Powering a Nation — from turbine to terminal.

Overview of The Ghana Power Sector

POWER GENERATION

Ghana’s power supply sources are from hydroelectricity, thermal fueled by crude oil, natural gas and diesel, solar and also imports from La Cote D’Ivoire. Ghana also exports power to Togo, Benin and Burkina Faso. Ongoing grid expansions would allow further exports to other neighboring countries in the sub region.

Ghana has a vibrant power generation terrain with players from both the public and private sectors. Reforms in the Power Sector in the 1980’s gradually removed barriers and created a level playing field for the participation of independent power producers in an area which hitherto had only public sector participants.

The total installed capacity for existing plants in Ghana is 4,132MW consisting of Hydro 38%, Thermal 61% and Solar less than 1%

DISTRIBUTION

Electricity distribution in Ghana is carried out by three main distribution utilities, two state-owned and one private sector operated.

The Electricity Company of Ghana (ECG), the largest distribution company, is a limited liability company wholly owned by the government of Ghana. ECG is currently responsible for distribution and supply of electricity in six political/administrative regions in southern Ghana namely, Ashanti, Central, Eastern, Greater Accra, Volta and Western Region.

Prior to reforms in Ghana’s power sector in 1980’s, ECG was responsible for the distribution of power in the whole of the country. In 1987, the Northern Electricity Department (NED) of the VRA was charged with the distribution of electricity to Brong-Ahafo, Northern, Upper East and Upper West regions of Ghana and started with an initial load of about 10MW with customer population of about 12,000. The Network has grown extensively over the years mainly as a result of the various electrification programs of government. NEDCo has since 2012 been established as a subsidiary of VRA.

Enclave power company Ltd (EPC) is the only privately-owned electricity distribution company operating in the Tema Free Zones Enclave in the Greater Accra Region. EPC has about 50 industrial customer based. There is effort to expand private participation in distribution and enhance supply reliability through the implementation of the compact II with the millennium challenge corporation (MCC) of the United States of America.

ACCESS TO ELECTRICITY

The National Electrification Scheme (NES) was instituted in 1989 with the policy objective of ensuring that all parts of the country are provided with reliable electricity supply by 2020. At the commencement of the NES in 1990, accessibility to electricity supply was estimated at about 20%. Ghana has since achieved an enviable record of having the highest electricity access rate in Sub-Saharan Africa. The national average access rate is currently at 83.24% and to attain universal access by 2020.

05 — Renewable Energy

Overview of The Ghana Renewable Energy and Green Transition Sector

The Renewable Energy and Green Transition Directorate drives the development and promotion of renewable energy, clean cooking, electric mobility, energy transition initiatives, and emerging clean technologies to advance Ghana’s sustainable development and climate goals.  The Directorate leads policy formulation, programme implementation, investment promotion, and stakeholder coordination across solar, wind, hydropower, mini-grids, solar home systems, clean cooking, electric vehicle charging infrastructure, the water–energy–food nexus, and the national nuclear power programme.

Ghana’s renewable energy sector is one of the fastest‑growing segments of the national energy industry and a central pillar of the country’s energy transition agenda.  It encompasses utility‑scale renewable projects, distributed generation systems, off‑grid electrification solutions, and sustainable energy applications that support economic growth, energy security, climate resilience, and universal access to electricity.

The country has substantial renewable energy resources, including solar, wind, hydropower, biomass, and waste‑to‑energy potential.  These resources are being harnessed through public and private sector investments to diversify the energy mix, reduce dependence on fossil fuels, and contribute to national and global climate objectives. Renewable energy currently contributes 5% to the installed capacity including off-grid and distributed renewable energy capacity. The aim is to achieve 10% renewable in the mix by 2020.

The renewable energy Act (Act 832), passed in 2011, as amended 2020, Act 1045 seeks to create the enabling environment for attracting private sector investment in the renewable energy sector to ensure the achievement of the 10% policy target. The renewable energy master plan has been revised to reflect the strategic direction of the Ministry in response to needs of the industry.

Utility-Scale Renewable Energy Development

Ghana is accelerating the deployment of utility-scale renewable energy projects, particularly solar photovoltaic (PV) power plants and battery energy storage systems, while also pursuing the development of wind power projects, waste-to-energy, and small to medium hydropower installations. These projects are being developed through competitive procurement mechanisms, public-private partnerships, and independent power producer arrangements to increase clean energy generation capacity and enhance long-term energy security.

The Ministry continues to create an enabling environment for private sector participation through policy reforms, regulatory incentives, and strategic investments in grid infrastructure to facilitate the integration of renewable energy into the national electricity network.

Distributed and Captive Renewable Energy Systems

The sector has witnessed significant growth in rooftop solar PV installations across residential, commercial, industrial, and public sector facilities. Businesses are increasingly adopting renewable energy systems to reduce operating costs, improve energy reliability, and meet sustainability targets. Public institutions are similarly deploying solar PV systems to reduce electricity expenditure and demonstrate leadership in clean energy adoption. The Ministry under the Scaling-up Renewable Energy Program (SREP) with support from the African Development Bank (AfDB), Climate Investment Fund (CIF), Swiss State Secretariat for Economic Affairs (SECO) has rolled out the Net-Metering Photovoltaic (NMPV) project to further increase the uptake of distributed renewable energy solutions in the country.

Off-Grid Electrification and Energy Access

Renewable energy plays a critical role in extending electricity access to remote, island, and lakeside communities where conventional grid extension may not be economically viable. Through the deployment of mini-grids, solar home systems, and standalone renewable energy solutions, thousands of households, schools, health facilities, and productive enterprises are gaining access to reliable and sustainable electricity services.

These interventions contribute significantly to rural development, poverty reduction, improved healthcare delivery, enhanced educational outcomes, and local economic growth. The Ministry under SREP is currently implementing 35 mini grids to serve 47 islands and lakeside communities and connect more than 70,000 population. As part of the last mile electrification initiative, the Ministry will deliver approximately 200 additional mini grids over the next five years through its public sector-led policy intervention.

Productive Uses of Renewable Energy and Public Infrastructure

The Ministry is collaborating with stakeholders to promote productive use of renewable energy through its water-energy-food nexus program. This initiative aims to increase the adoption of renewable energy technologies in strategic sectors of the economy. The Directorate is implementing innovative water-energy-food nexus initiatives to strengthen water security, enhance agricultural productivity, and improve rural livelihoods. As part of these efforts, the Ministry is leveraging the Renewable Energy and Green Transition Fund to invest in the development of water treatment and supply infrastructure to expand access to safe water for domestic consumption, irrigation, and productive economic activities.

To support climate-smart agriculture and improve food security, solar energy is being deployed to modernize major irrigation schemes across the country, including the rehabilitation and solarization of key facilities such as the Dawhenya Irrigation Scheme. The use of solar-powered irrigation systems is reducing energy costs, improving the reliability of water supply for farming, and enhancing the sustainability of agricultural operations.

Nuclear Energy Development

Ghana is pursuing the integration of nuclear power into its long-term energy mix as part of a broader strategy to ensure energy security, support industrialization, and provide reliable low-carbon electricity for future generations. Nuclear power is expected to complement the country’s existing energy resources by providing stable baseload power that is independent of weather conditions and capable of supporting a rapidly growing economy.

Over the years, the Ministry through the Renewable Energy and Green Transition Directorate has made significant progress in implementing the International Atomic Energy Agency (IAEA) Milestones Approach for the development of nuclear infrastructure. The country has successfully completed Phase 1 of the programme and has advanced into Phase 2, which focuses on preparing the necessary infrastructure, institutions, regulatory systems, human resource capacity, and financing arrangements required for a national nuclear power programme.

Government continues to work closely with the International Atomic Energy Agency (IAEA), international partners, research institutions, academia, and industry stakeholders to strengthen national capacity and ensure that the programme adheres to the highest standards of safety, security, safeguards, and environmental protection. The development of nuclear power forms an important component of Ghana’s long-term net-zero aspirations and energy transition agenda.

Clean Cooking Programme

The Ministry recognizes access to clean cooking solutions as a critical component of sustainable development, public health improvement, environmental protection, and climate change mitigation. Despite significant progress in electricity access, a large proportion of households continue to rely on traditional biomass fuels and inefficient cooking technologies.

To accelerate progress towards Sustainable Development Goal 7 (SDG 7), which seeks to ensure access to affordable, reliable, sustainable, and modern energy for all, the Ministry is implementing an ambitious national clean cooking programme aimed at achieving universal access to clean cooking solutions by 2030.

The programme promotes the adoption of improved cookstoves, clean fuels, and modern cooking technologies to reduce indoor air pollution, enhance household health outcomes, improve livelihood resilience, and reduce pressure on forests and natural ecosystems.

Major initiatives include the deployment of 500,000 improved cookstoves through a partnership involving the Climate Change Centre and East West Power (EWP) of the Republic of Korea. In addition, Ministry has signed a new partnership with Better Planet to facilitate the deployment of one million improved cookstoves under a carbon credit financing framework. Furthermore, the African Development Bank is supporting the program expand access in off-grid islands and lakeside communities. These initiatives are expected to contribute significantly to emissions reduction, job creation, improved public health, and sustainable household energy access.

Through these interventions, the Ministry is positioning Ghana as a regional leader in leveraging carbon markets and climate finance to support large-scale clean cooking adoption and accelerate progress towards national climate and development objectives.

Electric Mobility Development-Accelerating the Transition to Electric Mobility

Ghana is actively promoting the development of an electric mobility ecosystem as part of efforts to modernize the transport sector, reduce greenhouse gas emissions, improve urban air quality, and enhance national energy security.

The transition to electric mobility presents a significant opportunity to for the development of robust, green and sustainable energy charging infrastructure, while creating new avenues for industrial development, innovation, skills development, and green employment. The Ministry is working with the private sector, development partners, financial institutions, regulatory agencies and research organizations to create an enabling environment for the adoption of electric vehicles (EVs), charging infrastructure development, local assembly opportunities, battery value chains development and end-of-life management ecosystems.

Policy and regulatory measures are being developed to encourage investment in electric mobility, facilitate market growth, and promote innovation across the transport sector. Efforts are also underway to explore the integration of renewable energy into EV charging systems to ensure that transport electrification contributes meaningfully to Ghana’s green transition objectives.

Investment Opportunities

Ghana’s renewable energy and green transition sector presents substantial investment opportunities across utility-scale solar and wind generation, small-medium hydropower, waste-to-energy, energy storage systems, mini-grids, electric mobility infrastructure, renewable energy manufacturing and assembly, energy efficiency services, productive uses of energy, water-energy-food nexus, and climate finance initiatives. The Ministry remains committed to fostering a transparent, predictable, and investment-friendly environment that supports innovation, technology transfer, local content development, and sustainable economic growth. The revised Renewable Energy Master Plan (r-REMP), Powering Ghana’s Green Transition: Action Plan and Investment present key opportunities for investment in the sector.