Article

Renewable Energy Insight on Africa

12(1) 45–64, 2020
Deployment in Ghana: © 2020 African Studies
Association of India
The Hype, Hope and Reprints and permissions:
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Reality DOI: 10.1177/0975087819898581
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Catherine Kuamoah

Abstract
Over recent years, few areas of international development research have seen as
much transformation as those relating to energy access and low carbon transitions.
Ghana, amongst other African economies, has seen an increase in energy demand
surpassing the supply of energy in the last decade. The incorporation of the
incorporation of renewable energy into the mix is, therefore, seen as a significant
role in addressing the energy needs by replacing conventional fuels with clean and
reliable domestic electricity with the advantage of local economic opportunities.
The country has adopted the United Nations Sustainable Development Goal
(SDG); SDG goal 7 targets ensuring universal access to affordable, reliable and
modern energy services. This target presents a formidable challenge to Ghana
because the country still relies mainly on non-renewable energy sources. The
country has a huge potential for renewable energy that remains underexploited.
This study, therefore, seeks to assess the current renewable energy resource
situation, examine the trend in Ghana’s energy consumption and undertake a
comprehensive review and critical evaluation of Ghana’s renewable energy drive
and policies.

Keywords
Energy Policy, Ghana, renewable energy, Renewable energy resources

Introduction
Energy is central to the achievement of both the 2030 Agenda for Sustainable
Development and the Paris Agreement on climate change. Several countries

Centre for History and Global Development, College of Liberal Arts, Shanghai University, Shanghai,
China

Corresponding author:
Catherine Kuamoah, Centre for History and Global Development, College of Liberal Arts, Shanghai
University, 99 Shangda Road, Baoshan District, Shanghai 200444, China.
E-mail: ckuamoah@yahoo.com
46 Insight on Africa 12(1)

around the world are searching for sustainable and renewable alternatives to their
energy supply due to factors such as the increasing demand for energy, the decline
in fossil fuel reserves, CO2 reduction and global climate change (Abanda 2012).
The United Nations’ Intergovernmental Panel on Climate Change (IPCC) Fifth
Assessment Report (AR5) stresses the need for nations, especially those in the
developing world, to find alternatives to the old-fashioned fossil fuels.
Subsequently, the IPCC recommends that, in order to prevent some of the most
glaring consequences of climate change, at least 80 percent of global energy
supply should be based on renewables by 2050 (IPCC 2014). Ghana has adopted
the United Nations Sustainable Development Goal (SDG); SDG goal 7 targets
ensuring universal access to affordable, reliable and modern energy services. This
target presents a formidable challenge to Ghana because the country still relies
mainly on traditional biomass as its primary source of energy coupled with a
chronically fragile hydropower sector. Nonetheless, since 2015, petroleum prod-
ucts have overtaken biomass and both have environmental consequences.1 The
country has a huge potential for renewable energy which remains underexploited.
To convert these renewable potentials into actual energy, the government in 2006
set a target of achieving 10 per cent in the electricity mix by 2020. As a medium
to the long-term solution, the Government of Ghana, in 2010, introduced a law on
Renewable Energy to parliament. One of the main goals of the Renewable Energy
Law (Act, 832) and the Strategic National Energy Plan I is to increase the share of
modern forms of renewable energy to 10 per cent in terms of power generation.
Regrettably, as of October 2018, the percentage of renewable energy in the elec-
tricity mix was less than 2 per cent. This is due to a number of factors: prominent
among them is the policy issues surrounding the transition to renewable energy.
What is the potential for renewable energy in Ghana? What are the policy issues
regarding a shift towards renewable energy in Ghana? This paper, therefore, seeks
to assess the current renewable energy resource situation, examine the trend in
Ghana’s energy consumption and undertake a comprehensive review and critical
evaluation of Ghana’s renewable energy drive and policies.

Development of Energy Needs

Historical Trends in the Energy Sector

Ghana, amongst other African economies, has seen an increase in energy demand
surpassing the supply of energy in the last decade. The enthusiasm to embark on
the gargantuan industrialization of building roads, schools, hospitals and factories
after Ghana’s independence in 1957 called for a reliable power supply. The
government of Ghana then sourced loans from the World Bank and the USA
(precisely VALCO) to accomplish the project of building a dam. Consequently,
the Volta River Authority (VRA) was established in 1961 and was in charge of
electricity generation via the water power of the Volta River, the construction of
the Akosombo dam.2 Electricity demand peaked at 540GWh by 1968 due to
numerous factors including rapid industrialization. Domestic power consumption
Kuamoah 47

increased nearly six-fold from 540GWh in 1968 to 3917GWh by 1976.

Nevertheless, due to the deteriorating economy in the late 1970s and early 1980s,
domestic power consumption fell from 3917GWh in 1976 to 3429GWh in 1978
and declined further to about 1151GWh in 1984.3 The growing demand for
electricity by 1971 led to the construction of the Kpong Hydroelectric Project
giving an additional capacity of 160 MW (Asante and Ezekiel 2007). However,
the first power crisis in 1984, compounded by a major drought from 1983,
disrupted the generating capability of the Akosombo dam.4 Total inflow into the
dam between 1982 and 1984 was less than 15 per cent of the expected total, and
this triggered power rationing and a reduction of supply to neighbouring countries:
Togo and Benin. There was a decrease in electricity supply from 5180GWh in
1981 to 1670GWh in 1984, whereas consumption during the same period
decreased from 4652GWh to 1151GWh. Power consumption, therefore, picked
up and increased from 2083GWh in 1985 to about 4780GWh in 1990. There was
another power crisis in 1998 which was attributed to low rainfalls and inflows to
the Volta Lake and consequently resulted in another episode of power rationing.
Electricity supply to consumers significantly fell to about 4942GWh in 1998,
whereas consumption fell from 5110GWh in 1991 to 4965GWh in 1998, nearly
surpassing available electricity supply in that year.5

Development of Renewable Energy Sources

The involvement and development of renewable energy sources in Ghana can be
traced from the mid-1960s where the hydroelectric dam was constructed. Before
that period, the main source of power generation was a few isolated diesel
generators across the country. About four decades later, the hydropower potential
dominated gained recognition and acceptance to be the main source of energy
supply contributing substantially to the energy mix of the country. In line with
this, in 1961, the Volta River Authority was commissioned to officially generate
electricity in Ghana (Ackah et al. 2014). Ghana in recent spans has been the centre
of West Africa for its fast-paced urbanization, particularly across the fields of
education, technology and economy. With industrialization, the country’s demand
for electricity has been growing. This has, therefore, prompted the government as
well as public sectors to seek alternative renewable energy sources to complement
the currently dominant hydropower energy supply, such as the Akosombo Dam on
Volta River. Nevertheless, the electricity generation company, Volta River
Authority, is unable to generate enough electricity for all the demand sectors.
Therefore, the nation has been struggling with increased power rationing which is
popularly known as ‘dumsor’ in Ghana over the past 10 years (Gyamfi et al.
2015). The expansion of renewable energy is imperative to Ghana not only to
fulfil people’s electrical needs but also to take initiative in reducing carbon gas
emissions and in combating climate change. With these energy crises relative to
economic growth, it is evident and viable for Ghana to expand, diversify and
explore more alternatives of energy sources in order to increase its generation
capacity for meeting the recent supply deficits.
48 Insight on Africa 12(1)

According to Ofosu-Ahenkorah et al., energy consumption peaked in 2008

with biomass in the form of wood and charcoal accounting for nearly 72 per cent
of primary energy; however, petroleum and electricity accounted for the remaining
percentages (Ofosu-Ahenkorah et al. 2008). Ghana’s generation capacity is
currently about 3000 MW with 54 per cent hydropower, and the rest being mainly
thermal generation and little support from renewable energy. The demand for
electricity has been growing at about 10 per cent per annum and it is estimated
that the generation capacity will have to increase up to about 4200 MW by 2026
to keep up with the demand.6 The vision of Ghana’s energy sector is a developed
‘energy economy’ with reliable high-quality energy services. The Ministry of
power has adopted national energy policy goals for the country to achieve this
vision. 7 Renewable energy, therefore, has great potential to contribute towards
meeting the ambitious national policy goals of Ghana’s energy sector sustainably.

Significance for the Potential and the Need for Renewable Energy
Renewable energy encompasses a broad range of sources and technologies, with
some more favoured for their greenness than others. For example, some consider
solar and wind power as preferable to hydropower with massive dams, which can
release greenhouse gases (methane), foster diseases related to stagnant water,
displace populations and contribute to drought. On the other hand, big hydropower
is praised for its ability to dramatically increase electricity production, as the Three
Gorges Dam does for China. Ghana should go in for renewable energies because as
it is renewable, it is sustainable and so will never run out as compared to fossil fuels.
Also, renewable energy facilities generally require less maintenance than traditional
generators. Their fuel being derived from natural and available resources reduces
the cost of operation as it will also reduce the country’s dependence on fuels and
energy from foreign governments. Furthermore, they are the cleanest and promising
energy sources for future generations, with stable price and environmentally friendly
due to zero carbon emission. It is important to note that the increasing supply of
renewable energy would replace carbon-intensive energy sources and significantly
reduce Ghana’s global warming emissions. Wind and solar energy require essenti-
ally no water to operate and thus do not pollute water resources or strain supply by
competing with agriculture, drinking water systems or other important water needs.
Compared with fossil fuel technologies, which are typically mechanized and capital
intensive, the renewable energy industry is more labour intensive. This means that,
on average, more jobs are created for each unit of electricity generated from
renewable sources than from fossil fuel.

Energy Situation in Ghana

Ghana’s energy mix is relatively simple though not without challenges. The
country relies on biomass/charcoal, gas and crude oil (plus petroleum products),
Kuamoah 49

and electricity to meet the total energy needs of its population and industry.8 In
2015, oil contributed 44.48 per cent to primary energy supply, followed by
biomass (37.87%), hydroelectricity (5.27%) and natural gas (12.38%).9 Ghanaians
have traditionally relied on biomass and waste, particularly firewood and charcoal;
however, the share of biomass in Ghana’s energy mix has been steadily declining
because of increasing fossil fuel consumption. According to Ghana’s national
energy statistics, the share of biomass consumption declined from 52 per cent of
the total primary energy supply in 2009 to 37 per cent in 2016. Currently, however,
the electricity demand outnumbers supply thereby creating an erratic electricity
distribution situation. Electricity is, therefore, rationed (load shedding), leaving a
supply gap for renewable energy to fill.

Installed Generation Capacity and Electricity Supply

Ghana’s total electricity demand in 2015 was between 14,000 GWh and 16,400
GWh4, whereas its available supply is approximately 15,000 GWh. Until 1998,
the supply of electricity in Ghana was mainly from hydropower sources with the
Akosombo Dam (1020 MW installed capacity) being constructed in 1966.10
Hence, the total installed capacity in Ghana is approximately 4399 MW.
Ghana’s power generation trend has been influenced by rainfall conditions,
mishaps and delays in the construction of new plants. Ghana’s Volta River
Authority (VRA) as of 2014 runs 83 per cent of the generation capacity, whereas
the Independent Power Producers (IPPs) share the remaining 17 per cent.12

Access to Electricity and Demand

According to the Ghana Shared Growth and Development Agenda (GSGDA) II
(2014 to 2017), the proportion of the Ghanaian population with access to electricity
increased gradually from 67 per cent in 2010 to 72 per cent in 2012.13 Ghana’s
electricity penetration as of 2015 was at 76 per cent as announced by the Power
sector minister. However, it is currently 83 per cent and it is comparatively the
second highest in Sub-Saharan Africa. Households, commercial consumers and
industry make up roughly 80 per cent of demand, whereas mines and the Volta
Aluminium Company (VALCO) account for 10 per cent and 6 per cent,
respectively, according to the Energy Commission.14 Access to electricity in
Ghana has improved over the last few years and is higher than most other countries
in sub-Saharan Africa, where access to power averaged around 35 per cent in
2012, according to the latest figures from the World Bank.
The Akosombo and Kpong dams are the two large hydropower stations where
Ghana generates most of its electricity. These dams provide nearly 65 percent of
the total of 2200 MW of electricity supplied in the country, and the remaining 35
percent is supplied by thermal power plants that operate on fossil fuels (Gyamfi et
al. 2015). The percentage of total electricity supply from thermal power plants has
increased significantly over the past few years: less than 10 percent in 2000 to
50 Insight on Africa 12(1)

Table 1. Installed Grid Electricity Generation Capacity (End of December 2017)11

PLANT INSTALLED CAPACITY (MW)

Hydro
• Akosombo 1,020
• Bui 400
• Kpong 160
Subtotal 1580
Thermal
• Takoradi Power Company (TAPCO) 330
• Takoradi International Company (TICO) 340
• Sunon Asogli Power (Ghana) Limited (SAPP) - IPP 560
• Cenit Energy Ltd (CEL) - IPP 110
• Tema Thermal 1 Power Plant (TT1PP) 110
• Tema Thermal 2 Power Plant (TT2PP) 80
• Kpone Thermal Power Plant (KTPP) 220
• Karpowership 470
• Ameri Plant 250
• AKSA 260
• Trojan 44
• Gense 22
Subtotal 2796
Renewables
• Safisana Biogas 0.1
• VRA Solar 2.5
• BXC Solar 2
Subtotal 22.6
Total 4,398.6
Source: Ghana Energy Commission, National Energy Statistics (2008–2017) http://www.energycom.
gov.gh/files/ENERGY_STATISTICS_2018_FINAL.pdf.

about 30 percent in 2010. This is attributed to the limitless challenges Ghana’s

hydroelectric dams encounter (Gyamfi et al., 2015). These challenges include the
country’s population growth and relatively high urbanization rate which have
increased the electricity demand, thereby putting pressure on the old power
generation and supply systems. Additionally, Ghana has unrelenting hydrological
shocks in recent times due to drought and unreliable rainfall patterns. These
climate issues progressively make the hydroelectric power facilities unreliable
because of their inability to achieve full generation status.15
Due to the fickleness of hydroelectric electricity, which caused a significant
energy crisis in the country between 2002 and 2004, as well as in the year 2007,
the government invested comprehensively in thermal plants. Nonetheless, Ghana’s
involvement in the West African Gas Pipeline (WAGP) project was among the
important initiatives to increase the electricity generation capacity in Ghana. In
this project, Nigeria, Africa’s leading producer of crude oil, is to supply natural
gas to power thermal plants in Ghana, along with Togo and Benin. This was to
Kuamoah 51

diminish the dependence on expensive, imported crude oil for power plants that
are found along Ghana’s coast, such as the Aboadze and Asogli thermal plants,
which have 200 MW and 330 MW, respectively (Asante 2004). In 2013, the Bui
Dam, Ghana’s third dam in the Brong Ahafo region that was constructed on the
Black Volta River, was commissioned. This new dam has brought into the existing
pool of electricity generation in Ghana a generation capacity of approximately
400 MW. It is fairly apparent that Ghana has vigorously pursued diverse projects
and initiatives to expand electricity access for its population (Gyamfi et al. 2015).

Natural Gas
Ghana’s demand for natural gas is mainly to feed its ever-increasing thermal
plants. About 22.5 trillion standard cubic feet of natural gas were delivered for
this purpose by the West Africa Gas Pipeline (WAGP). The country is also
developing its natural gas reserves to meet its needs. The Atuabo gas processing
plant has been strategically established to process gas from the Jubilee fields and
other offshore reserves to feed thermal plants and produce Liquefied Petroleum
Gas (L.P.G) for households.

Crude Oil and Petroleum Products

Ghana currently needs between one and two million tons (annual) of crude oil for
its refinery operations. The approximate petroleum product supply requirement
forecast for 2015 made by the Energy Commission is Gasoline 1.2 million tons,
Diesel 1.9 million tons, Kerosene 250,000 tons and L.P.G 350,000 tons. Liquefied
Petroleum Gas is mainly used by households (49% of consumption) and the
transport sector, taxis (44%). A majority of households rely on LPG for cooking,
which means they could be a target for renewables such as biogas and refined
landfill gas in the future.

Biomass/Charcoal
Wood fuel and charcoal have been a major source of domestic fuel for Ghanaians
both in rural communities and in urban settings for decades. According to a report
by the Forestry Commission, about 70 million USD is spent on wood as a fuel
source by Ghanaian annually.16A large population of Ghanaians use wood fuel at
the household level owing to the fact that Ghanaian households are dominated by
low-income earners, who primarily depend on biomass as a primary source of
energy for cooking and heating (Duku et al. 2011). A survey conducted by the
Ghana Energy Commission in 2010 revealed that nearly 40 percent of the
Ghanaian population solely relies on wood for cooking and heating. The survey
indicated that almost 62 percent of the rural population used firewood in
comparison to roughly 26 percent of the urban population (Duku et al. 2011).
52 Insight on Africa 12(1)

Renewable Energy Resource Situation in Ghana

Like many other African countries, Ghana has substantial but underexploited
reserves in renewable energy (Bugaje 2006). They include bioenergy, solar, wind,
hydropower and tidal and wave power.17 Hydropower has played a massive role
in Ghana’s energy generation over the past decades. Ghana as of 2015 had
significant hydropower potential that was being utilized by the Akosombo, Kpong
and Bui hydroplants, which supplied a total of 1580 MW. Currently, there are 22
small and 17 medium-sized unexploited sites with capacities ranging from 15 to
100 MW and a combined total capacity of around 800 MW (Aida 2015).
Nevertheless, it is not able to provide enough power to complement the thermal
energy generation; hence, the recent energy crises have led to load shedding
across the country. In an attempt to boost the renewable energy contribution to the
generation mix, the government has outlined some measures and targets to
increase renewable energy generation up to 10 per cent by the year 2020.18
The solar energy potential in Ghana is estimated at 35 exajoules (EJ) (Eshun and
Amoako-Tuffour 2016). Ghana has embarked on a 155-MW solar plant project
which is expected to increase the nation’s electricity generating capacity by 6 per
cent. It is also expected to meet about 20 per cent of the national target of 10 per cent
of its electricity generation from renewable energy sources by 2020.19 In the same
vein, the biggest solar energy plant in Africa, the Nzema project in the Western
region of Ghana, began construction in 2016 and is projected to provide electricity
to over 100,000 households upon completion. The 155-MW plant is expected to
increase the nation’s electricity generating capacity by 6 per cent. Furthermore, in
an attempt to ensure the development and utilization of renewable energy resources
and to mitigate the current power crisis, the Ghana Energy Commission has initiated
a solar rooftop program targeting residential facilities, commercial offices, hospital-
ity industries and small businesses. The main aim is to reduce the daily national
peak load by 200 MW through self-generation using solar photovoltaic (PV) tech-
nologies installed on the rooftops of these infrastructures. This allows for mitigating
the energy crisis facing the country as well as reducing the rates of forest depletion
and CO2 emissions.20
On the subject of biomass, Ghana has a strong potential for biofuel production,
thanks to energy crops such as jatropha and oil palm fruit. A recent study ranked
Ghana as Africa’s leading producer of biodiesel from jatropha. Another exploration
highlighted the country’s potential for biodiesel production from oil palm fruit,
in which it is also one of the leaders in Africa. Biomass co-generation plants,
which use sawmills residue and oil palm waste, have a total capacity of over
6 MW (Duku et al. 2011). Bioenergy has a great potential to provide greenhouse
gas savings and other environmental benefits and also contribute to energy
security, improve trade balances, provide opportunities for social and economic
development in rural communities and improve the management of resources
and wastes. When developed in a sustainable way, bioenergy has the potential to
produce both electricity and fuel with fewer risks than those associated with oil,
coal and nuclear technologies.
The wind potential in Ghana is seen as marginal; average annual wind speeds
are 4–6 m/s at 50 m above the sea level along the coast and on some islands.
Kuamoah 53

However, some areas near the border with Togo have wind speeds of above 8 m/s.
Wind resource assessments were conducted between 2011 and 2013 at eight sites
along the coast. The results depicted the average monthly wind speed at 60 m
elevation. This highlights the potential for the development of around 300 MW of
wind farm capacity (Batchelor and Scott 2017). Along the coast of Ghana, wind
speeds of 9–9.9 m/s have been recorded that could sustain wind energy with an
estimated gross wind power potential of 2000 MW.21 Average wind speeds in
Ghana show possibilities for wind power project development especially along
the eastern coastal areas and mountainous regions. Currently, the Volta River
Authority’s wind project seeks to install about 100 to 150 MW of capacity. The
Energy Commission in 2015 also granted provisional licenses for the development
of about 490-MW capacity of wind farms along the coast of Ghana.22
Technologies to harvest energy from ocean/tidal waves are new to Ghana. So
far, only one company, TCs Energy, has expressed interest in it. The company
acquired a construction permit in late 2013 to build its facility in Ada Foah in the
Greater Accra Region and run in 2016. Tidal energy is created through the use of
generators. Large underwater turbines, placed in areas with high tidal movements,
are designed to capture the kinetic motion of the ebbing and surging of ocean tides
to produce electricity. Studies conducted near the Ada Estuary in Ghana have
confirmed that it is a suitable location to build an underwater hydro plant.23
Due to environmental and social factors, solar energy is an extremely eye-
catching and evolving renewable energy in Ghana. Nevertheless, the solar market
remains fairly stagnant owing to budget constraints and conventional attachment to
energy sources.24 Bioenergy could benefit the country’s power system. Biofuel did
not receive as much attention as other energy sources but could be implemented
in the automobile or farming industries. Moreover, waste-to-energy is another
sustainable option as the organic composition makes up more than 60 per cent of
the total waste in Ghana. Wind energy could be another potential power source,
although it is not necessarily the most feasible opening in the phase of electricity
shortage. The Solar and Wind Energy Resource Assessment (SWERA) National
Report shows that Ghana’s gross wind resource potential is 5640 MW, which is
quite sufficient (Eric Osei et al. 2014). Nonetheless, due to restrictions on land
availability, suitability and topography, the actual exploitable wind power capacity
in Ghana is discovered to be around 200–300 MW, according to the energy
commission (Eric Osei et al. 2014). A number of private companies have the
intention to build small hydropower systems in Ghana but have proved futile.
According to Ghana’s Sustainable Energy for All Action plan, there are about 22
exploitable mini-hydro sites in Ghana. The potential hydro capacities at these sites
are estimated to be between 5.6 and 24.5 MW.25 Until now, the Akosombo, Kpong
and Bui dams are the only plants that produce electricity to the national grid.

Barriers to Renewable Energy Development

According to Ghana’s Renewable Energy Master Plan, although the Government
of Ghana has demonstrated strong policy commitments towards the development
and promotion of renewable energy, investment in the renewable energy sector
54 Insight on Africa 12(1)

Figure 1. Renewable Energy Map of Ghana.

Source: Energy Commission Ghana, 2017.

has been limited due to various factors including the challenging investment
climate, limited technological capacity, insufficient experience in renewable
energy development and human and socio-cultural challenges.26

Challenging investment climate: Investment in renewable energy development

in Ghana faces considerable challenges including macroeconomic situation,
perceived risk by the financial sector, financing terms and conditions, such as
high commercial interest rates, limited tenor loans, high inflation and currency
depreciation. Even though financial mechanisms such as equity finance, venture
capital fund, debt financing and crowd financing among others are available to
entrepreneurs, some of them are not fully developed in Ghana. Also, uncertainty
Kuamoah 55

surrounding pricing of renewable energy technologies elevates the risk factor,

which makes banks shy away from financing renewable energy development
projects.

Limited technological capacity: There is limited availability of experienced

personnel to undertake technology and feasibility assessments, as well as to
construct, operate and manage renewable energy initiatives. Due to lack of trained
personnel to train, demonstrate, maintain and operate renewable energy structures,
especially in regions with low education levels, people are unwilling to import the
technologies for fear of failure.

Insufficient experience in renewable energy development: Power sector entities,

regulators, financiers, domestic investors, and national technology and service
providers appear to have limited knowledge and experience in the development
and deployment of renewable energy technologies. For some technologies, there
is difficulty in obtaining equipment and spare parts, poor operations and main-
tenance of facilities, and a lack of infrastructure to support usage.

Human and socio-cultural challenges: People have a tendency to resist changes

when new technologies and practices are introduced due to the fear of the
unknown. Understanding of local needs is important at the project design stage
for renewable energy technologies dissemination. For instance, households’
reluctance to adopt renewable energy for fear of unreliability forms one of the
bases for failure to adopt renewable energy technologies. These have slowed
down the rate of development, circulation and usage of renewable infrastructure
and technological knowledge.

Lack of public awareness: This has been known to be the main barrier in the
utilization of renewable energy technologies in many countries (Zhang et al.
2009). The most common issues associated with this are inadequate knowledge
regarding the use, importance, socio-economic and environmental benefits that
are derivable from renewable energy and its technologies. Since renewable energy
technologies are relatively new in Ghana, an avalanche of the public sector have
insufficient knowledge about them (Stephen and Waeni). Furthermore, the public
sector is not provided with adequate and sufficient training required to make
informed choices. The absence of vital information and proper awareness has
generated a disparity in the renewable energy technology market (Aviel et al.
2010).

Impacts of the Continual Usage of Non-Renewable

Energy Sources
Conventional fuels are not formed newly at any significant rate; hence, current
stocks are finite in the long run. In economics, it is predicted that as the lifetime
of a fuel reserve shortens, the fuel price increases. Subsequently, more expensive
56 Insight on Africa 12(1)

sources and alternatives enter the market as demand for that fuel reduces. In
reality, several factors are involved, especially governmental policy and interna-
tional relations. However, the basic geological fact remains: fossil fuel reserves
are limited; therefore, the present patterns of energy consumption and growth are
not sustainable in the longer term (Arkoh 2016).
Several countries including Ghana use inexperienced labour for the coal mines
and do not invest in proper protection and safety materials for the workers. This
may lead to countless work hazards or explosions inside coal mines, instigating
several deaths among workers. In spite of the direct impact on workers’ health and
safety, there are also indirect impacts on humans and nature.
The detrimental environmental effects of burning fossil fuels likewise imply
that current patterns of use are unsustainable in the longer term. Particularly, CO2
emissions from the combustion of fossil fuels have significantly raised the
concentration of CO2 in the atmosphere. If this continues, it can cause asthmatic
diseases to many people or even result in lung cancer. It will also enhance the
greenhouse effect and lead to significant climate change within a century or less,
which could have a major adverse impact on food production, water supply and
the citizenry.
The search for oil is not without a negative impact as well. Whether the drilling
onshore or offshore turned out to be successful, and a big reservoir of oil was
discovered, the animal and natural life would be destroyed either way. Offshore
drilling will also affect the underwater life of many animals either by reducing the
livestock due to the operation of the oil rig or polluting the sea and poising the
livestock due to oil spills. Small-scale fishers would catch less or even poisoned
fish resulting in the reduction of income. This poorer group of society would
probably sell the poisoned fish to the customers in order to maintain their
livelihood; therefore, it could also have negative health implications for a larger
group of society.
On the economic level, the expenses through fossil fuels are bleakly increasing
for the country and households. The more a material is running out of availability,
the more expensive it becomes to search for it, collect it and then sell it to the ones
in need. Fossil fuels are becoming scarce and expensive, which is being sold
to households and other countries for profit. This indicates the high expenses just
for providing energy, and the numbers increase as the more fossil fuels become
scarce and more expensive. This does not just affect the energy of a household
or a company, but also the goods and services created in industries through
fossil fuels.

The Ghanaian Renewable Energy Policy

The government of Ghana, in efforts to develop the nation’s renewable energy
resources for efficient utilization and production of electricity, has adopted
two key energy policy documents that contain renewable energy aims as envi-
sioned by the government. These two key policy documents are the Strategic
National Energy Plan (SNEP) 2006–202027 and the National Energy Policy
(NEP) 2010.28
Kuamoah 57

The SNEP 2006–2020 is the first policy instrument that included in detail the
plans that the Ghanaian government had regarding the exploitation and utilization
of renewable energy to produce electricity. According to the SNEP, the govern-
ment plans to contribute to the development of an efficient energy market that
would provide viable, sufficient and efficient energy services for Ghana’s eco-
nomic development. This will be done through the creation of a comprehensive
plan that will identify the optimal path for the utilization, development and effi-
cient management of energy resources available to the country.29 The Ghanaian
authorities have realized the necessity to shift towards renewable energy sources
for the country’s production and supply of electricity due to several issues that it
had identified in the wake of preparing the SNEP.
As an interim update to the SNEP, the national energy plan (NEP) 2010 is the
second important policy instrument that reaffirmed the Ghanaian government’s
target for renewable energy development in the nation. It contains the policy
directions of the government vis-à-vis the challenges facing the energy sector.
Concerning renewable energy, the government aims to increase the share of
renewable energy particularly wind, solar, mini-hydro and waste-to-energy in the
total national energy mix and safeguard its efficient production and use.30 Again,
in developing the renewable energy sector of the country, the government hopes
to contribute to the mitigation of climate change. The Ministry of Energy in 2010
had acknowledged that the sustainable exploitation of wood fuel through
efficiency improvement, reduction of the cost of wind, solar and waste-to-energy
technologies were the key challenges to achieving renewable energy policy
objectives in the country and, as a result, proposed the certain actions that were to
be taken to overcome those challenges.

Problems in the Policy Framework

Absence of Clarity and Details

In the nation’s energy policy instruments that drive the path for the achievement
of the renewable energy target, the NEP, which is a provisional update to the
SNEP, lacks clarity on the reaffirmation of the renewable energy target as it was
clearly stated in the SNEP. The renewable energy goal as postulated in the NEP is
to increase the share of renewable energy particularly solar, wind, mini-hydro and
waste-to-energy in the total national energy mix and ensure its efficient production
and use. Although the Ghanaian government in the SNEP had set a specific
timeframe within which the target for renewable energy is to be achieved from
2006 to 2020, the authorities had failed to outline a timeframe within which
the reiterated renewable energy target must be reached in the NEP. This failure
on the part of the nation’s authorities in the NEP may give indications to investors
that the government may have changed its mind concerning the policy goals
for the renewable energy sector, with the period within which the target is to be
achieved, in particular.
58 Insight on Africa 12(1)

Actual Policy Priorities

Another key policy issue hindering the achievement of renewable energy integra-
tion into Ghana’s total energy mix is that of policy priorities being pursued by
the Energy Ministry. Since 1989, the Energy Ministry has aggressively tailed a
national electrification agenda in Ghana through interconnected grid extensions
and accessibility. This electrification program pursued is hallowed in the National
Electrification Scheme (NES), which is the principal policy by the government of
Ghana on the extension of full nationwide electricity supply by 2020 (Arthur
2010). Obeng-Darko accounts that at the end of 2015, the NES with its implemen-
tation phases adopted by the Energy Ministry does not advocate the production of
and access to electricity from renewable sources. In fact, according to the Energy
Commission, the Energy Ministry is relentlessly pursuing the goal of achieving a
50 per cent nationwide infiltration of liquefied petroleum gas (LPG) by 2020. It
is, therefore, not surprising that the infiltration rate of electricity from renewables
currently stands at 0.5 per cent even though the national electricity access rate is
estimated to be 84 per cent (Obeng-Darko and Asare 2018).

Inadequate Funds
Renewable energy project costs for electricity productions are expensive although
the technological cost has been falling and investment into renewable energy has
been increasing since 2010 (Sawin et al. 2018). To support renewable integration
into the electricity production mix, the Ghanaian government established a
Renewable Energy Fund in 2011 to financially subsidize the capital cost of renew-
able energy projects as well as the technological cost in the country. It could,
however, be assumed that the financial support from the state only is not enough
to support the integration objectives giving the current low rate of renewable inte-
gration into the nation’s electricity production mix. Private financial investment is
needed to boost the renewable energy sector of the country. The government
ought to provide a stable support scheme environment to attract investors who are
willing and able to invest in electricity production from renewable energy projects
(Obeng-Darko 2016).

Infrastructural Deficiencies
Other encumbering factors attributing to the current low rate of renewable energy
infiltration in the nation’s energy mix are the lack of infrastructure, particularly,
aged and underdeveloped national grid systems. There has not been an upgrade
to the nation’s grid system since the 1990s and as such the technological and
technical capabilities of the system may not support the uptake of electricity
from renewable energy production projects. The Ghanaian Energy Commission31
accounts that the current grid infrastructure is not technically robust enough to
integrate power from technically advanced power production sources.
Kuamoah 59

Regulation
To provide both the legal and regulatory framework within which the renewable
energy policy goals can be achieved, the government of Ghana enacted into law
and adopted in 2011, its Renewable Energy Act (2011) (Act 832) of the Parliament
of the Republic of Ghana.32 The rules for regulating the renewable energy sector
are laid out in the country’s RE Act. Besides the rules prescribed in the renewable
energy law, regulators are mandated by the law to issue legislative instruments, by
which they are to regulate the renewable energy sector and also give outcome to
regulatory rules in the RE Act.

Ghana’s Renewable Energy Act

In the development of the renewable energy law and policy, the renewable energy
Act (RE Act) is the law providing both legal and regulatory framework within
which renewable energy targets are to be achieved. The predominant objective of
the RE Act is to ‘to provide for the management, development, and utilization of
renewable energy sources for the production of heat and power in an efficient and
environmentally sustainable manner’.33

Regulating the Renewable Energy Sector

The RE Act provides that a license is required for any commercial undertaken in
the renewable energy market in Ghana. It is the general right of the Energy
Commission to grant licenses to public utilities. However, the power to propose the
conditions of licenses lies outside the sphere of its jurisdiction and that power lies
with the Minister of Energy.34 The RE Act provides for qualification standards,
upon which licenses to operate in the renewable energy sector may be granted.
Licenses granted under the provisions of the RE Act are not transferable except
where prior approval has been given by the Board of the Energy Commission for
its transferability. For a license to be granted, a person or entity may be a citizen, a
body of corporate registered under the Companies Act, 1963 (Act 179) or under
any other law of Ghana, or a partnership registered under the Incorporated Private
Partnerships Act.35 A feed-in-tariff (FIT) support scheme has been established
under the RE Act to guarantee the sale of electricity produced from RES.36 The
regulation of the RE industry is entrusted with three key agencies: The Minister,
the Energy Commission and the Public Utilities Regulatory Commission (PURC).
In the institutional framework under the RE Act, the energy minister is tasked with
the duty of providing policy direction for the achievement of the RE Act objectives.37
The Energy Commission is tasked with the technical regulation of renewable
energy sources utilization and development. To accomplish its role, the Energy
Commission is tasked with advising the Minister on renewable energy matters,
creating a platform for the cooperation between the government, private sector and
civil society for the promotion of renewables and advising relevant stakeholders on
the educational curriculum for the efficient use of renewable energy sources.
60 Insight on Africa 12(1)

Critique of the Renewable Energy Act?

The renewable energy Act (RE Act) is strikingly comprehensive and thus provides
both legal and regulatory framework within which renewable energy targets are to
be achieved. Nevertheless, since Ghana’s electricity industry is generally vertically
integrated and is thus less investor friendly, Act 832 will undeniably delay in
realizing its anticipated objectives if some essential complementary measures are
not taken (Nasir Alfa and Ackah 2015).
Even though Sections 26–28 of the Act make provisions for a Feed-in-Tariff
(FIT) regime that would guarantee a market share for renewables, it appears
gloomy that the likes of subsidies and split incentives would work in favour
of renewables. This is particularly the case when one considers the capital cost
implications of renewables in comparison with conventional energy and the
need for a favourable rate of return for the investor (Nasir Alfa and Ackah 2015).
Until renewables are subsidized in much the same way as conventional energy,
this poses as a gargantuan impediment to the deployment and development of
renewables in Ghana.
Moreover, the probability of a heavy bureaucracy in the licensing and permit
provisions under the Act is extraordinary. From section 11 through to 25, the
procedure involved in securing a license to operate in the renewables industry
is dingy (Nasir Alfa and Ackah 2015). For instance, it will take the Energy
Commission nearly 70 days to officially communicate its decision to an applicant.
In an incapacitated country like Ghana, it is best if RE targets can be met with the
minimum bureaucracy to make it attractive to investors.

Conclusion
In conclusion, Ghana, without doubt, possesses remarkable potential, in theory, to
significantly boost local energy production and improve the efficiency of energy
delivery systems to achieve SDG 7. For the anticipatable future, Ghana will need
to institute practical measures to turn this theoretical potential into reality. The
country will have to pursue the goal of providing sustainable energy for all, with
steady developments for the various kinds of renewable energy. Since renewable
energy development could be plagued with its challenges, it is important to pursue
it meticulously to neutralize possible negative fallouts. It is imperative that the
government of Ghana shows commitment to providing sustainable energy for all
by reexamining its overall energy policies to expand subsidies to cover renewable
energy development. Since the Ghanaian consumer requires government subsi-
dies, the government’s only option is to increase subsidies in the renewable energy
sector to ensure fair competition.

Authors’ Contributions
Author interpreted the data, revised the manuscript and approved the final version.
Kuamoah 61

Declaration
Availability of data and materials: All data generated or analyzed during this study are
included in this published article.

Declaration of Conflicting Interests

The author declared no potential conflicts of interest with respect to the research, authorship
and/or publication of this article.

Funding
The author received no financial support for the research, authorship and/or publication of
this article.

Notes
1. Energy Commission of Ghana, National Energy Statistics. (2008–2017) http://ener-
gycom.gov.gh/files/ENERGY_STATISTICS_2018_FINAL.pdf (accessed 24 January
2020).
2. Volta River Authority. Volta River Development Act (Act 46). Ghana, 1961. http://
extwprlegs1.fao.org/docs/pdf/gha41043.pdf (accessed 14 November 2019).
3. Joyce Meng, Ghana’s Development, Miracle or Mirage? http://www.joycemeng.com/
writings/ghana.pdf (accessed 14 November 2019).
4. ISSER. Guide to Electric Power in Ghana. Resource Center for Energy Economics
and Regulation. Legon: Institute of Statistical, Social and Economic Research,
University of Ghana, 2005. https://www.ghanahero.com/Ghana_Hero_Docs/Land_
Use_Planning/Guide_to_Electric_Power_in_Ghana-2005.pdf
5. Ibid.
6. Ministry of Power, Ghana. SREP Investment Plan for Ghana, 2015.
7. Ibid.
8. Energy Commission of Ghana, National Energy Statistics (2005–2014), April 2015
http://energycom.gov.gh/files/Energy%20Statistics_2015.pdf
9. Ibid.
10. Energy Commission of Ghana, National Energy Statistics 2007–2016 http://www.
energycom.gov.gh/files/ENEERGY_STATISTICS_2017_Revised.pdf (accessed 24
January 2020).
11. Ghana Energy Commission, National Energy Statistics (2008–2017) http://www.
energycom.gov.gh/files/ENERGY_STATISTICS_2018_FINAL.pdf (accessed 24
January 2020).
12. Ibid.
13. Ghana Shared Growth and Development Agenda (GSGDA) II (2014–2017), https://
www.un-page.org/files/public/gsgda.pdf (accessed 28 August 2019).
14. Oxford Business Group. Projects in Pipeline to Improve Grid Stability in Ghana’s
Utilities  Sector.  https://oxfordbusinessgroup.com/overview/balance-power-number-
projects-pipeline-are-expected-improve-grid-reliability (accessed 24 January 2020).
15. Ghana Energy Commission. National Energy Statistics—2000–2014.Accra, Ghana:
Ghana Energy Commission, 2015.
16. Forestry Commission of Ghana, http://www.fcghana.org/userfiles/files/Publications/
REGULATING%20CHARCOAL%20PRODUCTION%20IN%20OFF%20
RESERVES%20AREAS.pdf (accessed 24 January 2020).
62 Insight on Africa 12(1)

17. Netherlands Enterprise Agency (RVO.nl), Business Opportunities for Renewable

Energy in Ghana, 2016.
18. Energy Commission. Energy (Supply and Demand) Outlook for Ghana, Final, April,
2016.
19. Blue Energy (BE). Africa’s Largest Solar (PV) Power Plant, 2015. http://www.blueen-
ergyco.com/africas-largest-solar-pv-power-plant/ (accessed on 31 May 2019).
20. Energy Commission. Energy (Supply and Demand), 2016.
21. Energy Commission. Ongoing Initiatives to Accelerate Sustainable Uptake of
Renewable Energy. Presentation at the Renewable Energy Fair, November 2015,
Accra, Ghana. http://energycom.gov.gh/refair/files/Energy-Commission.pdf (accessed
24 January 2020).
22. Ibid.
23. Ghana invests in Tidal Energy. https://www.betterworldsolutions.eu/ghana-invests-in-
tidal-energy/ (accessed 24 January 2020).
24. Netherlands Enterprise Agency. Business Opportunities for Renewable Energy in
Ghana, 2016. https://www.rvo.nl/sites/default/files/2016/05/Business%20opportuni-
ties%20for%20Renewable%20Energy%20in%20Ghana.pdf (accessed 18 September
2019).
25. Sustainable Energy for All Action plan, Ghana, pp. 27, 28. http://energycom.gov.gh/
files/SE4ALLGHANA%20ACTION%20PLAN.pdf (accessed 18 September 2019).
26. Ghana Renewable Energy Master Plan. http://www.energycom.gov.gh/files/
Renewable-Energy-Masterplan-February-2019.pdf (accessed on 14 November 2019).
27. Energy Commission, 2006. Strategic National Energy Plan (SNEP) 2006–2020,
Main Report http://www.energycom.gov.gh/files/snep/MAIN%20REPORT%20
final%20PD.pdf (Accessed 1 June 2019).
28. Ministry of Energy. National Energy Policy (NEP) 2010. http://www.ecowrex.org/
system/files/repository/2010_national-energy-policy_ministry-of-energy.pdf (Accessed
1 June 2019).
29. Energy Commission. Strategic National Energy Plan (SNEP) 2006–2020, Main
Report. p. 9, 2006.
30. Ministry of Energy. National Energy Policy (NEP) 2010.
31. Energy Commission. Energy (Supply and Demand) Outlook for Ghana. www.
energycom.gov.gh/planning/data-center/energy-outlookfor-ghana?Download=76:
energy-outlook-for-ghana-2018 (accessed 2 June 2019).
32. Renewable Energy Act, 2011. (Act 832) of the Parliament of the Republic of Ghana,
2011, RE Act 832.
33. Renewable Energy Act, 2011. Sec 1.
34. Renewable Energy Act, 2011. (Act 832) of the Parliament of the Republic of Ghana,
2011, RE Act 832. Sec 50b.
35. Renewable Energy Act, 2011. Act 152, Sec 9.
36. Renewable Energy Act, 2011. Sec 25.
37. Renewable Energy Act, 2011. Sec 3.

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