hybrid systems) Mixed Payment of PPA PPA reduces Similar to Suitable for No precedent Model 2 while charging revenue risk; public model; pilot project; of PPAs for national tariff comparatively limited easiest way to suppliers to to consumers easier interaction of involve private mini grids yet will require permitting and private with sector subsidies from licensing demand side the procedures government or make projects cross-subsidy more from other bankable; still customers; on lengthy the other hand, process private requiring generation specific PPA potentially clauses for off more efficient grid suppliers (and cheaper) due to incentive of fixed PPA tariff; private sector leverage in rural electrification Community/ Cost reflective Private sector Continuous Design focuses Sustainability Cooperative tariffs could can play role in community on community is a concern Model ease pressure shareholding involvement in needs; (technical and on public funds or O&M; project from community managerial but community potentially outset incentives for capacity, models known easier licensing maintenance tendency to to be highly procedures charge too low subsidized tariffs, requires clear maintenance and reinvestment planning) Assessment of the business models is not a purely technocratic matter that can be left to outsiders. There are some embedded policy issues relating particularly to the current policy of a UNT; the business model decision is ultimately one for the government of Ghana to make.
hybrid systems) Mixed Model 2 Payment of PPA while charging national tariff to consumers will require subsidies from the government or cross-subsidy from other customers; on the other hand, private generation potentially more efficient (and cheaper) due to incentive of fixed PPA tariff; private sector leverage in rural electrification PPA reduces revenue risk; comparatively easier permitting and licensing procedures make projects more bankable; still lengthy process requiring specific PPA clauses for off grid suppliers Similar to public model; limited interaction of private with demand side Suitable for pilot project; easiest way to involve private sector No precedent of PPAs for suppliers to mini grids yet Community/ Cooperative Model Cost reflective tariffs could ease pressure on public funds but community models known to be highly subsidized Private sector can play role in shareholding or O&M; potentially easier licensing procedures Continuous community involvement in project from outset Design focuses on community needs; community incentives for maintenance Sustainability is a concern (technical and managerial capacity, tendency to charge too low tariffs, requires clear maintenance and reinvestment planning) Assessment of the business models is not a purely technocratic matter that can be left to outsiders. There are some embedded policy issues relating particularly to the current policy of a UNT; the business model decision is ultimately one for the government of Ghana to make.
121824-ESM-GhanaESMAPGhanaTechnicalReportDECclean-PUBLIC.docx