Ghana Solar Industries Association petition Energy Commission over suspension of licenses
The Association of Ghana Solar Industries (AGSI) has petitioned the Energy Commission over the suspension of licenses of its members.
The suspension of licenses by the Commission, the Association notes, has negatively impacted the operations of its members, adding the decision is retrogressive to gains made by the country in promoting renewable energy.
In a letter to the Executive Secretary of the Energy Commission, the Association following the suspension of licenses for its members requested for the immediate intervention of the Commission to revert the decision which threatens the growth of the industry.
“We are hereby humbly calling on your outfit as a matter of urgency to revert this decision and restore our industry back to the path of growth,” read parts of the petition.
Information reaching norvanreports indicate that the suspension of the licenses of the members of the AGSI is due to the fact that some Electricity Distribution Companies “are not happy with the way Bulk customers are taken away from them hence denying them the anticipated revenue.”
Also, the Electricity Company of Ghana (ECG) in particular feels that the operation of solar companies is a threat to their business in general and in particular inimical to the renegotiation of Power Purchase Agreements which has resulted in some excess capacities in the system.
Read below details of the petition:
9th September 2021
The Executive Secretary
Energy Commission
P.M.B. Ministries Post Office
Accra
Dear Sir,
PETITION FOR YOUR INTERVENTION AND ACTION IN SAVING THE SOLAR INDUSTRY
The Association of Ghana Solar Industries (AGSI) extends warm felicitations to your high office.
We write to you to seek your direct intervention in saving our industry which is been threatened by sudden change in regulation and policy that is beginning to gravely impact negatively on our business.
In July of 2020, we were informed through some of our members that your outfit has suspend the issuance of licenses for embedded generation of Renewable Energy plants. This was as a result of how some Electricity Distribution Companies “are not happy with the way Bulk customers are taken away from them hence denying them anticipated revenue”. Secondly the Electricity Company of Ghana (ECG) in particular feels that the operation of solar companies is a threat to their business in general and in particular inimical to the renegotiation of Power Purchase Agreements which has resulted in some excess capacities in the system.
We find this move very worrying and retrogressive to the gains we have made us a nation together with all our local and international partners in promoting renewable energy in the country over the years.
We wish to humbly draw your attention to the following:
- In simple terms, what this directive seek to say is that, if you cannot raise capital to build a solar plant as a private user of electricity, then you cannot have access to clean and affordable electricity via solar.
- AGSI currently has a membership of 75 entities, made up of Project developers, EPCs, Finance companies, REIPPs, Consultants, Training Institutions, etc, whose existence as businesses are directly impacted by this decision. In total, over 700 jobs in the RE sector are threatened by this decision.
- 5 of our high performing members have winded up operations in the last 18 months due directly to this and similar directives.
- This policy directive came at a time when our industry was reeling from the painful impact of the COVID 19 pandemic.
- This policy directive is a direct affront to the SDG 7 which Ghana is a signatory and our president, Nana Addo Dankwa Akufo-Addo is co-chair.
- The solar sector which still remains nascent with some teething challenges has seen some major setbacks already in the past that has seen the withdrawal of Foreign Direct Investments from the economy owing from decisions such as;
- The suspension of issuance of Provisional Wholesale Electricity Supply Licenses and Permits for Utility Scale Grid connected Solar PV and Wind Power Plants.
- The directive to restrict the development and operations of solar mini-grids to only government led initiatives.
- Majority of multinational and local companies who chose to install solar PV plants do it to offset their carbon footprints and as a means of meeting key international certification and compliance requirements. Any effort to prevent such companies in using the services of Ghanaian solar companies in the provision of solar and renewable energy is seen as a direct sabotage to the energy efficiency, renewable drive and profitability of those entities.
- The ECG has continuously been opposed to the development of solar projects in the private sector and breathing heavily on state authorities to impose restrictions. We however are of the firm opinion that we can partner with the ECG for instance to deliver renewable and affordable power to both the regulated and deregulated market in a profitable way.
- The subtle suspension of the issuance of licenses for private bulk consumer solar installations is causing some revenue loss to the state as some of the solar companies have resorted to “operate in the dark” and not securing license.
- The continuous disregard and suspension of laid down rules and policy in the solar sector for instance is inimical to the efforts of government’s effort in flagship state sponsored initiatives such as Ghana Goes solar project which saw for instance the installation of 912kW rooftop system at the Jubilee house.
- Currently foreign direct investments that were committed to this market via solar initiatives and projects is been withdrawn by Development Finance Institutions due to policy inconsistencies and disruptions by state institutions.
- As private sector, we consider ourselves as the engine of growth for the economy and a direct correlation can always be drawn between our success and the economic growth of the country.
Sir, we are of the firm believe that your direct intervention in these issues will massively bring our industry back on its feet and save some 700 jobs in the sector especially during this COVID times.
We are hereby humbly calling on your outfit as a matter of urgency to revert this decision and restore our industry back to the path of growth.
We also look forward to meeting you for a round table discussion on the way forward at your earliest availability.
Thank you
