By Buertey Francis BORYOR
Bui Power Authority (BPA) achieved notable progress in its operational performance in 2023, despite the obstacles brought about by the global economic downturn.
BPA reported a net profit of US$80.64million, surpassing the budgeted US$28.37million. This positive variance of 184.24 percent can be attributed to the non-occurrence of certain budgeted general and administrative costs which were expected from liquidity challenges, including repairs and maintenance, seminars and conferences, regulatory and supervisory cost, professional and consultancy fees, finance costs – as well as higher than expected revenue for the period.
“The net profit margin for the year as a whole stood at 51.33 percent, which is significantly higher than the projected ratio of 22.5 percent. The energy sales or revenue from sales of electricity only for the period were US$155.22million against a budget of US$124.09million, representing a positive variance of 25.1 percent,” Board Chairman of BPA, Kwesi Ameyaw Cheremeh, said in a statement read on his behalf.
BPA’s total revenue for the year was US$157.11million – 24.43 percent higher than its budgeted annual revenue of US$126.26million.
It also exceeded its generating target by 25 percent in 2023. The Authority’s generating facilities’ performance in 2023 was remarkable overall. The total energy produced from BPA’s generating sources in that year amounted to 1515.62GWh from all its generating sources. The Authority had initially planned to generate 1211.80GWh for the year, but surpassed it by 25 percent,“ he elaborated.
Additionally, he outlined that the reservoir’s surface elevation concluded the year at 176.41 masl – marking a decrease of 3.09masl from its initial elevation of 179.50masl at beginning of the year.
Further outlining other key initiatives that were carried out during the review period, he noted that in keeping with its strong maintenance culture the Authority has completed 96 percent of its 2023 annual maintenance plan; and on renewable energy development, it has successfully advanced its solar energy agenda in 2023 by commissioning a 4MW Floating Solar facility.
Also, he said an additional 100MW solar plant being developed at the BGS was 39 percent complete at the end of 2023 – and installation of a 30MWh battery storage system for intermittency mitigation is 96 percent complete.
Moreover, the company’s Board Chair said that it has proceeded with implementing its corporate social responsibility in accordance with its CSR policy – constructing and renovating several classroom blocks within its operational areas. He added that BPA has also demonstrated its support and solidarity with the Volta River Authority (VRA) and residents of Volta Region during the aftermath of the Akosombo dam spillage exercise by donating essential relief items to affected flood victims, and many more.
Meanwhile, Chief Executive Officer (CEO) of BPA Samuel Kofi Ahiave Dzamesi – during a speech contained in the Authority’s corporate annual report for 2023 and discussed during the AGM – said its supply of 1,516GWh of energy onto the National Interconnected Transmission System (NITS) for the year was 2 percent lower than that of the preceding year, which remains an all-time-high of 1,547GWh.
This, according to him, translated into a total revenue of US$157.1million which was lower than the previous year’s revenue of US$158.8million – representing a decrease of 1.0 percent.
However, he said stringent cost containment over the period impacted positively on net profit; resulting in an increase of 1.8 percent from US$79.2million in 2022 to US$80.6million in 2023.
Climate Change Initiatives
Furthermore, he said environmental sustainability remains at the forefront of BPA’s CSR efforts, highlighting that through investments in renewable energy projects and carbon offset programmes it is reducing its carbon footprint and mitigating the impacts of climate change.
“Our conservation initiatives have preserved precious ecosystems and biodiversity, ensuring a healthy planet for future generations. Additionally, our premier initiative addressing climate change – the Forest Resource Enhancement Programme (FREP) – is dedicated to fostering responsible use of forest resources and reforestation efforts in the Black Volta Basin and other parts of the acquired lands. This programme is pivotal for both mitigating climate impacts and adapting to them,” he added.
