In less than six months, four small-scale cold store operators within the Odorkor Market area in Accra have folded-up due to rising cost of electricity, which has doubled their cost of operation.
Collectively, these local businesses that heavily relied on electricity created at least 10 direct jobs each. Assuming each of the employees had two dependants, the livelihoods of at least 80 people within a defined area have been shattered.
This is a fraction of the challenges businesses in the country are facing due to rising cost of power.
Rising tariffs
Ghana, in the second quarter of 2023, raised the average end-user tariff for electricity by 18.36 per, adding on to an almost 30 per cent increase in the first quarter. In the third quarter, electricity tariff went up again by 21.55 per cent.
As the country continues to heavily rely on thermal sources of power, experts have warned that the cost of electricity will continue to rise in the coming years.
This has direct implications on businesses and job creat
ion, with industries already spending about 40 per cent of their operational cost on electricity alone.
Countries and communities with little or no access to electrical power tend to have no or less industrial enclaves; this means people who reside in that enclave will have no job opportunities.
Global situation
According to data from the International Energy Agency, electricity prices for businesses amounted to 8.8 U.S. dollar cents per kilowatt-hour in China in March 2023. Business electricity prices decreased in the country from over 10.4 U.S. dollar cents per kilowatt-hour in June 2020.
This explains why many industries are relocating to China for reliable and affordable power. The country currently operates 55 nuclear reactors, with capacity of over 53 gigawatts.
Ghana goes nuclear
Ghana has taken decisive step to add nuclear power to its energy portfolio to support the country’s industrialisation agenda.
Beyond financial commitment, public perception and acceptability of nuclear power is crucial
for the successful execution of the project.
Communication barriers
One critical communication setback has been that the debate on nuclear power has been largely centred on safety issues which somewhat fuels public fear and apprehension about the negative uses of nuclear.
The association of nuclear with wars and weapons had for many years poisoned perception about nuclear such that the positive uses of nuclear in the areas of health, food security research, among others have been silenced.
There has also not been much concentration on the economic implication of adding nuclear to Ghana’s energy mix and how that could affect the financial strength of businesses especially those in the industrial sector.
The reality of the problem on the ground and the non-sustainability of thermal and hydro as baseload for a developing country must be well articulated and emphasised for the public to buy into the alternative.
As of 2021, hydro accounted for 38 per cent of the country’s energy generation portfolio whiles
thermal accounted for 60 per cent (making it the baseload). Thermal plants need constant supply of gas to function and that has proven costly with gas prices continuously shooting up on the international market.
Another communication crisis that can be envisaged is the cost of the nuclear power project. Constructing a legacy project that would exist for at least eight decades would require enormous resources. Given the country’s economic situation, people may question the financial viability of the project and that could affect policy direction if not well explained.
The media’s role
It is important for the media to be armed with adequate information and data to effectively propagate the nuclear gospel to the understanding of the ordinary Ghanaian. With over 83.24 per cent of Ghanaians connected to electrical power, any discussion on sustainable and affordable electricity would be well received.
Oftentimes, opponents of nuclear power become louder and set the agenda because the proponents are usually reac
tive. This must change. As Ghana prepares to hit the ground soon, the experts in the area must lead the discussion and feed the public with the right message.
A simple Google search on nuclear power would show that negative articles on nuclear abound. With many journalists and students resorting to the internet for information, this is not good for building effective communication strategy.
Experts should be commissioned to write extensively and tout the importance of nuclear power to Ghana’s development agenda and demystify justifiable or non-justifiable concerns or fears about nuclear to balance intellectual discourse on the subject.
Way forward
Ghana’s energy demand keeps increasing whiles its existing energy resources keep diminishing. The reliance on thermal is not affordable and sustainable and failure to find alternative sources such as nuclear power that is reliable and affordable could spell doom for the country soon.
This message should be at the centre of our communication and education on the
need to support efforts to build and operate the country’s first nuclear power plant.
Issues of waste management and safety are paramount but that should not dominate the discussion on nuclear power technology especially in a developing country seeking to industrialise.
Source: Ghana News Agency