challenges in the industry
TRANSCRIPT
Presented By:Omane Frimpong
President:
Association of Ghana Solar Industries
10th December 2013
www.ghanasolarindustries.com
TOPIC:
Status and Development of the
Local PV Market Structure
SCOPE
• Background of Ghana/PV
• PV Market structure
• Market development and growth
• Potential for Growth
• Ghana German collaboration
• Challenges in the Industry
• Potential for off-grid, Roof top projects
SOLAR RADIATION MAP OF GHANA
climatic Zone Region Intensity
(kWh/m2-day)1
Savannah
(close to the
Sahel)
Upper East, Upper West ,
Northern, upper parts of
Brong-Ahafo & Volta
Regions
4.0 – 6.5 kWh/m2-
day
Middle Forest
Zone
Ashanti, Eastern, Western
and parts of Central,
Brong-Ahafo , Volta
Regions
3.1 – 5.8 kWh/m2-
day
Savannah
(Coastal belt)
Greater Accra, coastal parts
of Central & Volta Regions 4.0 – 6.0 kWh/m2-
day source: Energy
Center
(KNUST)
SOLAR INTENSITIES IN GHANA
2530Systems
3500Systems
4911Systems
700Systems335Systems
160kW353kW
510kW800kW
1000kW
1991 1993 1998 2000 2003
Year
No. of Systems
Installed Power
Source: Ministry of Energy, Obeng George
EVOLUTION OF SOLAR PV INSTALLATIONS IN GHANA
PV MARKET STRUCTURE
Regulation
EC, MOEP, PURC
Regulation
EC, MOEP, PURC
Over 30 AGSI companies
active
Over 30 AGSI companies
active
Training
KNUST, K’duaPolytechnic,
DSTC
Training
KNUST, K’duaPolytechnic,
DSTC
Buyer
Gov’t, off-grid customers, etc
Buyer
Gov’t, off-grid customers, etc
Design & Installation
Market Development and Growth
• Not much scientific data exist on size, growth,
turnover etc.
• Opportunistic Market growth – influx of players
during peak demand (such as the power crisis of
1997, 2007, 2012) but as soon as the crisis is over
players reduce significantly.
• Significant price falls in PV cells has boosted the
market entry.. from $8/w in 2006 to $1.6/w 2013
Key Drivers for Growth
• Government buying
• Tax incentives (waivers and exemptions)
• Low electrification rate in Rural Ghana
• Donor programs
• Strong sector Association engaged in lobbying
• Passage of the RE law (grid connected systems)
• Electricity Tariff
PV development in the last
few years
• Renewable Energy Act 832 of Parliament 2011
• 1st Grid connected system installed (2mw)
• FIT (Feed-in-tariff)
• GEDAP
• Mini grids (Hybrid) underway on selected
Islands
Potential for Growth
• Gov’t policy of 10% Renewable in energy mix
• A surging supply-demand imbalance of electricity.
• 70% Electrification Rate
• Low rural penetration rate of electricity
• RE Law
• Stable political economy
• Guaranteed pricing for electricity.
• High Tariff (Recently announced by the PURC)
• Continued demand for Electricity (10% annual)
• Unstable Grid Power (power cuts are frequent)
• Most Commercial businesses operate during the sunshine hours ie during the day.
Possible German-Ghana
Collaboration
• Project concept design, engineering and
construction
• Financing and Equity investments
• Technical knowledge transfer
Challenges in the Industry
• Buyer decisions
• Commitment of
stakeholders
• Institutional
Capacities
• Technology
reliability
• Support Services
catching up
• Economic
landscape
Challenges in the Industry 2
Source: http://www.gridcogh.com/site/downloads (Ghana Wholesale power reliability assessment 2010)
Challenges in the Industry 3
Technical capacities, institutional support, other
support services.
Demand for Electricity is at night i.e. 7-9pm
Technical
Financial
Tariffs
Local Banks rate quite prohibitive for financing
options,
Cost of electricity 18GHp – FIT GHp40 ???
Challenges in the Industry 4
Political Political will, focus of Energy Policies of subsequent governments, Focus of dev’t partners,
Policy
Processes in acquiring licenses and permits to
operate, slow administrative procedures…chasing
documents at gov’t agencies.
Regulation
implementation challenges, eg. Law passed in 2011 operationalized in 2013, lack of clarity in certain provisions,
Potential for off-grid projects
• Over 1000 communities are not captured
under government grid electrification projects
due to their remote and Island nature.
• Rising cost of grid electricity.
• High Potential for roof mounted systems for
Commercial Buildings whose consumption
exceed 400kwh/month.
• Net Metering
Approved Residential End User Electricity Tariff
Effective October 01 2013
Source: Public utility regulatory commission press release 1st October 2013
*1Euro is equivalent to 3.16GHC
Approved Non- Residential End User Electricity
Tariff Effective October 01 2013
Source: Public utility regulatory commission press release 1st October 2013
*1Euro is equivalent to 3.16GHC
Approved Special Load Tariff (SLT) Effective
October 01 2013
Source: Public utility regulatory commission press release 1st October 2013
DANKE