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Ghana: Renewable Energy Push Gains Momentum Amid Delays and Strategic Industrial Shifts

Ghana: Renewable Energy Push Gains Momentum Amid Delays and Strategic Industrial Shifts
Tuesday, 02 December 2025 03:06
  • Ghana advances 111 GWh solar rollout by 2026, easing energy pressures and accelerating rural electrification despite slow disbursements.
  • German-backed solar factory could shift Ghana from importer to regional producer, anchoring a new industrial base for West Africa’s green economy.
  • Renewables expand across Africa, but Ghana’s gains remain incremental; governance, tariffs and utility finances will determine the pace of real impact.

Ghana is moving closer to a modest but symbolically important milestone in its transition toward cleaner energy, with roughly 111 GWh of additional solar-based electricity expected by 2026. The projection, drawn from a recent African Development Bank (AfDB) implementation report, stems from the ongoing Ghana Mini Grid and Solar PV Net Metering Project, a US$85 million investment designed to expand rural electrification and reduce the country’s dependence on hydro and thermal generation.

Although the initiative will not significantly alter the national power balance, it represents a calculated effort to ease pressure on a sector long constrained by fuel-price exposure, liquidity stress among state-owned utilities, and the political sensitivity surrounding consumer tariffs.

Ghana’s electricity landscape continues to grapple with structural weaknesses that undermine performance and investor confidence. Chronic cash flow imbalances at the Electricity Company of Ghana, along with the persistent gap between cost-recovery requirements and politically driven tariff decisions, limit utilities' ability to invest sustainably. Technical losses remain high, and the system’s dependence on imported fuel exposes the economy to international market volatility. With electricity demand rising steadily—often by more than 4% per year—the government’s ambition to achieve universal access by 2030 has heightened the urgency to diversify supply sources and strengthen network resilience. Renewables, excluding hydro, currently account for less than 1% of Ghana’s generation mix, leaving the country behind frontrunners such as Kenya and South Africa.

Within this context, the AfDB-backed programme seeks to accelerate supply diversification. It foresees installing 67.8 MW of new solar generation capacity through the deployment of 35 mini-grids targeting lakeside and island communities, as well as 12,000 rooftop systems for households, small businesses, and public facilities. The Bank’s November 2025 review rates progress as satisfactory, though the project faces delays linked to slow tax-exemption approvals and the late release of government counterpart financing.

As of late 2025, only 12.6% of funds had been disbursed. Nevertheless, once completed, the initiative could provide reliable power to more than 84,000 people, generate nearly 3,000 temporary jobs, and reduce carbon emissions by an estimated 718,000 tonnes annually. It also fits within a continental trend that increasingly views mini-grids as an efficient mechanism for electrifying remote areas.

The solar programme also exposes Ghana’s vulnerability to imported components and underdeveloped maintenance ecosystems, both of which risk limiting the long-term viability of off-grid assets. This challenge underscores the importance of an industrial shift that is already taking shape. In late 2025, Germany’s development bank KfW launched an international tender for a solar module assembly facility in Kumasi, with an annual production capacity of 75 MW.

If delivered on schedule between 2026 and 2027, the plant would become the first of its kind in West Africa and anchor Ghana’s emerging green industrialisation strategy. It would also provide a platform for technology transfer, reduce dependence on Asian imports, and position Ghana as a potential supplier to ECOWAS markets. The industrial momentum coincides with a growing pipeline of domestic solar projects, including the 200 MW Norbert Anku Solar Park—expandable to 1 GW by 2032—which signals the country’s intention to strengthen its competitive position in the regional energy landscape.

Ghana’s progress mirrors a broader continental acceleration in renewable energy initiatives. Nigeria is expanding its portfolio of solar mini-grids as part of a clean-energy investment pipeline estimated at US$7.8 billion. Kenya remains a regional leader with more than 400 operational mini-grids and the continent’s largest wind installation at Lake Turkana. Angola is rolling out a 724 MW solar programme supported by Western partners, and Morocco continues to consolidate its large-scale solar and CSP infrastructure with an eye toward future exports to Europe. Africa as a whole could exceed 100 GW of installed solar capacity by 2030, up from roughly 10 GW today, provided that financing flows stabilise and supply-chain bottlenecks ease.

In the medium term, Ghana’s additional 111 GWh of annual renewable output will support incremental improvements in energy access and help reduce the carbon intensity of marginal supply. The more strategic development lies in the emergence of a local solar manufacturing base, which—if KfW’s initiative succeeds—could fundamentally shift Ghana’s role within West Africa’s clean-energy ecosystem.

Yet this outcome is far from guaranteed. The public sector will need to improve procurement efficiency, stabilise utilities' financial health, and implement more predictable tariff reforms to attract private investors. Sustaining off-grid systems will also require stronger operation and maintenance frameworks than those typically observed across the region.

For now, Ghana’s renewable expansion remains gradual rather than transformative. However, if industrial plans materialise as intended, the country could evolve into a regional hub for solar technologies, strengthening its competitiveness and reducing long-term energy vulnerability. The following two years, marked by the roll-out of the AfDB-supported systems and the potential commissioning of the German-backed plant, will be decisive in determining whether Ghana can convert momentum into a durable structural advantage.

Idriss Linge

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