Molly Ayala
Ghana has been working to increase its electricity supply and exports to neighbouring countries. The country has diversified its energy mix, with sources including hydroelectricity, crude oil, natural gas, solar, and diesel. Ghana's renewable energy capacity has been growing, reaching close to 1,700 megawatts in 2022, with hydropower and solar power as the main sources. In addition to meeting its own energy demands, Ghana exports electricity to several neighbouring countries, including Togo, Benin, Burkina Faso, and Côte d'Ivoire. The country has implemented various electrification programs and extended its national grid to increase the accessibility and reliability of its electricity supply.
| Characteristics | Values |
|---|---|
| Number of countries Ghana supplies electricity to | 3 (Togo, Benin, and Burkina Faso) |
| Electricity exports | Electricity transmission is under the Ghana Grid Company |
| Electricity imports | La Cote D’Ivoire |
| Electricity distribution within Ghana | Northern Electricity Distribution Company and Electricity Company of Ghana |
| Electrification rate | 83.24% (highest in Sub-Saharan Africa) |
| Energy sources | Hydroelectricity, thermal fueled by crude oil, natural gas, diesel, solar, biomass, hydropower, wind, nuclear power |
| Energy consumption | 100 terawatt hours in 2019 (about 3,180 kilowatt hours per capita) |
| Energy production | 12 million metric tons of oil equivalent in 2020 |
| Energy sector involvement | Both public and private sectors |
| Energy incentives | Ghana Renewable Energy Act provides fiscal incentives for renewable energy development |
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What You'll Learn
Ghana's electricity exports to Burkina Faso
Ghana has been working to increase its electricity distribution within the country and to its neighbouring countries. In 1989, the extension of the national grid to the Northern Region was commissioned, linking northern Ghana to the power generated from the Akosombo Dam. The final phase of this extension will see exports of electricity across the northern national border of Ghana to Burkina Faso.
Ghana exports electricity to several neighbouring countries, including Burkina Faso, Togo, and Cote d'Ivoire. In 2020, Ghana exported nearly 1,000 gigawatt-hours of electrical energy to the Burkina Faso-owned electricity company SONABEL. The country's electricity exports to its neighbours are facilitated by the Ghana Grid Company, which is responsible for electricity transmission throughout Ghana.
The energy sector in Ghana is diversified, with thermal generation accounting for the largest share of power generation (66%), followed by hydro at 33%. Ghana's thermal power generation is primarily fuelled by natural gas, with some use of light crude oil and diesel. The country's electrification rate stood at 86.63% in 2021, with 50% of rural residents and 91% of urban residents connected to the electricity grid.
Ghana's energy sector faces significant debt due to years of accumulated financial shortfalls from power pricing. High electricity costs and long delays in payments are concerns that impact the country's economic development. However, the government remains heavily involved in the energy sector, with state entities controlling various aspects, including generation, transmission, and distribution.
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Ghana's fossil fuel exports
Ghana's energy sector includes both renewables and fossil fuels, which form the basis of the country's electricity supply and consumption. The country has diversified its energy mix, with hydropower, biomass, biofuel, solar energy, and wind energy as the leading renewable energy resources.
Ghana exports some of its generated energy and fossil fuels to other countries. In 2020, the country supplied more than 12 million metric tons of oil-equivalent energy, with natural gas and hydro sources contributing significantly. Ghana's petroleum sector has experienced significant growth, particularly since the discovery of oil in commercial quantities in the Jubilee fields in 2007. The average crude oil production capacity has been slightly declining, with an average of 176,000 barrels per day in September 2021. The petroleum products produced in Ghana are mainly exported, and the country has announced plans to offer new oil blocks for exploration.
The Ghana National Petroleum Council (GNPC) is mandated to explore for oil within the nation's territory. Upstream activities in the Ghanaian petroleum sector include the procurement and refining of crude oil by the nation's only petroleum refinery, Tema Oil Refinery (TOR). Downstream activities include the marketing and distribution of petroleum products by Oil Marketing Companies (OMCs). OMCs operating in Ghana are primarily multinationals, but there has been a recent increase in local small and medium-sized OMCs.
Ghana has set targets to increase the contribution of renewable energy to its electricity generation mix. By 2025, the government aims to achieve a 10% contribution of renewable energy, mainly from large hydro sources. The development of alternative transportation fuels, such as biofuels, is also being explored to secure the country's future energy supplies. However, the conversion of renewable energy into consumable energy has faced challenges due to the high prices of installing renewable energy infrastructure and the lack of technical capacity and local investment.
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Ghana's electricity supply to its own citizens
Ghana has been working towards providing electricity to all its citizens. Electrification rates have gradually increased over the past 20 years, reaching almost 85% in 2017. The government has been involved in the processes of energy production, distribution, and trade, with energy sourced from both renewables and fossil fuels. Ghana exports some of its generated energy and fossil fuels to other countries. The country has diversified its energy mix, including hydropower, biomass, bio-energy, wind energy, and solar-dominated renewable energy.
The Ghana Renewable Energy Act provides incentives for renewable energy development and manages bio-fuel and wood-fuel projects. The government has set targets to increase the use of renewable energy, with a goal of 10% renewable energy contribution to electricity generation by 2030. Ghana has also invested in wind energy, with the potential to contribute significantly to the country's energy industry. The Electricity Company of Ghana (ECG) has partnered with the Ghana Grid Company (GRIDCo) to enhance the region's electricity supply capacity and meet escalating demand.
Ghana's electricity supply has a long history, with the first government-sponsored public electricity supply commencing in 1914 at Sekondi-Takoradi. Over the years, various power stations and generating plants have been established, with the Tema power station becoming the biggest single diesel-powered generating station in Africa. The country has also extended its national grid to the Northern Region, connecting northern Ghana to power generated from the Akosombo Dam.
Ghana has initiated programs to provide reliable and widespread electricity to urban and southern parts of the country, with plans to expand to all isolated centers. The government aims to achieve universal access to energy by 2024, exploring options such as grid energy, mini-grids, and renewable energy. Ghana has achieved a stable power supply, with the ability to export electricity to neighboring countries like Burkina Faso and potentially Nigeria.
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Ghana's renewable energy sources
Ghana exports electricity to at least three countries: Togo, Benin, and Burkina Faso. The country has a diversified energy mix, with the largest installed capacity for existing plants in the country being thermal power generation, which accounts for 66% of the total share, with hydro power accounting for 33%.
Ghana is well-endowed with renewable energy resources, including biomass, hydropower potentials, wind potentials along the coast, and high solar irradiation. However, these resources are yet to be fully exploited, with renewable energy currently contributing only 1% to the energy mix. The government has set a target of achieving 10% renewable energy in the mix by 2020 and has passed the Renewable Energy Act (Act 832) in 2011 to attract private sector investment in the renewable energy sector.
Ghana has several ongoing and planned initiatives to increase the use of renewable energy sources. These include harnessing wind power on the coast, establishing solar parks, and integrating nuclear power into the country's energy mix. The government is also working on addressing transmission challenges by replacing outdated equipment and reinforcing the infrastructure.
The country has a vibrant power generation sector with participation from both the public and private sectors. The Ghana Grid Company (GRIDCo) is responsible for electricity transmission, while distribution is handled by the Northern Electricity Distribution Company and the Electricity Company of Ghana (ECG). ECG is a wholly government-owned company and is responsible for the distribution and supply of electricity in six regions in southern Ghana.
Ghana has successfully increased electrification rates over the past two decades, reaching almost 85% in 2017. The country hosts the largest hydropower project in the Western African region and is actively working towards increasing the use of renewable energy sources to meet its energy needs.
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Ghana's energy trade balance
Ghana's energy sector is heavily influenced by government involvement in the processes of energy production, distribution, and trade. The country has diversified its energy mix, utilising both renewable and non-renewable sources. Gas is the largest source of electricity production, followed by hydropower, which is sourced from the largest hydropower project in Western Africa, the Akosombo Dam. In 2022, the renewable energy capacity in Ghana stood at 1,700 megawatts, a significant increase from 2012. Hydropower and solar power are the main renewable energy sources, with solar energy projected to generate an estimated 152-gigawatt hours of electrical energy.
Ghana has implemented initiatives to increase the distribution of electricity within the country, particularly in urban and southern areas. The extension of the national grid to the Northern Region in 1989 connected northern Ghana to the power generated from the Akosombo Dam. The second phase of this extension will connect towns in the Upper East Region with the regional capital Bolgatanga. The final phase will facilitate the export of electricity to neighbouring Burkina Faso.
Ghana also exports energy and fossil fuels to other countries, including Togo and Benin. The Ghana Grid Company is responsible for electricity transmission, while distribution is handled by the Northern Electricity Distribution Company and the Electricity Company of Ghana. In 2020, Ghana supplied over 12 million metric tons of oil-equivalent energy, with natural gas and hydro sources contributing approximately three million metric tons and 627,000 metric tons, respectively.
Ghana has taken steps to promote renewable energy development, such as the Renewable Energy Act, which provides fiscal incentives for the private sector. The country has also established mechanisms to attract investments in biomass and bio-energy sectors, leveraging its arable and degraded land for biofuel crop cultivation. Ghana's energy sector faces challenges due to accumulated financial shortfalls, resulting in significant debt and high electricity costs, which hinder economic development.
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Frequently asked questions
Ghana currently exports electricity to Togo, Benin, and Burkina Faso.
The Ghana Grid Company is responsible for electricity transmission and exports from Ghana.
Ghana's power supply sources include hydroelectricity, thermal energy from crude oil, natural gas, diesel, and solar.
Yes, ongoing grid expansions will enable Ghana to export electricity to other neighboring countries in the sub-region.
Yes, in addition to generating and exporting electricity, Ghana also imports electricity from La Cote D’Ivoire.
