Umair Gaines
Ghana has been an electricity exporter since 2007 and has made significant strides in the energy sector, with electrification rates increasing over the past two decades. The country boasts a diverse energy mix, including hydropower, thermal energy, and renewable sources such as wind and solar power. Ghana's energy sector is heavily involved in the state, with state-owned entities like the Ghana Grid Company and the Electricity Company of Ghana playing pivotal roles in transmission and distribution. Ghana has also attracted private sector investment, with companies like General Electric contributing to critical power plants. The country has set ambitious goals for renewable energy integration, aiming for 10% by 2020, and exports power to neighbouring countries such as Togo, Benin, and Burkina Faso.
| Characteristics | Values |
|---|---|
| Does Ghana supply electricity to any country? | Yes, Ghana exports electricity to Togo, Benin, and Burkina Faso. |
| Electricity exports to neighboring countries | Ongoing grid expansions would allow Ghana to further export electricity to other neighboring countries in the sub-region. |
| Electricity exports to other countries | Not found |
| Electricity exports partners | Power Africa, U.S. Government, Millennium Challenge Corporation, USAID, Private Equity Funds, Aldwych International, Endeavor Energy |
| Electricity exports projects | Kpone Gas Project, Amandi Power Project, Bui Power Authority Solar-Hydro Hybrid Project |
| Electricity exports capacity | 350MW |
| Electricity exports benefits | The Kpone Gas Project will account for approximately 10% of Ghana's total installed capacity and approximately 15% of its available thermal generation capacity. |
| Electricity exports challenges | Ghana's energy sector has significant debt due to years of accumulated financial shortfalls, long delays in payments, and high electricity costs. |
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What You'll Learn
Ghana's electricity exports to Togo, Benin and Burkina Faso
Ghana has been exporting electricity to Togo, Benin, and Burkina Faso for over twenty years. However, in 2024, President Akufo-Addo ordered a suspension of electricity exports to neighbouring countries, including Togo, Benin, and Burkina Faso, to retain power for domestic use. This decision was made to address Ghana's electricity crisis, with the president prioritizing the interests of Ghanaian citizens.
Ghana's electricity exports to these countries have been a significant aspect of its energy sector. The country has a diverse range of power generation sources, including hydropower, fossil fuels, and renewable energy sources such as wind and solar energy. Thermal generation, fueled mainly by natural gas, accounts for the largest share of Ghana's power generation at 66%, while hydro accounts for 33%. Ghana's electricity exports have been facilitated by the Ghana Grid Company (GRIDCo), which is responsible for transmission throughout the country.
The suspension of electricity exports had been a controversial decision. While it aimed to address the domestic electricity crisis, it also impacted the neighbouring countries that relied on Ghana's power supply. There were concerns about the financial implications for Ghana, as the electricity exports generated valuable foreign exchange. The Volta River Authority (VRA), which generates power, faced monetary issues, and foreign exchange from energy exports was crucial for covering their overhead costs and paying their workers.
The electricity crisis in Ghana is a complex issue, with long-standing challenges in the energy sector. Ghana's energy sector has accumulated significant debt due to years of financial shortfalls, and consumers face relatively high tariffs. The government's efforts to improve power production and access to electricity are essential for the country's economic development.
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Ghana's energy mix and sources
Ghana's energy mix is diverse, with the country generating electric power from various sources. The country has been an electricity exporter since 2007 and has also exported crude oil and natural gas since 2011.
The country's primary sources of power generation include:
- Hydroelectricity: Ghana has the largest hydropower project in the Western African region, with hydro accounting for about 33% to 38% of its energy mix.
- Thermal energy: This is the largest contributor to Ghana's power generation, accounting for about 61% to 66%. Thermal power is fueled mainly by natural gas, with light crude oil and diesel also being used.
- Solar energy: Solar currently contributes less than 1% to Ghana's energy mix, but the country has plans to increase this, including a 20MW solar plant and a 50MW solar plan.
- Renewable energy: Ghana has significant renewable energy potential, including biomass, wind, and solar. While renewable energy currently contributes only 1% to the energy mix, the country aims to achieve 10% by 2020.
- Nuclear energy: Ghana has developed a roadmap to integrate nuclear power into its energy mix, which has been accepted by the International Atomic Energy Agency (IAEA).
Ghana also imports power from La Cote D’Ivoire and exports power to Togo, Benin, and Burkina Faso. The country has ongoing grid expansions, which will allow further exports to other neighboring countries.
In terms of consumption, Ghana's total primary energy consumption amounted to 100 terawatt-hours as of 2019, with a per capita consumption of about 3,180 kilowatt-hours. Petroleum and biomass were the most consumed energy products. The country's electrification rate has increased over the years, reaching almost 85% in 2017, and it has the highest electricity access rate in Sub-Saharan Africa.
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Ghana's electrification rates
Ghana's power supply comes from diverse sources, including hydroelectricity, thermal energy from crude oil, natural gas, and diesel, as well as solar and wind energy. The country has been an electricity exporter since 2007 and has been generating electricity through thermal energy, hydropower, solar energy, and renewable energies since 2012. Ghana also exports power to neighbouring countries such as Togo, Benin, and Burkina Faso, with plans to further expand its exports.
The Electricity Company of Ghana (ECG) and the Ghana Grid Company (GRIDCo) are working together to enhance the region's electricity supply capacity to meet escalating demand. The Northern Electricity Department (NED) of the VRA has been responsible for distributing electricity to various regions since 1987, and the network has grown significantly over time.
Ghana has set ambitious targets for electricity access and renewable energy integration. The National Energy Policy aims to increase the contribution of renewable energy in the electricity generation mix to 10% by 2020, focusing on solar, wind, and hydropower potentials. The country is also exploring the use of nuclear power, with a roadmap developed and accepted by the International Atomic Energy Agency (IAEA).
Ghana's electrification efforts are crucial for the country's economic development and industrialization. The government is actively pursuing sustainable energy initiatives, particularly in agriculture and food processing, to ensure the country's energy security and provide reliable electricity to all its citizens.
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Ghana's energy sector debt
Ghana's energy sector is facing a significant financial crisis, with government spending in the energy sector ballooning to GH¢20.8 billion in 2024. The country's energy sector debt is projected to reach GH¢35 billion in 2025, with an estimated total shortfall of GH¢140 billion from 2023 to 2026. This unsustainable trajectory is diverting funds from critical infrastructure and social services.
The Electricity Company of Ghana (ECG), a key player in the country's energy sector, is facing a severe financial crisis, with debts amounting to GH¢68 billion. Several factors, including inefficiencies in revenue collection, poor metering systems, and electricity theft, have exacerbated ECG's liquidity issues and hindered efforts to maintain a stable power supply.
The government of Ghana has proposed restructuring the debt owed to independent power producers (IPPs), amounting to US$1.73 billion. However, these power producers, who control over 60% of Ghana's thermal power generation capacity, have rejected the restructuring proposal and warned of potential power generation disruptions if their demands are not met.
To address the energy sector debt crisis, the 2025 Budget outlines several measures, including renegotiating IPP contracts, reviewing the Energy Sector Levies Act (ESLA), and implementing tariff adjustments. Additionally, the government plans to increase the natural gas supply to reduce reliance on costly liquid fuels and improve financial performance.
While Ghana's energy sector debt poses significant challenges, the country has made notable progress in increasing electrification rates and diversifying its energy mix. The National Electrification Scheme (NES) has played a crucial role in ensuring reliable electricity supply across the country, with Ghana achieving the highest electricity access rate in Sub-Saharan Africa. Additionally, Ghana has become an exporter of electricity and crude oil, showcasing the potential for further development in the energy sector.
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Ghana's future energy supply plans
Ghana has been working to increase its electricity supply and distribution throughout the country. The National Electrification Scheme (NES), instituted in 1989, aimed to ensure that all parts of the country had a reliable electricity supply by 2020. As of 2017, electrification rates had reached almost 85%, up from 20% in 1990, giving Ghana the highest electricity access rate in Sub-Saharan Africa.
Ghana's energy supply comes from a mix of sources, including hydropower, fossil fuels (thermal energy), and renewable energy sources such as wind, solar, and biomass. The country has also been investing in new power infrastructure and advancing energy-efficient practices, with a focus on renewable energy sources. In April 2023, Ghana lifted its moratorium on issuing wholesale electricity supply licenses for renewable energy embedded generation projects.
- Increasing the supply of electricity by utilizing thermal energy, with the country's first thermal power plant contributing 300 MW to the national grid.
- Investing in new power infrastructure and advancing energy-efficient practices, with a $316 million MCC-Ghana Power Compact.
- Exploring the use of nuclear power, with a roadmap developed and accepted by the International Atomic Energy Agency (IAEA).
- Increasing the use of renewable energy sources, with a target of 10% renewable energy by 2030.
- Expanding private participation in distribution and enhancing supply reliability through partnerships with companies like the Millennium Challenge Corporation (MCC) of the United States.
- Integrating wind and solar energy into the national grid.
- Studying small hydropower potentials and pursuing sustainable energy initiatives in agriculture and food processing.
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Frequently asked questions
Yes, Ghana exports electricity to Togo, Benin, and Burkina Faso.
Ghana generates electricity through a mix of energy sources, including hydropower, thermal energy (from fossil fuels), and renewable energy sources like wind, solar, and biomass.
Ghana has achieved impressive electrification rates in recent years, reaching almost 85% in 2017. The government has implemented various electrification programs, and as of 2021, the electricity access rate stands at 86.63%.
The Government of Ghana plays a significant role in the energy sector. State-owned entities like the Volta River Authority (VRA), Bui Power Authority (BPA), and Ghana Grid Company (GRIDCO) are involved in electricity generation, transmission, and distribution. The government is also working to promote renewable energy sources and attract private investments in the sector.
Ghana's energy sector faces financial challenges due to accumulated debt and high power costs. This has impacted the country's economic development. However, the government is working to improve power production and access to electricity, with support from initiatives like Power Africa and the Millennium Challenge Corporation.
