BusinessPower Sector

GRIDCo to spend US$990 million to build robust transmission system

The amount is expected to be used for implementing 21 medium-term projects considered in the proposed tariff for 2022-2027

The Ghana Grid Company Limited (GRIDCo) says it will need US$990.53 million to build a robust transmission system that will ensure the delivery of reliable power, minimise system interruptions, lower transmission losses and meet increasing demand, according to the company’s 2022-2027 tariff proposal.

The amount is for implementing 21 medium-term projects considered in the proposed tariff for 2022-2027.

Successful completion of the projects and upgrading existing low-capacity infrastructure during the tariff period will improve power transfer capability of the National Interconnected Transmission System (NITS), so as to eliminate congestion within transmission corridors as well as overloads at BSPs, GRIDCo said in its tariff proposal.

“This will enable GRIDCo to efficiently and effectively evacuate power to the major load centres. Adequate redundancy will also be created to reliably meet the projected demand, such that outage of an element on the NITS will not result in customer outage,” the electricity transmission utility added.

It continued that the installation of SVC and variable reactors at critical substations will continue to improve and maintain system voltages within requirements of the National Electricity Grid Code, as well as provide sufficient reactive power within the NITS – improving the quality of power supply to customers in the process.

Again, the construction of new lines, provision of higher capacity transformers to existing substations and development of new substations, the company said, will enable it meet increasing demand (growing at rate of 8-10 percent per annum) driven by economic growth.

“The implementation of these medium-term projects, siting generation facilities on the NITS close to load centres (especially Kumasi and beyond) as well as optimising generation dispatch will also enhance the transmission loss reduction to improve efficiency,” he said.

Speaking to the Business and Financial Times (B&FT) during a working visit of GRIDCo management, Minister for Public Enterprises, Joseph Cudjoe, said for GRIDCo to meet its target as captured in its 2022-2027 tariff proposal, there’s need for an increment in the transmission service charge it gets.

This, he said, will enhance the company’s revenue and give it room to invest in the transmission network to service Ghanaians better.

“Higher transmission service charges, we know, will enable GRIDCo maintain a stable transmission grid to serve all of us. But are we willing to pay higher electricity tariff, so that with the role GRIDCo plays it will get transmission service charges which reflect its cost and also reflects its investment needs to develop a robust transmission system for all of us,” he asked.

The projects

The projects include a 50MVAr SVC in Kumasi to be completed in 2023; 330kV Dunkwa Substation Project to be completed in 2026; 3rd Kumasi Bulk Supply Point (BSP) to be completed in 2025 at a cost of US$133.93 million; the upgrade of 161kV Western Corridor Transmission Lines: Aboadze – Takoradi, Takoradi – Tarkwa, Tarkwa – New Tarkwa, New Tarkwa – Prestea, Bogoso – Dunkwa, New Obuasi – Dunkwa, Dunkwa – Ayanfuri and Ayanfuri -Asawinso at a cost of US$224million to be completed in 2025; construction and upgrade of 161kV middle corridor transmission lines capturing: Akosombo – Tafo, Tafo – Nkawkaw, Nkawkaw – Konongo and Konongo – Kumasi at US$140 million to be completed in 2025; 161kV Mallam to Pokuase Transmission Line (A4BSP) expected to be completed in 2024 at a cost of US$42million.

Others include the 330kV Pokuase – Nkawkaw – Anwomaso Project (Transmission Line and Substation) expected to be completed in 2025 at a cost of US$154million; Wholesale Electricity Market Systems to be completed in 2023 and priced at US$25million; Wide Area Monitoring Systems (Phasor Measurement Units) pegged at US$2.50 million to be completed in 2026; upgrade of SCADA and Corporate Telecommunications Network at US$8.50 million to be completed in 2023; Supply of Two (2No.) 330/225/34.5kV and 250MVA Autotransformers at Nayagnia substation to be competed in 2023 and pegged US$6 million.

Again, supply of 6 No. 120/145MVA Power Transformers expected to be this year at a cost of US$10.50 million; Prestea-Bogoso Transmission Reinforcement Project and Termination of the 2nd Prestea – Bogosu Transmission Line to be completed in 2022 and priced at US$4 million; 225/161kV Prestea Substation Improvement Project (Including 50MVAr SVC) to be completed in 2023 at a cost of US$19.10 million; Live Transmission Line Maintenance to be completed in 2022 at a cost of US$3 million; Akwatia – New Abirem Loop Closure to be completed in 2023 at US$16 million.

The rest are supply and Installation of Variable Reactors including 50MVAr SVC at Nayagnia to be completed in 2023 at US$11 million; 161kV Obotan – New Obuasi Loop Closure expected to be completed in 2023 and priced at US$6million; Tafo Substation Break-In Project to be completed in 2023 at a cost of US$6million; Break-in of 225kV Transmission Line at Elubo and looping back to Esiama at a cost of US$4million to be completed in 2023; 161Kv Aboadze – Cape Coast – Winneba – Mallam Coastal Transmission Line Upgrade to be completed in 2026 at a cost of US$55million; and 2nd 330kV Kumasi to Bolgatanga Transmission line to be completed in 2027 at a cost of US$120million.

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Mohammed AWAL
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