An assessment of the implementation of energy efficiency and conservation methods in the industrial sector-a study of Ashanti Region

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The energy crises in the 1 980s brought into focus the need for energy efficiency and conservation in the country. The government implemented the National Energy Conservation Programme through the erstwhile Ministry of Mines and Energy in 1987. But the Industrial Energy and Conservation Project, however, commenced in 1988 to deal with issues (like the industrial output decline) arising out of the high cost of energy and the development of the energy sector. Policy measures to promote energy efficiency and conservation ‘.ere instituted in 1995. Measures introduced included economic tariffs for energy, Special Load Tariff (SLT), Power factor surcharge and public education and training on energy efficiency strategies and practices. This study seeks to assess the implementation of these energy efficiency and conservation measures in the industrial sector. Semi-structured questionnaires and interviews were conducted in this research to collect data from 13 companies. Secondary data were also used in the research. The study revealed that companies classified in the medium voltage category were more serious than those in the low and high voltage categories about energy efficiency and conservation. Companies in the high voltage included Barekese Water Works and Bonte Gold Mines. The latter implemented the least measures on energy efficiency. Share of power for the former was 48 percent. On share of power in production for the low voltage category, Darko farms had the least, less than 1 percent. For the medium voltage class, GGL had on the average about 3 percent, while the timber industry recorded an average of 8.5 percent. The study further revealed that energy pricing was inconsistent especially with respect to taxes, (specific and excise duties). It was also realised that while power consumption was increasing especially in the later part of the year 2000, cost of power declined. On the basis of these findings, recommendations were made for policy consideration. The study concluded that effective implementation of energy efficiency measures led to savings in both energy and money and with the introduction of the current tariffs for power and petroleum, as well as stable local currency (cedi) more industries will be compelled to be serious with energy efficiency and conservation projects.
A thesis submitted to the Board of Postgraduate Studies, Kwame Nkrumah University of Science and Technology in partial fulfilment of the requirements for the award of Master of Science in Development Policy and Planning, 2001