Monitoring and Evaluating the Impact of Energy Interventions on Poverty Reduction in Ghana

1. National Workshop on Development and Energy in Africa 1st September 2005, Nogahil, Accra Monitoring and Evaluating the Impact of Energy Interventions on Poverty Reduction in Ghana MINISTRY OF ENERGY Accra.

2. PRESENTATION FORMAT • Rural Electrification Programme • Achievements • Impacts • Challenges • Solar Electrification • Achievements • Impacts • Challenges • Rural Kerosene Programme • Achievements • Impacts • Challenges

3. BACKGROUND • Instituted in 1989 as Government’s principal instrument to achieve its policy of extending the reach of electricity to all parts of the country over a 30-year period from 1990-2020 • 64 out of 110 District Capitals were without grid electricity supply at the time • By 1996 additional 41 District Capitals had been connected to the grid • Last batch of 23 District Capitals were connected between 1996-1998

4. IMPLEMENTATION STRATEGY • Grant from Canadian Govt. for the National Electrification Plan Study (NEPS) • Study was carried out by Acres International of Canada …… establishment of the National Electrification Master Plan • Phases of implementation (5-yr phases spanning the 30 yrs)

5. IMPLEMENTATION STRATEGY • The 1st phase captured the connection of all District Capitals and towns/villages on-route to the District Capitals • The subsequent phases entailed the electrification of communities in the order of most economically viable projects

6. GOALS AND OBJECTIVES • Poverty reduction, especially in the rural areas • Increasing the overall socio-economic development of the nation • Increasing people’s standard of living, especially those in the rural areas • Creating small-to-medium-scale industries in rural areas • Enhancing activities in other sectors of the economy, such as Agriculture, Health, Education, Tourism etc • Creating jobs in the rural areas and thus reducing the rate of rural to urban migration

7. SELF-HELP ELECTRIFICATION PROGRAMME (SHEP) THE SELF-HELP ELECTRIFICATION PROGRAMME IS A COMPLEMENTARY PROGRAME TO THE NATIONAL ELECTRIFICATION SCHEME (NES)

8. CRITERIA FOR JOINING THE SHEP • Community must be within 20km of an existing 11kV/33kV network • Community must be willing to procure and erect all the Low Voltage poles required for the works • Quite a good number of houses in the community should be wired

9. SUMMARY OF ACHIEVEMENTS UNDER THE NES • Before the commencement of the NES in 1989, 4,175 communities were identified as having population of 500 or more. Of this number only 478 were supplied with electricity Completed Projects (1992-2000) Project package# of Towns NEP 409 Other Projects 374 SHEP1 50 SHEP2 250 SHEP3 Phase1 280 SHEP3 Phase2 494 Total 1857

10. SUMMARY OF ACHIEVEMENTS On-going Projects (Oct 2000-2005) Project PackageNo of Towns# completed SHEP3 Phase3 700 501 SHEP4 Phaes1 193 10 Electrification of Volta Lake 144 144 Resettlement Townships EU Funded Electrification 108 108 Project (W. Region) Electrification of Nyinahin & 24 24 23 other towns Electrification in Amansie West 10 10 Other Electrification Projects 364 88 Total 1443895

11. SOME FACTS AND FIGURES • # of towns connected before 1989 478 • # of towns connected to date 2,752 • # of towns connected thru’ SHEP 1,673 • Accessibility at commencement 15% • % of population using electricity 43% ( as per census) • Accessibility at present 60%

12. FUNDING OF THE NES & SHEP PROJECTS ProjectFunding AgencyType of funding NES JICA, DANIDA Grant NES World Bank, Dutch soft loans Govt.(ORET), SIDA, FINIDA, NDF SHEP Indian Ex-Im Bank, soft loans US Ex-Im Bank, SIDA, FINNIDA & South African Govt. Govt. budgetary support of about US$9 m/yr over 2001-2004 PS: About US$130million was used for off-shore electrical materials for the SHEP-3 (1,400 communities involved) About US$350 million would be required for the SHEP-4 ( 2,500 communities involved) (US$ 15 million have so far been secured from the Indian Ex-Im Bank)

13. Impacts • Improved standard of living, especially in the rural areas Education -pupils stay for longer hours studying in the evenings, better exam results than before -Teachers accept postings to the rural areas • Small-to-medium-scale industries in rural areas stimulated. -springing up of agro businesses e.g. maize, cassava & orange processing • Activities in other sectors of the economy, such as Agriculture, Health, Education, Tourism etc enhanced -Health Centre sponsored by the GE at Asesewa, water project sponsored by the German Govt. • Job creation -stone quarry & orange juice factories in the Central Region; Hair dressing salons • Reduction in the rate of rural - urban migration

14. KEY CHALLENGES • Availability of funding to support projects • Complementary contribution from beneficiaries delays the projects • Better focus on productive uses of electricity

15. WAY FORWARD • Integrate renewables into rural electrification i.e. solar, wind, small hydro etc. • Involve District Assemblies in the provision of complementary contribution • Focus on small and medium-scale developments

16. Connecting remote and isolated communities to grid is becoming difficult & expensive due to geographic locations and settlement patterns It is unlikely that all communities in Ghana will be electrified by 2020 if electricity supply is based on grid extension only.

17. SOLAR INSTALLATIONS IN GHANA (2003)

18. SOLAR PV FOR RURAL HOMES & SHOPS • Improves the quality of life of the rural people • Adds more productive hours to the working day. • Creates better access to television and radio than regular batteries

19. Survey of 200 Solar Home Systems installed within 2 yrs (1999-2001) • More than 50% of adults watch TV or listen to radio/cassette player • People stay longer hrs - Sleeping time before 8.00pm reduced from 69.5% to 11% • Increase in TV acquisition from 4 to 13 • Radio/cassette player - from 16 to 64 • Economic activities in commercial stores, music record shops, pubs (drinking bars) increase by 30-50%, • Agro processing industries requiring illumination at night have been rejubilated.

20. SOLAR PV WATER PUMPS • 81.2% of rural households in Ghana have no access to pipe-borne water. • Depend on streams, rivers and wells • Water is often contaminated and not safe for drinking • Solar water pump brings safe drinking water closer to the poor including women & children

22. Education • It is a fact that communities with electricity do better in basic school exams than those without electricity • Teacher are unwilling to accept postings to communities without electricity. • Distance education for pupil and junior student through TV cannot be enjoyed by school children in unelectrified communities.

23. Solar Streetlight helps to avoid women spending the night with their babies beside their produce on the eve of market days. • Solar streetlight located at a lorry pack improves security and enhances safety for women travelling at dawn.

24. SOLAR STREETLIGHTS Solar electrification brings life to rural communities at night in off grid.

25. CHALLENGES

26. Challanges - Cost • High investment cost • High replacement cost for batteries, DC lamps & regulators - 5yrs • Tariffs collected are therefore not adequate to ensure replacement of components when due. • Limited application

27. Challenges - Institutional • No comprehensive policy for PV electrification • No dedicated institution currently exist solely for the development and promotion of RETs in Ghana.

28. Challenges - Maintenance • Removal of dust and unwanted materials from birds are major issues to optimize efficiency (not tilt angle) • This is hard work

29. Preliminary evaluation The monitoring and evaluation of solar PV projects vis-à-vis the challenges that have been enumerated has led to the following key findings: Grid electrification is the ultimate and preferred choice for rural inhabitants due to the numerous advantages it offers. Such rural inhabitants therefore consider solar PV electrification as a transition source of electricity delivery while hoping for the national grid to get closer.

30. OPPORTUNITIES FOR PV IN GHANA • Activities linked to income generation • Telecommunication • Education • Health • Water supply • Security

31. Solar light in a rural guest house attracts customers from none electrified hotels. • Solar light in this poultry house saves about 38.2 litres kerosene monthly.

32. Solar lighting for petroleum retail outlet in an unelectrified station avoids the danger of fire outbreaks from naked kerosene light.

33. Battery Charging Solar Battery Service can be a lucrative business in isolated remote villages

34. Telecom Repeater Stations COMMUNICATION SYSTEMS Rural Phone booth

35. RURAL KEROSENE DISTRIBUTION IMPROVEMENT PROGRAMME Ministry of Energy

36. Background • Kerosene is the fuel used mostly for lightning and cooking in rural Ghana • Supply of Kerosene to rural areas has been low and inconsistent • Adulteration of Diesel with Kerosene, bad roads, smuggling has resulted in inconsistency in supply • Kerosene Promotion Fund was established in 1999 into which was lodged a margin of ¢30.00per liter of kerosene factored into the kerosene transportation Margin (UPPF) • The Margin has been increased to ¢50.00per liter of kerosene

37. Aim of Programme • The aim of the Rural Kerosene Distribution Improvement Programme is to ensure that kerosene is made available at all times to the people of Ghana, especially the rural dwellers at approved and affordable price.

38. Objective of Programme • To establish 2200 kerosene reseller outlets in the rural areas all over the country by end of December 2004.

39. Target Areas • The programme is targeted nationwide and would cut across all the 230 constituencies. • On the average, about 20 kerosene reseller outlets per district will be established by end of the programme.

40. Expected Outcomes • It is expected that a significant shift towards poverty alleviation will be made when kerosene is made available and affordable to especially the rural dwellers. • The Programme is expected to generate employment for especially the rural kerosene resellers.

41. Programme Administration • The programme is administered jointly by the Ministries of Energy and Local Government & Rural Development.

42. Programme Phases • 700 kerosene surface tanks/accessories fabricated in phase I in 2002. • 1,500 kerosene surface tanks fabricated in phase II in 2004. Distribution of tanks on-going. • 800 kerosene surface tanks to be fabricated by end December 2005 in phase III.

43. Funding • Funding for the project is sourced from the Kerosene Promotion Fund, into which a margin of  50.00 per litre is lodged out of the  230.00 per litre under the UPPF margin for kerosene.

44. Ownership of Tanks • District Assemblies will hold tanks in trust for the Ministry of Energy (the owner) and monitor the programme.

45. Selection of Resellers • Selection of the resellers is based on one of the following evidences: • Evidence of self-financing by reseller (a minimum of  11 million as capital, being half the cost of a consignment). • Evidence of rural bank financing. • Evidence of the District Assembly’s letter of guarantee.

46. Commercial Component of Programme • Prospective investors (resellers) as indicated earlier, will be expected to pre-finance kerosene supplied to them as the commercial component of the programme and this will strictly be between the OMCs and the resellers.

47. Programme Update • Phase I was successfully executed and completed with 700 surface tanks and accessories distributed to selected locations in the former 110 districts. • Phase II of the programme is on-going with distribution of tanks. About 994 tanks and accessories have been distributed out of 1,500 tanks and accessories.

48. Challenges • Some selected resellers refuse to pay back for kerosene received on credit • Short-delivery of product by tanker drivers to resellers. • Proper Administration of the programme is required at the District level

49. IMPACT OF PROGRAMME • Monitoring Activities carried out indicates : • Social acceptability of the programme • Kerosene is readily accessible to rural folks at approved price • Source of employment for resellers • Improved livelihood of rural

50. THANK YOU FOR YOUR ATTENTION