Many African countries experience frequent power cuts as demand outweighs supply. African governments have now turned to commercial entities to bridge this gap. But questions arise on whether these deals put their sovereignty at risk. I was interviewed on BBC’s Focus on Africa last Friday to discuss floating power plants (power barges) as part of Africa's electricity mix and sovereignty issues. Below are my main points:
1. Many African countries have signed these power contracts under emergency conditions, which (1) reflects the deep failure of energy policy planning where demand outstrips supply and (2) means that the cost of power will always be much higher.
2. Ordinarily, if you are not in a power crisis, you plan long-term with either hydro, natural or renewables, which are much cheaper than liquid fuels. But, in an emergency, you need a solution that can be deployed quickly at scale, hence why power barges become attractive.
3. Costs: the most significant cost makeup component is usually fuel. Power barges often use liquid fuels like crude oil or residual fuel oil (RFO) to generate electricity. These liquid fuels are more expensive than natural gas, hydro and even utility-scale renewables such as solar.
4. Contract length: Typically, these emergency power arrangements were meant to last 2-3 years. However, for many of these countries, what was meant to be an emergency now becomes a mainstream or standard 15-20-year agreement. That is, the emergency has now become the status quo. And so countries are tied into these long-term contracts that are relatively expensive, and consumers have to pay more for power.
5. Another compounding factor is that these power purchase agreements are priced in dollars while the electricity generated is sold in local currency. This creates fiscal risks: So when you have your economy struggling with inflation going up and exchange rate depreciation, then even if the fuel cost hasn't gone up on an international level, you still end up having to change a lot more of your local currency to pay the IPPs back in dollars.
6. At the end of the day, power companies are not charities – they are in business and have to answer to their shareholders. So, the responsibility is on the governments in these countries to ensure that they are signing agreements that are in the country's interest.
#IPPSinAfrica #Energy #Netzero
You'll never find happiness in comparison. Someone will always be better or worse. True happiness is counting your unique blessings and appreciating every single one of them.
#DPHA#MondayMotivation#Kwesimintsim
Think of this way - each time you fail, you learn one more way of not achieving what you want. So pick the lessons, pick yourself up and go again. Successful people don't stop till they win.
#DPHA#Kwesimintsim
The steadfast love of the LORD never ceases; his mercies never come to an end; they are new every morning; great is your faithfulness.
Lamentations 3: 22 - 23
#DPHA#Kwesimintsim
The LORD is my light and my salvation; whom shall I fear? The LORD is the stronghold of my life; of whom shall I be afraid?
Psalm 27:12
#DPHA#Kwesimintsim
As good food nourishes the body, good ideas nourish the mind. Pay as much attention to what goes into your mind as what goes into your body. After all, the mind is more important.
#DPHA#Kwesimintsim#forGodandforCountry
Psalm 34:4–5, 8
I sought the LORD, and He answered me and delivered me from all my fears. Those who look to Him are radiant, and their faces shall never be ashamed. Oh, taste and see that the LORD is good! Blessed is the man who takes refuge in Him!
#DPHA#Kwesimintsim
Improving education is a passion I always stand for. And it is my hope that these contributions help to create a more conducive learning environment for students. the next generation of leaders.
#DPHA#forGodandCountry
2/2
Together with the newly elected NPP Kwesimintsim Constituency Executive led by Chairman Jerry Hanson, I presented 200 desks to the Effia-Kwesimintsim Municipal Assembly (EKMA).
These desks are an addition to an earlier presentation of over 300 pieces of furniture.
1/2
Together, I have no doubt we shall work tirelessly to create history together as the first political party to earn a third consecutive term in the history of our nation.
I look forward to working with you to achieve the New Kwesimintsim Dream.
#DPHA#forGodandCountry
2/2
I congratulate aspirants who were elected yesterday as Constituency Executive Committee members of the #Kwesimintsim NPP on their victory.
Under the leadership of new Chairman, Mr. Jerry Hanson, I am fully confident that you shall serve our party with truth and dedication.
1/2
History is created every day. At the end of your life, yourhistory will be judged based on how well you spent each day of your life. So, make today and every other day count!
#DPHA#Kwesimintsim#MondayMotivation
I wish the Constituencies the best of luck in building a new leadership that can consolidate our gains and renew our mandate in 2024.
#DPHA#Kwesimintsim#forGodandCountry
2/2
Over the weekend, I visited the Sekondi, Effia and Mpohor Constituencies where elections were being held to elect new Constituency executives.
I witnessed the exercises in the capacity of an observer and also to provide support for my colleague Members of Parliament.
1/2