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Transcript of ECG-GHANA
STRATEGIC ISSUES OF THE ELECTRICITY
COMPANY OF GHANA
PRESENTATION BY MR. WILLIAM HUTTON-MENSAH(AG. MANAGING DIRECTOR)
ELECTRICITY COMPANY OF GHANA
� Introduction
�Map of Operational Area
�Company Mandate, Vision & Mission
�Organizational Structure
� Company Vital Statistics
� Strategic Issues
� Curative Measures (Ongoing Projects)
� Expected Benefits
� Outlook (Future Plans)
� Sources of Funding
� Conclusion 22/08/2012ELECTRICITY COMPANY OF GHANA (ECG) 3
This presentation has two motives. Theyare …………….
� To solicit financial and technicalsupport from Donors and experts ofthe Power Sector.
� To inform the industry of the impactof rapid economic growth and itseffects on electricity generation,transmission, distribution and supply.
22/08/2012ELECTRICITY COMPANY OF GHANA (ECG) 5
The Electricity Company of Ghana(ECG) …...
� Is a private, limited liability companysolely owned by the Government ofGhana
� It operates in six political regionslocated in the southern part of Ghana
� Map of Operational Area
22/08/2012ELECTRICITY COMPANY OF GHANA (ECG) 6
� Has sub divided its operational areainto nine regions and a Subtransmission Division
Company Mandate …………..
� To distribute and supply electricpower to the southern part of Ghana
22/08/2012ELECTRICITY COMPANY OF GHANA (ECG) 7
The Company’sVision is ...............
� To achieve customer satisfaction by providingservices which fully meet the expectations of ourcustomers
Mission Statement …………..
� To provide quality, safe and reliable electricityservices to support the economic growth anddevelopment of Ghana
Organizational Structure
� Organizational Chart22/08/2012
ELECTRICITY COMPANY OF GHANA (ECG) 8
� ECG purchases power from VRA andother IPPs (SAPCL)
� It receives the power at 33kV fromGRIDCo at the Bulk Supply Points(BSPs)
� Electricity supply voltages are 11kV,415V and 240V
� Power supply frequency is 50Hz
22/08/2012ELECTRICITY COMPANY OF GHANA (ECG) 9
11
PERFORMANCE INDICATOR
UNITS 2008 2009 2010 2011
ACTUAL
CORPORATE
STATISTICS
Energy Purchases GWh 5,799.4 6,052.2 6,771.29 7,259
Energy Sales GWh 4,315.8 4,481.5 4,972.36 5,285
Sales Revenue (with levies) GH¢m 642.1 661.0 1,006.36 1,273
Sales Revenue (without levies) GH¢m 598.3 616.1 974.59 1,174
Average End-User Tariff GH¢/kWh 0.13 0.14 0.1960 0.23
Distribution Service Charge GH¢/kWh 0.06 0.06 0.0976 0.09
System Losses % 23.7 26.0 24.36 25.01
Staff Strength No. 5,280 5,390 5,493 5,799
No. of Customers No. 1,722,245 1,963,958 2,120,564 2,336,286
Revenue Collection GH¢m 573.1 668.7 897.77 1,252
FINANCIAL
STATISTICS
Operating Profit / (Loss) GH¢m 36.4 32.1 38.57 37.22
Net Profit After Tax GH¢m 25.1 (20.7) 1.149 17.57
Rate of Return on Average Net
Fixed Assets% 2.4 (0.99) 0.05 0.61
Administrative Cost GH¢m 12.0 39.8 38.8 38
Staff Cost GH¢m 57.3 64.2 77.1 140
OTHER
INDICATORS
Labour Productivity GWh/Staff 0.82 0.83 0.91 0.9
Admin. Cost/ Billing % 1.88 6.01 3.85 2.95
Staff Cost / Billing % 3.52 10.90 7.7 12
Energy Demand Growth % -0.13 3.84 11.9 7.2
Revenue Collection as Ratio of Sales % 89.3 101.2 89.2 98.37
12
OPERATIONAL
INDICATORS
Peak Demand MW 927.5 1,036.0 1,115.6 1,156.0
Average Outage Duration (Urban
Communities)
Hrs/ Customer/
Year26.58 51.22 65.60 67.9
Average Outage Duration (Rural
Communities)
Hrs/ Customer/
Year58.24 78.19 104.1 185
Average Outage Duration
(Metropolitan Areas)
Hrs/ Customer/
Year- - - 29
Average No. of Outages (Urban
Communities
No./ Customer/
Year1,211 1,125 282.0 293
Average No. of Outages (Rural
Communities)
No./ Customer/
Year1,422 1353 266.0 282
NETWORK
STATISTICS
No. of Bulk Supply Points No. 26 26 26 26
No. of 33/11kV Primary
SubstationsNo. 81 87 98 108
No. Secondary Substations No. 8,222.0 8,378.0 8,787.0 9,550.0
33kV Overhead Lines km 12,033.7 12,033.7 12,783.7 13,461.3
33kV Underground Cables km 281.7 293.1 1,393.1 1,462.8
Total km 12,315.4 12,326.8 14,176.8 14,924.1
11kV Overhead Line km 13,970.8 14,166.9 14,441.5 14,946.2
11kV Underground Cable km 1,051.8 1,075.3 1,079.9 1,084.4
Total km 15,022.6 15,242.2 15,521.4 16,030.6
LV Overhead Line km 1,450,033.0 1,450,973.7 1,453,282.6 1,469,312.4
LV Underground Lines km 5,010.4 5,016.7 5,072.6 5,092.9
Total km 1,455,043.3 1,455,990.4 1,458,355.3 1,474,405.3
Notes
System losses from 2010 to 2011 excludes energy consumption of street lights which is estimated at 3% of energy sales
The finance data is provisional
PERFORMANCE INDICATORUNITS 2008 2009 2010 2011
ACTUAL
Financial
Inability to self-finance capitalinvestment projects
�Dependence on Government ofGhana, IDA, AfDB and otherdevelopment partners forfinancial support
22/08/2012ELECTRICITY COMPANY OF GHANA (ECG) 14
Technical
1) Meeting the rapid energy demandgrowth of customers (about 7% p.a.over the past 10years; was 11.5% and7.2% in 2010 and 2011 respectively)
� High Level of Suppressed Demand
� Increasing demand of existing customers
� Rapid extension of network through ruralelectrification
2) HighTechnical Losses
� Currently estimated at abt. 12%22/08/2012ELECTRICITY COMPANY OF GHANA (ECG) 15
3) Inadequate Capacity of the Existing Network (transformers & lines)
4) Weak & Obsolete Equipment
5) Supply Availability & Reliability Challenges
� Frequent Network Outages
� Poor Customer EndVoltages
22/08/2012ELECTRICITY COMPANY OF GHANA (ECG) 16
Commercial
1) High customer population growth (abt.9.8% p.a.)
2) High Commercial Losses (estimated at abt.15%)
3) Inadequate Revenue Collection
� Revenue Collection as a ratio of sales for 2011was 102.2%. This was achieved throughprepayment metering (currently abt. 28%)
� Propose to achieve abt. 105% Collection Rateby end of 2012
22/08/2012ELECTRICITY COMPANY OF GHANA (ECG) 17
3) Prepayment Metering
� Expansion to all urban centers within2years
� Meter monitoring
4. Delayed capturing and billing of newcustomers
5. Vandalism
�Theft of network assets (i.e. transformeroil, cables, conductors, etc.)
22/08/2012ELECTRICITY COMPANY OF GHANA (ECG) 18
A. Capacity/ Network Expansion and Voltage Improvement Projects
B. Financial Interventions
22/08/2012ELECTRICITY COMPANY OF GHANA (ECG) 20
A. SUB-TRANSMISSION & DISTRIBUTION PROJECTS
� Capacity Expansion and Voltage Improvement Projects
� Technical Loss Reduction Projects
� Commercial Loss Reduction Interventions
� Rural Electrification
� ICT & Network Modernization Projects
22/08/2012ELECTRICITY COMPANY OF GHANA (ECG) 21
CAPACITY EXPANSION & VOLTAGE IMPROVEMENT PROJECTS1
� Construction of 3no. Bulk Supply Points (BSPs) in Accra, Kumasi, & Winneba
� Construction of 19no. Primary Substations in Accra (10), Tema (4), Kumasi (2), Koforidua (1), and Takoradi (2)
� Construction of 12no. Switching Stations across all operational areas (all stations have been commissioned) – Akuse, Kasoa, Bunso Junction, Kuntunase, Bogoso, etc.
� Upgrade of 3no. existing BSPs
� Mallam, Akwatia, & Tafo22/08/2012ELECTRICITY COMPANY OF GHANA (ECG) 22
CAPACITY EXPANSION & VOLTAGE IMPROVEMENT PROJECTS2
� Upgrade of 15no. existing Primary Substations in Accra (4), Ashanti Region (8), Western Region (2) and Koforidua (1)
� 33kV & 11kV Lines are also under construction to interconnect new substations to existing ones
� Conversion of 11kV lines to 33kV in Eastern Region (Tafo–Koforidua, Tafo-Suhum)
22/08/2012ELECTRICITY COMPANY OF GHANA (ECG) 23
TECHNICAL LOSS REDUCTION PROJECTS
� Pilot Implementation of High Voltage Distribution System (HVDS)
� Madina & Adenta in Accra
� Suame Magassine and its environs (Kumasi)
� Shunt Capacitor Compensation
� At substations and on feeders across operational areas
� Reconstruction of the Low Voltage (LV) network within 4no. markets using aerial bundled conductors (Asafo Market, Makola, Tema Comm. One, and Ashaiman Mkts.)
22/08/2012ELECTRICITY COMPANY OF GHANA (ECG) 24
COMMERCIAL LOSS REDUCTION PROJECTS
� Re-routing of concealed service tails and the use of meter enclosures to secure meters
� Deployment of consultants to monitor service connections of the 10,000 largest customers
� Strengthening of the ECG Loss Control Unit to monitor energy consumption of customersareas
� Establishment of utility courts to prosecute energy theft
22/08/2012ELECTRICITY COMPANY OF GHANA (ECG) 25
RURAL ELECTRIFICATION
� GEDAP - Grid Extension
� ECG will extend the national grid to about 530 rural towns in 26 Districts
� GEDAP – Grid Intensification
� 55,000 new customers are expected to be connected in 38 Districts
� Chinese Contract
� Phase I extended power supply to 417 communities
� Phase II will connect an additional 1,000 communities
22/08/2012ELECTRICITY COMPANY OF GHANA (ECG) 26
ICT & NETWORK MODERNIZATION PROJECTS
� Installation of Supervisory Control and Data Acquisition (SCADA) Equipment on 33kV and 11kV Networks
� Accra is completed
� Works are ongoing in Ashanti and Western Regions
� Works ongoing on some rural networks
� Introduction of Live-Line Work in ECG’s operations
� Equipment have been supplied
� 10no. Gangs (of 5persons) will undergo training
22/08/2012ELECTRICITY COMPANY OF GHANA (ECG) 27
B. FINANCIAL INTERVENTIONS1
� Implementation of the Automatic Tariff Adjustment Formula
� GoG is providing additional financial support to operate and maintain streetlights
� ECG is rigorously employing strategies to collects all debts
� Cash registers have also been computerized.
� Development of a common payment platform to ensure real-time capturing of payments
22/08/2012ELECTRICITY COMPANY OF GHANA (ECG) 28
EXPECTED BENEFITS1
�Provision of enough transformer and line capacity to meet the rapid demand growth�Release Suppressed Demand
�Provide supply to new customers
�Strengthen the Backbone of the sub transmission network to support rural electrification and cross border projects
�Automated network to support data acquisition and information flow
22/08/2012ELECTRICITY COMPANY OF GHANA (ECG) 30
EXPECTED BENEFITS2
�Improve the network by providing redundancies (alternative sources of supply)
�Reduce system losses to regulated levels
�Improve voltage levels to achieve 230V±10%
�Reduce outage levels to achieve regulated levels 22/08/2012
ELECTRICITY COMPANY OF GHANA (ECG) 31
OUTLOOK (FUTURE PLANS)A. Continued Expansion of Sub-transmission and Distribution
Network
B. Grid Intensification
C. Rigorously pursue system loss reduction projects
D. HVDS� Roll-Out the HVDS across all Operational Areas (Pilot ongoing in Madina and
Suame)
D. ICT (LAN, WAN, SCADA, Degis, etc)
E. Install Prepaid Meters in all Urban Communities
F. Complete Roll-Out of Prepayment Metering all across operational areas
22/08/2012ELECTRICITY COMPANY OF GHANA (ECG) 32
Investments are financed through ……….
� Internally Generated Funds (IGF)
� Government of Ghana Support
� Donor Funds (IDA, AfDB, DFID, JICA,SECKO, etc.)
� Export Credits
� Bilateral Loans/ Facilities (i.e. BankLoans, Suppliers’ Credit, etc.)
22/08/2012ELECTRICITY COMPANY OF GHANA (ECG) 34
ECG requires ……….
� USD 200M annually to support capitalinvestment projects
� It is able to generate from its ownsources a minimum of GH¢30Mannually
� The rest are financed by GoG, DonorFunds, Export Credits, BilateralFacilities, etc.
22/08/2012ELECTRICITY COMPANY OF GHANA (ECG) 35
ECG is required to ……….
� Implement similar projects across itsoperational areas
� Inject more BSPs, primary and distributionsubstations and the interconnecting lines
� Strengthen the backbone of the subtransmission network
� Make quality electricity services available tocurrent and potential customers
22/08/2012ELECTRICITY COMPANY OF GHANA (ECG) 36
But requires ……….
� Financial and technical support topursue the projects
� All projects are self-financing within amaximum 6-10 years� Even in the presence of low tariffs
� The expected return on investment arein excess of 20% .
22/08/2012ELECTRICITY COMPANY OF GHANA (ECG) 37
We have presented ECG’s……………
� Strategic Issues and Curative Actions
�Requirements to revamp and sustainits distribution network
We seek the support of donors and allpresent to implement and address thechallenges associated with electricitydistribution in Ghana.
22/08/2012ELECTRICITY COMPANY OF GHANA (ECG) 39
Additionally as support/ investments are ongoing in ……….......
�Power Generation and
�Transmission
It is important that distribution isincluded to help evacuate the powerto final users or consumers andcross border projects.
22/08/2012ELECTRICITY COMPANY OF GHANA (ECG) 40