Bui Power Authority (BPA) recorded an annual electricity generation of 1,547 GWh in 2022, the highest since it commenced commercial operations.
This resulted in a 50.48percent increase in net evacuation to the National Integrated Transmission System compared to the previous year.
The increase in generation boosted the company’s revenues by 44percent, reaching US$158,802,301 compared to the previous year’s US$110,290,403 with 1,156GWh.
The company’s Chief Executive Officer (CEO), Samuel Kofi Ahiave Dzamesi, attributed the surge in revenue to “favourable inflow into the Bui Reservoir, heightened power demand, and effective cost control measures” by management.
A notable profit after tax of US$79,218,134 was also achieved during the year under review, marking a remarkable 97percent increase from the US$40,220,491 recorded in 2021. BPA’s net worth also saw a substantial rise of 15percent, reaching US$620,107,912 in 2022 from US$540,889,778 in 2021.
However, the receivables position worsened from US$518.4 million to US$626.0 million, indicating a net increase of 20.8percent.
“The Authority’s strong financial performance in 2022 is testament to the hard work of our employees and the sound management of its resources. The Authority is well-positioned to continue to generate significant revenues and profits in the years to come,” Mr. Dzamesi stated at the company’s 2022 annual general meeting in Accra.
Debt overhang
Despite the positive performance, the Authority’s Board Chair, Kwasi Ameyaw-Cheremeh, said in a speech read on his behalf that the year presented its share of challenges.
He said the “financial debt overhang” brought about by the inability of the Electricity Company of Ghana (ECG) to pay for power supplied to it remain a key concern.
“Despite substantial profitability, the Authority faces huge liquidity challenges which poses a threat to our operations, especially in the area of maintenance. There are several projects and programmes that the Authority would have wished to undertake in the year but had to shelve because of liquidity challenges. It is our expectation that ECG and BPA will work out a solution to reduce the debt overhang,” he added.
Unflinching commitment to renewable energy
Mr. Dzamesi said pursuant to the national objective of increasing the proportion of renewable energy in the power mix, some significant inroads have been made on a 250MWp Hydro-Solar- Hybrid (HSH) project which forms part of BPA’s effort to explore the opportunity that exists for the technical complementation between hydro generation and solar power production.
He said phases 2 and 3 of the Bui HSH scheme which has the advantage of allowing the Plant to maintain its operations at peak times and provide system support at other times achieved completion rates of 34.7percent and 8.0percent, respectively by the end of the year. Sites in Bawku, Yendi, Tumu, Sawla, Buipe, and Zebilla are earmarked for various Solar PV projects, with a 50MWp Solar PV project awarded in Yendi.
The Authority has also been mandated to develop and harness hydro potential at the Western Rivers namely Pra, Tano and Ankobrah. Procurement processes were commenced and a consultant was engaged to undertake feasibility studies on the rivers to improve the database for an informed decision on the best technology to deploy and the generation capacities that could be derived from the rivers. The studies are expected to be conducted and completed in 2023.
“Additionally, BPA is leading the development of a 60MW hydroelectric plant on the lower Pra River in view of our most recent experience regarding the successful construction and operationalization of the Bui Hydroelectric Project. The goal is to enhance the database, enabling informed decisions on the optimal technology and generation capacities from the rivers. These studies are anticipated to be conducted and completed in 2023,” Dzamesi said.
Again, following the success of the small and mini hydro plant at Tsatsadu in Alavanyo, BPA initiated processes to replicate the project at Wli falls at Afegame in the Volta Region.
Outlook for 2023
Giving the Authority’s outlook for 2023, Dzamesi said the goal is to fully overcome the mounting receivables challenge and transform the business model to establish itself as the leader in renewable energy in the subregion.
“It will be a daunting endeavour but we are determined to move BPA to the next level and demonstrate to all stakeholders that we are up to the task,” he said.
To achieve this, there will be the need to “maintain our focus on our impressive performance, source and secure investment partners with optimal solutions and capital to advance our solar projects in a way that is both safe and environmentally responsible,” he stated.
