Power Market Regulatory Structures and Electricity Security of Supply in Ghana
This research examines the impact of certain energy sector-specific variables on electricity security of supply in Ghana, in the context of the existing power markets and regulatory structures. The thesis examines this issue along three main themes. The first part of this study examines whether the gas resources available to Ghana should be used largely for power production or for the other alternative uses. The analysis shows that with the current trends in carbonisation and using gas resources to support electricity security of supply is the best option. The second part of the study examines the impact of some power market-specific variables on electricity security of supply. Using the panel data approach, the results show that while plant installed capacity or size and sustainability characteristics of power plants, impact significantly on the measure of electricity security of supply in Ghana, there is no significant impact of financial efficiency, regulation and ownership. These findings suggest that the new institutional economics of changing the power generation mix should be critically evaluated and monitored as Ghana iii being a resource- rich but capacity short country transits through the energy ladder. The third part of the study examines how Ghana can eliminate its capacity shortness through documentation analysis and the use of comparative legal methodology. The analysis shows that the proper sequencing of institutional designs and their implementation will determine the success of the measures to be taken by policy makers. The policy implications of these findings suggest that the Ghanaian power sector reforms should be grounded on an effective legal and regulatory framework and implementable mechanisms. These mechanisms should be complemented with an adequate fiscal space and financial structures in a well sequenced manner in order to manage the expectations of the constituent IPPs, other investors and consumers. These measures are needed to guarantee the sustainability of the electricity sector and prevent energy injustice against the unborn generation.
Gas aggregator, Independent Power Projects (IPPs), New Institutional Economics, power project bankability, regulation, state ownership, legal rearrangements
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