Ghana's Energy Sector Policies, Analysis With Facts And Future Projection With Machine Learning

Ghanaian s are once again bracing for higher electricity bills as two of the country’s most important power institutions; the Electricity Company of Ghana (ECG) and the Volta River Authority (VRA)   seek sharp tariff adjustments from the Public Utilities Regulatory Commission (PURC). ECG has proposed a 225% increase in its Distribution Service Charge (DSC1) . VRA has applied for a 59% increase in its Bulk Generation Charge (BGC) . Individually, each hike would be painful. Together, they represent a significant escalation in the cost of electricity across the entire supply chain  from generation, through transmission, to distribution and finally to the pockets of ordinary Ghanaians. Generation Costs: The VRA Factor The Volta River Authority is responsible for producing electricity, mainly from hydro and thermal sources. Its request to raise the Bulk Generation Charge from 45.0892 pesewas per kWh to 71.8862 pesewas per kWh reflects the mounting costs of: Fuel...

  Ghana’s energy sector has been plagued by financial instability for decades, after shifting from a hydro-dominant system to a thermal-heavy structure with high operational costs. This transition coupled with inefficient contracts, and electricity tariffs set below cost-recovery levels , has led to an unsustainable debt burden. Ghana's energy sector is financially unsustainable ( Energy Commission, 2019) . Tariffs are pricing structures which determines how much you pay for your electricity usage. Origins of the Energy Debt Crisis Before 1997 : A Stable Hydro-Based System Ghana relied primarily on hydropower from the Akosombo  and Kpong Dams , which provided cheap and reliable electricity .  Read about the history of the Ghanaian energy sector Electricity tariffs were low, yet the Volta River Authority (VRA) operated profitably because hydroelectricity had minimal costs. 1997–2011 : Growing Demand and the Shift to Thermal Power As Ghana’s economy expanded, electricity...