show that a minimum of 22 to 54 larger (10 ha) farms would need to be clustered to enable an economically viable biomass supply to a 1000 kWe plant. Financial analyses indicate that such investment would not be viable under the current renewable feed-in-tariff rates in Ghana; increased tariff by 25% or subsidies from a minimum 30% of investment cost are needed to ensure viability using internal rate of return as an indicator. Carbon finance options are also discussed. The second configuration focuses on co- and tri-generation from clustered crop residues. Techno-economic results show that 600 kW and 1 MW biomass fuelled plants to generate power, heating (for cassava or maize drying) and cooling (to refrigerate tomatoes) are feasible, considering a minimum 20% yearly profit for investors’ equity. Additional income between 29 and 64 US $/tonne of crop residue would be possible for farmers if a minimum of 60% of the heat produced can be traded. The consideration of carbon financing under the most common traded prices has little impact on the project results; if more favourable schemes (like the Swedish carbon tax) are considered, the viability of co- and tri-generation plants run on agro residue can be possible even with a low level of residual heat sales. The third configuration analyses minigrid electricity generation and services based on biomass gasification in five Ghanaian communities. Results show that the projected electricity demand compares favourably with the potential supply from available crop residues. Project financing via 100% private funding would not be viable under current national uniform tariffs; however, by applying an end-user tariff equal to the current expenditure on electricity-equivalent uses in the communities, a subsidy of about 35% on initial investment would enable a private entrepreneur an internal rate of return of 15%, whereas a 60% subsidy could enable internal rate of return of 25%. The outcomes of this research have triggered the interest of Ghanaian and international policy makers, developers and private investors.L'accés a l'energia és crucial per al benestar humà, no es pot concebre cap activitat residencial, comercial o industrial sense subministrament d'energia. Alhora, la dependència actual dels combustibles fòssils i els seus efectes negatius sobre el clima global reclamen alternatives urgents. La situació a l'Àfrica Subsahariana és punyent: més de la meitat de la població, principalment rural, viu sense accés a serveis elèctrics. Tanmateix, en aquestes zones abunden les restes agrícoles. Tot i que la tecnologia per a la producció d'electricitat a partir de biomassa agrícola avança, la promoció de l’electrificació rural descentralitzada continua sent un repte, especialment en països en desenvolupament com Ghana, atesa la varietat i la complexitat de factors que condicionen l’aprofitament energètic de la biomassa. Aquesta complexitat s'ha tractat en exercicis acadèmics, però amb poca aplicabilitat pràctica per a planificadors d'energia, promotors i inversors. A fi de contribuir a una millor planificació i presa de decisions, aquesta Tesi desplega un marc integral d’anàlisi tenint en compte quatre components (desenvolupament social, organitzatiu/institucional, tècnic, i financer), flexible per adaptar-se a diferents configuracions de subministrament d'energia i escenaris reguladors. Aquest marc s'ha aplicat a tres casos reals a Ghana, recollint dades de camp, modelitzant la viabilitat tecno-econòmica i debatent els resultats amb promotors públics i privats. La primera configuració consisteix en la generació elèctrica a partir de restes agrícoles de petites plantacions rurals, en 14 districtes a Ghana, on s?ha determinat la biomassa disponible i la seva localització per calcular les distàncies màximes que permetrien la rendibilitat de petites centrals elèctriques. Els resultats indiquen que un mínim de 22 a 54 plantacions (de 10 ha. cadascuna) haurien d'agrupar-se per permetre un subministrament de biomassa econòmicament viable a una planta de 1000 kWe. Financerament aquesta inversió no seria viable amb les tarifes actuals d’injecció a xarxa; un increment d’aquesta tarifa en un 25%, o bé una subvenció mínima del 30% del cost d'inversió són necessàries per garantir la viabilitat. La segona configuració se centra en la co- i la tri-generació a partir de restes agrícoles. Els resultats de l’anàlisi tècnic-econòmica mostren que centrals de 600 kW i 1 MW per autogenerar electricitat, calor (per assecar mandioca o de blat de moro) i fred (per refrigerar tomàquets) són factibles, fins i tot aportant un retorn anual mínim del 20% per a inversors externs. A més de l’electricitat, en cas de poder vendre com a mínim un 60% de la calor produïda, es podria pagar entre 29 i 64 USD per tona de biomassa. La consideració de bons de carboni a preus habituals de mercat internacional té poc impacte en els resultats del projecte; si es consideren esquemes més favorables (com els bons de carboni a Suècia), la viabilitat de les plantes de co-i tri-generació a partir de restes agrícoles seria possible fins i tot amb un baix nivell de vendes de calor residual. La tercera configuració tracta el servei elèctric amb microxarxes basades en la gasificació de restes agrícoles de comunitats rurals. Els resultats de l’anàlisi en 5 comunitats mostren que el potencial de generació elèctrica a partir de la biomassa disponible supera la demanda elèctrica projectada. El finançament només a partir d’aportacions privades no seria viable amb les tarifes nacionals de consum elèctric actuals; en canvi, si s’aplica una tarifa de consum igual a la despesa actual en usos equivalents a l’electricitat (p.ex. llanternes i piles, bateries de cotxe), una subvenció del 35% sobre la inversió inicial permetria una taxa interna de retorn del 15% a inversors privats, mentre que un 60% la subvenció permetria una taxa interna de retorn del 25%.Els resultats d'aquesta investigació han estat considerats pels grups d'interès de Ghana dins de la formulació de polítiques i regulacions d'electrificació rural, i perspectives de trigeneració i els minigresos de biomassa també han desencadenat l'interès dels inversors privats internacionals i ghaneso

Natural Gas Industry Restructuring for Value Optimisation: A Case Study of Ghana

The global natural gas industry in emerging oil and gas producing countries faces the challenge of restructuring and regulations, making industry conduct revaluation inevitable. The main concern in restructuring the natural gas industry in these economies is how to break previously vertically integrated companies into separate business entities under an appropriate market structure along the gas value chain. There are two schools of thoughts on how to restructure the natural gas industry. The traditional school of thought favours a vertically integrated structure and the liberal school of thought advocates for competitive-based structures encompassing different regulatory reforms including ownership unbundling. The natural gas industry in Ghana, though nascent, is growing due mainly to rising demand for electricity, at about 5.8% annually. Currently GNPC owns the upstream gas, midstream infrastructures and champions final gas delivery to downstream consumers. Gas price harmonization, easing contractual agreements, maintaining the survival of GNGC, and energy security reasons are among the policy factors that seem to favour a state-owned vertically integrated structure. The aim of this paper is to examine and determine the industry structure that is optimal to sustain Ghana energy supply mix. The paper offers two natural gas industry structure models to describe the effect of unbundling infrastructure ownership of natural gas along its value chain on energy supply mix in Ghana. The paper suggests maintaining the aggregating role of GNPC is appropriate. However, the paper recommends unbundling infrastructure ownership from upstream natural gas owners. Thus, the Gas Processing Plants and Ghana National Gas Corporation (GNPC) transmission pipelines need an independent entity to operate the GNGC transmission pipeline as the National Gas Transmission Utility (NGTU) with open access allow IPPs equal access to natural gas at the market hubs