Ghana
With a cumulative score of 1.51, Ghana ranks number 49 among emerging markets and number 78 in the global ranking.
- Emerging markets
- Middle East & Africa
1.75 / 5
Power score
0.93 / 5
Transport score
Buildings score
Only 56 markets (28 emerging markets) are scored on the Buildings sector. See the full list on the methodology page.
Low-carbon strategy
Net-zero goal and strategy
Ghana aims to reduce its greenhouse gas emissions by 15% compared to business-as-usual by 2030.
Nationally Determined Contributions (NDC)
The country will aim for an additional 30% reduction provided external support is made available from developed nations. That support could be in the form of finance, technology transfer or capacity building. Emissions reductions are to be achieved across sectors including power, industry, and agriculture. Fossil fuels, in the form of gas- and oil-fueled power plants, account for most of Ghana’s power generation, and a phase-out policy remains out of reach.
Fossil fuel phase-out policy
Ghana is highly reliant on thermal power generation and has yet to formulate a fossil fuel phase-out policy.
Power
Power policy
Ghana’s power sector is unbundled. It comprises several generation companies such as Volta River Authority and Bui Power Authority, and multiple transmission and distribution operators. Retail customers must procure energy from their regional distributor. Only bulk customers with a government-approved wholesale supply license – which is difficult to obtain – are permitted to purchase energy from the wholesale market.
Power policies
Power prices and costs
Ghana continues to have an excess supply of power, which is stalling new renewable energy development. The Renewable Energy Act of 2020 says that new renewables capacity is to be procured through competitive bidding and auctions, but this will only happen when additional power supply is required. In addition, 12 power companies with existing signed PPAs have priority before any new auctions. Solar PV is likely to be the preferred technology in any tenders. The Bui Power Authority (BPA) has been given the right to procure up to 100MW of PV for 2021-25 in five tenders of 20MW each.
Power market
Ghana’s ambition to reach 100% electricity access nationwide by 2020 is now extended to 2030. It aims to provide grid access to larger communities and distributed PV systems to remote or island communities.
Installed Capacity (in MW)
Electricity Generation (in GWh)
Utility privatisation
Which segments of the power sector are open to private participation?
Wholesale power market
Does the country have a wholesale power market?
Doing business and barriers
Barriers to doing business in Ghana’s power sector include excess power supply, the indebtedness of utility ECG, previous re-negotiation and delay of PPAs and local content rules for solar PV projects.
Currency of PPAs
Are PPAs (eg. corporate PPAs and all other types) signed in or indexed to U.S. Dollars or Euro?
Bilateral power contracts
Can a C&I (Commercial and Industrial) customer sign a long-term contract (PPA) for clean energy?
Fossil fuel price distortions - Subsidies
Does the government influence the wholesale price of fossil fuel (used by thermal power plants) down through subsidies?
Fossil fuel price distortions - Taxes
Does the government influence the wholesale price of fossil fuel (used by thermal power plants) up through taxes or carbon prices?
Transport
EV market
Ghana’s government has yet to implement any substantial policy support in this sector. There is a proposal to do away with the import levy on electric vehicles. Ghana’s automotive market is made up of imported new and secondhand cars from abroad, as the country has little domestic automotive manufacturing and no widespread rollout of EV charge points. In early 2020, new fuel standards were imposed by the Economic Community of West African States (Ecowas) in the region, placing limits on the age of vehicles that can be imported into Ghana in order to improve fuel efficiency. There is also a Drive Electric Initiative, which promotes EV adoption as a way to use up excess power supply, but no concrete policy measures have yet been launched to accompany it.
EV policy
The government has yet to implement any substantial policy support in the sector and the EV market remains at an early stage.
Transport policies
Fuel economy standards
Does the country have a fuel economy standard in place?
Buildings
Buildings market
Ghana has little to no space-heating requirements due to its tropical climate but use of charcoal and wood for cooking is widespread in homes. Air conditioning is installed in only a minority of households, mostly in urban areas. Energy-efficiency standards are in place for air conditioners, refrigerators, and lighting. There is no evidence that regulations around energy-efficient building design currently exist.
Energy efficiency policy
Does the country have a national energy efficiency plan?
Energy efficiency policy
Are there minimum energy performance standards for buildings?
Energy efficiency incentives
Is there access to loans or grants for energy efficiency measures (i.e. Wall or loft insulation or double glazing)?
Buildings policy
The government has yet to implement any substantive policy support in this sector and the low-carbon heat market remains at an early stage.
Buildings policies
Additional insights
from BNEF
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