Ghana

Policies and Regulations

The 2021 National Energy Policy of Ghana, created by the Ministry of Energy, is a comprehensive framework guiding the country's energy sector development and management to support economic growth and sustainable development in the global shift to clean energy. The policy addresses energy sector challenges and opportunities, emphasizing the critical role of energy in economic growth and the need for a reliable energy supply.   

  • It includes a detailed situational analysis of the energy sector, outlining global, regional, and national contexts, key issues such as energy access, reliability, and affordability, and setting the sector's vision, mission, values, and guiding principles.   

  • The policy also outlines the institutional and legal framework governing the energy sector, detailing roles and responsibilities of entities, legal and regulatory instruments, and promoting renewable energy with ambitious goals and strategies for solar, wind, and bioenergy development to enhance energy access in remote areas.  

  • The 2021 National Energy Policy of Ghana addresses the petroleum sector, emphasizing efficient exploration, production, and utilization of resources while ensuring environmental sustainability and local participation.  

  • It also includes cross-cutting areas like energy efficiency, conservation, and transitioning to cleaner energy sources, stressing the importance of research, gender mainstreaming, and inclusion of persons with disabilities.   

The policy places significant emphasis on developing solar energy as part of Ghana's renewable energy strategy, with specific goals to increase solar power installations. It highlights solar energy's potential to provide reliable electricity, particularly in rural areas, aiming to reduce dependence on fossil fuels. The government plans to support large-scale solar farms and decentralized systems to enhance energy access. Additionally, the policy aims to encourage private sector investment in solar projects through incentives and regulatory support, providing a strategic roadmap for a sustainable, reliable, and inclusive energy sector supporting long-term development goals in Ghana.  

Read more:  https://energycom.gov.gh/index.php/regulation/acts?download=2:renewable-energy-act  

The main goal of the Renewable Energy Act, 2011 (Act 832) in Ghana is to encourage the growth and efficient use of renewable energy sources within the nation. Passed by the Ghanaian Parliament and signed by the President on December 31, 2011, this legislation creates a structure to promote eco-friendly energy production from renewable sources.   

  • The primary objective is to draw in investment in renewable energy, broaden the energy sources, and improve energy security. The Act designates responsibilities to organizations such as the Ministry of Energy, the Energy Commission, and the Public Utilities Regulatory Commission (PURC).   

  • The renewable energy sector now has a licensing system in place for commercial activities, which mandates that organizations must secure a license from the Energy Commission.   

  • Moreover, the Act also creates the Renewable Energy Fund, which aims to offer monetary support for the advancement of renewable energy sources, as well as for research, building skills, and carrying out projects, with a focus on rural regions. This resource is essential for promoting the renewable energy industry in Ghana and reaching energy goals.  

The focus of the Renewable Energy Act is on advancing solar energy. It acknowledges solar power as an important renewable source and details particular steps to encourage its use. The law has rules for setting up feed-in-tariff programs that assure a set rate for power produced from solar and other renewable sources. This incentive aims to promote investment in solar energy projects by offering investors a consistent and reliable source of revenue. Furthermore, the Act requires the incorporation of solar energy initiatives into the national grid, making it easier to distribute and use solar power throughout the nation. These actions are focused on utilizing Ghana's plentiful solar energy sources to improve energy availability and sustainability.  

Read more:  RENEWABLE ENERGY ACT 2011 (ACT 832).pdf (energycom.gov.gh)  

The Renewable Energy Standard and Labelling (Solar Panels) Regulation, 2022 in Ghana establishes mandatory standards for the energy efficiency and performance of solar panels sold in the country. This regulation requires that all solar panels undergo testing and certification by the Energy Commission to ensure they meet specified criteria. The regulation aims to protect consumers by ensuring they have access to high-quality, efficient solar panels, and to promote the use of renewable energy in Ghana. It also includes provisions for labeling, which helps consumers make informed purchasing decisions based on the energy efficiency of the products

Read more:  https://energycom.gov.gh/index.php/regulation/renewable-energy-if?download=406:li-2449  

The Ghanaian Renewable Energy Masterplan (REMP) was published in February 2019 with the goal of utilizing the nation's renewable energy sources to spur economic development, enhance quality of life, and address climate change.   

  • The proposal aims to significantly grow renewable energy capacity from 42.5 MW to 1,363.63 MW by 2030, emphasizing grid-connected systems.   

  • Important issues identified are the dependence on biomass and the necessity for decentralized electrification in areas without access to the main power grid.   

  • The Masterplan details precise steps for advancing solar, wind, hydro, and biomass energy, such as encouraging local materials, tax breaks, and backing indigenous businesses.   

Solar power is emphasized as an important aspect of Ghana's plan for renewable energy, aiming to increase solar capacity with both large-scale farms and decentralized systems in rural regions. The Masterplan aims to improve energy access, decrease emissions, and help Ghana transition to a sustainable energy future by attracting private sector investment and offering regulatory support.  

Read more:  https://energycom.gov.gh/index.php/regulation/acts?download=724:renewable-energy-amendement-act-2020-act-1045  

The Energy Commission of Ghana developed the Strategic National Energy Plan (SNEP) 2020-2030, which provides a detailed plan for Ghana's energy industry. The strategy tackles issues such as energy availability, dependability, and cost while fostering economic development and enhancing quality of life. It establishes ambitious objectives for enhancing energy infrastructure, increasing efficiency, and incorporating renewable sources. The strategy highlights the importance of having a variety of energy sources to increase security and reduce dependence on fossil fuels.  

The SNEP is prioritizing the development of renewable energy, with specific goals for increasing solar, wind, hydro, and biomass capacity. The plan highlights how renewables can enhance energy supply and lower emissions. Incentives and a favorable regulatory environment are provided to encourage private sector investment in renewable energy.  

The SNEP emphasizes solar energy because of Ghana's plentiful solar resources. Objectives have been established to enhance solar capacity, targeting both extensive projects and distributed systems for remote locations without access to the grid. Encouraging the production of solar components domestically is viewed to generate employment and boost economic development, ultimately paving the way for a sustainable energy future in Ghana.  

Read more: https://energycom.gov.gh/index.php/planning/strategic-national-energy-plan?download=91:snep-ii   

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