President John Dramani Mahama on Thursday said he was deeply concern about the erratic and frustrating electricity supply that millions of Ghanaians and businesses were experiencing.

“It is a situation that I am deeply concerned about and to which I have devoted considerable energy to solving. This is especially because compounding the problem of unstable power supply is an equally worrying issue of unreliable water supply to some communities,” he said.

President Mahama delivering his first State of the Nation address said the current developments did not reflect the investments and progress “we have been making” in the area of electricity generation.

He said what should have been the country’s successes, had unfortunately been undermined by a number of unforeseen developments.

“We have made good progress in fixing the damage done to the West African Gas Pipeline Company (WAPCO), only to experience a drawback, when nearly 600 kilometers of the pipeline was inundated with seawater,” he added.

The President said in a frantic effort to pump the seawater out, two of the country’s most experienced engineers lost their lives tragically in an underwater explosion.

“As President, I am adequately aware of the challenges and the extreme discomfort that it causes to the generality of our people and businesses. We have however been working to bring in more plants into operation while we await the restoration of the plants affected by the absence of gas from the WAPCO.”

He said the country was expecting the addition of over 500 MW of installed generation capacity this year.

“This includes: 132 MW from the Takoradi 3 Thermal Plant by the end of March, 130 MW from the Bui Hydroelectric Power Project by the end of April, and increased to 400MW by the end of September.

He said there would also be 2 MW from a Solar Park at Navrongo by the end of February.

President Mahama said work had also started on a 161 kV Tumu-Han-Wa transmission line in the Upper West Region, adding that other projects were the Kpando-Kadjebi Transmission Project, a new 330KV transmission line from Aboadze–Prestea-Kumasi- Tamale- Bolgatanga among others.

He said gas from the country’s western field, provided enough flexibilities and cost-efficient ways of additional power generation.

The President said to this end, work was progressing steadily on the Gas Infrastructure Project at Atuabo in the Elemebelle district of the Western Region, adding that when completed by the end of the second quarter of 2013, it would help expand the system to achieve the planned 5,000 MW capacity of power generation by 2016.

He said government would continue during the year to support the utility companies to carry out distribution system improvement projects, and increase electricity access to all parts of the country under the ‘Energy for All’ programme to ensure universal access by 2016.

“Mr. Speaker, we are progressing steadily in the area of renewable energy, by installing solar systems for remote Public Institutions and Community Lighting in off-grid communities. In addition, Government will implement pilot mini-grid electrification for lakeside and island communities.”

He said the private sector had shown considerable interest in investing in the renewable energy sector, and gave the assurance that Government would ensure that the feed-in-tariff was published, to encourage private investors.

“Mr. Speaker, we will commence the distribution of over twenty thousand solar lanterns to replace kerosene lanterns, and reduce indoor air pollution in remote rural homes.”

He said the intervention formed part of government’s efforts to protect the vulnerable in the society and ensure that they had alternative and affordable sources of energy.

President Mahama said the GNPC through joint ventures, continued to explore the hydrocarbon potential of the country’s sedimentary basins.

He said as part of measures to promote local content and participation in the petroleum industry, an Enterprise Development Centre (EDC) with support from the Jubilee Partners would be fully operational this year.

President Mahama said the Centre would be located in the Western Region to facilitate the training of Small and Medium Enterprises (SMEs) to be properly positioned, to take advantage of the oil and gas industry.