The rate of use of renewable energy technologies among MSMEs in Ghana remains low as reliance on conventional power supply from the national grid continues, but the status quo may be attributed to barriers faced with the adoption of renewable energies.
Although considered to be cost-effective, eco-friendly and proven to ensure stable supply of power, the adoption of renewable technologies has not received the needed attention among Micro, Small and Medium Scale Enterprises (MSMEs). MSMEs continue to suffer from erratic power supply and high-end user tariffs, which short-circuits the flow of the production process, thus affecting productivity.
Meanwhile, during such frequent power cuts, some MSMEs resort to the use of self-generating options such as fuel-powered generators and plants to mitigate this challenge. Albeit, this is also not without costs as it increases the operational expenses of MSMEs and adds to environmental challenges, among others.
More so, the global call for rapid transition to the adoption of renewable energies- solar photovoltaic power, wind power, et cetera have been in earnest, especially this year. The urgency to reach Net Zero carbon emissions by 2050 appears to be on track, but for developing economies like Ghana, the move has been slow.
In a survey conducted by the Africa Centre for Energy Policy (ACEP) with stakeholders such as MSMEs, suppliers of renewable energy technologies, government and regulatory institutions, and financial institutions, a set of recommendations were highlighted to fast-track this transition.
Recommendations for the use of Renewable Energy Technologies
Essentially, the report seeks to raise awareness of the economic and environmental benefits of renewable energy adoption among Micro, Medium and Small Scale Entreprises (MSMEs).
The report recommends that relevant regulatory institutions such as the Energy Commission must, among other things, streamline its processes to facilitate easy acquisition and renewal of licenses for renewable energy technology suppliers.
Noting the challenges aforementioned, the Institute for Energy Studies in a statement has also called on the government to lift the ban on renewable energy Power Purchase Agreements (PPAs).
According to the energy think-tank, this will allow for the increase in renewable energy projects and initiatives in Ghana, for purposes of de-carbonization, cost-efficient energy supply, and for economic recovery and growth, post Covid-19. Meanwhile, the ban was imposed on the issuance of new licenses for Wholesale Electricity supply and Permits for Utility Scale Grid on connected solar photovoltaic and wind power plants in 2017.
Apart from the above important call, another essential element that needs consideration is for the government and regulatory institutions to expedite their actions towards the implementation of net metering. This is to help encourage self-generation through the adoption of renewable energy technologies, the report indicates.
More to the point, financial institutions must create more awareness on funding available for renewable energy investments accessible by Micro, Small and Medium-sized entreprises, the report highlights.
Furthermore, the report indicates that there must be an intensified and broader dialogue and engagement among stakeholders to deepen the conversation on renewable energy adoption and the options available for financing.
READ ALSO: Finance Minister to present Mid-Year Review Budget on July 22, 2021
