Review decision to freeze licenses to new IPPs – IES

The Institute of Energy Securities wants government to consider revising its decision to put a freeze on discussions and issuance of licenses to new Independent Power Producers including renewables that are cheaper and more environmentally friendly.

According to the IES, a revision of the decision was necessary because it had stalled many renewable power project, some of which had secured all the technical permits from the relevant government and district agencies.

It said in a statement in reaction to President Akufo-Addo’s assertion that he would ensure 100 per electricity coverage in the country by the end of his second term.

“Though the IES is pleased with government’s renewed resolve to act on this mandate, it remains cautious in hope as recent history does not instill confidence. The IES as a result entreats the appropriate authorities to make the necessary investments and regulatory mechanisms to ensure a fulfilment of the promise,” it said.

It further said “a revision of the decision is necessary because it has stalled many renewable power projects, some of which has secured all the technical permits from the relevant government and district agencies.”

The annual growth rate for electricity access stood at 2.2 per cent from 2000 to 2010 with national electricity access reaching 67 per cent of the entire country.

From 2010 to 2016, Ghana’s electricity access had an annual growth rate of 2.7 per cent extending electricity national access to 83 per cent of the country.

However, the country from 2016-2020 has experienced the lowest growth in electricity access over the last two decades. The annual electricity access growth the last four years stands roughly at 0.6 per cent, bringing the national electricity access to just above 85%.

This slow pace of growth from 2017 to 2020 the IES said resulted in the extension of the target date for the universal electrification to 2025.

With the current target in mind, it said the government must work to increase electricity access by at least 3.5 per cent annually from now, up on to 2025.


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