Renewable energy deployment in Ghana: sustainability benefits and policy implications

Date
2016
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Publisher
University of Delaware
Abstract
Rapid growth in demand for electricity, coupled with inadequate power generation capacity has plagued Ghana with electric power supply challenges in recent years. This situation has resulted in rationing of electricity and is adversely impacting the country’s socioeconomic fortunes. There are a couple of options for expanding the country’s power generation capacity to meet current and future demand. These options include installation of additional centralized energy systems, dominated by fossil fuels (coal, oil, and natural gas); and/or deployment of the country’s renewable energy resources in a centralized or decentralized system. This dissertation research envisions that the latter option of renewables deployment would put the country on the path of sustainable development, offering the country better environmental and socioeconomic co-benefits. The goal of this research, therefore, is in twofold. First, is to evaluate the sustainability co-benefits of adding more renewable sources of electricity than conventional sources to Ghana’s generation mix, and second, to offer policy suggestions that can spur the country on towards such a large proportion of renewables in the country’s electricity generation mix. Based on a scenario analysis approach, the number of direct employment, the amount of consumptive water, and carbon dioxide emissions associated with power generation are estimated and analyzed. The scenarios for analysis consist of an unchecked BAU (business-as-usual situation - dominated by fossil fuels), and two renewable energy dominated scenarios. The two renewable energy dominated scenarios are a sustainable energy deployment (SED) scenario and a renewable energy revolution (REV) scenario. Employment estimates (excluding energy efficiency jobs) indicate that the REV scenario would lead to 126,178 direct jobs-years between 2015 and 2035. Direct jobs from the REV scenario is about 27% (33,879) more compared to that from the BAU scenario (which is 92,299 jobs). The SED scenario is estimated to create 91,595 direct jobs. Estimated total water consumption associated with the REV scenario between 2015 and 2035 is 78 million cubic meters. Consumptive water use related to the REV scenario is about 72% less of the consumptive water related to the BAU situation (which has a consumptive water use of 280 million cubic meters). The SED scenario is estimated to consume 145 million cubic meters of water. In terms of carbon dioxide (CO2) emissions, it is estimated that the REV scenario would produce 48.50 Gg CO2 between 2015 and 2035. The estimated quantity of CO2 from the REV scenario is the lowest compared to that from the SED and BAU scenarios of 177.29 Gg CO2 and 282.16 Gg CO2 respectively. Also, estimated overall total costs (of capital cost, fixed operation and maintenance cost, and fuel cost) for each of the scenarios shows that the BAU scenario has a highest cost at the end of the year 2035 relative to the BAU and SED cases. This is attributable to the fact that the BAU scenario indicates the highest capital as well as fuel cost at the end of 2035. It is expected that the overall total cost of the REV and the SED scenarios would relative continue to be less than that of the BAU beyond 2035 as less total fuel cost would accrue from the REV and the SED scenarios relative to the BAU case. The results of the analysis indicate that a large proportion of distributed renewable electricity generation in Ghana would offer more employment with more expanded local value creation opportunities, reduced consumptive water use for power generation, and also lead to a much more avoided CO2 emissions from the country’s electric power sector. Towards a renewable energy deployment strategy that supports the penetration of prosumers in Ghana, the study offers the following policy recommendations; revamp the country’s energy policies of FIT and RPS into a hybrid REFIT-RPS policy. Where the RPS component of the hybrid policy would establish, the country’s overall comprehensive policy objectives and the FIT component would serve as an implementation tool for realizing the RPS objectives. The study also recommends setting a national renewable energy efficiency target as well as promoting customer-owned small renewable energy systems. This study recognizes that developing prosumer-owned renewables requires the need for a shift away from the country’s conventional utility model. This shift is necessary because the tenets of the traditional utility model conflict with a prosumer based renewables deployment. Towards this shift, the study recommends establishing a renewable energy and energy efficiency implementation entity in the country that functions on the tenets of a “Sustainable Energy Utility.” The study further recognizes that grid-connected renewable energy technological development that is suited for urbanized communities is not sufficient for promoting access to an all-inclusive and equitable sustainable development in Ghana. Off-grid solutions; including mini-grids and standalone solutions that can be deployed briskly and with ease is a viable option for rural communities in the country where grid extension is technically and financially challenged.
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