Ghana's government has injected GHS 15.2 billion into its power sector to address financing shortfalls and improve grid reliability. This significant investment aims to strengthen generation, transmission, and distribution infrastructure across the country. The initiative seeks to resolve persistent electricity supply challenges and provide reserve capacity for Ghana's expanding industrial needs.
A key component of this strategy includes the planned construction of a second gas processing plant at Atuabo in the Western Region. This project, estimated at US$700 million, will increase gas processing capacity from 120 million to 300 million standard cubic feet per day. The expanded facility will process indigenous natural gas into liquefied petroleum gas and natural gas liquids, reducing reliance on imported fuels.
This strategic move is projected to save the Ghanaian economy approximately US$500 million every two years. It will also create more than 2,500 direct and indirect jobs, significantly boosting local employment. The investment underscores the government's commitment to energy independence and economic growth.
Dr. Yussif Sulemana, Technical Advisor to the Minister of Energy and Green Transition, highlighted these plans at a stakeholders’ workshop in Accra. The workshop, themed “Unreliable Electricity: Measurement and Coping Strategies,” was organized by GIMPA-PURC’s Centre of Excellence in Public Utility Regulation and the International Growth Centre (IGC) Ghana. Dr. Sulemana stated that the government has also allocated over GHS 1.4 billion to settle legacy debts owed to Independent Power Producers, ensuring stable fuel supplies for thermal plants.
The Electricity Company of Ghana (ECG) is also implementing a US$278 million emergency investment programme. This programme will deploy 2,500 distribution transformers and replace damaged poles. These actions aim to reduce pressure on electricity networks, especially in densely populated commercial areas.
In renewable energy, the government is executing a US$3.4 billion Renewable Energy Action and Investment Plan over the next five years. This plan focuses on developing utility-scale solar plants, battery energy storage systems, and wind projects. These projects will be located in northern Ghana and the Ada West District, diversifying the national energy mix.
Ghana's electricity access has reached approximately 89 per cent, with installed generation capacity exceeding 5,300 megawatts. The dependable capacity stands above 4,700 megawatts, indicating a robust energy foundation. The strict enforcement of the country’s cash waterfall mechanism has also improved transparency in electricity revenue distribution.
Professor David Lagakos, Lead Academic at IGC Ghana, noted that access to the national grid does not always guarantee reliable electricity. Preliminary findings from a pilot survey revealed that power fluctuations impose significant economic costs, including damage to electrical equipment. He urged authorities to address these challenges comprehensively. Stakeholders at the workshop welcomed the survey recommendations and pledged their support for efforts to enhance electricity reliability nationwide.