Governmental Framework

The main goals in the development agenda for Ghana are to achieve macro-economic stability as well as becoming a middle income country by 2020. To achieve this, the energy supply has to increase significantly and the energy infrastructure has to be expanded. This should be done in a sustainable way. Therefore several policies and acts related to the development of the electricity sector have been implemented. The Ghana National Energy Policy aims to provide universal access to energy for all in 2016. The National Electrification Scheme aims to extend reliable electricity supply to all communities. Furthermore, the Renewable Energy Act has a target of 10% renewable energy coverage of total electricity demand.

Ministry of Energy (MoE)

The MoE is in charge of formulating, implementing, monitoring and evaluating policies, programmes, and projects in the energy sector, such as the National Electrification Scheme, which aims to extend electricity supply to all parts of the country, as well as providing support for research and development in the field of renewable energy.

http://www.energymin.gov.gh/

National Petroleum Authority (NPA)

The NPA has the task of licensing operators in the petroleum sector, and setting and enforcing technical standards. It is also in charge of exploration development and oil and gas production, and sets the prices of biofuel and biofuel blends.

http://npa.gov.gh/

Volta River Authority (VRA), BUI Power Authority (BPA)

VRA and BPA own and operate hydro and thermal plants and supply the generated electricity to transmission and distribution companies for industrial, commercial and domestic use. VRA’s non-energy-related activities include developing Lake Volta for fishing and transportation, and managing lakeside areas with a view to enhancing health and wellbeing in nearby communities. The VRA has adopted its own renewable energy policy with the goal of installing 10 MW of solar power and 100-150 MW of wind farm capacity under the company’s renewable energy programme.

http://www.vra.com/
http://www.buipower.com/

Other governmental agencies operating in the energy sector

The Environmental Protection Agency (EPA) is the main government agency dealing with environmental issues. It is in charge of ensuring that development projects comply with impact assessment procedures and regulations. The authority also issues environmental permits, which are required before power generation companies can begin operations in Ghana.

http://www.epa.gov.gh/

Ghana Investment Promotion Centre (GIPC) is a government agency that facilitates investments in all sectors of the economy, with the exception of petroleum and mining. This means that GIPC handles all investments in renewable energy.

http://www.gipcghana.com/

Ghana National Energy Policy 2010

In the Ghana National Energy Policy from 2010, the Government set a target of increasing installed capacity to 5,000 MW by 2016 and providing universal access to energy for all inhabitants by 2016. These goals were originally set for 2020, but were revised due to the increased number of public and private projects in the pipeline. Another goal is increasing private-sector participation in the energy sector, as well as minimising the environmental impacts of energy supply and consumption through increased production and use of renewable energy. The policy covers these targets as well as those in the power and renewable energy sub-sectors. In terms of the power sub-sector, the policy mainly deals with strengthening institutional and human-resource capacity, and also with the regulatory reforms required to establish a competitive electricity market. As far as the renewable energy sub-sector is concerned, the policies support the Renewable Energy Act by introducing fiscal incentives to promote the development and use of renewable energy.

Renewable Energy Act 2011

The Renewable Energy Act states that renewables should cover 10% of electricity demand by 2020. The act provides for the legal and regulatory framework required to promote the supply of energy from renewable sources and has the full support of all political parties. The act was adopted in order to increase Ghana’s renewable energy capacity and deals with the following: creating a conducive investment climate, enhancing public education, developing indigenous technology capacity, and regulating the production and supply of wood fuel and biofuel.

The act also sets out the regulatory framework, as well as legal and fiscal incentives to promote the use of renewable energy. It tasks renewable energy agencies with performing a detailed assessment of resources with power-generation potential, and provides support for research into, and the development and demonstration of economically viable renewable energy technology options for grid-connected, mini-grid and off-grid applications.

The act also deals with the feed-in-tariff (FIT) scheme, which includes a renewable energy purchase obligation, the FIT rates and connections to the transmission and distribution systems. The tariffs below have been increased by over 90% in the last three years in an effort to enable utilities to recover their costs without government subsidies.

National Electrification Scheme (NES), 1990-2020

The National Electrification Scheme was initiated in 1990 as a 30-year plan and is being implemented by the MoE. The main aim of the NES is to extend reliable electricity supply to all communities over this period. The objectives are to increase the standard of living, especially for people in rural areas; to enhance the country’s socio-economic development, thereby alleviating poverty, especially in rural areas; to create small to medium-scale industries in rural areas; to enhance activities in sectors such as agriculture, education, health and tourism; and to reduce urban migration by creating jobs in rural areas.

The scheme is supported by two programmes:

• The Self-Help Electrification Programme (SHEP) was set up for communities within 20km of existing 11kV and 33kV grid lines.
• A specific strategy for remote off-grid and island communities, which provides financial support for initial investments in PV products. It also promotes research and development in the field of renewable energy, as well as rural renewable systems including solar, wind, biogas, and small and mini hydro. Research is financed by the Energy Fund, a national support mechanism funded by a fixed levy of 0.06$/litre on gasoline, kerosene and diesel fuel products produced in Ghana.

Ghana Energy Development and Access Project (GEDAP) 2007

The project is being implemented by the Government along with several international institutions, including the World Bank, the African Development Bank and the Economic Cooperation and Development Division of the Swiss State Secretariat for Economic Affairs (SECO). The objectives of the project are to improve operational efficiency in the distribution system and increase electricity access using multiple electrification and service delivery schemes. The project also includes an environmental objective of driving forward the transition to a low-carbon economy by deploying renewable energy in order to expand electricity access, provided it is economically justified.

Strategic National Energy Plan (SNEP), 2006-2020

The main goal of this plan is to contribute to the development of the energy market by providing viable and efficient energy services to the extent required for economic development. In addition, the plan targets a 10% share of the energy mix for renewables by 2020, and a 30% electrification rate in rural areas.

Further regulations

The ECOWAS Renewable Energy Policy was adopted with the aim that renewables should make up 19% of installed capacity and 12% of total generation in the region by 2030, excluding large hydro. The policy will achieve these targets by securing consistency between regional and national legal, institutional and regulatory renewable energy policy frameworks. Each member state is expected to have a national renewable energy policy with an associated implementation strategy and a five-year rolling action plan. The policy is also geared towards boosting awareness and promoting knowledge management through the ECOWAS Observatory for Renewable Energy and Energy Efficiency, part of the ECOWAS Centre for Renewable Energy and Energy Efficiency (ECREEE).

The Sustainable Energy for All (SE4All) initiative is a global programme for reducing endemic poverty. In Ghana, it focuses on improving access to modern fuels for cooking through investments in LPG cylinders or biomass cooking stoves, and productive uses of energy in agro-processing, fisheries and salt production.