Trends in Real GDP and per Capita

growth rates in percent

Ghana has witnessed sustained economic growth and

macroeconomic stability over the last three years:
12.00

Year
Indicator
GDP Growth Rate (%)
Inflation (%YoY)

2009

2010

2011

2012 (F)

4.0

7.7

14.4

9.4

15.6

8.6

8.6

8.7

10.00

8.00

6.00

4.00

2.00

2006 2007 2008 2009 2010 2011 2012 2013 2014

Real GDP growth

Real GDP Per Capita

Total Installed Capacity

2,185MW

Hydro Power

1,100 MW

Thermal

1,085MW

Current Consumption

1,400 MW

Expected Annual Growth in Demand

10%

Expected Annual Capacity Additions

200 MW

National Access
Expected Capacity by 2020

66%
5,000 MW

Power cuts are frequent due to significant lower output

from power plants than installed capacity and inefficient
distribution network.

Organisation

Responsiblities

Ministry of Energy (MoE)

Formulating, monitoring and evaluating policies, programmes

and projects in the energy sector. It is also the institution
charged with the implementation of the National Electricity
Scheme.
http://www.energymin.gov.gh/

Energy Commission (EC)

The Energy Commission, in addition to being responsible for

technical regulations in the power sector, also advises the
Minister for Energy on matters relating to energy planning and
policy.
http://new.energycom.gov.gh/

Public Utilities and

Regulatory Commission
(PURC)

The PURC independent regulatory agency responsible for the

economic regulation of the power sector with the mandate to
approve rates for electricity sold by electricity distribution
utilities.
http://www.purc.com.gh/

 The share of modern renewable energy technologies (Wind, Solar

PV, hydro below 100MW, Bio-fuel) for electricity is however very
negligible (<0.1%). Target by 2020 is 500 MW (10% of energy mix)
Investment Requirements to achieve target of (500 MW)
Energy Source

Exploitable Potential
(MW)

Investment Requirement
US$ (million)

Wind

200-300

250-400

Solar

20

100-150

Medium small Hydro

150

200-300

Waste to energy

90

90-150

500MW

640-1,000

Total
Source: Ministry of Energy

Wind Energy
The gross wind electric potential is about 5,600 MW.
The table shows a summary of gross wind electric
potential for Ghana.

Wind Resource Utility

Scale

Wind
Class

Wind Power
at 50 m
(W/m2)

Wind Speed
at 50 m
(m/s)

3
4
5
6

300 400
400 500
500 600
600 800

6.4 7.0
7.0 7.5
7.5 8.0
8.0 8.8

Moderate
Good
Excellent
Excellent
Total
Source: Ministry of Energy

Total Area
km2

Percent
Windy
Land

715
268
82
63
1,128

0.3
0.1
<0.1
<0.1
0.5

Solar Energy
Ghana is endowed with enormous solar energy
resource spread across the entire country.
Daily solar irradiation level ranges from 4 to 6
kWh/m2.
The annual sunshine duration ranges between
1800 to 3000 hours offering very high potential
for grid connected and off-grid applications.

Over 6,000 solar systems with an installed

capacity of 3.2 MW have been installed in the
country mainly for off-grid applications.
Generally, Northern Ghana has a better Solar
resource than South Ghana.

Bioenergy
The potential for production of bioenergy from waste is great.
Waste generated from the following sources could be used to
generate biofuel:
Municipal and Industrial waste
Waste generated from palm oil
production
Waste from cocoa production
Other agro-waste

 IPP Undertakes Pre -feasibility study

IPP Identifies a Buyer or an Off-Taker (Bulk Customers).
Detailed feasibility studies to ascertain Technical Feasibility and Financial Viability of Project.
IPP interacts with relevant Regulatory Agencies, such as the Energy Commission EC
(Licensing and Technical Regulations) and the PURC (Pricing Regulation)
IPP obtains Site clearance by Environmental Protection Agency (EPA) & EC.
IPP Obtains Environmental Permit from EPA
Concluding a Memorandum of Understanding between IPP and Off-Taker after securing
PURCs No-Objection in principle.
Obtaining License from the Energy Commission
IPP obtains relevant approvals of identified reliefs from Governmental Agencies such as Ghana
Investment Promotion, Ministry of Energy and Ministry of Finance & Economic Planning etc.
IPP concludes Power Purchase Agreement with Off-Taker

According to Energy Policy, Government plans to increase supply of power

to meet the annual expected 10% growth in demand through investment
and private sector participation, (independent power producers)

Ghana plans to become net-exporter of power by 2015

Ghana plans to achieve universal access to power (electricity) by 2015

Government has also commenced the construction of US$850 million gas

processing plant and infrastructure linked to FPSO to be completed by end
of 2012

The Renewable Energy Bill has been passed by Parliament to provide the
regulatory environment for promoting private sector investments in
Renewable Energy Systems

A 400 MW hydro-electric power plant at Bui. First phase of 113 MW to be

commissioned by the end of 2012

Increase capacity of the Sunon Asogli Power Plant -(Independent power

producer) by 100 MW to bring total capacity to 200MW by end of 2012

Increase capacity of the Tema Osonor Power Co- (Independent Power

Producer)by additional 126 MW to bring total capacity to 330 MW

Expansion of Takoradi International Co (TICO) power plant by 110 MW to

330 MW by 2013

Government seeking strategic partners to develop the 220 MW Domini

power plant with Volta River Authority

 Access to finance/capital
Difficulty in securing and registering land for business
Insufficient access to technology
Poor linkage between research development and private sector

The DB Partnership programme supports setting up long term partnerships

between Danish and Ghanaian companies . (http://um.dk/en/danidaen/activities/business/partnerships/)

The DB Finance programme offers interest free, or low interest loan for larger and
medium sized investments in developing countries (http://um.dk/en/danidaen/activities/business/finance/)
The Industrialisation fund for Developing Countries offers capital in the form of
debt or equity investments in developing world with a Danish partner (www.ifu.dk)
Eksport Kredit Fonden offers reinsurance, working capital guarantees and export
loan for company transactions in developing countries (www.ekf.dk)