DUMSOR-let’s bring some clarity to this issue!!

So let’s assume you own a company that employs 750 people and have 15 buses to transport staff to and from work. Let’s assume that 12 of the buses run on diesel and the other 3 run on Natural Gas . In a particular year, there was a Natural Gas shortage because of pipeline damage and 3 of the diesel buses also had engine issues that would take months to fix (horrible year,right?). In short you have only 9 out of 15 buses to transport your staff. As a business owner, what would you do?

A ) Buy 10 new buses

B ) Rent/lease 6 buses to cover the shortfall until the Natural Gas issues are sorted and the 3 diesel buses repaired.

I’m sure most “well-thinking” business owners/managers would go for Option B.

So this scenario is similar to the Power Generation sector issues Ghana experienced a few years ago. We didn’t have good enough inflows into our Hydroelectric Dams and we also had some problems with some thermal power plants (in the same year). Our best bet as a country would have been to contract “emergency power”, which comes at a premium, and use that as a stop gap measure to bridge the gap between demand and supply. Once the “crisis” was over, the owners of the emergency plants would pack up their power plants and leave.Simple.

We rather went for an “Option A” kind of solution where we contracted multiple Power Purchase Agreements for permanent power plants, most of which we wouldn’t need once we fixed our thermal plants and also had better rainfall.

Currently, after contracting multiple PPAs, our Average Dependable Capacity is 4580 MW and Ghana’s Domestic Peak is 2612.6MW. ( Energy Commission’s 2020 Energy Supply Plan).
We are therefore saddled with over 1967.6MW of excess generation, (45% more than we need) for which we are paying Capacity Charges of over $500million per year.
This money could be used to construct new power plants and/or make improvements to the transmission and distribution systems, thereby reducing system losses and increasing system efficiency.

Over the last 4 years, the Government of Ghana has spent approximately $2billion on paying capacity charges for power plants which we do not dispatch and that we obviously do not need. We also cannot run these plants and export the power even if we want to. This has made electric energy more expensive than it should be. Remember that whenever we pay for power, we make a contribution towards the $500million per year “debt”. Not funny,right?

Good governance is about the judicious management of scarce resources. Would you rather use scarce funds to pay for services that you clearly do not need?

The NDC government has clearly demonstrated its inability to judiciously manage our resources. Major decisions in the energy sector have been made with personal interest overriding strategic national interest, particularly in contracting these PPAs. The NDC have demonstrated the lack of proper understanding of fundamental issues and have also demonstrated their unwillingness to seek proper counsel when and where required.

NEVER AGAIN will we allow ourselves to be put in this conundrum. NEVER AGAIN!!!!

On December 7 2020, Let’s VOTE for Nana Addo and the NPP to continue their stellar performance in all sectors, especially the Energy sector. Let’s VOTE for COMPETENT, VISIONARY leadership to manage our resources.
VOTE for No. 1
EEESHI!! Rado Rado Rado 🐘🐘🐘🐘🐘

#4More for Nana

#JMLegacy Debt


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