INSTALLATION OF CAPACITOR BANKS IN COMMERCIAL/INDUSTRY BUILDINGS

African Regional NAMA WorkshopKigali, Rwanda, 2015

By: Kennedy Amankwa, Energy Commission, Ghanaamankwak@energycom.gov.gh

NAMA AREA & GOAL

NAMA Area: Energy sector (Improvement of Energy Efficiency in the Commercial /Industrial sector)

Goal : improve energy efficiency and reduce GHG emissions

BACKGROUND & JUSTIFICATION

Type of Action: National Policy/ProgrammeTechnology: Capacitor Banks Greenhouse Gas: Carbon Dioxide (CO2)

Expected Timeframe: 2016 -2020Implementation Agencies: Energy Commission, ECG,Status of Programme: 27 installed nationwide Justification:• Obsolete equipment with low power factors• Need for power factors improvements to save energy • Electricity demand growing at 12% /yr (250MW/yr)• Increasing thermal power generation in electricity supply• Increasing emissions from power generation• High distribution losses (25.4%)• Increasing cost of power generation• Huge potential for energy saving in commercial/industrial

sectors

DESCRIPTION OF MITIGATION ACTION (NAMA) It involves the up-scaling of the installation of capacitor banks from 27 to cover 1,047 new Commercial and industrial facilities over five year period

The proposed NAMA seeks to reduce electricity demand, thereby reduce GHG emissions through avoided electricity generation.

Objectives: • To improve power factors, • Reduce power demand and • GHG emissions from power generation• Reduce power cost in the commercial /industrial sector

Planned Activities• Establishment and running of Secretariat• Awareness /education /stakeholder consultation• Certification of contractors for installation• Audit, consultation, Procurement and installation• Monitoring of Performance

It

• To reduce carbon intensity of cooking

• To reduce the health impact of cooking with woodfuels The NAMA will support the sale of:

• Improved charcoal and gas stoves for households

• Improved charcoal and gas stoves for commercial uses

• Improved wood stoves for commercial uses (mainly agro processing)

• Improved wood stoves for institutional cooking (schools, Hospitals etc)

PROPOSED IMPLEMENTATION PLAN

Output of measure Activities Coordinator

Key Stakeholder Year 1 Year 2 Year 3 Year 4 Year 5

Detailed institutional structure

Establishment of NAMA secretariat

NS ECG/EPA/GRIDCo       

 

Awareness created Awareness /education NS ECG/ Customer        

Certified contractors Certification NS ECG/GRIDCo        

Results of PF study Agreement signed Capacitors installed

Audit, consultation, Procurement and installation

NS Customer /Contractors/ECG/GRIDCo

       

NAMA IMPACTS AND OUTPUTSIntended impacts

I. GHG Impacts• GHG savings II. Non-GHG Impacts• Energy savings • Lower energy expenditure• Reduced system losses• Increased load carrying capacity of

network

Expected outputs• Improved power factors• Reduced GHG emissions• Reduced energy-use expenditure• Reduced energy demand• Reduced energy losses• Reduced operational cost• Job created

Key performance indicators

• The number of commercial and industrial entities installed capacitors.

• Changes in maximum demand on electricity bills on monthly basis

• Expenditure on monthly electricity bill (maximum demand charge and power factor surcharge).

• Power factor improvements

PLANNED ACTIVITIES, ESTIMATED COST AND FUNDING SOURCES

Planned activities for the preparation of NAMA

Estimated full cost (US$)

Funding sources Domestic contribution

International support

Any others(Banks)

Establishment and running of Secretariat

699,351 209,805 489,546

Awareness /education 135,000 40,500 94,500

Certification 20,000 20,000

Audit, consultation, Procurement and installation

7,525,313 7,525,313

Miscellaneous 20,000 20,000

Total 8,399,663 290,305 584,046 7,525,313

POTENTIAL FOR TRANSFORMATIONAL CHANGE AND SUSTAINABLE DEVELOPMENT BENEFITS

Transformational Change• Promote the adoption of energy efficient technologies • Develop capacity and experience energy efficiency service delivery• Promote the standardization of energy efficiency technologies/services

Sustainable Development Benefits• Economic: Reduced energy expenditure, reduced production cost, increased

competitiveness, increased potential for growth, reduced fuel import bill• Social: More energy for other productive uses, enhanced livelihoods, provision of more

services, job creation• Environmental: Reduced GHG emissions, reduced indoor pollution through increased

rural access to electricity, free financial resources for development of other energy sources (e.g. Renewables)

• Institutional: Technology transfer and Retooling of commercial/industrial facilities

RELEVANCY OF THE PROPOSED NAMA IN THE NATIONAL POLICY CONTEXT

NAMA ties directly with the following National and Sectoral Development Policies and Strategies:

• Ghana Shared Growth Development Agenda (GSGDA) II (2014-2017)• Energy Efficiency & Conservation Section of the GSGDA II• Energy Sector Strategy & Development Plan (2010)• National Energy Policy• Energy Efficiency & Conservation Strategies and Programmes (2014)

THE WAY FORWARD

• Ghana is seeking public and private sector partners for the design, implementation and financing of the NAMA

• Private and public sector partners have opportunity to invest Ghana’s NAMA activities on profitable, secure and creditworthy terms

GHANA NAMA INVESTMENT GUIDE DEVELOPED

The purpose among others is to:

• Identify the purpose and potential project pipeline of NAMAs in Ghana

• Provide step-by-step flow of NAMAs development procedures

• Facilitate information sharing among key players on NAMA mechanisms

• Provide one-stop –shop on NAMA investment opportunities in Ghana

RELEVANT CONTACT DETAILS

Name: Executive DirectorOrganization : Environmental Protection AgencyPostal address : P. O. Box M326, 91 Starlets Road,

Accra, GhanaPhone : 0302-664697/8Fax: 0302-662690Email : info@epa.gov.ghWeb page : www.epa.gov.gh