ENERGY IN GHANA

POWER TO THE PEOPLE.

Ghana’s energy sector has evolved over the last two decades owing to continuous reforms and stability that has allowed for increased investment by private players especially in the electricity sub-sector. The discovery of oil and gas in commercial quantities in 2007 and subsequent production also placed the country’s energy sector on the path of growth. The country started oil production in 2010 with only one field, but now can boast of a total of three oil producing fields namely, Jubilee, Tweneboa Enyera Ntomme (TEN) and OCTP Sankofa Gye Nyame.

The government’s energy policy is embodied in the Strategic National Energy Plan (SNEP 2030). The policy aims to develop a sound energy market that would provide sufficient, viable and efficient energy services for Ghana’s economic development through the formulation of a comprehensive plan that will identify the optimal path for the development, utilisation, and efficient management of energy resources available to the country.

Ghana’s power supply sources continue to be from hydroelectricity, thermal – fuelled by crude oil, natural gas and diesel, solar and imports from Cote d’Ivoire. Ghana also exports power to Togo, Benin and Burkina Faso. On going grid expansions would allow further exports to other neighbouring countries in the sub region. Hydroelectricity is generated from three power plants – the Akosombo and Kpong generation stations, operated by the state owned Volta River Authority (VRA) and the Bui Generation Station operated by the state-owned Bui Power Authority. Thermal power is generated from a combination of private and public sector outputs operated by VRA and a variety of Independent Power Producers (IPPs). Solar energy generation accounts for less than 1 per cent of total power generation in Ghana. However, the country is taking steps to diversify and increase its reliance on solar and wind energy.

The renewable energy sector is gradually growing to help increase power generation output. The government is committed to increasing the use of renewables to provide power in Ghana and this is supported by the Renewable Energy Act, 2011 (Act 832) which was enacted to enable Ghana to achieve a sustainable renewable energy mix and reduce its dependence on other sources of generation. The policy goals of the renewable energy subsector are to achieve 10 per cent contribution of modern renewables (excluding large hydro and wood fuels) in the electricity generation mix by 2030 and to promote the development and the use of other biomass technologies including biogas, biofuels, gasification, and waste-to-energy.

The Renewable Energy Master Plan, published in 2019, aims to increase the proportion of renewable energy in the national energy generation mix from 42.5 MW in 2015 to 1,363.63 MW (with grid-connected systems totalling 1,094.63 MW); reduce dependence on biomass as the main fuel for thermal energy applications; provide renewable energy-based decentralised electrification options in 1,000 off-grid communities, and promote local content and local participation in the renewable energy industry. Work is on going to amend the Renewable Energy Act 2011 (Act 832) to provide an enabling atmosphere to attract investment in the manufacturing and assembling of renewable energy technology locally.

In December 2020, the Ministry of Finance announced that its progress on the Energy Sector Recovery Programme (ESRP) included the clearing of USD1 billion debt to independent power producers and deals made with power-generation companies that could save up to USD5 billion. The government also adopted the ESRP to clear remaining liabilities and to put the sector on a surer financial footing to avoid future shortfalls.

In December 2020, the Ministry of Finance announced that its progress on the Energy Sector Recovery Programme (ESRP) included the clearing of USD 1 billion debt to independent power producers and deals made with power generation companies that could save up to USD 5 billion. The government also adopted the ESRP to clear remaining liabilities and to put the sector on a surer financial footing to avoid future shortfalls.