SPEECH BY NPP PRESIDENTIAL CANDIDATE

NANA ADDO DANKWA AKUFO-ADDO, MP

ON “THE FUTURE OF ENERGY”

ON APRIL 18, 2008 AT KNUST

STRUCTURE OF PRESENTATION

1. INTRODUCTION 2. ENERGY REQUIREMENT TO MEET DEVELOPMENT AGENDA 3. OUR DEVELOPMENT AGENDA FOR THE NATION 4. CURRENT ENERGY SITUATION 5. ENERGY PROJECTIONS INTO THE FUTURE 6. MY ENERGY VISION 7. OUR OPTIONS AND THE CHALLENGES THEY BRING 7.1 Oil and gas resource 7.2 Hydroelectricity 7.3 Nuclear Energy 7.4 Biomass resources (woody fuels sources) 7.5 Solar energy 7.6 Institutional Issues/Challenges 7.7 Key Petroleum Sector Issues 7.7.1 Oil wealth management 7.8 Key Electricity Sector Issues

8. MEETING THE CHALLENGES AND THE WAY FORWARD

9. EFFICIENCY AND CONSERVATION

9.1 Energy efficiency in transportation 9.2 Efficiency in use of electricity

10. EFFECTIVE IMPLEMENTATION OF RESTRUCTURING AND REGULATION OF ENERGY SECTOR

11 POLICY DEVELOPMENT PROCESS

12. BRINGING NEW GENERATION AND TRANSMISSION CAPACITIES ON STREAM

13. ALTERNATIVE FUELS

13.1 Solar 13.2 Wind 13.3 Biofuels 13.4 Fuel Cells 13.5 The Nuclear Option

14. THE RECENT ENERGY CRISIS – THE LESSONS

15. FINANCING OUR ENERGY SECTOR DEVELOPMENT

16. CONCLUSIONS 1. INTRODUCTION

Mr. Chairman, Distinguished Guests, Ladies and Gentlemen, students of this great institution; I am pleased to have this opportunity to share my views on this subject with such a distinguished audience. Accept from my Party and I well deserved congratulations for putting together this forum. As some here may recall, in the early hours of December 23rd when I accepted the nomination of the NPP as its Presidential candidate, I urged other parties and candidates to join my party and I in a campaign based primarily on issues of concern to ordinary Ghanaians. As a politician, I believe that ideas are the first questions of government and that those who aspire to leadership must spend some time in serious contemplation of important issues. Furthermore, in choosing energy, you have chosen one of the most important challenges that our nation will face for years to come.

With the current dramatic increases in energy prices spurred by growing demand from China and India and instability in the Middle East and other places that produce energy, no nation can afford to take its energy supplies for granted. Hence, the critical significance of the theme of this forum.

2. OUR DEVELOPMENT AGENDA FOR THE NATION

When I inaugurated the NPP 2008 Campaign Committee on the 13th of March, I spelled out four central thematic areas for the next NPP government:

• firstly, the continuing consolidation of our democracy

• secondly, the modernisation of our society

• thirdly, the structural transformation of our economy, and

• fourthly, the full engagement of our nation in the process of regional and continental integration.

Mr Chairman, distinguished guests, ladies and gentlemen, that day, I pledged my Party to the structural transformation of our economy by: • focusing on the production of added-value goods and services, rather than primary products • pursuing a clear policy of Ghanaian Economic Empowerment that will encourage the accumulation and investment of Ghanaian capital, locally and from the Diaspora, and making more Ghanaians winners in the global economy • investing a significant percentage of our GDP in Research and Development (R&D), and • making the formal sector more attractive to the majority of local economic operators.

My friends, it is only from a transformation of our economy and the modernisation of our society that we can expect the quality of life that our citizens have yearned for since our Independence 51 years ago. In the first half century of Independence, led by the Danquah-Busia forces, our nation has fought for universal values of freedom of association and expression, the rule of law and commitment to free market. Today, it is generally accepted that the free ballot, not the bullet, is the preferred way of changing government. We have come a long way but we still have a long way to go. We need to overcome poverty and give our people the tools to achieve our goal of building a property owning democracy.

We can achieve an improved health service, better educational facilities, improved productivity in our factories and farms only when we have provided the strong energy base to power our economic transformation.

3. ENERGY REQUIREMENT TO MEET DEVELOPMENT AGENDA

Meeting our national development agenda will require substantial quantities of energy of all forms. Meeting the annual 10-12 percent GDP growth rates required to drive the transformation of our economy translates into total energy consumption annual growth rate of about 11-12 percent.

The stark implication of meeting this development target is that the current total energy consumption of the country will have to be increased by three fold.

Our basic objective is to provide the nation with sufficient, efficient and cost-effective energy for national development.

4. CURRENT ENERGY SUPPLY SITUATION: WHERE ARE WE NOW?

Ghana’s current energy consumption consists of 63% in woodfuels, 30% in petroleum and 7% in electricity (7%).

At present, we are entirely dependent on imported oil to meet our national petroleum products need and have a refinery that has inadequate capacity.

Electricity generation is based mainly on hydro and thermal generation. The total demand for electricity is about 1,400 MW currently. But this excludes the 300 MW of power required by VALCO. Even though our installed capacity is about 2,044 MW we are unable to meet our national demand. The curtailment of power supply to VALCO typifies our inability to supply all the power the country requires, including suppressed demand.

Woodfuels and agricultural residue (consisting of firewood and charcoal) are by far the largest source of energy in Ghana. Production levels are estimated at between five to seven times that of hydroelectric power.

Petroleum production from national sources has been negligible to date. The recent discovery of commercial quantities of crude oil in the Tano Basin will change the equation once production begins.

The transportation sector consumes the bulk of all petroleum products. Industry is second, and households (LPG/Kerosene) third, followed by agriculture.

From the above submissions, the fundamental problem we face as a nation is the structural imbalance between the supply and demand for energy in all forms.

It is also important to observe that alternative sources of energy such as solar, wind and other modern biomass fuels, which we are endowed with, are not being exploited.

5. ENERGY PROJECTION INTO THE FUTURE

Looking into the future, and on the basis of our development agenda, we would need to increase our energy supply significantly.

Electricity demand is expected to exceed 3000 MW in 2015 and reach 4,400 MW by 2020. The existing installed capacity of 2,044 MW will have to more than double by 2020 in order to meet the local peak power demand.

Total petroleum demand is projected to grow from 1.6 million tonnes to about 4.5 million tonnes by 2020. Woodfuel consumption is expected to rise from 14 million tonnes to 66 million tonnes by 2020.

With the successful management of the economy by the NPP Government and the growth in demand that has been generated, the supply/demand gap is expected to widen.

6. MY ENERGY VISION

Our vision therefore is to develop an “Energy Economy” that will ensure secure and reliable supply of high quality energy services for all to support the accelerated growth and development agenda of my government.

It is in this spirit of planning for a sustainable and prosperous future that I present before you today, the future of Ghana’s energy, as I see it over the next 2-15 years. This is the framework within which planning and investment decisions can be made. Energy policy concerns both the political and the managerial worlds. The general approach to our policy formulation will place emphasis on transparency, inclusiveness and accountability.

The urgent task before us, therefore, is to ensure the availability of all forms of energy for our national development. It is our ultimate objective to have all Ghanaians have access to adequate, reliable, affordable and environmentally sustainable supply of energy forms of their choice to meet their needs.

The primary objectives of our energy policy platform will encompass the following goals:

1. ensuring access to energy of choice

2. adequacy of supply

3. reliability of supply

4. affordability of energy supply

5. environmental sustainability

Our energy policy must recognise the interaction between cost, reliability, economic development and the environment.

7. OUR OPTIONS AND THE CHALLENGES THEY BRING

Ladies and Gentlemen, there are resource, technological and institutional options to enable us attain our vision as we move forward. These options, however, come with their own peculiar challenges.

Let me, at this point, enumerate the options and the challenges they present. Some of these options are domestic in nature and others are external to our economy.

7.1 Oil and gas resource:

The recent oil and gas discovery has been appraised to be of commercial quantities. If properly developed, it can provide a reliable supply of energy, jobs and revenue that can finance our development.

The exact national endowment of recoverable oil and gas is yet to be fully appraised. Natural gas has the potential to become the energy form of choice as a result of its flexibility in use, lower cost and its environmental acceptability.

The development of Liquefied Natural Gas could provide a source of supply of natural gas to meet this country’s requirements for power generation and industrial use.

The challenge is to put in place appropriate policies that will bring about accelerated development of the resource and ensure that revenues are properly managed. 7.2 Hydroelectricity:

The potential of hydropower generation is substantial and equivalent to over 2000 MW of power. Just a little of over 1000 MW of this capacity is fully exploited. The development of the Bui Power Plant and Western Rivers (Tano, Pra, Ankobra) hold interesting potential.

It is a cheap source of power generation; but recent experience with drought conditions in West Africa has taught us that it is prudent to develop alternatives.

The challenge is to provide enough incentive for their development through public-private partnership arrangements.

7.3 Nuclear Energy

Ghana has no known nuclear raw material but its use could provide sustainable source of power supply to the country. Recent advances in technology offer the possibility of installing modern, small nuclear plants capable of producing cheap, clean and reliable electricity without the risks of nuclear accidents. Indeed, prototypes of such modern nuclear plants are under construction in the US, China, Russia and South Korea ranging in sizes from 65 MW to 285 MW. The expected capital costs range between US$1.2 million to US$1.5 million per MW. Hence a 400 MW nuclear power plant would cost about US$600 million to build, similar to the cost of the Bui Dam Project.

These developments, thus, justify the view that this is the right time to put the nuclear power option back on the agenda and evaluate it for the medium to long term. The NPP Government is currently preparing a “Roadmap” for nuclear energy use in the country. The challenge, however, is how to demonstrate Ghana’s ability to manage and operate a nuclear power facility.

7.4 Biomass resources (woody fuels sources)

Biomass energy is the largest energy resource of the country. Biomass resource base is, however, dwindling as a result of continuous depletion of our forests and inadequate replanting.

The challenge is to ensure sustainability of supply base and to modernise its utilisation

7.5 Solar energy

The solar resource base of Ghana is substantial but has a comparatively high cost of exploitation (transformation into useable forms of modern energy). It could be a viable and strategic source of energy security, however.

The challenge is to bring down cost of exploitation to competitive levels and also to provide adequate policies to encourage widespread deployment.

7.6 Institutional Issues/Challenges

Mr. Chairman, ladies and gentlemen, the energy sector continues to be plagued with some lingering institutional challenges, including energy pricing, sector reforms, regulatory inertia, inadequate human capacity and expertise, especially in oil and gas development, energy research and development, and technological expansion.

It is important to inject substantial political direction and investment resources into the resolution of these challenges. The involvement of the private sector in these areas of endeavour will attract my keen attention.

The institutional and bureaucratic challenges, which constrain private sector participation, will be effectively tackled.

One of the major efforts will be to give a boost to education, energy technology development and research.

7.7 Key Petroleum Sector Issues

Petroleum and petroleum products are the most important source of commercial energy. The fact that Ghana imports practically all of the 14.6 million barrels of crude oil and petroleum products we consume annually at the cost of about US$1.8 billion has serious consequences for our energy security, our balance of payments and on economic growth and development.

Over the past few years, the NPP administration has summoned the necessary courage to deregulate and liberalise the petroleum sector. This has allowed the sector to maintain a dynamic equilibrium and averted the shortages and disruptions in supply, which characterised the previous system. We will continue this policy and pay close attention to the need for social intervention whenever necessary.

7.7.1 Oil Wealth Management

One cannot complete a discussion on petroleum without discussing the recent significant oil finds in the Tano Basin. The new oil find provides vast opportunities for the industry as well as the nation as a whole. It puts within our reach, the means to create a new reality for this nation through prudent investments and expenditures. We definitely intend to make this find a blessing, not a curse, to this nation and her people.

In spite of the discovery of oil, we will pursue a strict path of conservation, efficiency, and diversification of our sources of energy. This is because we understand the nature of oil as a non-renewable resource, which is bound to run out within a finite period. We will, therefore, put in place strategies that will avoid our excessive dependence on oil as a source of energy.

It is imperative that proper use is made of oil revenues to support the development agenda of this nation. Government will cooperate with Parliament to set guidelines to ensure transparent accounting of revenue and expenditures. These guidelines will also ensure equity and national priorities. In this regard, we will be sensitive to the needs of the local population in order to ensure that the unfortunate incidents occurring in the Niger Delta of Nigeria are not repeated here. Also in this regard, fiscal responsibility will mean not spending beyond what the economy can meaningfully absorb at any given time. To a very large extent, the benefits that will be derived from the new oil revenues will have to be reflected by the quality of investments made as part of the overall resource management strategy.

It is estimated that, between 2010 and 2015, Ghana will earn over US$14 billion from oil exports. This should reasonably cover the present financing gap in our development strategies and provide the additional resources to go beyond the objectives of the Millennium Development Goals. With careful planning, prudent management, transparent accounting of revenues and expenditures, quality investments can be made in order to derive maximum benefits from the new resource.

We will, therefore, manage the wealth to be derived from oil in such a way as to create self-sustaining funds, which will continue to provide healthy revenue streams into our treasury even after the wells run dry. We shall utilise these inflows in three broad ways as follows:

1. apply substantial resources to build additional capacity in the energy sector 2. use the new opportunity to diversify and industrialise the economy and 3. set up a Patrimony Fund for future generations.

It is equally imperative to promulgate a Domestic Content Law to ensure Ghanaians take full control of the significant opportunities that will be created from ancillary services required to support the development of the oil industry.

In addition, we will focus our efforts on acquiring the necessary skills, research and development and training through our Universities, Polytechnics, and Research institutions. The role of an institution such as yours will therefore be crucial. You will be specifically tasked and empowered in the training of petroleum engineers, geophysicists, geologists, chemists and the entire range of middle level expertise to ensure full participation of Ghanaians in this new area of endeavour.

7.8 Key Electricity Sector Issues

Electricity is the most problematic of the energy sub-sectors. The cost of electricity to consumers, the operational inefficiencies in the industry, both in generation and distribution, the huge capital needed to provide for new capacity, the replacement of old inefficient plants and the drastic increases in the price of crude oil requires government intervention. We will take the necessary steps to address these operational and technical inefficiencies.

8. MEETING THE CHALLENGES AND THE WAY FORWARD

The fundamental structural imbalance between the supply of and demand for energy in all forms, defines the challenges we have to overcome.

The components of the overall energy policy that must guide us into the future while meeting the needs of today will be as follows:

1. ensuring adequate local generation by keeping supply close to demand

2. maintaining the pace of the current deregulation as a means of ensuring responsible competition

3. continuing financial support and improving the management of existing lifeline provision to low-income individuals

4. strengthening the regulatory agencies to enhance consumer protection and education and encouraging the formation of private consumer protection entities

5. enhancing consumer education and protection

6. improving the efficiency in the production, distribution and end-use of energy

7. providing strong leadership by the State setting standards for efficient use of energy

8. ensuring public safety, health and environmental protection in energy production and use

9. continuing the NPP policy for the development and inclusion of nuclear energy as a component of our energy mix

10. ensuring adequate, reliable, stable and cost effective supply of energy to industry and households

11. promoting the use of renewable sources of energy

12. enhancing the implementation of a Transportation Policy to achieve efficiency of fuel use

13. fostering a region-wide energy sharing framework, such as the West African Power Pool

14. ensuring environmental protection with respect to pollution caused by production, storage, transportation and use of energy

15. promoting economic development in growth sectors related to energy products for example in the area of “green” technologies and

17. promoting energy research and development as well as the development of human capacity and skills to manage effectively the energy industry.

To meet the challenges successfully, we will intensify our on-going effort in addressing the following concerns: :

1. energy efficiency and conservation

2. effective implementation of restructuring the energy industry and its regulatory environment

3. efficient Policy Development Process

4. bringing new generating and transmission capacity on stream

5. alternative Fuels, and

6. financing our energy sector development.

9. EFFICIENCY AND CONSERVATION

The efficient use of energy is an imperative as we grow the economy. By improving the efficiency of energy use we could obtain major benefits such as reduced tariffs, reduced investments and lower levels of pollution.

As a major energy consumer, government will take the lead by introducing best practice guidelines in the public sector. It will use the power of public sector purchasing to accelerate technological change that favours energy efficiency, for example, through commissioning more energy efficient buildings and purchasing energy efficient vehicles and machinery.

We will adopt a variety of bold and innovative measures to achieve improvements in energy use.

9.1 Energy Efficiency in Transportation

For example, to effect energy efficiency improvements in the transportation sector, we will reduce the consumption of fuel by government and its agencies substantially. This would be done through a well-formulated management control system based on the concept of a “debit card” linked to a “central management book”.

This measure, we believe, will generate significant savings and make a positive impact in monetary and environmental terms.

We will aggressively continue the promotion of mass transit systems - rail and bus, reduce taxes on the importation of large-occupancy vehicles and expand the use of designated lanes for High Occupancy Vehicles (HOV).

Our approach will reverse travel patterns from the private motorcar-based mode of transportation to an efficient public mass transit system.

9.2 Efficiency in Use of Electricity

Indeed, significant efficiency improvement could also be attained in the use of electricity, particularly for lighting. Gains in energy efficiency lighting can be built on a combination of technological improvements, better management practices, and learning to put these technologies and practices to their best use in cars, homes, offices, factories and farms. For example, compact fluorescent lights (CFLs) use only 25% of the electricity of the incandescent bulbs they replace. Government’s recent investment of about 8.9 million US dollars in six million CFLs is expected to save about 200 MW, which is equivalent to 150 million US dollars capital expenditure in a new thermal power plant.

Several new technologies offer opportunities to improve our energy efficiency. For example, advanced sensors and controls enable more efficient operation of buildings and allow equipment and lights to be turned off or dimmed when not in use.

10. EFFECTIVE IMPLEMENTATION OF RESTRUCTURING AND REGULATION OF ENERGY SECTOR

The energy sector has undergone significant reforms in terms of structure and regulatory environment. We will effectively implement the restructuring of the energy sector.

Over the past decade, government has opened up the petroleum industry to private sector participation and competition. In this framework, the Tema Oil Refinery (TOR) now competes with other private sector operators. We will continue to encourage the establishment of privately owned refineries as a means of expanding the domestic supply of petroleum products as well as improving operational efficiencies and competition in the industry.

While the core business of hydro generation must continue to be the preserve of the Volta River Authority (VRA), other forms of electricity generation must be opened up to generators other than VRA.

The process of unbundling the transmission system from VRA and creating an “open access” system will be completed. With the registration of the National Grid Company Ltd (GRIDCO) as a separate publicly owned company, the necessary regulatory framework will be put in place to make GRIDCO operational.

11. POLICY DEVELOPMENT PROCESS

Our policy development framework will continue to reflect the perspective of government, industry, consumers and other stakeholders, and be designed to overcome their concerns and meet their expectations.

We will look to develop a model that analyses the key five factors – energy generation, energy distribution, impact on economic development (direct and indirect), impact on the environment, and cost.

To enhance the policy development process we will:

• establish an Energy Roundtable (i.e. bringing together all stakeholders) under the auspices of the Ministry of Energy to review, on a regular basis, the long-term plans of the national energy sector.

• assist PURC to provide wider public participation in its rate review process.

12. BRINGING NEW GENERATION AND TRANSMISSION CAPACITIES ON STREAM

The completion of the Bui Dam in 2012 will go a long way in bridging the demand and supply gap.

The availability of energy from Bui, complemented by the establishment of a significantly bigger Northern Development Fund (NDF), will provide tremendous opportunity for the massive and rapid transformation of the north. This will be a major priority of my administration. Let me repeat, the rapid transformation of the north will be a major priority of my administration.

We will, however, need a quantum leap in energy supply if we are to meet the development objectives we have set for ourselves. My government will therefore get on with the urgent task of bringing every economically and financially feasible energy project into being.

It has been established that hydro source is the cheapest form of energy at present. We will, therefore, look to developing the small and mini hydro potential spread over various locations on the Black Volta, the White Volta, the Oti, Pra and Tano.

With the supply of natural gas from the West African Gas Pipeline (WAGP) and our own significant reserves associated with the oil finds, thermal power will assume an increasing importance in our energy supply mix. In addition, it will significantly reduce the cost of power generation in the country.

13. ALTERNATIVE FUELS.

Although there are many sources of renewable energy technologies at various stages of experimentation, Ghana, from a very practical standpoint, can benefit from the following:

i. Solar

ii. Wind

iii. Bio Fuels

iv. Fuel Cells

v. Nuclear

13.1 Solar

Every region in Ghana receives an average of 1900 hours of sunshine a year. There is, therefore, an abundance of solar energy ready to be tapped. Though with current technology it is not the cheapest source of energy, in terms of generation and transmission on the national grid, we must, however, come to the realisation that we have almost exhausted the cheaper sources available. We intend to stay engaged in the evolutionary process of this technology and fully benefit from it in the years ahead. While we may not, for our immediate purposes and requirements, be able to inject solar generated power into the national grid, we should continue to use solar energy, more intensively and extensively in such applications as simple solar driers, lamps, cookers, and to service remote locations on a stand alone basis. More importantly, we must move to a phase where each building begins to rely on and achieve energy self-sufficiency from solar energy. With the application of economies of scale and advancements in technology, the trend will be for the prices of solar technology to drop sharply and make solar energy practical and affordable.

For example, we could require by regulation, that from 2015, all new buildings must be solar dependent. That is, each new building put up after 2015 must have a roofing structure and strength to carry the necessary solar panels to make each building self-sufficient from solar energy. Excess electricity generated from these panels can be sold back to the electricity corporation. Building owners who opt to be connected to the national grid will be paying a higher price for electricity. For existing buildings, we will consider providing tax incentives to convert them into solar sufficient buildings by 2020.

13.2 Wind

Recent studies conducted by the Energy Commission indicate that Ghana has ample wind resources, which could be exploited for energy purposes in certain parts of the country.

We will continue to encourage private sector investors to develop these wind resources to complement our traditional energy supply sources.

13.3 Biofuels

Biofuels derived from sources such as jatropha, neem seed oil, soya beans, palm oil, coconut oil, palm kennel, sugar cane and cocoa “sweatings” from the fermentation of cocoa are being developed as an alternative to petroleum products. The track record for countries such as Brazil, Malaysia and Germany has shown that biofuels can be used as supplement to fossil fuels for transportation. Brazil has developed “gasohol” which is a blend of gasoline and ethanol. In Malaysia, palm oil derivatives are used as substitutes for diesel. India and Mali have extracted plant oils as diesel substitute. Benso Oil Palm Plantation currently produces 1.5 megawatts of electricity from the residue of oil palm production. Central University College, I am told, has built a biogas facility at its campus near Prampram to provide gas to its laboratories and kitchen and to generate power for the University. This is an area, which my government will vigorously lead in exploring. We shall partner with the private sector and other research institutions to find sustainable application for cooking and the generation of electricity for our public institutions.

The NPP Government has initiated a process towards preparing a comprehensive Biofuels Policy. I will give this process my fullest support and direction.

13.4 Fuel Cells

Fuel cells use natural gas as feedstock for producing hydrogen, which is then used in electrochemical reactions to produce electricity. Fuel cells are smaller and modular and could be used to power individual building or neighbourhoods without the noise and unsightliness of traditional generating stations.

My administration will provide support towards active research and development of fuel cell and other new technologies.

13.5 The Nuclear Option

Given the substantial cost and environmental benefits associated with new nuclear energy technology, the NPP Government has decided to develop nuclear energy as part of the medium to long term energy source for power generation in the country.

Ghana has assented to most international conventions and protocols and is well known to respect their undertakings. In the area of nuclear energy, Ghana has ratified some of the ten international conventions, including the multilateral agreement Non-Proliferation Treaty (NPT), with its additional Protocols. In addition, under the NPP Government, Ghana has recently signed on as a member of the Global Nuclear Energy Partnership (GNEP).

The nuclear energy option has recently engaged our attention, resulting in the establishment of a Presidential Nuclear Energy Committee under the Chairmanship of Professor Adjei Bekoe, a renowned nuclear energy expert, who is also the Chairman of the Council of State, to prepare a Nuclear Energy Development “Road Map”. The “Road Map” has been accepted and we intend to embark on a nuclear energy development programme.

14. THE RECENT ENERGY CRISIS – THE LESSONS

The recent energy crisis is fresh in our minds. Regardless of the difficulties it imposed on the country, it provided us with good lessons as we move forward to bring socio-economic development to our people.

The NPP Government has worked assiduously to ensure such crisis will never re-occur in the life of our country. As we speak, our electricity generation capacity is being augmented substantially. The projects, which we have started, will yield approximately over 1,000 MW by 2012. These efforts include:

1. the Emergency Power Plants (EPP) of 126 MW

2. Siemens Power Plant of 49.5 MW

3. Kpone Thermal Power Plant of 220 MW

4. Volta River Authority (VRA) Tema Power Plant of 126 MW

5. Bui Hydro Power Plant of 400 MW

6. re-activation of the abandoned Osagyefo Power Barge of 125 MW

Ladies and Gentlemen, these power projects are under construction and will, except for the Bui Project, be operational by the end of next year. As I speak, the Emergency Power Plants are being deployed all over the country. Their deployment, besides ensuring local self-sufficiency, will bring about significant stabilisation of supply voltages throughout the country.

At the onset of the NPP Government, we mapped out a power sector programme, which was intended to secure more reliable fuel (natural gas) from Nigeria to operate the existing power plants, which we inherited. These were operating at low capacity due to the high price of fuel. Acquiring more thermal power plants, while the existing ones were underutilised, did not make good economic sense. A much cheaper option was to continue buying power from la Côte D’Ivoire. We gave new impetus to the West African Gas Pipeline Project (WAGPP) and the Bui Dam Projects as more permanent solutions to the capacity limitations.

Beyond dealing with the energy crisis comprehensively, a substantial amount of money was injected by Government to rehabilitate, expand and modernise the electricity supply system.

These efforts have included an accelerated rural electrification programme. Indeed, Government is going to extend electricity to five communities in every district by the end of this year. This is equivalent to a total of 830 communities nationwide. My administration will push this programme further so that there will be universal access to electricity during my Presidency.

15. FINANCING OUR ENERGY SECTOR DEVELOPMENT

It is estimated that Ghana will require investments in the region of US$4-5 billion in its energy infrastructure to guarantee reliability, adequacy and quality of service over the next ten years.

Owing to the sound macro-economic management policies of the NPP Government, we have been successful in generating adequate investor confidence to enable us to attract the required private capital to finance our energy sector infrastructure development. In 2007, the NPP Government was able to raise US$750 million from the international capital market. The bond issue was over-subscribed by more than four times to the tune of US$3.2 billion. With continuing sound macro-economic management, I am confident that my Government can raise all the capital required to develop our energy infrastructure.

We appreciate that Public-Private-Partnerships (PPPs) provide an alternative approach to financing major public sector projects. Using the PPP model, my Government will form partnerships with private investors, both local and foreign, to fund these projects.

In parallel, we will also create a conducive platform for the energy service providers to become financially healthy so that they can on their own finance some of their capital investment projects.

16. CONCLUSIONS

Finally, I have stated repeatedly that this election is about the future. The youth of this nation, in this and other institutions, and all across this nation are the future of Ghana. I know that many young people worry about education, training and jobs. I urge you to have faith in your country and in the future. Together, we can work to build a future in which you and your unborn children will be secure. Stay engaged in our politics and governance. Make your voices heard on the issues of the day and register to vote. The vision that I have laid before you is ambitious but I believe that it is achievable. I have outlined how we can produce sufficient quantities of energy to fuel our development.

You have heard how my government will improve efficiencies all across the energy sector.

I have clarified how we shall cushion the poor from the extreme effects of the market in the sector.

You know of my pledge to assist this and other institutions to train the middle and top-level manpower needed in the energy industry. I have shared with you the determination of the next NPP government to include strong local content provisions in negotiations for oil production in Ghana to help Ghanaians participate fully in all aspects of our oil economy.

I have committed the next NPP government to the responsible use of oil and gas revenues for the benefit of all Ghanaians, current and future, guided by equity and transparency.

I have outlined my determination with regard to the transformation of the north, fuelled by the Bui Dam, a bigger Northern Development Fund courtesy of oil revenue, and other innovative initiatives. My belief is founded on the dream of Ghana as an advanced economy.

Robert Kennedy once said, “Some see things that are and ask why? Others dream of things that are not and ask why not?”

I dream of a Ghana where all our street and traffic lights work all the time!

I dream of a Ghana where none of our factories stop production for lack of energy!

I dream of a Ghana where all our communities, from Axim in the south to Zebilla in the north, have reliable and affordable power supply!

This dream is based on my conviction that we can and must do better. I believe in Ghana and her future and so must you.

Together, government, citizens and civil society, let us work to invent the future that we seek. Let us build a modern free Ghana that we can bequeath to our children with pride.

May God Bless you

May God bless Ghana

Good night and thank you

Nana Addo Dankwa Akufo-Addo, MP for Abuakwa South and Presidential Candidate for the New Patriotic Party delivered the above speech at the Great Hall, Kwame Nkrumah University of Science & Technology. The seminar was put together by the College of Engineering of the KNUST, to give a platform for the presidential candidates to present their respective visions on energy to Ghanaians.