Ghana''s power supply sources are from hydroelectricity, thermal fueled by crude oil, natural gas and diesel, solar and also imports from La Cote D''Ivoire. Ghana also exports power to Togo, Benin and Burkina Faso. Ongoing grid expansions would allow further exports to other neighboring countries in the sub region.
The National Electrification Scheme (NES) was instituted in 1989 with the policy objective of ensuring that all parts of the country are provided with reliable electricity supply by 2020. At the commencement of the NES in 1990, accessibility to electricity supply was estimated at about 20%. Ghana has since achieved an enviable record of having the highest electricity access rate in Sub-Saharan Africa. The national average access rate is currently at 83.24% and to attain universal access by 2020.
MCC''s $311 million Ghana Power Compact (2014-2022) funded the $220 million Electricity Company of Ghana Financial and Operational Turnaround Project to improve electricity reliability. This included a $22 million investment in low voltage line bifurcation in Accra, Ghana to reduce low voltage circuit lengths by installing new transformers into the network. The theory was that this would promote economic activity and reduce the impacts of poor reliability by reducing the duration and frequency of outages, and increasing the returns from productive activities reliant on electricity.
Business and Household Investment and ProductivityBusiness revenues, profits, monthly household income, and other socioeconomic outcomes did not improve for customers located in project sites relative to non-project sites.
The findings discuss changes that can be specifically attributed to transformer investments as well as more general changes over the study period. These general changes could reflect other concurrent compact investments or general improvements in electricity infrastructure as well as broader economic changes.
Businesses were also 19 percentage points less likely to say bad voltage is an obstacle to business operations compared to baseline. Overall, respondents were willing to pay similar amounts to improve voltage quality as to reduce outages: USD 1.88 and 1.64 per month, respectively, around 10% of monthly electricity spending.
Transformer installations did not significantly affect business profitability or productivity. There were no changes in business employment or operating hours and minimal changes in primary activities. Households in areas receiving transformer installations did not experience any benefits relative to those in control areas. The types of cooking fuels and lighting sources used did not change, nor did total household income.
This evaluation reports on the line bifurcation transformer installation sub-activity of the Ghana Power Compact. MCC''s ERR assumed a 50%, or 25-hour reduction, in annual outage hours, but there were no significant impacts of this sub-activity on power outages, nor were there decreases in outages over the study period. Voltage quality did improve but economic impacts of the sub-activity were limited.
The impact evaluation is a difference-in-differences study. It compares changes from before and after the completion of the line bifurcation transformer installation activity in 76 treatment sites that received an installation with changes in 75 comparable control sites. Differences in the changes over time in treatment sites relative to control sites are attributed to the line bifurcation investments.
The evaluation uses two main data sources. First, technical data on power reliability and quality were collected using the GridWatch suite of technologies, consisting of devices that are plugged into wall outlets within participating households and businesses. The devices are designed to detect power outages and restorations in real-time, including their precise timing and location. Three GridWatch technology devices were deployed to each study site starting in June 2018 and collected high-frequency data on site-level outages and voltage quality through April 2023.
Installation of transformers began in 2020 but was delayed due to Covid-19, and new transformers were commissioned in March-April 2021. Data collection for the endline survey took place in July-September 2022, for an exposure period of around 16 months.
Executives and entrepreneurs Bankers and hedge fund managers Journalists and communications professionals Consultants and advisors of all kinds Academics and students Government and policy-research delegations Diplomats and expatriates
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