Energy Reports: Ephraim Bonah Agyekum, Michael Nii Sanka Ansah, Kwame Bright Afornu

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Energy Reports 6 (2020) 107–115

Contents lists available at ScienceDirect

Energy Reports
journal homepage: www.elsevier.com/locate/egyr

Research paper

Nuclear energy for sustainable development: SWOT analysis on


Ghana’s nuclear agenda

Ephraim Bonah Agyekum a , , Michael Nii Sanka Ansah b , Kwame Bright Afornu b
a
Department of Nuclear and Renewable Energy, Ural Federal University named after the first President of Russia Boris Yeltsin 620002, 19 Mira
Street, Ekaterinburg, Russia
b
National Research Tomsk Polytechnic University, Lenin Avenue, 30, 634050, Tomsk, Russia

article info a b s t r a c t

Article history: The development of clean and sustainable energy around the world has become a necessity as a result
Received 16 October 2019 of the negative effect energy generated from fossil fuel have on the environment. Ghana intends
Received in revised form 19 November 2019 to add nuclear power to its generation mix by 2029. This paper uses the SWOT analysis tool to
Accepted 30 November 2019
assess the internal strengths and weaknesses as well as the external opportunities and threats in
Available online 13 December 2019
the country relative to its nuclear power program. We found out that despite the country’s effort
Keywords: towards meeting the requirements for the licensing, contracting, construction and operation of the
Nuclear power plant facility, there are still some important loopholes which could delay the process. The research found
Ghana out that Ghana has a lot of strengths and opportunities that makes an investment in nuclear power an
SWOT analysis economically viable option. However, issues such as porous security system, corruption, porous borders
Sustainable energy
and policy discontinuity due to changes in political power are threats to the smooth implementation
Financing model
and operation of a nuclear power plant. The research therefore recommended to the government of
Ghana to pay critical attention to some of these loopholes. We also looked at a particular weakness
which is financing and provided some funding options for its development.
© 2019 The Authors. Published by Elsevier Ltd. This is an open access article under the CC BY license
(http://creativecommons.org/licenses/by/4.0/).

1. Introduction water into steam to turn steam turbines to produce electrical


power. Nuclear energy can be obtained from fusion, fission or
The availability of a reliable, clean and affordable energy is nuclear decay reactions (Meierding, 2013). It is seen as an al-
crucial to the development of every country. Research indicates ternative to energy generated from fossil fuels or hydrocarbons.
that, there exists a direct correlation between poverty around the Even though, nuclear energy is regarded as a physically imperfect
globe and the availability of reliable and cheap energy (Reddy substitute for transportation, it is potent, relative to electricity
et al., 2000; Agyekum et al., 2019). The industrial sector which generation, which can be used to power vehicles and trains for
is the engine of growth in any economy requires energy since it transportation. Nuclear power can serve as a substitute for power
is a basic essential input. As a result, countries and communities
plants that use fossil fuel in developed and developing countries
with little or no access to electrical power tend to have no or less
around the world. The transition from conventional sources of
industrial enclaves, this means people who reside in that enclave
energy to nuclear energy is expected to reduce demand pressures
will have no job opportunities. A huge percentage of Africans live
on crude oil and also protect the environment from greenhouse
below the poverty line, especially those in the rural communities
mainly because of the lack of jobs (Kebede et al., 2010). Ghana has gas emissions (Anon, 2019a).
been facing energy crisis over the years as a result of increasing The Ghana Atomic Energy Commission (GAEC) and the State
population, industrialization and urbanization. The government Atomic Energy Corporation of the Federation of Russia
of Ghana has therefore planned to add nuclear energy to its (ROSATOM), signed a Memorandum of Understanding in Au-
energy generation. This idea was conceptualized by the first pres- gust 2015 to construct a nuclear power plant (NPP) in Ghana.
ident of Ghana, Dr. Kwame Nkrumah in 1961 (Adu-Gyamfi et al., The country is expected to purchase the Russian model VVER
2017). (water–water energetic reactor) with capacity ranging between
Nuclear energy is a form of energy that is obtained through 1000–1200 MW according to the signed agreement. The decision
nuclear reaction, the reaction releases heat energy which heats to integrate nuclear energy to the energy mix is not only limited
to Ghana but some other African countries, in July 2015 ten
∗ Corresponding author. African countries established the African Network for Enhancing
E-mail address: [email protected] (E.B. Agyekum). Nuclear Power Program Development which is aimed at the

https://doi.org/10.1016/j.egyr.2019.11.163
2352-4847/© 2019 The Authors. Published by Elsevier Ltd. This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/).
108 E.B. Agyekum, M.N.S. Ansah and K.B. Afornu / Energy Reports 6 (2020) 107–115

Abbreviations
GAEC Ghana Atomic Energy Commission
NPP Nuclear Power Plant
VVER Water–Water Energetic Reactor
GWh Gigawatt hour
VALCO Volta Aluminum Company
MW Megawatt
LCOE Levelized Cost of Energy
NEA Nuclear Energy Agency
IAEA International Atomic Energy Agency
VRA Volta River Authority
GNRA Ghana Nuclear Regulatory Authority
SNAS School of Allied and Nuclear Science Fig. 1. Ghana’s installed electricity composition by source (Energy Commis-
IMF International Monetary Fund sion of Ghana Report, 2018).
GDP Gross Domestic Product
GHG Greenhouse Gas
GRIDCo Ghana Grid Company Limited been quite erratic in the country either as a result of lack of
NED Northern Electricity Department installed capacity or lack of money to buy fuel for the power
plants. Demand for energy in the country has been increasing
PURC Public Utilities Regulatory Commission
over the years as a result of increasing economic activities, indus-
ECG Electricity Company of Ghana
trialization, population growth and urbanization among others.
The country’s energy demand increased rapidly in the last decade
from about 6367 GWh in 2000 to about 10,129 GWh by 2016. The
industrial sector in the year 2000 had a share of about 68% of elec-
development of nuclear energy in those countries (Ramana and
tricity but reduced to about 45% in 2016, representing an average
Agyapong, 2016).
decline of 2.6% annually (Diawuo et al., 2019). The residential
In this current study, the SWOT analysis approach was adopted sector however, increased its share from 23% to 39%, the services
to investigate the strengths, weaknesses, opportunities and sector also saw an increase from 9% to 16%, in that same period
threats for the development of nuclear power in Ghana. Data for indicating an average rise of 3.3% and 3.8% annually, respectively.
this analysis were obtained from existing literature, interviews The temporary shutdown of major energy-intensive projects such
and documents on nuclear energy projects around the world. This as the aluminum smelting company VALCO whose power demand
work is critical because there are still measures that are needed is about 360 MW caused the decline of electricity share for the
to be attended to, in order to avert or forecast any misfortune industrial sector. The increase in share for the residential sector
that may arise in the course of implementation, development was also attributed to changing lifestyle as well as increasing
and operation of the nuclear facility. Safety and cost are the ownership of domestic appliances during that period (Diawuo
most vital features for future introduction of a nuclear power et al., 2019; Gyamfi et al., 2018). Ghana’s installed electricity
plant. The organizational structure of the research is presented generation capacity available for grid supply stood at about 4310
as follows: Section 1 covers the history and current status of MW at the end of 2017 (Energy Commission of Ghana Report,
the nuclear program in Ghana, views of the general public about 2018). Generation from thermal power plants which runs on
the program and the country’s electricity sector composition. fossil fuel represents greater percentage of the total installed
Section 2 also covers the methodology adopted for the analysis. capacity. Fig. 1. shows the composition of the installed generation
Section 3 presents the results and discussions of the SWOT capacity for Ghana, the sector is largely dominated with thermal
analysis. Section 4 also presents some financing models for the energy (fossil fuel) exposing the electricity sector to international
development of the nuclear power sector. Section 5 covers the prices of fuel.
institutional set up for the energy sector and Section 6 concludes
the research with some recommendations. 1.3. Comparison of cost of energy for nuclear and other form of
energies
1.1. Geographical location of Ghana
Introduction of the 1200 MW nuclear energy is expected to
Ghana can be located in West Africa, it shares boundaries with change the current scenario. The addition of nuclear energy to
Burkina Faso to the north, Côte d’Ivoire to the west, eastern part the generation mix will not only increase the installed capac-
with Togo and the Atlantic Ocean to the south. The country lies ity but also lead to a reduction in the emission of greenhouse
between latitudes 4◦ 45’N and 11◦ N, and longitudes 1◦ 15’E and gases into the environment which has a telling effect on lives.
3◦ 15’W. The total land mass of the country is about 239,460 This technology (nuclear) unlike the conventional sources uses
km2 (Duku et al., 2011), and is divided into sixteen administrative little uranium to generate power. Lazard’s 2018 (version 12.0)
regions. The country has several water bodies such as the Volta estimation of levelized cost of energy (LCOE) for different energy
Lake, Ankobra, Pra, Oti among others which could be used to cool sources indicated in Table 1 undoubtedly puts the LCOE for an
the nuclear facility. NPP in an expensive position compared to the hydrocarbons and
the renewables. However, it might not be so profitable in the
1.2. Electricity demand and current composition in Ghana context of environmental pollution particularly that of the fossils
with the strict limitations of CO2 emissions. Also, the high uncer-
Over 83.24% of Ghanaians are connected to electrical power tainty about energy policies could rule out certain technologies
second to south Africa in the sub-region (Medium Term Expen- as a result of the high renumeration rates investors demand
diture Framework (MTEF), 2018). Supply of power has however to recompense for the high level of perceived risks for those
E.B. Agyekum, M.N.S. Ansah and K.B. Afornu / Energy Reports 6 (2020) 107–115 109

Table 1
Levelized Cost of Energy Comparison—Unsubsidized Analysis (Levelized Cost of
Energy Comparison, 2019).
Type of technology Levelized cost of energy, $/MWh
Alternative energy
Solar PV – Rooftop Residential 160–267
Solar PV – Community 73–145
Solar thermal tower with storage 98–181
Fuel cell 103–152
Geothermal 71–111
Wind 29–56

Conventional energy
Gas peaking 152–206
Nuclear 112–189
Coal 60–143
Gas combined cycle 41–74

Fig. 2. Results on the Opinion Poll on the Implementation of an NPP (Birikorang,


2012).
technologies (Mari, 2014). The stochasticity of renewables such
as solar and wind makes them disadvantaged over nuclear energy
although they are relatively cheaper than the nuclear power. 1.5. Roadmap to Ghana’s nuclear energy development

1.4. Views of the public on Ghana’s NPP project and radioactive The vision to integrate nuclear energy into Ghana’s generation
waste mix dates back to the 1960s when the then government began
the Kwabenya Nuclear Reactor Project in 1961. This led to the
Nuclear energy development on the African continent has introduction of nuclear science into the country with the ultimate
always invoked fears in people, and governments have had to aim of exploring nuclear energy for the generation of electrical
power for national development. In 1963, GAEC was established
abandon such projects despite the numerous benefits associated
by an Act of Parliament (Act 204). GAEC was tasked to promote,
with such projects. Some of these concerns regarding the use
develop and utilize nuclear energy for peaceful application pur-
of NPP are mostly misconceptions and exaggerations generally
poses for the socio-economic advancement of the country (IAEA,
fueled by international politics. However, such risks did not deter
2018). The initial vision of constructing a 2 MW Soviet type
other countries around the world from hosting such facilities. The
research reactor was meant to help in the training of the needed
over 50 years of commercial NPP operation across the globe have
manpower for the operation of a nuclear reactor in the future and
seen few accidents even though fatal, safety record of existing
the production of isotopes as well as neutron activation analysis.
NPPs has improved over time as safety measures regarding its
However, the nuclear program could not move on as it should
use have been strictly observed and upgraded (Adu-Gyamfi et al.,
because of several socio-economic and political factors. Ghana’s
2017). Nonetheless, there has been a mix reaction about this
quest to construct a research reactor was realized in 1994 when a
technology particularly after the Fukushima incident in 2011.
30-kW slowpoke reactor was built under a technical co-operation
Clearly, the Fukushima Daiichi accident have led to several policy
agreement between the government of the Republic of Ghana
changes in the nuclear energy industry around the world, it has and the International Atomic Energy Agency (IAEA) (Ennison and
also resulted in the slow implementation and development of the Dzobo, 2018).
technology, however, countries’ policy re-evaluations of NPP as a As a response to the country’s increasing electric power de-
result of the accident largely appear to have subsided according mand resulting in power crisis, the government of Ghana in 2007
to the Nuclear Energy Agency (NEA) (2019). announced their intention to add nuclear power to the generation
Views on the implementation of the nuclear power program mix. The program has seen a lot of set-backs as a result of regime
was collated on various university campuses and among workers changes. However, a new road map announced by the Ministry of
in Ghana about the introduction of NPP. Results from the people Environment, Science, Technology and Innovation indicates that
shows majority are in support of the introduction, because of it will take between 10 and 15 years for the realization of this
the need to completely eradicate the country’s reoccurring power vision (Anon, 2019b). The country can now expect nuclear energy
crisis. Others who were against its implementation also expressed by 2029 should plans proceed as scheduled (Anon, 2019c). An
their fear for nuclear power because they perceive nuclear as authority called the Nuclear Regulatory Authority has been set-
dangerous and that the country was not ready for it. Fig. 2 shows up to spearhead the nuclear power implementation process. The
the results collated from the public about Ghana’s nuclear energy country has already passed all 19 infrastructural requirements
agenda. needed for the commencement of the construction of the nu-
Nuclear waste is small in volume which is highly monitored clear facility, this is the first of the three-phases required by the
and well confined compared to solid and toxic wastes generated IAEA. The Volta River Authority (VRA), GAEC and the Bui Power
by other fuel chains. The most radioactive waste from an NPP is Authority have been tasked to assist in the setting up of the
the spent fuel, it can however, be re-processed and used as fuel structures required for the development of the nuclear power
for the plant. A policy for fuel and waste management (interim plant (NPP) (Anon, 2019c).
storage of the spent fuel and the final disposal of high-level
waste) management will be developed by a Technology Assess- 1.6. Development of domestic regulatory formulation
ment working group in the country. Ghana is not expected to
play part in the management of the full fuel cycle according to Countries who express interest to integrate nuclear power
authorities. The contract agreement for the development of the into their energy generation mix are required to develop their
nuclear facility will include a clause that requires the supplier to domestic policy and regulations for the sector. The IAEA has a
ship the spent fuel back to their home country (Birikorang, 2012). framework for the development of an NPP that must be met by
110 E.B. Agyekum, M.N.S. Ansah and K.B. Afornu / Energy Reports 6 (2020) 107–115

members who express interest. In formulating the needed nuclear Table 2


infrastructure, there are some activities that are required to be SWOT analysis quadrant for the development of nuclear power plant in Ghana.
completed. These activities can be divided into three develop- Internal factors
mental phases. The term ‘‘milestone’’ in this case refers to the Strengths (+) Weaknesses (-)
conditions that must be met to show a successful completion of 1. Tight national laws and regulatory 1. Poor grid system
framework
a particular phase. These phases have to be completed to enable
2. Availability of experienced workforce 2. Poor maintenance culture
the country involve to order, license, construct and operate an 3. Potential of uranium deposits 3. Lack of investment will
NPP. Experience shows that the period between consideration 4. Minor history of seismic events 4. Lack of adequate
and operation of the first NPP takes about 10–15 years. The three financing
developmental phases are as follows (Anon, 2019d): External factors
Opportunities (+) Threats (-)
1. Increasing energy demand 1. Dominance of fossil fuels
• Phase 1 — consideration before a decision to introduce the
2. Regional interconnection 2. Porous security system
nuclear power program is taken. 3. Increasing global awareness of climate 3. Corruption
• Phase 2 — Preparatory work for the contracting as well change
as construction of an NPP after a policy decision has been 4. Availability of foreign investors 4. Discontinuity of energy
made, during this stage, important organizations, regulatory policies
and legal frameworks are formed.
• Phase 3 — Activities leading to contracting, licensing as well
as construction of the NPP are undertaken. 3. Results and discussions
The accomplishment of each phase is marked by a specific mile-
3.1. SWOT analysis for the development of nuclear energy in Ghana
stone at which point a decision can be made to proceed to the
succeeding phase. These milestones are as follows (Anon, 2019d):
This section presents a detail analysis on some factors con-
• Milestone 1: ready to make a knowledgeable commitment sidered in this study. The framework for the evaluation is repre-
to the program; sented in a quadrant form as indicated in Table 2 which will be
• Milestone 2: Ready to invite bids or negotiate a contract for discussed in detail in the subsequent sections.
the first NPP;
• Milestone 3: Ready to commission and operate the first NPP. 3.2. Strength analysis

2. Methodology 3.2.1. Tight national laws and regulatory framework


The peaceful use of nuclear energy – as well as all the po-
The SWOT analytical tool is tool for evaluating the strengths tential it comes with for humankind – are paradoxically often
and weaknesses of an intended project, as well as the opportuni- perceived in juxtaposition with the possibility of the proliferation
ties and the possible threats the project could face. SWOT analysis of nuclear wars and weapons. These various perceptions are
is important to an investor to assist in decision making, it can comprehensible: the materials, knowledge and expertise required
be used at personal or organization levels. Findings from a SWOT to produce nuclear weapons are generally indistinguishable from
analysis helps companies build upon their strengths, realize new those needed to conduct nuclear research as well as produce
opportunities as well as work towards the minimization or elim- nuclear power. Due to this, the international community’s focus
ination of any possible threat to the business (Phadermrod et al., is to guarantee the peaceful use of nuclear energy (El Baradei
2019). The SWOT analytical tool is widely accepted by researchers et al., 1995). For this reason, Ghana has set up the Ghana Nuclear
in the energy sector for energy planning. Ishola et al. (2019), Regulatory Authority (GNRA) to oversee the regulatory aspect of
used the SWOT analytical tool to assess Nigeria’s nuclear explo- the program. The GNRA is responsible for licensing of persons
ration agenda. Kamran et al. (2020) also conducted a research and institutions who manufacture, purchase, sell, store, import
on Pakistan’s renewable energy sector using the SWOT analytical or export, use, or dispose of any kind or form of radioactive
tool. Furthermore, a comprehensive review in the context of material or irradiating device, or any other source of ionizing
possible advancement in technology and also the potential for radiation (Nuclear Regulatory Authority of Ghana, 2019). Ghana
East Asian countries including South Korea, Japan, and Taiwan to through GAEC has ratified several international conventions and
export green energy was conducted using the SWOT analytical codes. The country also has laws that are aimed at the develop-
tool (Chen et al., 2014). Also, a study was conducted using SWOT ment of nuclear power for peaceful purposes, some of the laws
analysis to assess Africa’s photovoltaic solar power in comparison are as follows (IAEA, 2018):
with China (Lei et al., 2019). Another study also used SWOT
analyses to evaluate Macedonia’s national energy sector for sus- • Laws establishing institutions tasked with different respon-
tainable energy development (Markovska et al., 2009). In order to sibilities relative to nuclear energy,
attract investors into Tunisia’s renewable energy market, a SWOT • Civil nuclear liability,
analysis was conducted to conclude on the key issues and factors • Roles of national government, local government, and stake-
to be taken to help develop the sector (Hamami et al., 2015). This holders,
analytical tool has some pluses: it comes with little or no cost — it
can be performed by anyone who understands the specific field it These laws and regulations position the country on the path to
is being applied, and it also focusses on the critical factors which the development of an NPP.
could affect the smooth implementation of a project or business.
However, this analytical tool also has some limitations such as 3.2.2. Availability of experienced workforce
the following: does not provide alternative solutions or decisions, The impetus to safeguard the peaceful use of an NPP requires
prioritize issues, produces lots of information, nonetheless, not all experienced men and women for the job. Ghana have over the
might be useful, and it can also produce several ideas but cannot years invested a lot of capital in the training of human resources.
help choose the optimum idea (Anon, 2019e). This research is first The country has functional institutions such as the School of Al-
of its kind for the Ghanaian nuclear energy sector and is expected lied and Nuclear Sciences (SNAS) which runs programs in the field
to help inform decision making for the sector. of nuclear energy at both Masters and PhD levels, the Nuclear
E.B. Agyekum, M.N.S. Ansah and K.B. Afornu / Energy Reports 6 (2020) 107–115 111

Power Institute as well as the GNRA. The 25 years’ experience in 3.3.2. Poor maintenance culture
the use of nuclear research reactor which is a miniature of an NPP Maintenance is a key feature in projecting quality manage-
also puts the country above it peers relative to the use of nuclear ment. It is required to ensure that infrastructure and other trea-
facilities. SNAS is now a training hub for not only Ghanaians but sured assets continue to function and remain productive. Poor
also several other nationals in the field of nuclear energy (Nyarko maintenance culture is a problem not only associated with Ghana
et al., 2009). but research indicates that it is a general problem in developing
countries (Efobi and Anierobi, 2014). This poor culture cannot
3.2.3. Potential of uranium deposits be accepted in the area of nuclear energy. Safety culture is a
The availability of resources at a specific site influences de-
crucial factor to measure the preparedness of a country for the
cision making when selecting a particular technology for energy
integration of nuclear energy into its power generation system.
generation. Though, in the case of nuclear power, the availability
The idea of understudying safety principles dynamics is an ac-
of fuel (uranium) at a particular location is not a key issue to be
cepted tool for enhancing human behavior to obtain an important
considered before building a plant, its availability at a particular
improvement in the overall safety performance (Schöbel et al.,
location reduces cost of running such facilities. Currently, Ghana
does not mine uranium, the country has made some discoveries 2017). The use of nuclear energy requires the highest form of
in the area of uranium deposit but yet to confirm whether it safety and precaution, this is because, the slightest error can be
is in commercial quantities. The government has since invited lethal. It is therefore important for Ghana to consciously improve
investors for a partnership for the development and exploration upon its maintenance culture if the country is to realize the vision
in the sector (New Uranium Mining Projects, 2019). of adding nuclear energy to its generation mix.

3.2.4. Minor history of seismic events 3.3.3. Lack of investment will


The country is located on the south-eastern part of the West Ghana’s roadmap to integrating nuclear power into its energy
Africa craton far away from major earthquakes zones which mix has seen several postponements as a result of lack of resolve
marks the lithospheric plate boundaries (Amponsah, 2004). How- by governments to invest in the sector. The lack of successive
ever, Ghana is classified as medium, relative to earthquakes, governments to take investment risk stalled its development for
this means the country has a 10% chance of experiencing a years since its launch by the first president of the republic in
potentially-damaging earthquake (Anon, 2019f). The country 1963. If the country wants to build such a facility, there will be the
however, have some minor history relative to earth tremors. Con- need to whip-up public support because a lack of consensus and
struction of an NPP requires a site free from severe earthquakes support from the general public could unquestionably constrain
hence a special investigation of the geotectonic environment the introduction of an NPP. It is therefore necessary to have a
should be conducted on the various sites under consideration broad open discussion on the introduction of nuclear facility to
with the use of modern engineering equipment to avert any
arrive at a single national decision that will be binding on all
future misfortune after construction. Nevertheless, the country
governments. Getting a single national position can also motivate
can still go into the development of an NPP without any major
investors to invest in the sector.
concern relative to earthquakes since greater percentage of the
country’s total land area is far from the earthquake prone areas.
Nuclear power plants are also currently built to withstand some 3.3.4. Lack of adequate financing
levels of earthquakes. One characteristic associated with nuclear energy is its high
capital cost which results in higher sensitivity to interest rates.
3.3. Analysis of weaknesses Even though the cost of constructing an NPP depends on the
unique circumstances of each project and the geographic location,
3.3.1. Poor grid system its per kilowatt cost range still remains higher than the con-
The deployment of a nuclear facility for the generation of ventional sources of energy such as natural gas (Barkatullah and
electricity imposes some important requirements on the type Ahmad, 2017). Developing economies with higher gross domestic
of design capacity, operation and stability of the grid system. product (GDP) to debt ratio will not be able to solely finance the
However, Ghana’s electricity grid system is faced with lot of construction of an NPP since such economies mostly have very
problems. According to research, the country has lost about 21.7% little fiscal space to borrow the huge amount of money required
of gross electricity generated within the last ten years through for the construction of an NPP. The situation where governments
transmission and distributions. Transmission losses within that finance such projects still dominate, however, there are currently
period accounted for 3.9% whiles distribution losses which also several financing models where the private sector is involved.
comprises commercial losses accounted for 16.2% yearly. These Nevertheless, initial government support is key in financing an
losses are as a result of the country’s poor grid system mainly NPP project. Ghana’s debt to GDP ratio is expected to hit 62%
because of the obsolete nature of the facilities (Kumi, 2017). It is by close of 2019 according to the International Monetary Fund
therefore necessary for authorities to carefully consider these re- (IMF) (2019), this puts the country in a tight economic situation
quirements; this is because the physiognomies of the existing grid
to be able to initiate the financing of an NPP amidst other pressing
system can affect the size or capacity of reactor to be selected.
needs of the country.
This implies that Ghana’s current grid system needs a significant
upgrade and expansion to enable a successful introduction of
3.4. Analysis of opportunities
an NPP otherwise an addition of a large NPP onto the system
can risk the safety and economic operation of the NPP and the
country’s electricity system as a whole. Information from the IAEA 3.4.1. Increasing energy demand
indicates that for a country to safely and successfully integrate There is an increasing energy demand in the country in recent
nuclear power into its generation mix, that country must have a years, this is as result of the country’s increasing population
grid system that is approximately ten times the capacity of the (average growth rate of 2% per year), industrialization and urban
intended nuclear power plant to be constructed (Anon, 2019g). growth (average growth rate of 4% between 1980–2013) (Mensah
Ghana’s current grid according to the Energy Commission’s 2018 et al., 2016). The consumption of electricity has been increasing
report is less than 5000 MW. Therefore, the introduction of a in the residential, industrial and commercial sectors with an
reactor with power capacity of 1200 MW will cause a mismatch annual growth rate of over 10% in the last decade. This has
and affect power supply in the country. put pressure on electricity generation. The nation’s unsuppressed
112 E.B. Agyekum, M.N.S. Ansah and K.B. Afornu / Energy Reports 6 (2020) 107–115

peak demand and energy growth rate between 2000 and 2009 to depart from the use of fossil fuel onto the path of clean
were 44% and 100% respectively. The residential and commercial energy. According to the IEA, phasing out the subsidies on fossil
sectors have witnessed the highest growth rate (Gyamfi et al., fuel by 2020 could lead to a 5% reduction in emission of GHG.
2018). This can be associated with increasing per capita income, Fuel subsidies distort markets and hinders the development of
grid connection, technological advancement and increasing in- competitive alternative energy, which leads to a reduction in the
come. Increasing income translates into the use of cleaner fuel possibility of the needed capital investment (Crawford, 2019).
such as electricity rather than the usual biomass for cooking at Furthermore, policy and decision makers tend to give more at-
homes (Gyamfi et al., 2018). This has triggered the creation of a tention to short-term growth of the economy rather than the
huge market in the electricity sector because of the increasing de- long-term sustainable development, this discourages investors
mand for electricity for homes. Quite a large number of Ghanaians and business leaders from exploring new path (Lei et al., 2019).
are still without access to clean and affordable sources of energy
and the integration of nuclear energy will provide electricity to 3.5.2. Porous security system
such homes and businesses. The issue with safety and security has been the greatest con-
cern when discussing the development of nuclear energy in de-
3.4.2. Regional interconnection veloping countries. A plethora of explanations — particularly
Despite challenges in the electricity sector as well as the short the porous boundaries of such countries has been the greatest
fall in supply, the country still exports power to its neighbor- concern, Ghana shares boundaries with three countries and also
ing countries like Togo, Cote d’Ivoire, Burkina Faso and Benin. with the Gulf of Guinea, which are all possible entry routes
According to the Energy Commission’s 2018 report, the country into the country. Research shows that Ghana has a lot of illegal
exported a total of 284 GWh of electrical power to Benin and entries at it borders (Border Crossings, 2019). Several people
Togo. Approximately 57.5 GWh of electricity was also exported enter the country without proper screening which is dangerous to
to Burkina Faso in 2017 (Energy Commission of Ghana Report, the security and peace of the country particularly when there is
2018). Countries in West Africa signed the West African Power increasing acts of terrorism in other countries in the sub-region,
Pool (WAPP) agreement in October 2008 which is aimed at de- like Burkina Faso, Nigeria, Cote d’Ivoire among others. The lack of
veloping facilities for the generation of energy for the various enough local expertise required for the operation of such facility
countries as well as interconnection of the various individual na- is also a serious issue relative to the safety and security of such
tional grids to enhance power supply (Anon, 2019h). The nuclear a complicated facility. Despite Ghana’s 25-year experience in the
energy program implementation organization (NEPIO) among its use of a research reactor, most people are still skeptical about the
tasks is to access the country’s grid and its interconnection with smooth implementation and operation of the facility considering
WAPP to develop a strategy for the export of nuclear power to how deadly such a facility will be when there is an accident.
WAPP. This is a great opportunity for Ghana’s nuclear energy The economic situation and priorities in most African countries
project. including Ghana does not correspond with the rapidly changing
technological, scientific and commercial setting in which crimes
3.4.3. Increasing global awareness of climate change occur (Abeer Mohamed, 2019). Therefore, the country has lot of
The need for a clean energy has become a global concern. work to do to strengthen its security measures, should the plan of
All governments around the world are finding ways to generate nuclear energy integration go through. It is important to educate
energy that have less negative effect on the environment for the entire citizens to be security conscious particularly those at
today and future generation. This has opened up conversation the border towns to help in informing the security services of
about the addition of nuclear energy to various countries’ en- any unusual entries. The Ghana Immigration Service also have a
ergy mix. A number of African countries are therefore working critical role in ensuring that the right people are given access to
towards the implementation of nuclear power. Ghana is not an the country, it is therefore important to train and provide them
exception; the government has been working hard to reduce the with the necessary equipment to enable them do their work.
levels of pollution by supporting the introduction of nuclear and There is the need to also upgrade and resource the country’s
renewable energies. police and intelligence system to be able to monitor proliferation
related smuggling or trading at the country’s borders.
3.4.4. Availability of foreign investors
Ghana’s quest to add nuclear power to its generation mix 3.5.3. Corruption
has received a lot of interest from several countries. According Transparency International defines corruption as ‘‘the misuse
to a statement made by the Minister of Energy, Science, Tech- of entrusted power for private gain’’ (Anon, 2019i). Corruption
nology and Innovation, Professor Kwabena Frimpong Boateng is not only limited to public officials but also private personnel
during a Meet-the-Press section organized in Accra, countries who have been entrusted with power, an official who awards a
such as Russia, France, United States, and China have all expressed lucrative contract to a particular supplier instead of another in
their interest in the development of NPP for the country. They return for kickbacks is obviously corrupt. In the nuclear sector,
are all interested in collaborating with the Ghanaian govern- access to sensitive materials — related technology and infor-
ment towards the realization of the nuclear energy project (Anon, mation also epitomizes entrusted power. Corruption is a key
2019b). factor to nuclear proliferation even though it is under-recognized.
Research indicates that with the exception of North Korea, almost
3.5. Analysis of threats all nuclear weapon programs of either terrorist groups or states
in the past years were all enabled by corrupt people (Bunn, 2019).
3.5.1. Dominance of fossil fuels The success of a nuclear proliferation is usually as a result of
The country’s energy policies favor the use of fossil fuel which information obtained from both insiders and outsiders through
tends to impede the penetration of other possible alternative corrupt means. The effect of corruption is not only limited to
energies. For example, the Ghanaian government subsidizes fossil nuclear proliferation but it also has a significant effect on the
fuel for its people. However, in order to limit the negative effect initial capital cost which eventually affect the LCOEs of such
of greenhouse gases (GHG) on the environment as a result of projects (Debnath and Mourshed, 2018). This is because projects
the continual use of fossil fuel, there is the need for countries that are awarded through restrictive tendering processes or sole
E.B. Agyekum, M.N.S. Ansah and K.B. Afornu / Energy Reports 6 (2020) 107–115 113

sourced instead of open tendering are sometimes expensive and • Guaranteed long term electricity contractual arrangements
most of such projects are mostly awarded to cronies through — in this model, the payment stream for the Build-Own
dubious means. This raises the cost of energy production as a Transfer (BOT) or concession project for an independent
result of the expensive nature of the project. Ghana has been power plant is secured through a Power Purchase Agree-
battling with corruption over the years, according to the Trans- ment (PPA). The agreement is signed between a purchaser
parency International’s July 2019 report, the country ranked 78 ‘‘offtaker’’ (usually state-owned electricity utility in the host
out of 180 countries relative to corruption perception index and country) and an independent power producer (in this case,
41 out of 100 for the perceived level of corruption in the public nuclear power) (Anon, 2019k). An example of this model is
sector (Ghana: Corruption Perception Index, 2019). These results the Akkuyu nuclear power plant located in Turkey where
are not encouraging for the development of the country and Turkish Electricity Trade and Contract Corporation (TETAS)
also for the smooth implementation of such a huge investment. signed a contract to purchase electricity at a fixed price of
It scares investors from all sectors and its fight should not be 12.35 cents/kWh within a 15-year period. The cost of project
limited to the government but it should be the responsibility of is expected to be paid from revenue from the PPA (Barkat-
all citizens to fight this canker in order to create the enabling ullah and Ahmad, 2017).
environment for development and peaceful implementation and
operation of the nuclear power project.
5. Ghana’s National Energy Policy and electricity sector struc-
3.5.4. Discontinuity of energy policies ture
Even though several African countries have formulated a series
of policies for the development of their respective energy sector, Ghana’s National Energy Policy, 2010, includes cross-cutting
the effective and consistent implementation of these policies plans for the energy sector, it aims at managing the fast-growing
encounter potential risks as a result of influences from both home energy demands for national development. The National Energy
and abroad (Arriola, 2009). Policy implementation uncertainties Policy summaries the goals, challenges and actions for the sector.
as a result of political regime changes is also a threat to such The goals are generally ambitious but feasible. The Policy covers
a huge investment. This is a huge problem in Ghana as several a wide spectrum of issues in the sector and challenges relating
projects initiated by past governments across the country are to the following areas: Power Sub-sector, Renewable Energy Sub-
left to rot when there is a change in political power. This does sector, Petroleum Sub-sector, Energy Efficiency and Conservation,
not promote development particularly in a country that is cash Waste-to-Energy, Energy and Gender, Energy and Environment,
trapped and therefore requires that the country’s resources are as well as Managing the future of the sector. The country also
put to good use. It also increases the level of risks in the financing plans to develop nuclear energy for electricity generation in the
of huge investments which scares investors. long term. The objective of this policy is to make Ghana a major
exporter of electricity in the sub-region, which can be attained
4. Financing models for the construction of an NPP through increase capacity as well as the modernization of trans-
mission and distribution infrastructure (National Energy Policy,
Financing a nuclear power plant has always been difficult 2010).
for developing countries across the world, and the financing of The electricity sector was until 1990 monopolized, the Volta
such capital-intensive power projects have seen some significant River Authority (VRA) was in charge of both generation and
changes within the last decades. The following financing options transmission of electricity to all regions while the Northern Elec-
are available to be considered: tricity Department (NED), a subsidiary of VRA was in charge of
distribution for the northern sector. Distribution at the southern
• Finance between Governments — this is a type of financ- sector was the responsibility of the Electricity Company of Ghana.
ing whereby the tendering is done through governmental
The VRA was divided into generation and transmission systems
arrangements. This option is usually in the form of loans
in the late 1990s during the power sector reforms, that opened
and the success of it depends on the kind of bilateral co-
up the market for the inclusion of Independent Power Producers
operation between the participating governments. In this
(IPP) (Kumi, 2017). In order to safeguard the proper functioning
model, the host country gets the opportunity to get technical
of all players in the sector, and to create the needed favorable
experience in the nuclear sector from the other country
environment for protection and promotion of private sector in-
particularly when the other partner has that knowhow. It
vestments and participation, a number of regulatory bodies have
also gives the exporting country the opportunity to sell their
product and expertise to other countries (Terlikowski et al., been created by Acts of Parliament. These establishments are the
2019). Public Utilities Regulatory Commission (PURC), Energy Commis-
• Vendor Financing — this model occurs when a vendor sion and the National Petroleum Authority (NPA). The Energy
lends money to a customer who then uses the borrowed Commission is responsible for the planning of the electricity and
money to purchase the vendor’s services or product (Anon, energy system expansion, and also advises the government on
2019j). It may take the form of a vendor equity, vendor energy policy and strategy, and the licensing of operators (Ke-
arranged credit or vendor provided credit (Murphy, 2014). mausuor et al., 2011). The PURC is the main agency responsible
This model depends on the vendor’s financial strength and for the setting up of consumer tariffs and service regulations. The
market demands. An example of this model is the e10 NPA is also response for the regulations in the petroleum sub-
billion Hungarian New Paks Project which is financed by sector. In the power sector the Ministry of Energy is responsible
ROSATOM through a 30-year interstate loan to construct for: providing of power related technical and policy advice to the
two units of Russian reactor type VVER with a total capacity government, formulation and implementation as well as monitor-
of 2,400 MW. The loan has a repayment period which covers ing of policies in the energy sector, and management of power
21 years of the plant’s operation and it represents 80% of the related programs including the national electrification scheme
projected total cost of the project (Barkatullah and Ahmad, and supervision of the state-owned public electricity agencies
2017). such as the GRIDCo, VRA, and the ECG (Kemausuor et al., 2011).
114 E.B. Agyekum, M.N.S. Ansah and K.B. Afornu / Energy Reports 6 (2020) 107–115

6. Conclusion Declaration of competing interest

Ghana is faced with recurring power crisis as a result of either The authors declare that they have no known competing finan-
lack of capacity or lack of funds to purchase fuel to run its thermal cial interests or personal relationships that could have appeared
power plants. The government has therefore decided to integrate to influence the work reported in this paper.
nuclear power into the country’s generation mix. This research,
evaluates Ghana’s preparedness for its nuclear power program CRediT authorship contribution statement
using the SWOT analytical tool.
The strengths as evaluated puts the country in a stronger Ephraim Bonah Agyekum: Conceptualization. Michael Nii
position for the implementation of the program, the 25-year ex- Sanka Ansah: Writing — reviewing. Kwame Bright Afornu: Writ
perience in the use of nuclear research reactor gives the country ing-editing.
the needed exposure relative to the management and operation
of a nuclear facility. It is however, instructive to note that, the
Funding
management of an NPP comes with a lot of responsibilities and
for that matter, there is the need to get more experience hands
to handle such a facility. This can be done through training of None.
specialists for particular sectors of nuclear power plant. In order
to leverage over the strengths, it is necessary for a continuous References
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