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Effects of energy on productivity

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Effects of energy on productivity

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Preserving food, lighting a , keeping a hospital open, running a factory, a business, or institution requires energy. Energy is, therefore, at heart everybody's quality of life and a crucial factor for economic competitiveness and employment.

The Oxford Dictionary defines energy as ‘the power derived from the utilisation of physical or chemical resources, especially to provide light and heat or to work machines.' Energy originated from the French word énergie, or via Late Latin from Greek energeia, from en- ‘in, within' + ergon ‘work' in the mid-16th Century (denoting force or vigour of expression).

Ghanaians started experiencing serious load shedding in the second half of 2006 which was as a result of low water inflows into the Akosombo Dam which limited the generation of hydroelectric power from the Akosombo and Kpong Power Stations. This necessitated the construction of the Bui hydroelectric Dam (a project which had been on the drawing board for ages), the Asogli Power Generation Plant and the rejuvenation of the Aboadzie Thermal Plant just to mention a few.

The energy crisis then had an adverse effect on businesses, increasing operational costs, limiting production and output growth, predominantly in energy-sensitive sectors such as mining and manufacturing, all of which have serious implications for profits and employment as well as for government to achieve its projected revenue targets.

Continuous battle

Almost a decade down the line, Ghana is still battling with energy crisis. The most hit period is this first quarter of 2015, with power being rationed at 24 hours off: 12 hours on, in the Greater Accra and the Ashanti Regions. Leadership is blaming the situation on low water levels in the Akosombo, Bui and Kpong dams, and also the lack of gas to power the country's thermal plants.
The current situation has had an unrelenting and escalating effect on businesses and the economy as a whole. Many small and medium enterprises (SMEs) are folding up – hairdressers, welders, barbers, seamstresses and so on are virtually out of business. Not forgetting cold store operators whose stocks go bad for lack of power. Manufacturing and big companies are not left out of the “ordeal”.

Citi FM for instance, spends GH¢3000 a day on fuel for its generator. Management has, therefore, rationed its operations – Workers run shift so that some of the equipment will be shutdown to reduce fuel consumption (cost), mining companies are laying of workers and others have closed down temporarily. For example, Ashanti Gold Fields and other mining companies laid off some of their workers and they may be laying off more if the situation does not improve. This was announced by the Ghana Chamber of Mines. I recently learnt that Shoprite, the Osu chapter, had to close down for an hour their generator was overheated. Laying off workers may further increase the already high unemployment rate and the vices that go with it.

Households and families have equally been affected by the energy crisis – houses have burnt down as a result of the use of candles in the night. Some families have lost their dear ones through these fire outbreaks. Schoolchildren are not left out in this unfortunate situation. Some stay on after school to complete their homework and assignments. Others resort to the use of rechargeable lamps, lanterns, candles etc. to study. The future of our children is at stake. My children keep asking me when this dumsor dumsor will end. They ask this question in desperation, searching through my face to see if they can find a convincing answer. To allay their , I tell them that government is taking the necessary steps to rectify the situation.

High production and operational costs may have their toll on the cost of commodities. It will not be surprising that very soon, prices of items, including consumables, may skyrocket.

Way forward

We all use energy in some form daily, throughout the year. Therefore, the first step in the right direction is for us to conserve energy. We can do this by making an effort to reduce the consumption of energy. Putting off gadgets that are not in use, replacing all bulbs and florescent tubes with energy-saving bulbs and introducing energy-efficient gadgets on our markets.
Government and private investors can venture into renewable energies such as photovoltaic, tidal, bio geothermic and wind on large scale. Although the initial cost may be expensive, they are economically feasible in the long run.

Studies have shown that population and energy needs increase hand-in-hand. There is the need, therefore, for the authorities to pay much attention to researching into optional and feasible energy generation to promote sustainable development to ensure security and diversity of energy supply to improve plant energy efficiency and to increase industrial competitiveness. This would attract investors, open up opportunities to boost local manufacturing, help stabilise the local currency against the major currencies, with increased export and increased government revenue. This will result in the ultimate well-being of the .

The writer is an assistant lecturer at the Accra Polytechnic.

By: Dolores Mensah Hervie

Culled: graphic.com.gh

 

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