Structural reform and the politics of electricity crises in Ghana: tidying whilst the house is on fire?

Abstract

The 1990s 'good governance agenda produced a programme of change called the standard reform model. It involves privatising utilities, the creation of markets and the unbundling of electricity-system functions into formally separate, 'independent' regulated units. Pushed by the World Bank and others, elements of this programme have been widely adopted across developing countries, including in Ghana. However, Ghana, like many countries in Africa, continues to suffer from major power crises. In the past decade, the country has lurched from unprecedented shortages to electricity overabundance, entailing spiralling debt. Donors, researchers and policymakers in Ghana have pushed further privatisation and institutional-separation reforms as a solution. However, this paper demonstrates that, thus far, attempts to create good governance through the standard reform model have been overwhelmed by Ghana's politics. Using the political settlements framework, this article demonstrates how intense competition entailing an all-consuming focus on elections overcame the formal organisational separation and the inclusion of expertise in planning and operating the electricity system. Alongside high-modernist ideological beliefs in the power of megawatts to produce industrialisation, such competition created Ghana's crises of absence and abundance. The paper consequently highlights a disconnect between a continuing focus on the good governance model and the politics driving policymaking: too great a focus on democratic institutions, formal organisations and market motivations misses the importance of political power and how it manifests within ruling coalitions to shape governmental decision making. Greater questioning is therefore needed of the standard reform model and its assumptions about how to improve electricity outcomes.

Quantifying the trade-offs in re-operating dams for the environment in the Lower Volta River

“…Only future climate scenarios were modelled in this study; however, inferences can also be made on the effect of simple energy and water demand futures on the Lower Volta system. For instance, an increase in irrigation demand will trade-off against hydropower production at Kpong Dam and an increase in the firm energy requirement or the continuation of the de-facto policy of hydropower maximisation at Akosombo Dam, despite the availability of alternative power generation sources (Dye, 2020;Kumi, 2017), will weaken the potential for re-operation of the dam for the riverine environment. Changes in upstream water consumption as well as the construction of new dams such as the Pwalugu Dam in northern Ghana will also affect inflows to the Akosombo Dam.…”

“…In the potential re-operation of the Akosombo and Kpong dams, one has to consider that the majority of the alternative sources of power in Ghana use carbon fuels (Dye, 2020) and thus most likely contribute more to climate change compared to power generation from these two existing dams (dos Santos et al, 2006;Barros et al, 2011). However, the potential re-operation of the Akosombo and Kpong dams can benefit from (i) the groundwork laid by research on the pre-and post-dam river system (Lawson, 1972;De-Graft Johnson, 1999;Tsikata, 2008;Adjei-Boateng et al, 2012;Obirikorang et al, 2013;Nyekodzi et al, 2018;Owusu et al, 2022), (ii) insights deriving from interviews and extensive stakeholder engagement (Ayivor and Ofori, 2017;Ohemeng et al, 2017;Nukpezah et al, 2017), and (iii) existing supporting legislation for e-flows implementation (Anon, 2001).…”

“…The alternative dam operation scenarios were found to reduce power generation by 45% to 74%, which were deemed undesirable (Annor et al, 2017). This was at a time when Akosombo and Kpong dams made up about 40% of installed capacity and Ghana was experiencing power rationing due to low water levels in the Volta River and a shortfall in gas supply to other power plants (Dye, 2020). The present energy context of Ghana is very different and is characterized by an "overabundance" of electricity generation potential -almost twice the peak load demand and therefore a reduced dependence on power generation at Akosombo and Kpong dams.…”

“…The present energy context of Ghana is very different and is characterized by an "overabundance" of electricity generation potential -almost twice the peak load demand and therefore a reduced dependence on power generation at Akosombo and Kpong dams. (Dye, 2020;Kumi, 2017). While installed capacity does not directly translate into power delivery, it is worth re-examining the trade-offs between water users in the Lower Volta under this changed situation given that it is as a result of 'take-or-pay' power purchase agreements with private power companies whereby 90% of the power made available by these https://doi.org/10.5194/hess-2022-270 Preprint.…”

“…CC BY 4.0 License. companies has to be paid for irrespective of whether it is used or not (Dye, 2020). In 2018, the cost of this extra capacity was approximately 5% of the country's gross domestic product (GDP) (The World Bank, 2018;Dye, 2020).…”