Ghana has developed an ambitious energy transition framework, with the ultimate goal of fully transitioning from fossil fuels to renewable energy by 2070.
However, in a promising development, the government recently committed to achieving this goal by 2060—ten years ahead of schedule. This accelerated timeline reflects the government’s recognition of the urgency of the global energy shift and its potential benefits for the country.
Ghana is in a strong position to become the leading energy hub in West Africa, particularly in renewable energy, according to Dr. Steve Manteaw, Co-Chair of the Ghana Extractive Industry Transparency Initiative (GHEITI).
Speaking at a recent GHEITI Technical Workshop organized by the GHEITI Secretariat under the Ministry of Finance, Dr. Manteaw highlighted the country’s abundant critical minerals necessary for renewable energy generation as a key advantage in its energy transition efforts.
“As a country we are better placed to take advantage of opportunities in the renewable energy sector by seeking investments into these critical minerals that are needed for energy transition.
“The oil and gas are useful, but again, we need to also position ourselves to be able to attract investments into the renewable energy sector.”
Dr. Steve Manteaw, Co-Chair of the Ghana Extractive Industry Transparency Initiative (GHEITI)
Ghana, he explained, holds significant reserves of minerals such as lithium, graphite, bauxite, silica sand, manganese, iron ore, and steel—all of which are crucial for the production and development of renewable energy technologies. “Ghana should be pragmatic about its energy transition agenda,” Dr. Manteaw advised, urging a balanced approach that goes beyond reliance on oil and gas.
His remarks came in response to a question about how the country could better attract investment in renewable energy, especially considering the declining oil production and the global push toward cleaner energy alternatives.
For the past four years, Ghana’s oil production has been steadily decreasing due to a lack of investment in new exploration projects. This decline, coupled with the global transition away from fossil fuels, presents a pivotal moment for the nation to reconsider its energy priorities.
According to Dr. Manteaw, Ghana’s energy strategy must adapt if the country is to fully capitalize on the wealth of resources available for renewable energy development.
Dr. Manteaw noted that the decline in oil and gas investments is partially due to the global movement towards renewable energy, which has led many international investors, particularly from the European Union (EU), to pull back from fossil fuel-related projects.
“Ghana, being a fossil fuel-driven country, will not be able to attract much investment from the EU for fossil fuel projects,” he explained.
Leveraging EU Funding Opportunities
In light of these challenges, Dr. Manteaw encouraged Ghana to explore alternative funding sources for renewable energy projects, particularly from the EU. The European Union has been at the forefront of the global push for clean energy, implementing programs such as the Taxonomy Programme, which prioritizes investments in renewable energy over fossil fuels.
Due to the EU’s shift in investment focus, Ghana could potentially tap into the EU Stock Market to raise financial resources for renewable energy development. By aligning itself with EU climate goals, Ghana could position itself as a favorable destination for clean energy investments, Dr. Manteaw noted.
The country’s rich deposits of minerals essential for renewable energy production, such as lithium and graphite, offer a distinct advantage that could attract international investors seeking to support the global clean energy transition.
In addition to seeking foreign investment, Ghana is also taking steps to develop its renewable energy infrastructure using locally sourced materials.
Dr. Manteaw praised discussions between the government and GIHOC Distilleries Company Ltd to revamp the defunct Aboso Glass Factory to produce solar panels. The factory, once operational, would utilize locally mined silica sand to manufacture solar panels for domestic solar power generation.
“Revamping the Aboso Glass Factory for solar panel production using silica sand is a laudable initiative,” Dr. Manteaw remarked, emphasizing the importance of capitalizing on Ghana’s vast natural resources for renewable energy.
Ghana’s government, through its energy transition framework, has already laid the groundwork for a shift from fossil fuels to renewable energy by 2060. However, to fully realize this vision, the country must actively pursue investment opportunities, particularly in the renewable energy sector, both domestically and internationally.
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