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
A distributed energy system that generates electricity at a centralised location from one or a combination of energy sources and distributes to end-customers typically through a low-voltage grid. mini-grids can be isolated or interconnected with the main grid.
Throughout the Country Briefs, a small IPP is defined as any grid-tied system below 10 MW that operates on a power purchase agreement (PPA), with the exclusive goal of feeding energy into the grid (no self-consumption).
SHS are off-grid solar products with peak capacities generally between 11 Wp and 350 Wp, powering lights and other small DC appliances such as fans and televisions. They include battery storage for electricity supply outside periods of generation. Pico solar systems are typically below 11 Wp, offering basic energy services such as lighting and cellphone charging.
Captive power systems are defined as being ‘behind the meter’ systems whose primary purpose is self consumption. These systems can be off-grid or grid-connected.
For the purposes of the Country Briefs, this includes clean cookstoves, improved cookstoves, biogas and liquefied petroleum gas (LPG) cooking systems.
Market Segments
The small IPP sector in Ghana is limited to a few pilot projects. In accordance with the country's pursuit for wave energy, Yam Pro Energy and Shapoorji Pallonji Group are developing a wave energy plant of 10 MW off the coast of Accra. The plant will eventually be expanded to reach 150 MW. A second project, the Ada Foah wave plant is operational in a pilot phase, with 400 kW feeding into the grid. A PPA has been signed between owner TC's Energy and the Electric Company of Ghana. The project will eventually be expanded to reach 100 MW (EPC by Seabased). A handful of larger IPP projects are also operating, for example, the Gomoa Onyaadze 20 MW solar project (by Meinergy Ghana).
The Ghana Renewable Energy Master Plan aims for 447.5 MW utility scale solar, 200 MW distributed solar, 325 MW utility scale wind, 2 MW distributed wind, 72 MW utility scale biomass, 50 MW waste to energy utility scale and 150 MW small hydro by 2030. The role of IPPs in these expansion plans is not specified in the master plan. Furthermore, all planned projects are larger than 10 MW. It's thus unclear what role small IPPs will be able to play in the future.
The Ghana Renewable Energy Master Plan aims for 447.5 MW utility scale solar, 200 MW distributed solar, 325 MW utility scale wind, 2 MW distributed wind, 72 MW utility scale biomass, 50 MW waste to energy utility scale and 150 MW small hydro by 2030. The role of IPPs in these expansion plans is not specified in the master plan. Furthermore, all planned projects are larger than 10 MW. It's thus unclear what role small IPPs will be able to play in the future.
Regulations
The Renewable Energy Act (No. 832 of 2011) provides for the development, management, utilisation, sustainability and adequate supply of renewable energy for the generation of heat and power and related matters. Any company engaging in the electricity and renewable energy industry is required to obtain a licence from the energy commission.
The Renewable Energy Sub-Code for Distribution Network connected Variable Renewable Energy Power Plants in Ghana specifies technical connection conditions for a Variable Renewable Power Plant (VRPP) or Embedded Generator to the Distribution grid. The Sub-Code is in line with the National Electricity Distribution Code. Operators of plants and systems seeking connection to a distribution grid with a nominal voltage greater than 1 kV are required to comply with this Sub-Code and all applicable articles of the National Electricity Distribution Code.
The Renewable Energy Sub-Code for Transmission grid-connected VRPPs in Ghana specifies technical connection conditions for VRPPs wishing to connect to the national transmission grid.
The Electricity Supply and Distribution (Standards of Performance) Regulations of 2008 stipulate detailed standards pertaining to the reliability of supply, system voltage and metering. It is published in conformity to the Electricity Supply and Distribution (Technical and Operational) Rules of 2005.
The Electricity Supply and Distribution (Technical and Operational) Rules of 2005 stipulates detailed rules pertaining to protection, precautions to be undertaken in performing electricity works, metering, voltage fluctuations, load shedding, the rectification of faults and safety.
The Electricity Wiring Regulations of 2011 enforces minimum standards of electrical wiring. It applies to installations with nominal voltages below 1000 V AC (between conductors), 1500 V DC (between conductors), 600 V AC (between conductors and earth), 900 V DC (between conductors and earth), 50 V AC (between conductors or to earth), 120 V DC ripple free (between conductors or to earth) and all overhead connections between two or more buildings on the same premises.
Local Content and Local Participation in the Electricity Supply Industry regulations of 2017 requires that companies have at least 51% local ownership and incorporate at least 60% local materials by 2025.
The success of Ghana’s electrification policy is evident in the unusually high rate of electrification of 84%. This has translated to a ‘government first’ approach to rural electrification which presents a number of disincentives to private sector entrants to the mini-grid market: a commitment to universal tariffs and a lack of subsidies means developers cannot charge cost reflective tariffs and private companies are not able to apply for a licence to sell electricity.
Despite this, Black Star Energy, a private company, has been running 17 solar mini-grids successfully. Another company Translight Solar has a productive-use commercial offering based on anchor load.
There are at least 108 mini-grids in the pipeline, all of which will be publicly owned and operated.
Despite this, Black Star Energy, a private company, has been running 17 solar mini-grids successfully. Another company Translight Solar has a productive-use commercial offering based on anchor load.
There are at least 108 mini-grids in the pipeline, all of which will be publicly owned and operated.
Regulations
The Renewable Energy Act (No. 832 of 2011) provides for the development, management, utilisation, sustainability and adequate supply of renewable energy for the generation of heat and power and related matters. Any company engaging in the electricity and renewable energy industry is required to obtain a licence from the energy commission.
Draft mini-grid Regulations were developed by the Energy Commission in 2017. The regulation permits private companies to develop and operate isolated mini-grids of up to 1 MW. Several documents would need to be submitted to obtain authorisation to develop and operate. These include technical documentation, land rights, community agreements and approval from the distribution authority (if the site will be grid encroached in the future). Until the regulation is officially promulgated, mini-grid licencing will follow the procedures set out in the Renewable Energy Act. Uniform national tariffs are enforced. Systems above 100 kW should meet the distribution grid code and developers of systems below 100kW are not required to apply for a licence. According to the EC website, the distribution grid code is still being finalised, but a draft form is available.
The Renewable Energy Sub-Code for Distribution Network connected Variable Renewable Energy Power Plants in Ghana proposes technical connection conditions for a Variable Renewable Power Plant (VRPP) or Embedded Generator to the Distribution grid. The Sub-Code is in line with the National Electricity Distribution Code. Operators of plants and systems seeking connection to a distribution grid with a nominal voltage greater than 1 kV are required to comply with this sub-code and all applicable articles of the National Electricity Distribution Code. These regulations would apply to mini-grids if they become interconnected to the distribution grid.
The Renewable Energy Sub-Code for Transmission grid-connected VRPPs in Ghana proposes technical connection conditions for variable Renewable Power Plant (VRPPs) wishing to connect to the national transmission grid. These regulations would apply to mini-grids if they become interconnected to the transmission grid.
The National Electricity Distribution Code (2012) remains in draft form. It refers to distribution facilities below 36 kV. The code applies to distribution facilities, retailers, embedded generators and customers of distribution facilities. It elaborates on the conditions for distribution and retail licencing, connection agreements, planning requirements, asset management, metering, safety, data management and standards of performance.
The Electricity Supply and Distribution (Standards of Performance) Regulations of 2008 stipulate detailed standards pertaining to the reliability of supply, system voltage and metering. It is published in conformity to the Electricity Supply and Distribution (Technical and Operational) Rules of 2005.
The Electricity Supply and Distribution (Technical and Operational) Rules of 2005 stipulates detailed rules pertaining to protection, precautions to be undertaken in performing electricity works, metering, voltage fluctuations, load shedding, rectification of faults and safety.
The Electricity Wiring Regulations of 2011 enforces minimum standards of electrical wiring. It applies to installations with nominal voltages below 1,000V AC (between conductors), 1,500V DC (between conductors), 600V AC (between conductors and earth), 900V DC (between conductors and earth), 50V AC (between conductors or to earth), 120V DC ripple free (between conductors or to earth) and all overhead connections between two or more buildings on the same premises.
Local Content and Local Participation in the Electricity Supply Industry regulations of 2017 requires that companies have at least 51% local ownership and incorporate at least 60% of local materials by 2025.
Electronic Waste Control and Management Act of 2016 requires that all companies importing any form of electronics to register with the Environmental Protection Agency, obtain a permit and pay an eco-levy.
In 2019, 31,039 solar home systems and pico-solar products were sold by companies affiliated with GOGLA and Lighting Global in Ghana, down from 39,256 in 2018. In 2019, approximately 44% of these products were sold on a PAYGO basis, down from 52% in 2018, and the rest in cash transactions. By 2019, the Association of Ghana Solar Industries, along with development partners, had distributed 15,000 solar home systems around Lake Volta.
Companies operating in Ghana include Atlas Business Energy System, Burro Brands, Hatoum Trading, GTEC, Lumos Global, Northlite Solar, PEG Ghana, Shinbone Labs, Suka Wind, Sunhut Enterprise, Solar Energy Ghana, Wilkins Engineering and ZOLA Electric. In addition to these companies, Mobisol, Jabo, Biolite and EcoZoom have expressed interest to enter the market through local partnerships.
The Renewable Energy Master Plan (REMP) targets the installation of 1 million lanterns, 46,150 solar pumps and 700 solar crop dryers by 2030. In total, REMP aims for 20 MW of standalone PV. The communities that are not likely to be electrified with the grid are located on the shores and islands of Lake Volta.
Reports have indicated that foreign exchange risk is a barrier to increased growth of the sector in Ghana, given that debt to renewable energy companies are mostly denominated in US dollars. Local banks and impact investors are looking at Cedi denominated deals in response.
Companies operating in Ghana include Atlas Business Energy System, Burro Brands, Hatoum Trading, GTEC, Lumos Global, Northlite Solar, PEG Ghana, Shinbone Labs, Suka Wind, Sunhut Enterprise, Solar Energy Ghana, Wilkins Engineering and ZOLA Electric. In addition to these companies, Mobisol, Jabo, Biolite and EcoZoom have expressed interest to enter the market through local partnerships.
The Renewable Energy Master Plan (REMP) targets the installation of 1 million lanterns, 46,150 solar pumps and 700 solar crop dryers by 2030. In total, REMP aims for 20 MW of standalone PV. The communities that are not likely to be electrified with the grid are located on the shores and islands of Lake Volta.
Reports have indicated that foreign exchange risk is a barrier to increased growth of the sector in Ghana, given that debt to renewable energy companies are mostly denominated in US dollars. Local banks and impact investors are looking at Cedi denominated deals in response.
Regulations
Electronic Waste Control and Management Act of 2016 requires that all companies importing any form of electronics to register with the Environmental Protection Agency, obtain a permit and pay an eco-levy.
The Renewable Energy Act (No. 832 of 2011) provides for the development, management, utilisation, sustainability and adequate supply of renewable energy for the generation of heat and power and for related matters. Any company engaging in the electricity and renewable energy industry is required to obtain a licence from the energy commission. Local Content and Local Participation in the Electricity Supply Industry regulations of 2017 requires that companies have at least 51% local ownership and incorporate at least 60% local materials by 2025.
The Renewable Energy Act (No. 832 of 2011) provides for the development, management, utilisation, sustainability and adequate supply of renewable energy for the generation of heat and power and for related matters. Any company engaging in the electricity and renewable energy industry is required to obtain a licence from the energy commission. Local Content and Local Participation in the Electricity Supply Industry regulations of 2017 requires that companies have at least 51% local ownership and incorporate at least 60% local materials by 2025.
Ghana has some of the highest electricity tariffs on the continent, especially in the industrial category. This is one of the reasons for why the country has one of the most active captive power markets in the region. As of January 2019, 7 MW of C&I solar capacity had been installed. The Ghana Renewable Energy Master Plan aims for 200 MW of distributed solar by 2030. Towards this end, the government is implementing the MDA Solar Rooftop Programme to reach the 200 MW target. The programme offers rebates, whereby applicants are only required to pay for the balance of system costs.
Redavia has installed six PV systems, which include a 435 kW system at the Regional Maritime University, 74 kW at SGS Tema, 174 kW at the Movelle cold store, 336 kW at the Red Sea Housing Services, 756 kW at the Special Ice Facility and a system of unknown capacity at Kete Krachi sawmill. It's also planning to install a 504 kW system at the Barry Callebaut cacao factory. Yingli Namene installed a 401 kW solar system at the Central University of Ghana and a 401 kW system at the Kasapreko bottling facility.
Other companies include AB Solar, Arthur Energy Advisors, Atlas Business Energy, Axcon Energy, BeBa Energy (360 kW solar system at HPW Fresh and Dry), DSE Group, Dutch & Co, Equator Energy, Merl 1928, Redex International, Stella Futura (750 kW rooftop system at Miniplast in Accra), Strategic Security Systems (912 kW rooftop solar system at the Jubilee government building in Accra), SunPower Installations (600 kW rooftop solar system at the Alisa Swiss Spirit Hotel), Tino Solutions, Translight Solar and Wilkins Engineering.
Additional examples include the 720 kW ground mount solar array at the Noguchi Research Institute, while Total is pushing for solarisation of its fuel stations (for example, a 35 kW system at the Tema station). Biomass captive power examples in Ghana include a 1.2 MW facility at the Juaben Oil Mill in the Ashanti region, a 10 MW shea nut plant at the Nuts for Growth under development by Arthur Energy Advisors and Komenda Sugar 3 MW (1 MW fed into the grid).
The growth of this active market is however restricted by strict local content rules and interest rates around 30% for Cedi loans.
Redavia has installed six PV systems, which include a 435 kW system at the Regional Maritime University, 74 kW at SGS Tema, 174 kW at the Movelle cold store, 336 kW at the Red Sea Housing Services, 756 kW at the Special Ice Facility and a system of unknown capacity at Kete Krachi sawmill. It's also planning to install a 504 kW system at the Barry Callebaut cacao factory. Yingli Namene installed a 401 kW solar system at the Central University of Ghana and a 401 kW system at the Kasapreko bottling facility.
Other companies include AB Solar, Arthur Energy Advisors, Atlas Business Energy, Axcon Energy, BeBa Energy (360 kW solar system at HPW Fresh and Dry), DSE Group, Dutch & Co, Equator Energy, Merl 1928, Redex International, Stella Futura (750 kW rooftop system at Miniplast in Accra), Strategic Security Systems (912 kW rooftop solar system at the Jubilee government building in Accra), SunPower Installations (600 kW rooftop solar system at the Alisa Swiss Spirit Hotel), Tino Solutions, Translight Solar and Wilkins Engineering.
Additional examples include the 720 kW ground mount solar array at the Noguchi Research Institute, while Total is pushing for solarisation of its fuel stations (for example, a 35 kW system at the Tema station). Biomass captive power examples in Ghana include a 1.2 MW facility at the Juaben Oil Mill in the Ashanti region, a 10 MW shea nut plant at the Nuts for Growth under development by Arthur Energy Advisors and Komenda Sugar 3 MW (1 MW fed into the grid).
The growth of this active market is however restricted by strict local content rules and interest rates around 30% for Cedi loans.
Regulations
The Renewable Energy Act (No. 832 of 2011) provides for the development, management, utilisation, sustainability and adequate supply of renewable energy for generation of heat and power and related matters. Any company engaging in the electricity and renewable energy industry is required to obtain a licence from the energy commission. It does not deal extensively with captive power procedures, but it does give the regulator the responsibility to set feed-in tariffs.
Net Metering Sub Code for Connecting Renewable Energy Generating Systems to the Distribution Network in Ghana, in the framework of the 2011 Renewable Energy Act and the Distribution Code, provides technical connection guidelines and conditions for connecting renewable energy systems to the low voltage grid under Ghana's net metering scheme. It requires a generator to apply for a connection to the grid and to enter into a connection agreement with the local distributor. The maximum installed capacity of a net metering facility shall be 500 kW.
The Renewable Energy Sub-Code for Distribution Network connected Variable Renewable Energy Power Plants in Ghana proposes technical connection conditions for a Variable Renewable Power Plant (VRPP) or Embedded Generator to the Distribution grid. The Sub-Code is in line with the National Electricity Distribution Code. Operators of plants and systems seeking connection to a distribution grid with a nominal voltage greater than 1kV are required to comply with this sub-code and all applicable articles of the National Electricity Distribution Code. The Electricity Supply and Distribution (Standards of Performance) Regulations of 2008 stipulate detailed standards pertaining to the reliability of supply, system voltage and metering. It is published in conformity to the Electricity Supply and Distribution (Technical and Operational) Rules of 2005. The Electricity Supply and Distribution (Technical and Operational) Rules of 2005 stipulate detailed rules pertaining to protection and precautions to be undertaken in performing electricity works, metering, voltage fluctuations, load shedding, the rectification of faults and safety. The Electricity Wiring Regulations of 2011 enforces minimum standards of electrical wiring. It applies to installations with nominal voltages below 1,000V AC (between conductors), 1,500V DC (between conductors), 600V AC (between conductors and earth), 900V DC (between conductors and earth), 50V AC (between conductors or to earth), 120V DC ripple free (between conductors or to earth) and all overhead connections between two or more buildings on the same premises. The National Electricity Distribution Code (2012) remains in draft form. It refers to distribution facilities below 36 kV. The code applies to distribution facilities, retailers, embedded generators and customers of distribution facilities. It elaborates on the conditions for distribution and retail licencing, connection agreements, planning requirements, asset management, metering, safety, data management and standards of performance. Local Content and Local Participation in the Electricity Supply Industry regulations of 2017 requires that companies have at least 51% local ownership and incorporate at least 60% local materials by 2025. Electronic Waste Control and Management Act of 2016 requires that all companies importing any form of electronics to register with the Environmental Protection Agency, obtain a permit and pay an eco-levy.
The Renewable Energy Sub-Code for Distribution Network connected Variable Renewable Energy Power Plants in Ghana proposes technical connection conditions for a Variable Renewable Power Plant (VRPP) or Embedded Generator to the Distribution grid. The Sub-Code is in line with the National Electricity Distribution Code. Operators of plants and systems seeking connection to a distribution grid with a nominal voltage greater than 1kV are required to comply with this sub-code and all applicable articles of the National Electricity Distribution Code. The Electricity Supply and Distribution (Standards of Performance) Regulations of 2008 stipulate detailed standards pertaining to the reliability of supply, system voltage and metering. It is published in conformity to the Electricity Supply and Distribution (Technical and Operational) Rules of 2005. The Electricity Supply and Distribution (Technical and Operational) Rules of 2005 stipulate detailed rules pertaining to protection and precautions to be undertaken in performing electricity works, metering, voltage fluctuations, load shedding, the rectification of faults and safety. The Electricity Wiring Regulations of 2011 enforces minimum standards of electrical wiring. It applies to installations with nominal voltages below 1,000V AC (between conductors), 1,500V DC (between conductors), 600V AC (between conductors and earth), 900V DC (between conductors and earth), 50V AC (between conductors or to earth), 120V DC ripple free (between conductors or to earth) and all overhead connections between two or more buildings on the same premises. The National Electricity Distribution Code (2012) remains in draft form. It refers to distribution facilities below 36 kV. The code applies to distribution facilities, retailers, embedded generators and customers of distribution facilities. It elaborates on the conditions for distribution and retail licencing, connection agreements, planning requirements, asset management, metering, safety, data management and standards of performance. Local Content and Local Participation in the Electricity Supply Industry regulations of 2017 requires that companies have at least 51% local ownership and incorporate at least 60% local materials by 2025. Electronic Waste Control and Management Act of 2016 requires that all companies importing any form of electronics to register with the Environmental Protection Agency, obtain a permit and pay an eco-levy.
In Ghana, about 75% of the population do not have access to clean cooking. The main fuels used for cooking are wood (51%), charcoal (35%), liquid petroleum gas (LPG) (10%) and kerosene (1%). The charcoal cookstoves used in urban areas are ceramic lined charcoal stove products (brands include Gyapa, Holy Cook Stove, Man Man and Toyola) and non-ceramic lined charcoal stove products (like Cook clean stove and Envirofit stoves). Most of the organisations active in the market manufacture locally, which brings down their costs. Ghana Cylinder Manufacturing Company Limited (GCMC), GRATIS Foundation and Nayare Enterprise among others sell LPG stoves.
Through the Renewable Energy Master Plan of Ghana (REMP), the national government has set the target of distributing 1.3 million improved cookstoves by the end of 2020. The government has also been running the Rural LPG promotion programme since 2013. By the end of 2017, 149,500 rural households have been provided with LPG cylinders and cookstoves. The programme is scheduled to close at the end of 2020. At the same time, the Ghana Alliance for Clean Cookstoves & Fuels (GHACCO) is aiming to distribute 5 million cookstoves by the end of 2020.
Through the Renewable Energy Master Plan of Ghana (REMP), the national government has set the target of distributing 1.3 million improved cookstoves by the end of 2020. The government has also been running the Rural LPG promotion programme since 2013. By the end of 2017, 149,500 rural households have been provided with LPG cylinders and cookstoves. The programme is scheduled to close at the end of 2020. At the same time, the Ghana Alliance for Clean Cookstoves & Fuels (GHACCO) is aiming to distribute 5 million cookstoves by the end of 2020.