Despite Concerns, AGI Backs Ghana’s Nuclear Power Agenda, Hopeful of Cheaper Electricity & Reliability

The Association of Ghana Industries (AGI) has thrown its full support behind Ghana’s move toward nuclear energy, citing its potential to significantly reduce electricity costs for industries and improve the country’s energy reliability.

Chief Executive Officer (CEO) of AGI, Seth Twum Akwaboah says the development is a strategic breakthrough for Ghana’s long-term energy vision, especially for industries and businesses that demand high electricity.

He told The High Street Journal at the recently held Stakeholder Engagement on the Ghana Nuclear Power Corporation draft bill, an act which seeks to establish the Ghana Nuclear Power Corporation to develop, construct, own, operate, maintain and decommission nuclear power plants for purposes of providing base load electricity for social, and economic development.

Despite the apprehension and myths associated with nuclear power, the AGI believes that a diversified energy mix, including nuclear, thermal, hydro, and renewables, will create competition within Ghana’s power sector.

This, they argue, will drive efficiency, improve reliability, and force a drop in energy tariffs, which remains one of the biggest constraints on industrial growth in the country.

“Our anticipation is that, first of all, it will help deal with the sometimes inconsistency of energy, because you need to increase the base load. If you have enough electricity, then the tendency to supply on a reliable basis is very high. The second aspect is that once you have nuclear power coming to the mix, then it means the competition is growing. So you have the hydro, you have the thermal, then you have nuclear power, and then the renewables as well,” he told The High Street Journal.

Highlighting the relatively low production cost of nuclear energy compared to other sources, the AGI CEO said businesses stand to benefit significantly once Ghana’s first nuclear plant comes on stream.

“When you have that broad spectrum of energy mix, then the tendency is that because competition will be stronger, efficiency will also go up, and then industry can get at a cheaper price,” he remarked.

He added that, “ in any case, it’s also a fact that, and it’s an expectation we have, that when the nuclear power, because it’s produced at a cheaper cost, if your cost of production is lower, of course you can let your customers enjoy a lower pricing. So we expect that nuclear power is another form of energy that is relatively cheaper.”

This anticipation come at a time when high electricity tariffs have made Ghanaian industries less competitive, forcing some manufacturers to scale down operations or relocate production lines to cheaper energy destinations in the subregion.

Just recently, the PURC announced an 2.45% increment in electricity tariffs starting July 1, which is also expected to deepen the woes of industries and businesses that heavily rely on power. However, despite the high cost of power, businesses bemoan the inconsistent supply lamenting on the intermittent outages.

But beyond the affordability nuclear power promises, AGI also sees nuclear power as a guarantee of reliability, especially for energy-intensive sectors such as manufacturing, agro-processing, and mining.

Given the potential of nuclear power, all stakeholders at the event, including AGI urged policymakers and Parliament to fast-track the passage of the Nuclear Power Bill and to invest in transparent, science-driven regulatory frameworks that will ensure safety, sustainability, and affordability of nuclear power in Ghana.

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