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0 As Ghana pushes toward a cleaner energy future, affordability, grid stability, and the everyday realities of Ghanaians must remain central to renewable energy decisions.
Ghana’s energy sector is gradually finding its footing. After years of financial strain, legacy contractual obligations, and periodic concerns about system reliability, the country has managed to keep the lights on while maintaining a relatively diversified energy mix. These gains, though fragile, suggest that the sector is moving in the right direction and deserve cautious optimism.
However, as the government intensifies efforts to expand renewable energy in line with global climate commitments, an important question arises: will the energy transition ease the burden on Ghanaians, or will it quietly deepen existing economic pressures? Renewable energy is essential to Ghana’s long-term sustainability, but if poorly sequenced or inadequately structured, it risks compounding the very challenges it seeks to address.
Progress Worth Acknowledging
Ghana has made notable progress in building a more resilient power system. Domestic gas utilisation from the Jubilee and Sankofa fields has reduced reliance on expensive liquid fuels, improved generation reliability, and moderated some cost pressures. Power supply disruptions have been largely avoided, and the country has not returned to the widespread outages that once undermined economic confidence.
This relative stability has created the policy space for broader discussions on energy transition and renewable integration. Ghana is therefore not approaching renewables from a position of crisis, but from one of cautious consolidation — and that context matters.
The Hidden Costs of Renewable Expansion
Renewable energy is often framed as inherently cheap and universally beneficial. In reality, especially in developing economies, the economics are more complex. Utility-scale solar and wind projects require significant upfront capital investment, grid upgrades, backup capacity, and, in many cases, energy storage solutions. These costs are frequently financed through foreign-currency-denominated contracts and long-term power purchase agreements.
“When such arrangements are poorly designed, they eventually surface in electricity tariffs. Ghana’s experience with excess capacity payments and legacy take-or-pay contracts should serve as a sobering reminder that good intentions do not always translate into good outcomes,” the analyst noted.
Adding renewables without aligning them with realistic demand growth and grid readiness risks repeating past mistakes—this time under a green banner.
Affordability Must Remain Non-Negotiable
For most Ghanaians, energy policy is judged not by installed capacity or emissions targets, but by monthly electricity bills. Households and small businesses are already grappling with rising living costs, currency depreciation, and economic uncertainty. Any energy transition pathway that results in higher tariffs, even temporarily, will face public resistance and undermine trust in policy decisions.
“Energy justice demands that the transition does not disproportionately burden those least able to absorb additional costs. Protecting Ghanaians must therefore be a central design principle of renewable expansion, not an afterthought,” Kwegyir Essel wrote.
Gas as a Strategic Transition Fuel
Ghana’s domestic gas resources should not be viewed as obstacles to renewable energy, but as critical enablers of a smooth transition. Gas-fired power provides flexibility, reliability, and grid stability — qualities that intermittent renewables cannot yet deliver at scale without costly storage systems.
A pragmatic energy strategy recognises that gas and renewables must coexist for decades. Prematurely sidelining gas in favour of rapid renewable expansion could destabilise the power system and increase costs, ultimately hurting consumers. The goal should be complementarity, not substitution driven by ideology.
Threading the Needle: A Smarter Transition Path
What Ghana needs is not a rushed transition, but a carefully sequenced one. This includes:
Scaling renewable capacity in line with actual demand growth
Prioritising grid efficiency and loss reduction before adding new generation
Avoiding foreign-exchange-heavy contracts that expose consumers to currency risks
Ensuring transparent procurement and value-for-money assessments
Delivering tangible benefits to communities hosting renewable projects
Renewable energy must be introduced as a solution to Ghana’s energy challenges, not as an additional source of financial strain.
Conclusion: Progress with Prudence
Ghana’s energy sector is not off course. In many respects, it is more stable today than it has been in years. But stability should not breed complacency, and ambition should not override caution.
“The success of Ghana’s energy transition will be measured not by how quickly renewables are added, but by whether the transition delivers affordable, reliable, and sustainable power for all,” Essel emphasised.
The task ahead is to move forward with renewables — carefully, honestly, and always with Ghanaians at the centre of the transition.
By Kwegyir Essel Isaac
Energy Policy Researcher | MSc Oil & Gas Accounting (Robert Gordon University, UK)
Member, Energy Institute (UK) | Engineers Australia
