Regulatory and policy options to encourage development of ...

MODULE 9: RENEWABLE ENERGY: REGULATORY AND POLICY OPTIONSpage 9.1014. CONCLUSIONSThe penetration of renewable energy technologies (RET) in Ghana could have beenextensive by now if the barriers to the successful application of these technologieshad been dealt with earlier. Some of the barriers had to do with the cost ofthe technology (which is rapidly reducing), but other barriers have to do withfinancial arrangements, government policies and customer education.Many years of heavily subsidized petroleum and electricity costs have made REoptions, especially PV, uncompetitive and therefore the sector was unable toattract sufficient private sector investment. The few companies dealing in RETsare unable to generate enough sales to keep them running, since the people whoneed their services most cannot afford them.The Government launched a number of pilot projects, which subsequently failed.By their very nature, these projects could be seen as a “test of concepts” andtherefore failure was an “acceptable” option. However, the authors are of theopinion that certain mechanisms could have been put in place to ensure the successof such projects. For example, the biogas project at Appolonia had certaindifficulties with the provision of sufficient dung. Also, the tariffs paid by the consumersat Appolonia were insufficient and could not keep the plant running. Thusthe facility has been out of use for considerable time, even though electricity continuesto be provided by fuelling the generators with regular diesel fuel.The RESPRO is also reported to have run into difficulties, where many of theinstallations have batteries that are run down but cannot be replaced due to lackof funds. Once again, it would appear that the tariff regime is unable to sustainthe project.The Ghana Wind Energy Project launched by Enterprise Works ran into technicaldifficulties when some of the electronic components at various sites were damagedduring windstorms.