As part of a new strategy to reduce subsidies and implement taxes on fossil fuels, the levy on petroleum products in Ghana will be increased to US$0.02/l. Furthermore, a levy of US$0.02 will be implemented for electricity transmitted on a per kWh basis. During the state of the nation address, the President of Ghana, John Dramani Mahama, noted that liquefied petroleum gas will be exempt from the levy, as per the provisions of the Customs and Excise Duty Act.
A portion of the funds raised from the levy will be used to increase Ghana’s development of renewable energy. The Renewable Energy Fund will be used to establish approximately 200 000 rooftop solar power projects, for both residential and small commercial buildings, which would result in savings of approximately 200 MW/d.
Ghana passed the Renewable Energy Act in 2011, which was designed to provide for the development, management and utilisation of renewable energy sources for the production of heat and power in an efficient and environmentally sustainable manner. The country introduced a feed-in tariff structure for project developers and renewable energy purchase obligation for distribution utilities. The act also allows regulatory bodies to implement appropriate feed-in tariffs and renewable purchase obligation after discussions with stakeholders.
Edited from various sources by Rosalie Starling
Read the article online at: https://www.hydrocarbonengineering.com/refining/10032015/ghana-to-increase-levy-on-petroleum-products-405/