Page 30 - Vol 33 Issue 34 2021

Ghana’s electricity supply mix has improved, but reliability and cost is still
a challenge
energy Analysis

Ghana’s electricity supply mix

has improved, but reliability

and cost is still a challenge

Theophilus Acheampong & Bridget O. Menyeh

hana has made significant progress over the past 10 years in increasing electricity generation and access. This
Ghas supported higher levels of economic growth. However, beneath these improvements lies inefficiencies,
including extraordinarily high distribution losses. Electricity is also quite expensive in Ghana. If not addressed,
these issues could derail Ghana’s development agenda.

As countries transition their economies to ones The reforms also introduced performance Electricity demand is estimated to have grown at
that use less carbon, they need to build balanced contracts and other energy efficiency initiatives 7%-10% a year since 2010.
energy systems. These must be anchored on high to decentralise the value chain, which had been Despite energy generation being in excess
energy security, universal access at affordable monopolistic. This was also a pre-condition by of demand, power remains expensive and
prices and low emissions. development financiers such as the World Bank. unreliable, and has become a constraint on doing
Ghana began reforming its energy sector in Between 2000 and 2019, electricity generation business in the country.
the mid-1990s to encourage competition and capacity increased at a rate of 6.4% a year from We recently conducted research in which
efficiency. Independent power producers were 1,358 megawatts (MW) to 4,695 MW. Supply we analysed how the country’s changing power
introduced to increase thermal generation capacity has nearly doubled since the 2013 power mix affects energy security, energy equity and
capacity using crude oil and natural gas. Ghana crisis. At the same time, system peak demand environmental sustainability. The three are
had been heavily dependent on hydroelectric grew at a 4.6% annual rate from 1,161 MW to referred to as the “energy trilemma”.
power from the Akosombo Dam. When rainfall 2,804 MW. We found that Ghana has shown significant
patterns began to change in the mid-1980s with The increase in power generation supported improvement from 2000 to 2019 in energy
accompanying low water levels, energy policy Ghana’s economy. The economy grew in real security and energy equity. It has made marginal
shifted. terms by 6.67% a year between 2011-2019. improvements on environmental sustainability.

30 | AFRICAN POWER Mining & Oil Review Vol33 Issue 34 2021