Power from renewable sources is projected to add just 0.78 per cent to total power supply in 2022, representing 184.38 GWh of renewable energy in cumulative terms.
Compared to the projected renewable energy generation of 152.34 GWh in 2021, this new projection represents a 21 per cent increase from that of the previous year, albeit only 52.76 GWh (97.64 GWh for 2021 projection) was generated from solar energy alone as part of the total energy mix in 2021.
This is against the backdrop that the government has targeted achieving 10 per cent of renewable energy in the country’s energy mix by 2030, and thus, at such a pace (still less than 1% since 2010), it brings to question the country’s capacity to be able to reach the 2030 target.
A breakdown of power generation for 2022 shows that projections for 2022 show that hydro generation is expected to reach 7,394.15 GWh (comprising of 5,513.3 GWh- Akosombo GS, 986.7 GWh and 894 GWh from Bui GS). Projected thermal energy generation is 16,000.04GWh and 184.38 GWh from renewable energy. Cumulatively, power generation for the year is projected to reach 23,578.57 GWh in 2022.
Despite the slow progress in Ghana’s renewable energy drive, GlobalData, a global analytics company, has projected that by 2035, Ghana’s renewable energy capacity will jump to 1,969.50 MW at a compound annual growth rate (CAGR) of 19.1 per cent as energy demand increases by 10 per cent per annum. Ghana’s installed renewable capacity stood at 170.1 MW in 2021, having increased from 2.8 MW in 2010 at a CAGR of 45.1 per cent, according to GlobalData.
Investments Needed to Drive Renewable Energies
This projection, practically ambitious, would require huge investments into Ghana’s renewable energy sources to become attainable. The government has been actively encouraging the use of renewable sources for energy generation, even rolling out national consultations across regions to develop a national policy for energy transition. But, there is still considerable amount of efforts needed to make substantial progress towards Ghana’s renewable energies.
“Ghana requires huge investment to drive the power industry’s transformation or local manufacturers and assemblers of renewable energy technology are urgently needed if the country is to add more renewable sources.”
Attaurrahman Ojindaram Saibasan, Senior Power Analyst, GlobalData
Ghana’s sentiments about the energy transition- adoption of renewable energies and the push to abandon its fossil fuel asssets, clearly captures in a nutshell, how the country’s plan looks like.
Dr. Amin Adam, the Deputy Energy Minister, highlighting the country’s drive towards the transition is cited to have said:
“The energy transition is an important issue for us that is why the Energy Minister set up this committee (National Energy Transition Committee-NETC) to develop Ghana’s transition and policy strategies so that we can transition at our own pace.
“Because it is like we are being rushed into it. Most of the developed countries that have benefited from fossil fuels, have developed their countries and their economy based on the resources. We have just discovered these resources and we are asked to transition.”
Deputy Energy Minister
In October 2021, Head of Research and Business Unit at the Ghana Investment Promotion Centre (GIPC), Eugenia Okyere, said investments in Ghana’s renewable energy sector over the last decade reached $2 billion. She made these remarks during the 7th Ghana Renewable Energy Fair themed ‘Removing Barriers to Renewable Energy Development in Ghana’ held by the Energy Commission. At the time, she noted that the investments were in only 29 renewable energy projects spread across the country with some projects yet to commence.
In February 2022, Ghana became a beneficiary with some other African economies of an AfDB Energy Access Finance Framework worth $164 million to promote decentralized renewable energies.
Investment in the sector is very critical, if Ghana seeks to meet the 10% target of renewable energy in the energy mix by 2030, as well as contribute to improving energy access, which is currently at 85.13%
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