Ghana
With a cumulative score of 1.6, Ghana ranks number 40 among emerging markets and number 69 in the global ranking.
- Emerging markets
- Middle East & Africa
1.83 / 5
Power score
1.06 / 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% relative 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 more developed nations. That support could be in the form of finance, technology transfer or capacity building. Emissions reductions will be achieved across sectors including power, industry and agriculture. Fossil fuels, in the form of gas- and oil-fueled power plants, account for the majority of Ghana’s power generation, and a phase-out policy remains out of reach.
Fossil fuel phase-out policy
The country also generates substantial power from large hydro reserves. Ghana has yet to set a net-zero goal or strategy.
Power
Power policy
Ghana’s power sector is unbundled, comprising several generation companies such as Volta River Authority and Cenit Energy, and several transmission and distribution operators. Retail customers must procure energy from one of the three regional distributors. Only bulk customers, approved by the government, are permitted to buy electricity from a wholesale supply license, which is difficult to obtain.
Power policies
Power prices and costs
Ghana continues to experience excess power supply, which is stalling new renewable energy development. The Renewable Energy Act 2020, passed into law in July 2020, says that new renewables capacity is to be procured through competitive bidding and auctions, but this will only occur once additional power supply is required. In addition, 12 power companies with existing signed PPAs have priority to come online before any new auctions. Solar PV is likely to be the preferred technology in any tenders, and the Electricity Company of Ghana (ECG) has been given the right to procure up to 100MW of PV for 2021-25 in five tenders, comprising 20MW per lot.
Power market
Ghana’s ambition to reach 100% electricity access nationwide by 2020 is now extended to 2030, with the aim of extending 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 renegotiation and delay of PPAs and local content rules for solar PV projects. An electricity subsidy was also in place from April to June 2020 due to the Covid-19 pandemic, under which consumers of more than 50kWh monthly were entitled to a 50% rebate on power prices.
Currency of PPAs
Are PPAs 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 subsidies
Does the government influence the wholesale price of fossil fuel (used by thermal power plants) down through subsidies?
Bilateral power contracts
Can a C&I (Commercial and Industrial) customer sign a long-term contract (PPA) for clean energy?
Bilateral power contracts
Can a C&I (Commercial and Industrial) customer sign a long-term contract (PPA) for clean energy?
Fossil fuel taxes
Does the government influence the wholesale price of fossil fuel (used by thermal power plants) up through taxes?
Transport
EV market
Ghana’s government has yet to implement any substantial policy support in this sector. There is a proposed tax incentive on removing the import levy for electric vehicles into Ghana but it is still just a proposal. 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 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 homes, 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 plan
Does the country have a national energy efficiency plan?
Energy performance standards
Are there minimum energy performance standards for buildings?
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.
