Full meaning
African Union
Community of Sahel–Saharan States
Common Market for Eastern and Southern Africa
Economic Community of West African States
Foreign direct investment
Gross domestic product
Inclining block tariff(s)
International Monetary Fund
Independent power producer
Kilowatt
Kilowatt hour
Liquid petroleum gas
Megawatt
Pay as you go
Power purchase agreement
Private public partnership
Standard and Poors Global Ratings
Sub-Saharan Africa
Transmission and distribution
Time of use
West African Economic and Monetary Union
United Nations Industrial Development Organization
Value added tax
World Bank Regulatory Indicators for Sustainable Energy
Projection for 2030
2017/2018 reporting year
SSA average includes South Africa. Calculation for SSA average and country data: Total consumption (2016) / total population (2016).
SSA average: 18%
This includes diesel, kerosene and gasoline subsidies.
Rates and tariffs were converted with the average exchange rate to the Euro in April 2020. Exchange rates available from ec.europa.eu
Rates and tariffs were converted with the average exchange rate to the Euro in April 2020. Exchange rates available from ec.europa.eu
Rates and tariffs were converted with the average exchange rate to the Euro in April 2020. Exchange rates available from ec.europa.eu
Energy Sector
Energy Sector
Investment Overview
Ghana’s installed capacity stands at around 4,300 MW and exceeded its peak demand by more than 2,000 MW in 2018. Most of the population has access to electricity with a national electrification rate of 84% while about 1.3 million households remain without electricity. Per capita electricity consumption above 300kWh per year is higher than many other countries in the region yet remains about 10% below the SSA average. Ghana’s electricity tariffs are among the highest on the continent.Residential use currently accounts for just over half of all electricity consumed. The remaining consumption is split roughly halfway between commercial and industrial uses. The country’s target year for universal electrification is 2025. Peak demand is expected to rise to about 3,600 MW by the same year. By 2030, installed capacity is expected to increase by 1,740 MW to more than 6,000 MW (assuming the Power System Master Plan high demand scenario).
Private participation in the energy sector in Ghana is well established. Many IPPs exist and operate in the country, and current planning indicates a strong national focus on both renewables and private investment. The legal and regulatory systems create enabling conditions for private involvement across the energy value chain. Good incentives for renewable energy technology further increases the country’s attractiveness.
The Ghanian Parliament approved the Pwalugu multipurpose dam project in early 2020, and construction was set to begin in April. One component of the project is the installation of two hydroelectric turbines with a combined capacity of 60 MW. On the heels of this project, construction was started on two grid-connected solar power plants with a combined capacity of 17 MW, a first of its kind in the country’s Upper West Region.
Structure
Ghana’s energy sector has enjoyed substantial private sector participation in the past and has several IPPs and non-state run power plants generating electricity. In 2018/2019, they contributed about 36% of the country’s installed capacity. Transmission and distribution of electricity is also open to private market participants.
The government of Ghana has signed numerous PPAs with private generators, many of which include take-or-pay contracts and clauses. Such agreements oblige the government to pay producers for installed capacity whether it is being used or not. The government was set to undertake a three-month consultation process with IPPs, Gas Producers (GPs) and other sector stakeholders in 2019 to renegotiate these contracts as resulting payment obligations have reportedly become unsustainable.
Ghana in 2019 released a Renewable Energy Master Plan which outlines a €5 billion investment plan until 2030. More than 80% of this investment is expected to come from the private sector. Meanwhile, the government intends to continue providing an enabling environment for private participation to grow. Incentives proposed for renewable energy companies include tax reductions and exemption from VAT and import duties for materials, components and machinery for manufacturing and assembly and plants for renewable energy generation.
Volta River Authority (VRA) was responsible for 55% of the electricity generation in 2019, mainly from hydro and thermal sources.
Bui Power Authority was responsible for 8% of generation in 2019, from its single hydro plant on the Volta River.
IPPs covered 36% of generation in 2019. Examples include Ameri, Karpower, Sunon-Asogli and CENIT.
Ghana Grid Company (GRIDCo) is responsible for all transmission, mainly at 161 kV. GRIDCo owns approximately 54 substations, from which it steps voltages down to 34.5 kV and 11 kV to sell to the Electricity Company of Ghana (ECG), Northern Electricity Distribution Company (NEDCo) and Enclave Power Company (EPC).
The Electricity Company Company of Ghana (ECG) is the largest distributor, is wholly owned by the government, and services six regions in Southern Ghana (Ashanti, Central, Eastern, Greater Accra, Volta and Western). In 2019, it had 3.8 million customers in these regions, which covers approximately 90% of retail sales.
The Northern Electricity Distribution Company (NEDCo) distributes electricity to the Northern part of the country (Berong-Ahafo, Northern, Upper East and Upper West regions).
EPC is the only privately-owned electricity distribution company, operating in the Tema Free Zones Enclave in the Greater Accra Region. It serves about 50 industrial customers. The Ghana Grid Company, incorporated in 2006, is a state-owned company responsible for electricity transmission.
The Volta River Authority is a state-owned entity responsible for electricity generation. It also operates the generation assets of state-owned minigrids.
The Bui Power Authority is a state-owned entity responsible for a small share of electricity generation.
The Northern Electricity Distribution Company (NEDCo) is a subsidiary of the VRA. It's responsible for electricity distribution in northern Ghana. This includes the Brong-Ahafo, Northern, Upper East and Upper West regions. It also operates the distribution assets of state-owned minigrids.
The Electricity Company Company of Ghana (ECG) is the official entity responsible for electricity distribution. It awarded a concession to Power Distribution Services (PDS), a private company, to carry out these services on behalf of ECG. Following this, PDS was responsible for electricity distribution in ECG’s areas of service (Greater Accra, Volta, Central, Western and Ashanti regions). However, its concession was revoked in October 2019.
The Renewable Electrification Unit develops on-grid and off-grid renewable energy projects and occasionally invites private participation on an EPC basis. The unit is a sub-entity of the Ministry of Energy. The Ministry of Energy oversees all energy activities.
The Distribution Directorate is responsible for grid extension projects. The directorate is a sub-entity of the Ministry of Energy. Public Utility Regulatory Commission (PURC) is the economic regulator of the energy sector. It is tasked with setting and approving tariffs, monitoring service quality and ensuring consumer protection.
The Energy Commission is the technical regulator of the energy sector. It is tasked with licencing companies in the sector. The Environmental Protection Agency (EPA) implements environmental regulations, such as the waste act.
Ghana Investment Promotion Centre (GIPC) promotes foreign investment and oversees the implementation of incentives such as exemption of import duties.
The Ghana Energy Foundation is a non-profit, private sector entity that promotes renewable energy and energy efficiency. It is involved with awareness raising, capacity building in the public sector, design of clean development mechanism (CDM) projects, and more.
The Ghana Alliance for Clean Cookstoves and Fuels (GHACCO) supports the clean cooking industry in Ghana through awareness creation and fundraising for sector actors.
The Biogas Association of Ghana (BAG) is a network of companies, researchers, NGOs, artisanal associations and development organisations advocating for anaerobic digestion in Ghana. The organisation is involved with awareness raising and capacity building.
The government of Ghana has signed numerous PPAs with private generators, many of which include take-or-pay contracts and clauses. Such agreements oblige the government to pay producers for installed capacity whether it is being used or not. The government was set to undertake a three-month consultation process with IPPs, Gas Producers (GPs) and other sector stakeholders in 2019 to renegotiate these contracts as resulting payment obligations have reportedly become unsustainable.
Ghana in 2019 released a Renewable Energy Master Plan which outlines a €5 billion investment plan until 2030. More than 80% of this investment is expected to come from the private sector. Meanwhile, the government intends to continue providing an enabling environment for private participation to grow. Incentives proposed for renewable energy companies include tax reductions and exemption from VAT and import duties for materials, components and machinery for manufacturing and assembly and plants for renewable energy generation.
Generation:
Volta River Authority (VRA) was responsible for 55% of the electricity generation in 2019, mainly from hydro and thermal sources.
Bui Power Authority was responsible for 8% of generation in 2019, from its single hydro plant on the Volta River.
IPPs covered 36% of generation in 2019. Examples include Ameri, Karpower, Sunon-Asogli and CENIT.
Transmission:
Ghana Grid Company (GRIDCo) is responsible for all transmission, mainly at 161 kV. GRIDCo owns approximately 54 substations, from which it steps voltages down to 34.5 kV and 11 kV to sell to the Electricity Company of Ghana (ECG), Northern Electricity Distribution Company (NEDCo) and Enclave Power Company (EPC).
Distribution:
The Electricity Company Company of Ghana (ECG) is the largest distributor, is wholly owned by the government, and services six regions in Southern Ghana (Ashanti, Central, Eastern, Greater Accra, Volta and Western). In 2019, it had 3.8 million customers in these regions, which covers approximately 90% of retail sales.
The Northern Electricity Distribution Company (NEDCo) distributes electricity to the Northern part of the country (Berong-Ahafo, Northern, Upper East and Upper West regions).
EPC is the only privately-owned electricity distribution company, operating in the Tema Free Zones Enclave in the Greater Accra Region. It serves about 50 industrial customers. The Ghana Grid Company, incorporated in 2006, is a state-owned company responsible for electricity transmission.
The Volta River Authority is a state-owned entity responsible for electricity generation. It also operates the generation assets of state-owned minigrids.
The Bui Power Authority is a state-owned entity responsible for a small share of electricity generation.
The Northern Electricity Distribution Company (NEDCo) is a subsidiary of the VRA. It's responsible for electricity distribution in northern Ghana. This includes the Brong-Ahafo, Northern, Upper East and Upper West regions. It also operates the distribution assets of state-owned minigrids.
The Electricity Company Company of Ghana (ECG) is the official entity responsible for electricity distribution. It awarded a concession to Power Distribution Services (PDS), a private company, to carry out these services on behalf of ECG. Following this, PDS was responsible for electricity distribution in ECG’s areas of service (Greater Accra, Volta, Central, Western and Ashanti regions). However, its concession was revoked in October 2019.
The Renewable Electrification Unit develops on-grid and off-grid renewable energy projects and occasionally invites private participation on an EPC basis. The unit is a sub-entity of the Ministry of Energy. The Ministry of Energy oversees all energy activities.
The Distribution Directorate is responsible for grid extension projects. The directorate is a sub-entity of the Ministry of Energy. Public Utility Regulatory Commission (PURC) is the economic regulator of the energy sector. It is tasked with setting and approving tariffs, monitoring service quality and ensuring consumer protection.
The Energy Commission is the technical regulator of the energy sector. It is tasked with licencing companies in the sector. The Environmental Protection Agency (EPA) implements environmental regulations, such as the waste act.
Ghana Investment Promotion Centre (GIPC) promotes foreign investment and oversees the implementation of incentives such as exemption of import duties.
The Ghana Energy Foundation is a non-profit, private sector entity that promotes renewable energy and energy efficiency. It is involved with awareness raising, capacity building in the public sector, design of clean development mechanism (CDM) projects, and more.
The Ghana Alliance for Clean Cookstoves and Fuels (GHACCO) supports the clean cooking industry in Ghana through awareness creation and fundraising for sector actors.
The Biogas Association of Ghana (BAG) is a network of companies, researchers, NGOs, artisanal associations and development organisations advocating for anaerobic digestion in Ghana. The organisation is involved with awareness raising and capacity building.
Key Actors
Gridfinder Map
Transmission (OSM)
Distribution (predicted)
Electrification targets
Utility/distributor
The Ghana Grid Company, incorporated in 2006, is a state-owned company responsible for electricity transmission.The Volta River Authority is a state-owned entity responsible for electricity generation. It also operates the generation assets of state-owned minigrids.
The Bui Power Authority is a state-owned entity responsible for a small share of electricity generation.
The Northern Electricity Distribution Company (NEDCo) is a subsidiary of the VRA. It's responsible for electricity distribution in northern Ghana. This includes the Brong-Ahafo, Northern, Upper East and Upper West regions. It also operates the distribution assets of state-owned minigrids.
The Electricity Company Company of Ghana (ECG) is the official entity responsible for electricity distribution. It awarded a concession to Power Distribution Services (PDS), a private company, to carry out these services on behalf of ECG. Following this, PDS was responsible for electricity distribution in ECG’s areas of service (Greater Accra, Volta, Central, Western and Ashanti regions). However, its concession was revoked in October 2019.
The Renewable Electrification Unit develops on-grid and off-grid renewable energy projects and occasionally invites private participation on an EPC basis. The unit is a sub-entity of the Ministry of Energy.
Ministry (Ministries)
The Ministry of Energy oversees all energy activities.The Distribution Directorate is responsible for grid extension projects. The directorate is a sub-entity of the Ministry of Energy.
Regulator
Public Utility Regulatory Commission (PURC) is the economic regulator of the energy sector. It is tasked with setting and approving tariffs, monitoring service quality and ensuring consumer protection.The Energy Commission is the technical regulator of the energy sector. It is tasked with licencing companies in the sector.
Others
The Environmental Protection Agency (EPA) implements environmental regulations, such as the waste act.Ghana Investment Promotion Centre (GIPC) promotes foreign investment and oversees the implementation of incentives such as exemption of import duties.
The Ghana Energy Foundation is a non-profit, private sector entity that promotes renewable energy and energy efficiency. It is involved with awareness raising, capacity building in the public sector, design of clean development mechanism (CDM) projects, and more.
The Ghana Alliance for Clean Cookstoves and Fuels (GHACCO) supports the clean cooking industry in Ghana through awareness creation and fundraising for sector actors.
The Biogas Association of Ghana (BAG) is a network of companies, researchers, NGOs, artisanal associations and development organisations advocating for anaerobic digestion in Ghana. The organisation is involved with awareness raising and capacity building.
Tariffs
Tariff components
Consumption Charge (€/ kWh)
€0.15
Service Charge (€/month):
Lifeline customers: €0.36
Other residential customers: €1.27
Non-residential customers: €2.12
Special Load Tariff LV: €8.47
Other residential customers: €1.27
Non-residential customers: €2.12
Special Load Tariff LV: €8.47
Max Demand Charge (€/kVA/month) (listed under "alternative rates"):
Special Load Tariff LV: €11.85
Tax (%):
12.5% VAT & 2.5% health levy (lifeline customers exempted)
Consumption Charge (€/ kWh):
€0.13
Service Charge (€/month):
Special load tariff MV: €11.85
Max Demand Charge ($/kVA/month) (listed under "alternative rates"):
Special Load Tariff MV: €10.16
Tax (%):
12.5% VAT & 2.5% health levy
Consumption Charge (€/ kWh):
€0.23
Service Charge (€/month):
Special load tariff HV: €11.85
Mining HV: €11.85
Mining HV: €11.85
Max Demand Charge (€/kVA/month) (listed under "alternative rates"):
Special Load Tariff HV: €10.16
Mining HV: €11.85
Mining HV: €11.85
Tax (%):
12.5% VAT & 2.5% health levy
Average retail tariff by consumption category
Average LV
15.2
Residential (average of IBTs)
11.8
Commercial & Industrial (average of IBTs)
16.1
Special Load Tariff
17.8
Alternative LV Special Load Tariff
15.2
Average MV
12.6
Special MV Load Tariff
13.5
Alternative Special MV Load Tariff
11.7
Average HV
22.6
Special Load Tariff HV
14.2
Alternative HV Special Load Tariff
10.8
Mining HV
45
Alternative Mining HV Tariff
20.6
Is the retail electricity tariff subject to periodic review?
NoThe Public Utilities Regulatory Commission (PURC) is mandated to review all applications for tariff adjustments and make a decision within 30 days of receiving the required particulars. PURC is currently undergoing its 2019-2020 Major Tariff Review and has adopted a Two-Year Multi Tariff Regulatory Control Period to monitor the effects this has nationally.
Quality standards
The Ghana Standards Authority (GSA) develops all standards for energy technologies. By the end of 2019, standards for solar technologies, inverters, liquid biofuels, improved cookstoves and some electrical appliances were in force. Examples include GS 536:2002 (Electrical Generating Systems - Standardized Requirement for the Application of Photovoltaic Systems in Ghana) and GS 1112:2017 (Improved Biomass Cookstoves - Performance Requirements). The country is exploring adopting relevant ISO clean cooking standards, as well as developing a strategy to report, certify, or label stoves based on their performance, and enforce these standards using a system that is harmonised with the international reporting framework.
Electrification rates
% National electrification rate
2018
% Rural electrification rate
2018
% Urban electrification rate
2018
Total installed capacity (MW)
2030
6,026.50
2018
4,286.50
Peak demand (MW)
2025
3597
2018
2525
Electricity consumption by sector (MWh), 2017
Commercial & Public Services
2826.09
Residential
6198.79
Industrial
3070.32
Per capita electricity consumption (kWh/person)
2016
328.73
SSA average (2016)
365.6
Electricity and petroleum product subsidies (% of GDP)
Electricity subsidies, 2017No data
N/A
Petroleum product subsidies, 2017
1.46%
€757,720,200.00