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Energy Ministry releases DETAILS of new Karpowership deal

The Ministry of Energy has released a data detailing the renegotiated Karpowership deal which has been extended by ten years by the Akufo-Addo administration.

According to the data, Fuel Handling Surcharges which was previously 40 cents has been beaten down to 32 cents while capacity charge which was $6.278 had been reduced to $4.

Again, capital recovery charge has also been reduced to $2.90 from the initial $4.26 while Energy Charge had been reduced to $0.830 from $1.049.

With the renegotiation of the deal, Ghana will be saving at least $60 million per year, according to a Deputy Minister for Energy, William Owuraku Aidoo.

Mr. Aidoo justified the Akufo-Addo’s administration’s extension of the deal it once criticized and said the previous deal was not cost-effective because of the 10-year duration.

The Karpowership from Turkey has the capacity to supply 470 megawatts (MW) of power to Ghana.

“The basic structure of the deal then was totally wrong. It was nothing to write home about… We’ve renegotiated the Karpower deal and stretched it over 20 years to ensure value for money,” Mr. Aidoo said.

“If you sign a power purchase agreement over a short period of time; that was 10 years, what it meant was that the good people of Ghana would virtually have to pay through the nose over a 10-year period which necessarily means they would have to pay higher tariffs. To stretch over a longer period will [see tariffs] come down to somewhere in the region of 10 cents per [kilowatt hour].”

Source : mynewsghana.com

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