Infrastructure - Energy

The energy sector is the lifeline in the development of any nation. This belief informed the decision to undertake the construction of the first hydroelectric (Akosombo) dam in 1965, which continues to be an important investment in Ghana’s economic history. Over the years with the increased demand by power users for greater security and reliability other sources of power – thermal, solar and lately windmills, - have been added to the generation mix. The thrust of Government policy in the energy sector is to push for a significant increase in its energy resources to become a net exporter of both power and fuel.

Ghana’s power supply sources are from hydroelectricity, thermal fueled by crude oil, natural gas and diesel, solar and also imports from La Cote D’Ivoire. Ghana also exports power to Togo, Benin and Burkina Faso. Ongoing grid expansions would allow further exports to other neighboring countries in the sub region.

Ghana has a vibrant power generation terrain with players from both the public and private sectors. Reforms in the Power Sector in the 1980’s gradually removed barriers and created a level playing field for the participation of independent power producers in an area which hitherto had only public sector participants.

The total installed capacity for existing plants in Ghana is 4,420MW consisting  about of Hydro 36%, Thermal 64% and Solar less than 1%. Ghana's policy objective is to increase installed generation capacity from the existing capacity to 5,000MW by 2020.

The government’s energy policy is embodied in the Strategic National Energy Plan 2006-2020. The policy aims to develop a sound energy market that would provide sufficient, viable and efficient energy services for Ghana’s economic development through the formulation of a comprehensive plan that will identify the optimal path for the development, utilization and efficient management of energy resources available to the country.

Ghana is well endowed with renewable energy resources which are yet to be fully exploited. These include biomass, hydropower potentials, wind potentials along the coast and high solar irradiation. Renewable energy currently contributes 1% to the energy mix. The aim is to achieve 10% renewable in the mix by 2020.

Incentives to the sector may apply under the following provisions:

  • There is customs duty exemption for plant, machinery and equipment imported for investment purposes
  • Companies enjoy a corporate tax rate of 25%
  • Location incentives (between 25 and 50%) for industries located in and outside the regional capitals as applicable.

Investment Opportunities in the sector include;

  • Provision of solar energy systems to schools in off-grid communities.
  • Provision off-grid communities with high or grid-quality electricity in order to endure 100 percent universal electrification by 2020.

 

 

Energy in Ghana

Get Energy Insights

...into investment projects in the energy sector.

Contact:

The Hon. Minister
Ministry of Energy
P.O. Box T40 Stadium Post Office
Accra – Ghana

Tel: +233 302 667 151
Fax: +233 302 668 262

E-mail: energy1@ghana.com