Senior Manager in Consulting and Risk Services at PwC, Kenneth Asante, has cautioned that while some sources of electricity may appear cheaper, they do not necessarily guarantee reliability or sustainability.
Speaking on Joy FM’s Super Morning Show during a discussion on “Sustainable Mining and Energy Systems, Why Does Electricity Cost So Much in Ghana?” as part of Joy Sustainability Month, Mr Asante said decisions on energy investment must be guided by strategic planning rather than just cost considerations.
“Just because a source is cheaper does not mean that it would work in terms of reliability and in terms of the capital investment that needs to be made and its availability,” he explained.
He added that investors are also concerned about the long-term performance of the power sector, which makes recoverability and consistency important factors.
Mr Asante highlighted the role of solar power, noting that while it is useful for supplementing supply, it cannot serve as the sole source of electricity.
“The technical guys will tell you that the concept of solar energy is very useful when it comes to augmenting the power, not sole reliance. If it begins to be cloudy for a certain number of days, then you are not going to get the sunlight for the solar to produce the power that you’re looking for. And in that case, what do you do? You end up back in the same situation you were trying to solve,” he said.
He said that Ghana’s energy mix must therefore be managed through strategic investment, careful planning, and scenario analysis to ensure both cost reduction and reliability in electricity supply.
“So it’s a balancing act, but I think strategic investment, strategic planning, and organizing some of these scenarios is what would really strategically inform how we’re able to reduce the cost of power from the generation mix perspective,” he said.