Ghana Energy

An expanding economy and growing population are increasing demand for power in Ghana and while lower levels of hydroelectric generation, sparked by a long-running drought, has reduced output, the forthcoming completion of several new plants should help ensure supply keeps pace with demand.

The long-awaited implementation of domestic content legislation on February 1 is expected to help improve participation rates by local businesses in Ghana’s oil and gas sector.

Investment in Ghana’s hydrocarbons sector has boomed over the past six years, with capital inflows helping stoke headline growth in the double digits. The performance of oil and gas exploration and production (E&P) activity has been robust, but passage of new legislation to regulate the E&P segment is likely to provide an additional boost to the industry and create a clearer and more sustainable environment for upstream producers.

The launch of the first phase of operations at the Bui dam hydroelectric project in May marked a key step forward for meeting Ghana’s rising demand for electricity.

Ghana’s leap into the ranks of oil-producing countries happened in record time, taking just 42 months from discovery to production. That speed brought with it complications that have necessitated a revision of forecast output. However, the bulk of those hiccups appear to have passed and the outlook for 2013 is looking encouraging, with the flagship Jubilee field set to hit maximum targeted production and new commercial discoveries about to come online.

Aiming to sustain its impressive economic growth of recent years, Ghana is increasingly focusing on improving its electricity infrastructure. Rising demand, together with inconsistent input supply, is putting pressure on the government and key players to bolster the country’s production and transmission capacity.