Trystan Casey
Ghana has an energy requirement of 2,000 megawatts, with a total generation output of 1,200 megawatts. The country generates electric power from hydropower, fossil fuels, and renewable energy sources. In 2024, Ghana made a deal with Nigeria to help solve its energy crisis. Nigeria agreed to supply Ghana with 80 megawatts of electricity and take over electricity supply to Benin and Togo. However, some sources claim that Nigeria does not directly supply electricity to Ghana but provides the country with gas, which is converted into electricity.
| Characteristics | Values |
|---|---|
| Does Nigeria supply electricity to Ghana? | No, Ghana only purchases gas from Nigeria, which it converts into electricity. |
| Ghana's energy requirement | 2,000 megawatts |
| Ghana's total generation output | 1,200 megawatts |
| Ghana's energy generated from hydroelectric sources | 69% (912 megawatts from the Akosombo dam and 160 megawatts from the Kpong dam) |
| Ghana's energy generated from fossil fuels | 30.4% |
| Ghana's energy generated from renewable sources | 152-Gigawatt hour (GWh) of electrical energy at present |
| Ghana's goal for renewable energy by 2030 | Increase the proportion of renewable energy in the national energy generation mix from 42.5 MW in 2015 to 1,363.63 MW |
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What You'll Learn
Ghana's energy crisis
Ghana has been facing one of its worst energy crises since it gained independence. The country has seen four different power crises since 1982, mainly due to low water levels in the country's dams. Ghana's energy requirement is 2,000 megawatts, but its total generation capacity falls short at 1,200 megawatts, with 69% sourced from hydroelectric sources and 30.4% from fossil fuels.
The underlying cause of this crisis is the inability of power producers to meet consumer demand. This has led to public anger, with some people vandalising property belonging to the Electricity Company of Ghana. The issue has also been blamed on the destruction of the West African Gas Pipeline. The frequent power outages have had a debilitating impact on Ghana's growth and development, with the economy losing approximately $24 billion between 2010 and 2015 due to the energy crisis.
To address this, Ghana's government has developed a new electricity master plan, which includes listing state-owned power generation and supply companies on the stock exchange. The plan also aims to boost solar energy, with a target of providing 2-3% of supply to the national grid and developing 38,000 solar-powered homes in off-grid communities. Ghana also receives support from Nigeria, which has agreed to supply 80 megawatts of electricity through the West Africa Power Pool. This deal is intended to help Ghana address its energy crisis and relieve the burden on the country.
Ghana's energy sector faces significant financial challenges, with an accumulated debt of $2.4 billion. The high costs of fuel, paying energy suppliers, and running inefficient state-owned companies have spiralled out of control. However, there is hope that privatisation of these companies will improve their efficiency and help overcome the energy crisis.
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Nigeria's role in Ghana's power supply
Ghana's energy sector has been facing challenges due to debt and high power costs, which have hindered the country's economic development. In an effort to address this issue, Ghana has turned to alternative energy sources such as renewable energy, with a focus on solar and wind power. Ghana's electricity generation mix consists of hydropower, fossil fuels, and renewable sources, with 99% of its electricity consumption supplied by the Volta River Authority.
Nigeria has played a role in supporting Ghana's power supply. In 2024, President John Agyekum Kufuor announced that Nigeria would supply 80 megawatts of electricity to Ghana as part of an agreement to address the country's energy crisis. This agreement, known as the Power Pool Agreement, includes Ghana, Nigeria, and the Ivory Coast, allowing them to combine their electricity generation as a backup in case of shortfalls. Additionally, Nigeria agreed to take over the supply of power to Benin and Togo, reducing the burden on Ghana.
However, it is important to clarify that Nigeria does not directly supply electricity to Ghana. Instead, Nigeria provides gas, which Ghana purchases and converts into electricity. This gas supply accounts for only 25% of Ghana's power source. Ghana has also been taking independent measures to boost its electricity generation, such as exploring solar power, bio-diesel, and the construction of the Bui Dam, which will have a capacity of 400 megawatts.
The West Africa Power Pool, which came into effect in February 2007, is another initiative that has impacted Ghana's power supply. Through this agreement, Nigeria agreed to increase its electricity supply to Ghana. Ghana's energy requirement is estimated at 2,000 megawatts, with a total generation output of 1,200 megawatts, 69% of which comes from hydroelectric sources and 30.4% from fossil fuels.
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Ghana's energy sources
Ghana's energy sector is diverse, with the government playing a significant role in energy production, distribution, and trade. The country's energy sources include a mix of renewables and fossil fuels, with a focus on increasing the contribution of renewable sources.
Fossil Fuels
Ghana's power generation primarily relies on fossil fuels, including natural gas, crude oil, and diesel. Natural gas is the largest source of electricity production, accounting for 62.6% of the country's electricity mix in 2021. Thermal generation, fuelled by natural gas, crude oil, and diesel, represents 66% of the country's power generation. Ghana also exports fossil fuels to neighbouring countries.
Hydropower
Hydropower is a significant source of electricity in Ghana, contributing 33%-34.1% of the country's electricity mix in 2021. The Volta River Authority (VRA) and Bui Power Authority (BPA) manage the country's hydroelectricity component. The Akosombo Hydroelectric Dam, the country's largest, produced 6,495 GWhrs of electric power in 2011. Other hydroelectric plants include the Kpong plant and the Bui Dam, which was completed in 2013.
Renewable Energy
Ghana has abundant renewable energy resources, including wind, solar, biomass, and geothermal energy. However, renewable energy currently contributes only about 1% to the country's energy mix. The country has set a goal of achieving 10% renewable energy in the mix by 2020. To attract private sector investment and achieve this target, the Renewable Energy Act (Act 832) was passed in 2011. Ghana is exploring wind power along its coast and establishing solar parks to increase renewable energy generation.
Nuclear Power
Ghana has also expressed interest in developing nuclear power generation capacity and has shortlisted several companies for this purpose.
Energy Exports and Imports
Ghana exports electricity to neighbouring countries, including Togo, Benin, and Burkina Faso, and has plans to further expand its exports. The country also imports electricity, with La Cote D’Ivoire being a source of power supply.
Energy Challenges
Ghana's energy sector faces challenges, including significant debt due to years of financial shortfalls and high power costs. The country is working to improve power production and access to electricity, with support from international partners like the U.S. government.
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Nigeria's gas supply to Ghana
Ghana's energy requirements are estimated at 2000 megawatts, with a total generation output of 1200 megawatts. 69% of the energy is generated from hydroelectric sources, 912 megawatts from the Akosombo dam, and 160 megawatts from the Kpong dam. The remaining 30.4% is generated from fossil fuels. Ghana also has plans to construct a 400-megawatt capacity Bui dam to boost its electricity generation.
Nigeria has agreed to supply 80 megawatts of electricity to Ghana as part of a deal to help the country address its current energy crisis. This supply is through the West African Power Pool, which combines the electricity generation of Ghana, Nigeria, and the Ivory Coast into a pool, providing a safeguard for each country in the event of an energy shortfall.
However, it is important to note that Nigeria does not directly supply electricity to Ghana. Instead, Ghana purchases gas from Nigeria, which it then converts into electricity through its power plants. This transaction accounts for only 25% of Ghana's source of power. The gas is supplied through N-Gaz, a joint venture company owned by the Nigerian National Petroleum Company, Shell, and Chevron, and is delivered to Ghana through the West African Gas Pipeline (WAGP).
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Ghana's energy exports
Thermal generation, primarily fuelled by natural gas, accounts for the largest share of Ghana's power generation, representing 61-66 percent. Hydropower contributes 33-38 percent, while renewable sources like solar make up less than 1 percent of the energy mix. However, Ghana aims to increase the share of renewables to 10 percent by 2020 through the Renewable Energy Act (Act 832).
Ghana exports some of its generated energy and fossil fuels to neighbouring countries such as Togo, Benin, and Burkina Faso. The country has also been working to address transmission challenges and expand its grid to facilitate further exports to other countries in the sub-region.
In terms of specific energy exports, Ghana's power plants have exported energy equivalent to an estimated 180,000 tons of oil in 1991. Additionally, the country has made significant strides in its Upstream Subsector, with 25 discoveries since 2007, including three offshore producing fields: Jubilee, Tweneboa, Enyera and Ntomme (TEN), and Sankofa and Gye Nyame Field.
Ghana's energy sector faces challenges, including significant debt due to financial shortfalls from power pricing and high costs of power, which hinder the country's economic development. However, the country is actively working to improve its energy infrastructure and increase renewable energy sources with support from initiatives like the U.S. government's Power Africa initiative.
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Frequently asked questions
Nigeria has agreed to supply Ghana with 80 megawatts of electricity to help the country address its energy crisis. However, some sources claim that Nigeria only supplies gas to Ghana, which is then converted to electricity.
Ghana generates electric power from hydropower, fossil fuels, and renewable energy sources such as wind and solar energy. Ghana also exports some of its generated energy and fossil fuels to other countries.
The Power Pool Agreement is between Ghana, Nigeria, and the Ivory Coast. The agreement combines the electricity generation of all three countries into a pool, giving them a safeguard to fall back on in the event of an energy shortfall.
Ghana's energy requirement is estimated at 2,000 megawatts, and its total generation output is 1,200 megawatts. 69% of the energy is generated from hydroelectric sources, and 30.4% is generated from fossil fuels.
