As mandated by Electricity Regulation, 2008, L.1937, GRIDCo has been actively working towards the implementation of a Capacity Market to revolutionise the Ghana Power Sector. The objective of this innovative approach is to ensure long-term generation resource adequacy, efficient risk allocation, and fair electricity pricing.
In line with these efforts, GRIDCo has been engaging key stakeholders to raise awareness about the benefits of Power Markets and garner their support for the implementation process. Recently, a stakeholder engagement session with the Parliamentary Select Committee on Mines and Energy (PSConM&E) was held, and subsequently with the National Development Planning Commission (NDPC) team on Wednesday July 05, 2023. Dr. Kodjo Esseim Mensah-Abrampa, the Director General of NDPC, expressed appreciation to the GRIDCo team for the significant contributions made to the Energy Sector, emphasising the importance of discussing the Energy Sector as one of the key areas, alongside jobs and industrial production, in the country’s medium-term goals. He acknowledged that the energy sector plays a crucial role in supporting Ghana’s development but noted that there are challenges associated with power pricing, which need to be addressed to make the country more competitive.
Ing. Mark Baah, Director, Southern Network Department, who represented the Chief Executive, indicated that GRIDCo’s mandate is to provide open access to Market Participants in the Electricity Sector and create a platform that will enable sellers (generators) and buyers (bulk customers) to trade. The plan, therefore, is to operationalise a Capacity Market which will ensure the availability of adequate generation capacity in future and at a fair price. In furtherance to this, GRIDCo has established the Market Operations team to carry out the project. He extended an invitation to the NDPC team to visit GRIDCo’s System Control Centre (SCC) to gain insights into its operations.
Delivering a presentation titled, “Achieving and Sustaining Reliable and Fairly Priced Power,” Mr. Kojo Siaw Ofori-Atta, the Project Consultant, highlighted that the implementation of an Electricity Market in Ghana was one of the major recommendations of the Power Sector Reforms initiated in the mid-1990s. He delved into the history of electricity trading in Ghana and presented benchmarking examples to explain the workings of an electricity market. He emphasised the need for Ghana to implement the capacity market promptly, highlighting its advantages such as investor confidence, better risk allocation, and stable trade. The Consultant also acknowledged the challenges that need to be addressed.
The Director-General of NDPC, assured the GRIDCo team that the information and issues raised during the presentation would be taken into consideration in the Commission’s work. He further expressed the Commission’s intention to invite GRIDCo to one of its meetings for further discussions.
On May 24, 2022, GRIDCo organised a workshop on the Ghana Wholesale Electricity Market (GWEM) and presented its proposal to the Ministry of Energy (MoEn) and the Economic Management Team (EMT). Encouragingly, the EMT and subsequently MoEn have granted GRIDCo the go-ahead to proceed with the implementation of the capacity market.
Other members of the delegation included Ing. Frank Otchere, Director of System Operations; Ing. (Mrs.) Linda Baah, Manager of Market Operations; Ing. Stephen Debrah, Manager of Dispatch, and other members of the Ghana Wholesale Electricity Market (GWEM).