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Business News of Wednesday, 5 September 2018


Delaying Karpowership’s relocation could cost us $40m monthly – Amewu

Ghana risks losing some 40 million dollars monthly should the relocation of the Karpower Plant to the Aboadze Power Enclave in the Western Region be delayed further.

The Karpowership, which is expected to increase to 470 megawatts from 225 for 20 years, is currently running below its capacity due to fuel cost.

Speaking to the media during a tour of some power plants in the Western Region, Energy Minister, John Peter Amewu, said the relocation is part of plans to get cheaper fuel for the plant to ensure constant power supply.

The 470-megawatt capacity Karpowership, which is berthed and operating from Tema, was to augment the country’s energy supply.

The new vessel, named Osman Khan, replaced a 225 megawatts barge which was delivered in November 2015.

The arrival of the vessel is part of the Power Purchase Agreement signed with the Electricity Company of Ghana (ECG), requiring Karpowership Ghana Company Limited to provide a total of 450MW capacity, and directly feed it into the national grid for ten years.

At the time, it was an economical solution to Ghana’s electricity supply that relies on expensive crude oil, while providing local employment and valuable foreign direct investment.

However, the cost of crude compelled the facility to turn to natural gas.

To ensure Karpowership reaches its maximum capacity, government is at a final preparation stage to relocate the plant to Aboadze, near Takoradi.

The vessel will be stationed at the Sekondi Naval Base by March 2019.

This is in line with government’s plans to ensure full utilization of gas resources from the Western enclave of the country. It is also to ensure constant gas supply to the facility to enable it produce uninterrupted power.

The Energy Minister’s tour, which also took him to the Tema-Takoradi Interconnection Project which birthed a regulatory and metering station, the Aboadze Power Enclave, was to ascertain the level of preparation towards the relocation project.

He also visited the Ameri Power Plant which s being run by Metka. His last stop was at the Western Naval base in Sekondi where the facility will finally be stationed.

Before the visit to the area, he assured that the 40 million dollars Ghana risk losing monthly if it does not relocate the Karpowership, will be averted.

We’ll support independent power producers to be more efficient – Amewu

Mr. Amewu earlier assured independent power producers of government’s support to make them more efficient in their contribution towards stable power for the country.

Speaking to the media during a tour of the Sunon Asogli Power Station on Tuesday, the Energy Minister said the Akufo-Addo government would do what it takes to enable Independent Power Producers to operate at their full capacity.

Government extends Karpower deal by 10 years

Government in March 2018, extended the controversial Karpower deal from ten to twenty years.

The deal which was contracted by the then Mahama government to address the nation’s power crisis at the time, was criticized by the New Patriotic Party (NPP), who were in opposition. They had argued that the arrangement was highly priced, and was not value for money.

The African Center for Energy Policy (ACEP), also recently called on government to renegotiate the deal. However, the Energy Ministry suggests that the deal has been renegotiated to ensure value for money, and extended to twenty years.

The Karpowership from Turkey has the capacity to supply 470 megawatts (MW) of power to Ghana.

‘Karpower barge deal makes no sense’ – Bawumia

In December 2015, Dr. Mahamudu Bawumia, then running mate to Nana Addo Dankwa Akufo-Addo, said it “made no sense” for government to secure the power barge as an emergency solution to the power crisis, explaining that the deal did not give the country value for money.

The 225 megawatts power barge docked at the Tema Port in December 2015, to augment the shortfall in power supply at the time.