Invest in technology for ECG turnaround, sustainability
The Electricity Company of Ghana (ECG) faces significant technical and operational challenges, with system losses hovering around 20 per cent.
The majority of these losses are technical, stemming from aged infrastructure and inadequate monitoring systems. This paper proposes targeted investments in modern technology to address these challenges.
The focus is on the replacement and renewal of ECG’s over-30-year-old backbone infrastructure and the integration of advanced technologies such as specialised drones equipped with GPS capabilities. International case studies are highlighted to underscore how similar strategies have successfully transformed other power distribution companies.
Finally, the article emphasises the need for ECG to operate as a business-oriented, politically independent entity.
Efficient power distribution is crucial for economic development. ECG’s persistent operational inefficiencies, reflected in high system losses, threaten Ghana’s energy security and economic growth.
Technical losses, primarily due to voltage leakage from ageing infrastructure, and operational inefficiencies such as power theft exacerbate the problem.
Addressing these challenges requires a two-fold approach: upgrading infrastructure and adopting advanced monitoring technology.
More than 30 per cent of ECG’s infrastructure is more than three decades old. Voltage leakage through ageing transformers, substation equipment, and power lines results in substantial technical losses.
Phased infrastructure renewal programme, focused on replacing outdated equipment with energy-efficient alternatives could significantly reduce these losses.
Key benefits
Some of the key benefits are reduced voltage leakage, which involves modern transformers and insulated power lines minimise energy dissipation.
Also enhanced capacity: New infrastructure can support increased demand, reducing the risk of overloading and unplanned outages.
• Lower Maintenance Costs: Replacing ageing assets with new technology reduces frequent repair costs.
International reference
The Philippine Meralco Company (Meralco) undertook a similar transformation by investing in smart substations and modernising its distribution network, reducing its technical losses from 9.8 per cent to below five per cent over a decade.
Power theft and system inefficiencies are often challenging to detect in real time. Specialised drones equipped with GPS and thermal imaging can monitor power flow, detect unusual voltage patterns, and pinpoint locations of power theft or infrastructure faults.
Key benefits
• Real-time monitoring: Enables faster identification and resolution of faults.
• Reduction in power theft: Drones can quickly detect illegal connections, particularly in industrial areas with high consumption.
• Cost-effectiveness: Reduces the need for manual inspections, saving time and resources.
India’s Tata Power implemented drone-based monitoring systems in its distribution network. This initiative reduced power theft and brought technical losses down from 12 per cent to four per cent in high-loss areas within three years.
Business-oriented entity
Political interference has historically undermined ECG’s operational efficiency. To ensure its sustainability, ECG must be restructured to function as a profit-oriented entity with minimal political oversight.
Recommendations:
• Decentralisation: Empower regional branches with operational and financial autonomy.
• Corporate governance: Appoint a professional board of directors with clear Key Performance Indicators (KPIs).
• Performance-based contracts: Link staff remuneration and promotions to performance metrics.
• Independent regulation: Strengthen regulatory oversight to ensure transparency and accountability.
Kenya Power and Lighting Company (KPLC) underwent significant restructuring in the early 2000s, resulting in operational independence and improved service delivery.
While the proposed investments may appear capital-intensive, the long-term savings and revenue gains far outweigh the initial costs. Reducing technical losses from 20 per cent to five per cent could save ECG millions of Ghana cedis annually.
Additionally, minimising power theft and enhancing customer satisfaction through reliable service could significantly improve revenue collection.
ECG’s challenges are not insurmountable.
By prioritising investments in infrastructure renewal and adopting cutting-edge monitoring technologies, ECG can drastically reduce technical losses and improve operational efficiency.
However, the success of these initiatives hinges on ECG’s ability to operate independently as a business-oriented entity.
Drawing lessons from international successes, ECG has the potential to transform into a sustainable, efficient power distribution company, driving Ghana’s energy sector toward a brighter future.
The writer is power systems economist
