VRA to expand power generation
The Volta River Authority (VRA) has announced measures to develop and expand existing and new power generating facilities to meet load growth projections as the country prepares for massive industrial activity in the oil and gas sector and also to remain competitive on the global energy market.
They include the construction of the 132 MW T3 (Magelian) Plant and the development of the 200MW Kpong Thermal Plant.
Speaking at the second annual stakeholders’ meeting of the VRA, Professor Akilagpa Sawyer, Chairman of the Board of Directors, said in furtherance of this objective, a consultant had been engaged to advise and assist the authority with the required one-year feasibility studies for the construction of 100 megawatts wind power in parts of the country to supplement the existing power supply and meet the increasing demand from the expanding economy.
He said discussions were also far advanced to convert the TICO (TAQA) 220 megawatts into a 330-megawatt combine cycle plant.
In the same vein, Prof. Akilagpa Sawyer said tenders had been closed for the construction of the first two megawatts out of 10-megawatt solar projects to be built in four different locations in the northern part of Ghana.
These pragmatic measures among others, he said, had been instituted to ensure that the VRA was in a strong position to provide Ghanaians with adequate, reliable and stable power supply.
He said in addition to seeking additional sources of gas from Nigeria and the Jubilee Field, the VRA was looking up for alternative sources of gas supply to meet its projected generation requirements, which would amount to approximately 200 MMCF/day.
The authority is, therefore, examining closely the possibilities offered by Liquefied Natural Gas (LNG).
Another significant development is the reorganisation of the Northern Electricity Department (NED) into a fully-fledged independent, value-driven entity, to be called VRA/NEDCo.
Prof. Sawyer announced that the finances of the authority were in good health in part due to measures taken by the Government of Ghana to settle outstanding arrears of over GH¢300 million and the acknowledgement of further amounts owed the authority.
“Second was an equity injection to the tune of GH¢477.12 million, made up of Government promissory notes issued for the purchase of light crude oil (LCO) and for other assistance provided in recent years,” he said.
Prof. Sawyer also announced that the authority made an operational profit of GH¢53.43 million and a net profit of GH¢29.88 million in 2010, which he attributed to the increase in electricity sold which went up by 12.05 per cent and an increase in the Bulk Generation tariff from June 1, 2012.
He said in order to inject greater efficiency into the operations of its non-core activities, the VRA was converting its portfolio on non-power operations into progressively self-financing subsidiaries. These are the hospital, the school and the real estate department.
This will also enable the authority to re-position itself to focus more effectively on power generation, its core business and thereby enhance its competitive advantage in the West African sub-region.
Source: Daily Graphic