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Renewable energy projects in the Volta Lake region


Paul Tetteh Ankrah, Accra, Ghana
March 05, 2023

The Volta Lake region has a huge eco-tourism potential. The man-made lake has developed a unique ecosystem, fauna, and marine life. This burgeoning eccosystem has become a migration spot for birds from the Northern hemisphere, when they fly southwards, in search of warmer temperatures during winter. The lake and its islands are ideal for water resorts and sports, mini cruises, kayaking and camping. Farmers on the shores produce vegetables and fruits. Inland fishing and aquaculture supply large cities in Ghana and the region. However, the region does not realize its full economic potential because of limited access to electricity. Farmers in the region cite the absence of storage and refrigeration as the major challenge they face1. The programs presented below provided access to electricity in the region. However, the region needs more power to achieve its industrialization ambitions.

 Household with access to electricity by region

Ghana Energy Development and Access Project (GEDAP)

In 2016, the World Bank launched the 1.7 MW Ghana Energy Development and Access Project (GEDAP). The project started with five pilot mini grid projects. Today, these mini grids provide electricity to 10,000 people in four island communities. The GEDAP project has attracted similar initiatives in other socio-economic areas. In 2019, the World Bank added a pilot project to improve post-harvest preservation of fish by introducing low carbon ovens. South Korea replicated in January 2020, with the “carbon-for-free-stove”, which distributed 500,000 improved cook stokes to 350,000 families. In 2021, the government distributed 92,552 units of improved charcoal cook stoves.

Scaling-up renewable energy program (SREP)

On May 25th, 2022, the Government of Ghana signed a grant agreement of US$69.88 million to implement the Scaling-Up Renewable Energy Programme (SREP). Funding for the project come from the African Development Bank (AfDB) and the Climate Investment Fund (CIF). The Swiss Government also provided additional financial contribution.

The project has three major components: Mini-grid, the stand-alone solar homes systems and the Net-metered solar PV systems. This project has two key objectives: increase access to clean and reliable electricity and reduce carbon emissions. SREP will develop 35 mini grids in the Volta Lake region and deploy 12,000 units of roof-mounted solar systems. The African Development Bank announced that 59 communities across 9 island will receive mini grids, while 505 communities in 11 districts will receive standalone solar systems2. Also, public buildings (1,089), households (4,910) and SMEs (6,001) will benefit from the solar net metering components. The stakeholders hope that this project will help Ghana achieve universal access to electricity by 20303.

Volta River Authority renewable projects

The Volta River Authority (VRA) is the major producer and supplier of electricity in Ghana, with 70 percent of electricity produced in the country. This power producer and distributor has been in business since 1961. After decades of dependence on hydroelectricity sources, VRA is diversifying its sources with a shift to renewables. The VRA operates a total installed electricity generation capacity of 2,539MW. The company’s two hydroelectric sites, the Akosombo and Kpong dams, have installed capacities of 1,020 MW and 160 MW.

 Household with access to electricity by region

Source: Volta River Authority - VRA

The VRA manages other production sites around the country. In April 2016, the VRA launched two solar projects with the help of the German Kreditanstalt für Wiederaufbau (KfW). The two projects will generate 17 MW.

In 2018, the VRA worked with two developers, Vestas and El Sewedy, to develop 150 MW of wind power in four coastal locations. In November 2019, authorities launched the Pwalugu multipurpose dam project. The project comprises a 60 MW hydroelectric dam and a 50 MW solar plant. This project introduces a 25000 hectare agricultural irrigation scheme for rice and maize cultivation. In addition to increase power suplly, the Pwalugu dam will reduce incidences of floods in the region.

The Volta Lake region aspires to become an industrial and transport hub. The government has hired two consulting firms, SMEC (Australia) and Surbana Jurong (Singapore), to develop a strategic development plan for the region. This strategic plan will also analyze the tourism potential around the rich biodiversity of Lake Volta and surrounding areas. Another landmark project, a logistics project called The Trans-Volta Logistics Project (TVLP) illustrates the region's growing need for electricity. The TVLP is a US$200 million multimodal system developed by LMI Holdings (Ghana). This new transport network will carry containers and bulk cargo from the Port of Tema to Ouagadougou via Lake Volta. Two new ports on the Lake, at Mpakadan (in the South) and Debre (in the North) will complete the network. An industrial park at Debre is an additional spin-offs of the project. Without reliable and abundant electricity, these ambitions face a stiff challenge in the years ahead.





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BIBLIOGRAPHY

1❩ FAO (2016): Vicious circle of fish losses, vulnerability of natural resources and the poverty trap-- https://www.fao.org/3/c0138e/c0138e.pdf see also https://www.fao.org/3/bs226e/bs226e.pdf

1❩ African Development Bank (2022): Project General Description https://projectsportal.afdb.org/

1❩ Energy Commission (2022): Government secures $69.88 million from AFDB, CIF and SECO to scale up renewable energy - https://energycom.gov.gh/

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