Business News of Monday, 11 June 2012

Source: BFT

VRA to meet VALCO’s needs by year-end

There is not a deliberate attempt by the Volta River Authority (VRA) to deny Volta Aluminium Company (VALCO) additional power to run its second pot-line, says Mr. Kweku A. Awotwi, Chief Executive of the VRA.

“We are unable to supply power to enable VALCO run its second pot-line because of constraints,” he said, but assured that VRA will be in a position to do so before the end of this year.

He said in late 2010 the Ministries of Energy, Finance & Economic Planning, VRA and VALCO met to discuss how best to implement a cabinet decision on the resumption of VALCO operations, taking into account the availability of adequate power in the system.

It was agreed that VALCO be given power by VRA to start with one pot-line initially; and as VRA’s power situation normalises and is able to contain any eventuality by means of buffer, then consideration will be given to VALCO to enable it start its second pot-line.

Mr. Awotwi said VRA will have strategic buffers to meet the country’s energy requirement after the re-installation of the Takoradi Steam Turbine and completion of the Takoradi Steam Project.

The Takoradi Steam Turbine is scheduled to arrive in the country this month after it was sent abroad for complicated repairs. Financed by the Canadian government, the Takoradi Steam Project will also undergo engineering variations at a cost of US$75million, he said.

He also disclosed that the interconnectivity between VRA and Côte d’Ivoire for power supply ceased during the last four years due to the political upheaval in that country. Côte d’Ivoire by mutual agreement used to supply VRA 200 megawatts of power, but now it is the VRA that supplies it instead, when the need arises.

VALCO consumes 70 megawatts for one pot-line out of VRA’s total generation of 1,800 megawatts -- which at peak periods drops to 1,785 megawatts.