As mandated by Electricity Regulation, 2008, L.1937, GRIDCo has been pursuing activities towards the implementation of Capacity Market to revolutionise the Power Sector. This innovative approach to the electricity business in Ghana, aims at ensuring long-term generation resource adequacy, efficient risk allocation, and fair electricity pricing. As part of the activities, GRIDCo has been engaging key stakeholders to sensitise them on the benefits of Power Markets and solicit support for the implementation process.
The Parliamentary Select Committee on Mines and Energy (PSConM&E) was the most recent stakeholder to be engaged. On Sunday, 25th June 2023, representatives from GRIDCo Management Team and the Ghana Wholesale Electricity Market (GWEM) Project Team, led by the GWEM Project Consultant, Mr. Kojo Siaw Ofori-Atta, delivered a presentation on the Capacity Market to the PSConM&E. Mr. Ofori-Atta, the reminded participants that implementing the Electricity Market in Ghana was one of the major recommendations of Ghana’s power sector reforms, which started in the mid-1990s. Giving a history of electricity trading in Ghana, Mr. Siaw explained the operations of an electricity market, why Ghana needs to immediately implement the capacity market and all the advantages it will bring, including investor confidence, better risk allocation, stable trade, among others.
After a very insightful presentation, the Chairperson of the Committee, also the Member of Parliament for Abuakwa South, Hon. Samuel Atta Akyea (MP) led a Question-and-Answer session during which members also made proposals to the GRIDCo Team. Hon. Kwabena Donkor, Member of Parliamentary for Pru, a senior member of the committee, indicated that, it was crucial for GRIDCo to address all legal matters relating to the Electricity Market before implementing the Capacity Market, among other suggestions. Hon. Edward Bawa, the Member of Parliament for Bongo, also gave some helpful pointers for the successful implementation of the Capacity Market.
Representing the Chief Executive, Ing. Mark Baah assured the Committee that “GRIDCo is committed to the successful implementation of the Market. This is an opportune time to act. Once we have the funding, we will do the right thing.”
Notably, Hon. Atta Akyea, pledged his team’s unwavering commitment to advocating for the project, considering the immense benefit of the project. Ranking Member of the Committee, Hon. John Abdulai Jinapor, Yapei Kusawgu, emphasised the importance of securing adequate funding to avoid potential failure of this innovative reform in the electricity sector. It is noteworthy that, GRIDCo held a workshop on the GWEM and presented a proposal to the Ministry of Energy (MoEn) and the Economic Management Team (EMT) on 24th May 2022. Encouragingly, on July 12, 2022, the MoEn gave GRIDCo the warrant to proceed with the implementation of the Capacity Market.
Other representatives from GRIDCo were, Ing. Frank Otchere, Director, System Operations and Ing. Samuel Nkansah, Director Finance; Ing. (Mrs.) Linda Baah, Manager, Market Operations and Team Lead for the GWEM and some of the Team Members.