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Articles

When the means become the ends: Ghana’s ‘good governance’ electricity reform overwhelmed by the politics of power crises

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ABSTRACT

The 1990s good governance agenda created the ‘standard reform model’ for the electricity sector but after widespread adoption of its market and institutional policies, many developing countries’ electricity systems continue to suffer numerous crises. This article, using Ghana as a case study, analyses key drivers producing such crises. In the last decade, Ghana lurched from unprecedented shortages to electricity over-abundance, entailing spiralling debt. Rather than understand this through neo-classical approaches focusing on formal institutions and democratic pressures, this detailed empirical research outlines an alternative heterodox approach focused on political power and ideology. It demonstrates how intense competition entailed an all-consuming short-termist focus on elections. Alongside high modernist ideological beliefs in the power of megawatts to produce industrialisation, this created Ghana’s crises of absence and abundance. The article, therefore, finds that focusing on democratic institutions, the formal separation of policymaking and market motivations appears misplaced given the strength of countervailing political and ideological rationales that overwhelmed reforms. Alongside demonstrating the crucial importance of focusing on informal political power and policymaking beyond de jure institutions, this case study evidences flaws in the standard reform model, refuting its political compatibility and pointing to how it can increase opportunities for distorting the electricity-system.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Notes

1 VRA and ECG were founded over 50 years ago while VRA and its off-shoot GRIDCo are particularly well regarded (Ayanoore and Dye CitationForthcoming; Interviews, Accra 2019–2020).

2 E.g. interviewees including: MCC, MIDA, and Ex-Minister.

3 Noting that VRA also manages a subsidiary distribution company for Ghana’s North, the Northern Electricity Distribution Company.

4 Involving informal/forced de facto and formally-granted de jure power.

5 Albeit that state intervention supports electrification and carbon-emission reductions.

6 This body of work is substantial, including: (Jessop Citation1990, Cheeseman Citation2018, Whitfield Citation2018).

7 Khan’s holding power describes control over key economic areas and large-scale organisational capabilities.

8 For Gray’s (Citation2019) this roughly fits ‘action’ political settlements research, focusing on policy outcomes, not long-duree holding power change.

9 Dye (Citation2020) analyses this as a key application of high modernist ideology.

10 Note this is not the same as service provision (see Paller Citation2019).

11 Interviews, Researcher, Kumasi; Researcher, Kumasi.

12 Interviews, Senior Official, MiDA; World Bank Citation2018.

13 Interview, Senior Official, MiDA.

14 Interview, Planner, ECG.

15 Interview, Ex-Minister, Ministry of Energy.

16 Interview, Senior Planner 1, Energy Commission.

17 GlobalPetrolPrices.com [Accessed 26 June 2020].

18 1982–85, 1998–2000, 2006–2007.

19 Interviews, Senior Managers 1&2, VRA; Senior Planner 1, Energy Commission.

20 Interview, Senior Planner 1, Energy Commission.

21 87MW is exclusively gas-dependent.

22 Interview, ex-CEO, GRIDCo.

23 Interviews, Senior Manager 1, VRA; Senior Planners 1&2 and Planning Team, Energy Commission; ex-CEO, GRIDCo.

24 Interviews, Senior Planners 1&2, Energy Commission; Senior Manager 1, VRA.

25 Interviews, ex-CEO, GRIDCo; Senior Planner 1, VRA.

26 ‘Light Crude Oil Support for VRA in 2012’, 13th September, 2012.

27 ‘Submission of Status Reports of Handing-Over Notes’, 19th December, 2014.

28 Interview, Senior Manager 1, VRA.

29 Interview, Planner, ECG.

30 Interview, Senior Planner 1, Energy Commission.

31 Interview, Ex-Minister, Ministry of Energy: Echoed by: Researcher, Accra; Researcher, Kumasi; Senior Planner 1, VRA.

32 Interview, Senior Planner 1, Energy Commission.

33 Interview, Officials, JICA.

34 Interviews, Officials, GIZ; Researchers, Accra; Researcher, Kumasi.

35 Interviews, Researchers, Accra.

36 Interview, Senior Planner 1, VRA.

37 Interview, Ex-Minister, Ministry of Energy; Officials, GIZ; Senior Planners 1&2 and Planning Team, Energy Commission; Senior Manager 2, VRA; Senior Officials 1&2 World Bank; Senior and Junior Planners, ECG.

38 Interview, Senior Official 1, World Bank.

39 Interview, Senior Official 2, World Bank.

40 E.g. in 2016.

41 E.g. in 2012.

42 Until the end of 2020.

43 Interview, Researcher, Energy Think Tank.

44 Interview, Researcher, Energy Think Tank.

45 Interviews, Senior Official, MiDA; ex-CEO, GRIDCo.

46 Interview, Senior Manager 1, VRA.

47 Interview, Senior Manager 1, VRA; Echoed by: Researcher, Accra; Senior Planner 1, VRA; Researcher, Energy Think Tank; Senior Planner 2 and Planning Team, Energy Commission.

48 Additionally, 55 Licences are under review at the Energy Commission (interviews, GIZ; World Bank).

49 ‘Ministers acting independently’ (Interview, Senior Planner, ECG).

50 Interviews, Senior Planners 1&2 and Planning Team, Energy Commission; Senior and Junior Officials, Renewables, Ministry of Energy.

51 Interviews, Senior& Junior Officials, Renewables, Ministry of Energy; ex-CEO, GRIDCo; Senior Officials 1&2, World Bank. 8 new IPPs have come online.

52 E.g. the BOOT Parliamentary Committee’s 2017 reports.

53 E.g. Senior Planner 1, Energy Commission.

54 Interview, Senior Planner 1, VRA.

55 Interviews, Senior Planners 1&2 and Planning Team, Energy Commission.

56 Interview, Senior Manager 2, VRA.

57 Interview, Ex-Minister, Ministry of Energy.

58 Only medium-capacity lines connect to Cote d’Ivore, Burkina Faso and Togo/Benin. A Burkina Faso/Mali high-capacity line is under-construction.

59 Interviews, Senior Planners 1&2 and Planning Team, Energy Commission; Senior Manager 2, VRA.

60 Interview, Ex-Minister, Ministry of Energy.

61 Interview, Senior Planner, ECG.

62 Interviews, ex-CEO, GRIDCo; Officials, GIZ.

63 Interview, Researcher, Accra.

64 Interview, Senior Planner 2, Energy Commission.

65 Interview, Senior Planner 1, Energy Commission.

66 Interview, Ex-Minister, Ministry of Energy.

67 Namely the 1998 TICO (220MW), the 2010 Sunon-Asolgi (200MW) and 2012 CENIT (126W).

68 Interview, Ex-Minister, Ministry of Energy.

69 Interviews, Senior Official, MiDA; Senior Official 1&2, World Bank; Senior Planner 1, Energy Commission.

70 Interview, Anonymous, Accra.

71 Interview, Researcher, IEG.

72 Interview, Senior Planners, GRIDCo.

73 Interview, Senior Planner 1, VRA.

74 Interviews, Senior and Junior Officials, Renewables, Ministry of Energy.

75 Interview, Ex-Minister, Ministry of Energy.

76 Interviews, Senior Planners 1&2 and Planning Team, Energy Commission.

77 Interview, Senior Planner 2, Energy Commission.

78 Interviews, Senior Planners, GRIDCo and VRA.

79 Interview, Researcher, IEG.

80 Interviews, Senior Planners 1&2, Energy Commission.

81 World Bank data.

82 For instance, the World Bank’s 2007 advocacy for a $0.1 per-KwH rise for cost-reflectiveness.

83 Interviews, Senior Officials 1&2, World Bank; Officials, GIZ; Officials, JICA.

84 Interview, Senior Official 2, World Bank.

85 Interview, Ex-CEO, GRIDCo.

86 Interview, Ex-Minister, Ministry of Energy.

Additional information

Funding

This work was supported by UK Research and Innovation [grant number ES/P011373/1].

Notes on contributors

Barnaby Joseph Dye

Barnaby Joseph Dye has developed expertise on the politics of infrastructure, specialising particularly in dams and the electricity sector. Overall, his research relates large-scale trends in infrastructure development, to specific countries policymaking and to individual projects and their impacts. This contributes to theory about the present 21st Century's turn towards state-led, infrastructure focused development. Barnaby's doctorate analysed the actors financing, planning and constructing the 21st Century's electricity and dam boom, assessing changes and continuities in their practices. This led to theorisation of the hybrid form on contemporary high modernism which combines 20th Century ideas with 21st Century reforms to influence the development visions and practices of increasingly interventionist states. Barnaby has pursued these themes further in a post doctorate that involved leading research on the politics of Ghana's electricity sector. Barnaby's research on 21st Century infrastructure trends has also led to the study of India and Brazil's relationships in Africa and their financing of infrastructure on the continent. Currently he leads two further projects on this theme regarding India's latest trends in dam building and engagement around Africa's natural resources.