Cabinet at its forty-seventh meeting on 25th March, 2023 approved the reviewed

National Energy Policy of Ghana which is intended to guide the development and
management of Ghana’s energy sector, especially during this era of the global call to
transition to clean energy use.
I am honoured to present to you an energy policy which does not only create a
conducive environment for increased investment in the energy sector in Ghana but
also seeks to put in place a framework for the efficient management of Ghana’s
energy resources to sustainably create wealth through value addition and revenue
generation. The formulation of this policy went through an extensive consultative
process which involved the review of policies of several countries, discussions with
institutions of Government, local authorities, civil society organizations, organized
and non-organized labour as well as consultation with key development partners and
the academia. We also engaged Ghanaians across the length and breadth of the
country to ensure that the peculiar energy needs and issues in various parts of the
country are captured and addressed. This is to ensure that the policy continues to
remain relevant in the fast-changing global energy sector over the period. The
implementation of this Policy, through continuous consultation with stakeholders,
may require the amendment of existing legislations and the creation of new
legislations across the entire energy sector. This Policy extensively incorporates the
implementation of the National Energy Transition Framework of Ghana which
guarantees the best fuel supply security through the provision of a cost-efficient
diversified energy mix to accelerate socio-economic development and to achieve
universal access to electricity by 2024. National Energy Policy, 2021 XIV The policy
direction on upscaled adoption of clean cooking fuels and associated technologies will
positively improve the livelihood and health of women and children who are the main
gatherers of firewood for cooking. The introduction of new technologies such as
Modern Renewable Energy, Nuclear Power, Carbon Capture Utilization and Storage,
Hydrogen and Electric Vehicle (EV) charging stations to diversify our energy mix has
the potential to create millions of new job opportunities and enable Ghana gain access
to the future green trade market.

EXECUTIVE SUMMARY Introduction Ghana's developmental goal is to create an

optimistic, self-confident and prosperous nation, through the creative exploitation of
our human and natural resources, and to operate within a democratic, open and fair
society in which mutual trust and economic opportunities exist for all. This
development agenda is largely dependent on the optimal development and utilisation
of its energy resources and provision of energy services in a reliable, cost-effective
and environmentally friendly manner. The purpose of a comprehensive national
energy policy is to provide a framework and strategies to meet the energy needs of the
country and address current and future challenges. The Government of Ghana
recognises energy as a key driver for sustainable socio-economic development of the
country. In this regard, Governments in the past have come up with policies and
interventions to develop the energy sector. The Energy Challenge The existing
National Energy Policy was developed in 2010, and since then, there have been
significant changes in the power and petroleum subsectors, which call for a review of
the Policy. Ghana's total energy supply has to grow significantly to help achieve the
developmental goal. The challenge is how to increase the energy supply and also
sustainably expand the energy infrastructure in the country in line with the global
energy transition. Vision and Mission The Vision of the Energy Sector is to be self-
sufficient in the provision of sustainable energy and for export. National Energy
Policy, 2021 XVIII The mission of the Energy Sector is to make competitively priced
energy universally accessible and readily available in an environmentally sustainable
manner for the local market and for export. Energy Policy Platform This National
Energy Policy outlines the energy sector goals, objectives, and issues and their
respective policy directions. The Policy covers the broad spectrum of issues relating
to the following areas: i. Power Generation, Transmission and Distribution ii.
Renewable Energy iii. Nuclear Power iv. Petroleum (Upstream and Downstream) v.
Energy Transition vi. Energy Efficiency and Conservation vii. Cross-Cutting Areas
(Health Safety Security and Environment, Gender, Local content and Local
Participation, and Research and Development) A summary of the sector policy
framework is provided below. Power The goals for the power sector are to: accelerate
the achievement of universal access to electricity in the country; integrate planning
system to meet Ghana's growing electricity demand reliably and cost-effectively in a
sustainable manner; achieve cost-competitive electricity generation. In addition,
develop transmission and distribution systems that facilitate efficient and cost-
competitive power evacuation and transportation; strengthen the electricity
distribution system to enhance a competitive electricity retail market; have an
efficient electricity pricing system for both local and the export market. National
Energy Policy, 2021 XIX The issues with the pursuance of these goals are poor
financial health of the utilities; excess installed generation capacity over demand; high
system losses in electricity generation and distribution; inadequate infrastructure to
take excess gas from indigenous sources for power generation. Given these goals and
issues, the policy focuses on the creation of enabling environment for private sector
participation; procurement of the country's electricity generation through a timely
competitive procurement plan; ensuring timely investments in the expansion of the
country's transmission infrastructure to reduce transmission losses; attraction of
private sector investment capital as strategic partners in distribution infrastructure;
provision of special but cost-competitive rates for exports of electricity to the sub-
region; expansion of interconnections with neighbouring countries to facilitate wider
electricity exports. Renewable Energy The goal is to increase the contribution of
Renewable Energy (RE) in the overall energy production mix of the country through
efficient production, transportation, distribution as well as end-use efficiency and
conservation. Major issues in the sector are difficulty in accessing land for Renewable
Energy (RE) projects due to land ownership structure; insufficient regulatory
framework; inadequate data on various renewable energy resources and their
utilisation; inefficient management of the production, transportation and marketing of
wood-fuel; insufficient regulatory framework to support private sector participation in
RE deployment; low public awareness of RE Technologies and benefits.
Consequently, policy directions in addressing these issues are defining the role of the
private sector for small and medium-scale hydropower National Energy Policy, 2021
XX development; provision of adequate and reliable data on RE resources and
utilisation through research; establishment of an appropriate regulatory framework for
RE development; collaborating with the relevant institutions to demarcate specific
areas for RE development in the land use and spatial plan for Ghana; increment of
public awareness of the benefits of RE technologies; and creation of fiscal and pricing
incentives to enhance the development and use of renewable energy. Nuclear Power
The goal is to integrate nuclear power into the national electricity generation mix as
baseload to guarantee long-term supply security, address issues of climate change and
air pollution. Issues affecting the sub-sector are inadequate coordination among key
players in the development of the nuclear power programme; lack of commitment to
the implementation of long-term power sector plans affecting long-term projects;
limited industrial capacity in the development of the nuclear programme; inadequate
funding and financing mechanism for the nuclear programme; public concerns about
the risks and safety of nuclear power plants. Policy directions to address the issues are
to enhance coordination between the nuclear power programme and key energy sector
players; the government shall commit to and sustain the implementation of long-term
power sector plans; development and implementation of a functioning mechanism for
funding and financing the nuclear programme; establishment of strategic bilateral
partnerships with nuclear power countries and international institutions; education and
sensitisation of the public (policymakers, legislators, media, educational Institutions,
chiefs and opinion leaders) to address their concerns on nuclear power in the energy
mix; continuous development of regulatory frameworks to National Energy Policy,
2021 XXI address issues of safety, security and safeguards in accordance with
international best practices. Petroleum Upstream The goal for the upstream industry is
to ensure that Ghana's petroleum resources are managed transparently and
sustainably. The major issues facing the sub-sector are insufficient data on some of
the country's sedimentary basins; inadequate development and production
infrastructure; low recovery efficiency; inadequate legal, regulatory and fiscal
frameworks; potential boundary disputes; dwindling reserves; effect of natural
disasters and national health emergencies. The policy focuses on: the acceleration of
the reconnaissance exploration programme; acquisition of sufficient data on all the
sedimentary basins; promotion of infrastructure for hub-based development and
production; promotion of enhanced recovery methods to improve recovery
efficiencies; ensuring passage and enforcement of relevant regulations for the efficient
and sustainable conduct of petroleum activities. Petroleum Downstream The goal for
the downstream industry is to ensure an effective and efficient functioning
downstream petroleum industry. The main issues identified are inadequate refinery
and storage capacity; inadequate strategic stock of petroleum products; inadequate
infrastructure for downstream operations; inefficient mode of transportation and
distribution of petroleum products; weak financial and technical regulatory capacity
of the petroleum industry; low access to liquefied petroleum gas (LPG); and huge
investment requirements for natural gas infrastructure development. National Energy
Policy, 2021 XXII Policy directives espoused to address the above issues are
mobilisation of public and private sector investment to expand national crude oil
refining capacity, trading, storage and transportation to neighbouring countries and
land-locked nations in the sub-region; development of petroleum infrastructure in
designated areas to support Ghana becoming a petroleum hub; enhancement of the
regulatory environment for the private sector participation in the development of a
transportation network; development and implementation of a petroleum
transportation infrastructure network to link the West African sub-regional markets;
improvement of governance and legislative framework in the downstream industry;
promotion of LPG through the implementation of the LPG for Development
Programme; and the development of a robust, transparent and predictable pricing
regime. Energy Transition In 2015, world leaders met in Paris to address the negative
impacts of climate change. The leaders, through an Agreement, decided to encourage
governments of the world to promote clean energy production and use with the aim of
holding the increase in the global average temperature to well below 2°C above pre-
industrial levels and pursuing efforts to limit the temperature increase to 1.5°C above
pre-industrial levels, recognizing that this would significantly reduce the risks and
impacts of climate change. The goal is to develop low-carbon energy resources and
infrastructure to deliver clean energy in an environmentally responsible manner for
socioeconomic growth. Although climate change concerns form the basis for Energy
Transition, it must be situated within the context of the Sustainable Development
Goals (SDG), particularly SDG 7 which is to ensure access to affordable, reliable,
sustainable and modern energy for all. National Energy Policy, 2021 XXIII Ghana has
significant oil and gas resources which must be taken into consideration in the
transition to a low carbon economy. It is part of other frameworks which seek to
efficiently and transparently exploit oil and gas resources and hence a balance must be
sought when approaching the Energy Transition from a national perspective. Energy
Efficiency and Conservation Energy Efficiency refers to products or systems using
less energy to do the same or better job than conventional products or systems.
Commitment to ensuring efficient production, transportation, as well as end-use
efficiency and conservation of energy is critical to the efficient management of the
economics of the energy sector as well as reducing carbon emission per energy use.
The goal is to ensure efficient production, transportation, distribution as well as end-
use efficiency and conservation of fuel and energy across the economy. The main
issue of this sector is the limited awareness of energy conservation and fuel
substitution measures. The policy objectives to address this issue are: improve upon
demand-side management to reduce wastage in the energy sector through energy-
efficient buildings and the development of standards and labels for appliances;
promote fuel efficiency and conservation through continuous education and public
awareness programme on efficient use of energy and conservation; encourage fuel
switching into cleaner fuel through the use of LPG and improved Cookstoves
promotion for cooking. Cross-Cutting Areas The cross-cutting areas include Local
Content and Local Participation; Health, Safety, Security and Environment (HSSE);
Mainstreaming Gender and Persons with Disabilities; and Research and Development.
National Energy Policy, 2021 XXIV The goals are: to maximise Local Content and
Local Participation in the energy sector; secure energy systems from physical and
cyber-attacks at all times; protect the health, safety and security of people working in
the energy value chain; ensure that energy is produced, transported and utilised in an
environmentally sustainable manner; mainstream gender and persons with disabilities
in energy sector activities; and promote research into energy production, supply and
utilisation to ensure sustainable exploitation and use of energy resources. The main
issues are limited local content and local participation in the energy sector; inadequate
security interventions on oil and gas, power and related installations; inadequate
skilled human resources to ensure cybersecurity; inadequate enforcement of safety
and security regulations in the energy value chain; limited technical capacity and
expertise in HSSE within the energy sector; inadequate emergency response and
readiness to disasters associated with the entire energy value chain; inadequate health
and social baseline information for impact assessment and planning; low participation
of women and persons with disabilities in managerial positions in the energy sector;
low awareness of gender issues in the energy sector among policymakers and the
general public; and inadequate gender-disaggregated energy data which creates
difficulty for proper planning of gender issues in the energy sector. In view of these
goals and issues, the policy focuses on enforcement of Local Content and Local
Participation regulations; creation of enabling environment to enhance in-country
fabrication, installation and manufacturing of components used in the energy industry;
collaboration with national security agencies to develop and implement national
security strategies for the Energy Sector; development of necessary guidelines with
the support of agencies and relevant stakeholders for safe, secure and environmentally
friendly work processes in organisations; investment in capacity building in HSSE in
the energy sector; enforcing National Energy Policy, 2021 XXV the development and
timely updates of emergency response plans across the entire energy value chain;
ensuring collection and timely update of all necessary health and social information to
inform policy and planning; supporting the capacity development of women and
persons with disabilities in the energy sector; encouragement of female enrolment to
Science, Technology, Engineering and Mathematics (STEM) education and skills
training programmes; building of gender sensitive capacity of decision makers and
technical officers in all energy sector institutions, facilitate gender mainstreaming into
energy related interventions; enhancement of gender-disaggregated energy data
collection, management and publication towards ensuring gender responsive analysis
and planning.

POLICY SCOPE
This Policy covers the following areas: power (generation, transmission and
distribution), petroleum (upstream and downstream), Energy Efficiency and
Conservation, Energy transition and cross-cutting issues of the energy sector.

POLICY FORMULATION PROCESS

The draft policy framework was prepared by experts drawn from Energy Sector
Institutions and was presented as a working document for the firstever Energy
Summit held in Accra in June 2017. Stakeholders at the Summit included relevant
Government Institutions and players in the Energy Sector such as regulators, state-
owned utility companies, Independent Power Producers (IPPs), International Oil
Companies (IOCs), the Oil Marketing Companies (OMCs), the Chamber of Bulk Oil
Distributors (CBOD), Civil Society Organisations (CSOs) and some Development
Partners. The Ministry of Energy, after the Summit, came up with a draft policy and
undertook a nationwide stakeholder consultation in the four geographical zones of the
country in March 2018 to solicit for inputs and comments. The Northern Zone was
held in Tamale for stakeholders in Upper West, Upper East and Northern regions. The
Central Zone was held in Kumasi for the Ashanti, then Brong Ahafo and Eastern
regions. The Western Zone was held in Takoradi for the Central and Western regions,
and that of the Southern Zone was held in Accra for stakeholders in Greater Accra
and the then Volta regions. Key participants included MMDAs, the Regional
Coordinating Councils, Regional Houses of Chiefs, the Trade Union Congress, Civil
Society Organisations and the Academia. National Energy Policy, 2021 5 After the
nationwide stakeholder consultations, comments and submissions from the various
stakeholders were collated and reviewed as inputs into the Policy. CONTENT AND
STRUCTURE This Policy is structured into four main chapters. Chapter 1, the
introduction, gives the background, rationale, policy scope, policy formulation
process, content and structure. Chapter 2 deals with the policy context. It describes the
Global, Regional and, National context, Situational Analysis, Vision, Goal, Core
Values and Guiding Principles. Chapter 3 presents the Institutional, Legal and Fiscal
frameworks in the country's energy sector and within ECOWAS. The last chapter
presents the policy goals, objectives, issues and respective policy directions for the
various energy sub-sectors as well as for cross-cutting areas.

POLICY CONTEXT
This chapter focuses on energy-related issues at the global, regional and national
levels as well as conventions and commitments that Ghana has signed on to which
impact the nation's energy developmental agenda.

GLOBAL CONTEXT
Ghana is a signatory to several global protocols and agreements relating to
sustainable energy production and use. These commitments feed into policy
formulation towards the achievement of universal energy access to the citizens while
meeting climate change mitigation requirements. Prominent among these are the
Sustainable Development Goals (SDGs), the Paris Agreement and the Extractive
Industries Transparency Initiative (EITI). The SDGs, are aimed at ending poverty,
protecting the planet and ensuring that all people enjoy peace and prosperity. While
Ghana recognises the relevance of all the Goals, SDG 7 2 would be critical in the
energy development and moving Ghana from a lower-middle-income to upper-
middle-income economy. In addition to the SDGs, Ghana ratified the Paris
Agreement in 2016 which requires each country to determine, plan, and regularly
report on the contributions towards mitigating climate change. In compliance with the
Paris Agreement, there is a need for measures to reduce Greenhouse gas (GHG)
emissions. Ghana's emission of 0.51 tonnes of CO2 per capita3 (0.04% of global
emissions) is far below the global average 4.7 tonnes of CO2 per capita.

However, the country has to consider a sustainable mix of adaptation and mitigation
strategiesin consonance with global GHG emissionsreduction efforts. For instance,
with the increasing fossil-fired thermal plants in the electricity generation mix, there
would be the need for more mitigation actions such as energy efficiency and
conservation activities and afforestation programmes. During COP26, Ghana signed
unto the global commitment to decarbonize towards a net-zero. This global energy
transition agenda has brought imminent danger to the petroleum industry such as the
financing for petroleum projects which has declined in favour of low carbon energy,
creating further uncertainty for petroleum markets. The need for further exploration
and petroleum producers to recoup their investments while creating a balance between
fossil fuel production and environmental sustainability have therefore become policy
imperatives. Ghana must therefore outline policy framework to address the possibility
of stranded asserts and job loses to take advantages of the benefits of the energy
transition agenda such the creation of new job markets, embrace new technologies
and consolidate energy security and energy access. Ghana signed on to the Extractive
Industries Transparency Initiative (EITI) in 2003 after the launch of the initiative at
the World Summit on Sustainable Development in 2002 in Johannesburg. The
Initiative is a global standard for improving transparency and accountability in the oil
and gas and mining sub-sectors. EITI encouraged member countries to develop a
framework to promote transparency of payments in the Extractives. The Initiative was
extended to the petroleum sector in 2013 after commencing oil production from the
Jubilee Field in 2010. The Ghana EITI (GHEITI) produces Annual Reports and
highlights the gaps in the mining and petroleum sectors. National Energy Policy, 2021
8 Ghana is also committed to the Open Government Partnership (OGP) founded in
2012 with over 70-member countries; the OGP connects governments, CSOs, and
businesses. Ghana is required to open up its contracting processes to publish contracts
and provide information on Beneficial Owners (BO) of companies. The country also
commits to Voluntary Principles (VPs) on Security and Human Rights in the
extractives. Under VPs, companies, governments and NGOs engage in dialogue to
address security-related Human Rights abuses. The effects of natural disasters,
conflicts, and global pandemics such as the recent COVID-19, SARS, MERS and
other health emergencies also continue to disrupt the electricity and oil and gas
markets significantly. Under these conditions, there is disruption in the oil and gas
value chain leading to delays in new oil and gas projects due to reprioritisation of
capital.

ime to make industrial tariff competitive • Improve efficiency in electricity delivery

services Issue 7 Lack of sustainable mechanisms to address ownership and finance the
operations and maintenance of street lighting infrastructure. National Energy Policy,
2021 40 Policy direction • Develop sustainable mechanisms to address ownership and
finance the operations and maintenance of street lighting infrastructure. Issue 8 •
Financial burden due to excess grid capacity Policy direction • Ensure competitive
procurement of power plants 4.1.6 Financing and Tariff Setting Sub-Goal To have an
efficient electricity pricing system for both the local and the export markets Policy
Objectives • To set a competitive tariff without impairing the financial health of the
distributing utilities. • To restructure the tariff regime to provide uniform pricing for
all consumers Issue 1 Lack of clarity in the tariff setting and approval process. Policy
directions • Institute an open and transparent review of electricity tariffs. National
Energy Policy, 2021 41 • Publish detailed tariff structure, including calculations and
assumptions. Issue 2 Lack of cost-reflective tariff. Policy directions • Ensure
consistent application of the Automatic Adjustment Formula (AAF) for electricity
tariff. • Regulate operations of the distribution services to achieve financial
sustainability of the utility companies as well as ensure consumer protection. •
Institute mandatory independent financial and technical audit of proposals submitted
by utilities. Issue 3 Unsustainable cross-subsidisation of residential consumers by
nonresidential customers. Policy directions • Facilitate the delivery of competitively-
priced power to all classes of consumers as well as for export. • Establish the
necessary but rational level of taxes and levies on electricity costs to provide for other
social needs such as street lights, rural electrification, ancillary services and energy
efficiency, which is to be reduced periodically. Issue 4 The high price of electricity,
making most local industries uncompetitive to operate. National Energy Policy, 2021
42 Policy direction • Develop and implement a mechanism to monitor the availability
of power plants by the Grid Operator. • Re-structure the current tariff regime to make
industrial tariff competitive • Improve efficiency in electricity delivery services Issue
5 Relatively high and non-competitive electricity tariff. Policy directions • Facilitate
the regular review the methodology of the tariff structure to make it competitive. •
Ensure efficient cost in the operation of the transmission and distribution utilities. •
Ensure competitive procurement of additional power. 4.1.7 Electricity Regulation
Sub-Goal To achieve uniform rules of practice for generation, transmission, wholesale
supply, distribution and sale of electricity. Policy Objectives • To review the power
sector regulators Acts to reflect current trends. • To create a unified regulator for
economic and technical regulation.

• To create, enforce and continuously review and apply a fair, transparent and
predictable regulatory framework for the electricity sector. Issue 1 Lack of regulatory
framework for mini-grid. Policy direction • Develop a regulation for mini-grid
electrification. Issue 2 Non-compliance of the regulatory framework for competitive
procurement of new generation capacity. Policy directions • Strengthen, monitor and
enforce regulations and licence conditions at all times. • Ensure that efficiency, cost-
effectiveness and innovation are achieved through the regulatory framework. • Ensure
that all licensees apply best utility practices throughout the industry. Issue 3
Challenges with balancing cost reflectivity and affordability. Policy directions •
Create an environment for retail competition in the electricity market. • Encourage
private sector participation in the distribution of electricity. National Energy Policy,
2021 44 Issue 4 Non-profitability of NEDCo area with lifeline customer base. Policy
directions • Complete the decoupling of NEDCo from VRA. • Liaise with appropriate
authorities to incentivise investors to locate industries in NEDCo operational area.
4.1.8 Electricity Market and Trading Sub-Goal To achieve competitive electricity
market in Ghana. Policy Objectives • To accelerate the development and full
operationalisation of the electricity market; • Encourage private sector participation in
the retail end of electricity distribution. Issue Delay in the full operationalization of
the electricity market. Policy directions • Enhance accelerated development and
operation of the electricity market and remove all bottlenecks to competition. •
Support the development of retail competition in the electricity market. • Facilitate the
entry of Independent Power Producers (IPPs) through competitive bidding. • Ensure
improved performance of electricity utility companies. National Energy Policy, 2021
45 • Promote and provide the enabling environment to support regional initiatives
towards the development and utilisation of energy resources in the region in
conformity with ECOWAS Energy Protocols. • Implement rules for the operation of
the electricity market. • Create and enhance the domestic electricity market for the
residential, industrial and commercial customers. 4.1.9 Competitive Pricing for
Strategic Industries Sub-Goal To have an electricity pricing mechanism that makes
the country's strategic industries sustainable and economically competitive. Policy
Objective To dedicate significant low-cost generation sources to strategic industries.
Issue Lack of competitively priced power for electricity-intensive strategic industries.
Policy direction • Establish competitive industry tariffs for electricity-intensive
strategic industries.

4.2 RENEWABLE ENERGY 4.2.1 Renewable Energy Sector Overview Ghana

considers renewable energy as an option to contribute to the overall energy supply
mix and to minimise the adverse effects of energy production on the environment.
The development of renewable energy in Ghana would contribute to our quest to
transition the energy sector to a low carbon pathway in line with global drive for
energy transition. Ghana's renewable energy resources include hydro, solar, wind,
bioenergy, tidal waves and all forms of energy y sources that could be used to
generate energy while emitting little or no greenhouse gases (GHG). Hydropower
Hydropower plants in the Volta River basin comprising Akosombo, Kpong and Bui
are the most developed renewable energy resource in the country. Yet to be developed
are the small and medium-scale hydro resources of capacities less than 100MW. A
total of 21 potential sites that could be developed for power generation have been
assessed in the country. Other sites with much bigger potential can be profitable if
only they are developed as hybrid schemes or for multi-purpose (water supply,
irrigation, transportation) use. Solar Energy Ghana is well endowed with solar energy
resources, which could be exploited for electricity generation and thermal applications
such as water heating and crop drying. The average solar irradiation per day in
different parts of the country ranges from 4 to 6 sunshine hours13 with a solar
irradiation intensity of up to about 5.7 kWh/m2 /day. 1313 1 sun hour = 1 peak
sunshine hour equivalent to 1000 W/m2 National Energy Policy, 2021 47 Solar
Photovoltaic (PV) technologies are becoming increasingly available for a wide range
of applications requiring electricity for telecommunication, irrigation, off-grid and
grid-tied applications for commercial and residential use. The capacity of Solar PV
electricity installations as of December 2020 was about 88.7MW with over 65% in
grid-connected areas14 . Contribution from the solar resource in the national
electricity mix including stand-alone off-grid solar systems thus accounts for just
about 2.0% of electricity installed capacity. Solar water heating could supplement
commercial and residential water heating needs as an energy conservation measure,
whilst solar crop drying could also help mitigate post-harvest losses of both cash and
food crops. Wind Energy Wind energy, like solar, is intermittent and is yet to record
any significant installation in the country. Currently, no grid-connected wind energy
system has been installed in the country. Ghana's wind power potential falls within
moderate to high wind speed ranging from 5m/s – 9m/s at 50m – 120m above ground
level, mainly along the east coast. Tidal Wave Ghana has a coast line measuring
550km with the high potential of generating electricity from tidal wave. However, this
resource potential is yet to be assessed. 142021 National Energy Statistics
[Link]
National Energy Policy, 2021 48 Bioenergy In 2020, bioenergy (mainly biomass)
accounted for about 36% of the total primary energy used in the country15 . These
comprised mainly of wood from various sources such as farmlands and forest
plantations. Firewood and charcoal are still dominant fuels for cooking, food
processing and heating in households and commercial facilities as well as the small
and medium scale industries in the country. The extraction and processing of wood
from the forest generate large quantities of wood wastes, which currently serve as the
major source of firewood but could also serve as fuel for power generation. Ghana has
had an indigenous charcoal industry, which met the needs of many households.
Charcoal, now a foreign exchange earner, has compounded the harvesting of wood
from forests contributing to deforestation. It is imperative to cultivate woodlots in
charcoal-producing communities to curb the dependence on the natural forest. The
vast arable and degraded landmass of the country has the potential for the cultivation
of crops and fast-growing plants that could also be converted into bioenergy. The
development of alternative transportation fuels such as gasohol and other biofuels can
supplement fuels for the transportation sector and contribute to the acceleration of the
energy transition agenda. Effective regulation of the bioenergy (Biofuel and Biomass)
industry shall require the establishment of procedures on: 15 2021 National Energy
Statistics [Link]
%[Link] National Energy Policy, 2021 49 1. Permitting, inspection and
handling for the processing of biofuel feedstock into liquid biofuels such as biodiesel.
2. The use and processing of agricultural and animal wastes as a biofuel feedstock. 3.
Quality assurance of the products to be within acceptable standards. In addition to
effective regulations, biofuel production, supply and marketing strategies shall focus
on the use of fiscal incentives and the establishment of adequate storage and
distribution facilities throughout the country. Renewable Energy-Based Mini-Grid
Electrification Mini-grids have a long history of electrifying remote communities in
developing countries and have emerged as a viable and scalable option for last-mile
electrification in Ghana. Renewable energy mini-grids have the unique ability to
increase energy access in remote areas while providing high-quality energy to
households and businesses. Through the Ghana Energy Development and Access
project (GEDAP), Ghana piloted mini-grid pilot projects in five island communities in
the Volta Lake and the Volta River. The Government of Ghana opted for the public
sector-led business model for the development of mini-grids and subsequently
mainstreamed it into the National Electrification Scheme to ensure that mini-grid
customers enjoyed the same level of services and benefits available to national grid
customers. The focus of mini-grid shall be on islands and lakesides as well remote
mainland communities where the reach of the national electricity grid is financially
and economically prohibitive
Renewable Energy sector Goals, Objectives, Issues and Policy Directions Sub-Goal
The goal is to increase the contribution of renewable energy to the overall energy mix
of the country. Policy Objectives • To increase the supply of energy from renewable
sources. • To promote the development and use of proven and competitively-priced
renewable energy technologies. • To deploy renewables energy for electricity supply
in remote and island communities as an alternative source to grid extension. • To
increase the penetration of non-electricity applications of renewables such as solar
water heaters and crop dryers. • To support the sustainable production and supply of
bioenergy for local consumption and export. • To promote the local manufacture of
renewable energy technologies. Issue 1 Difficulty in accessing land for renewable
energy projects due to land tenure system. Policy direction • Demarcate specific areas
for renewable energy development. • Establish an appropriate regulatory framework
for renewable energy development. National Energy Policy, 2021 51 Issue 2 Potential
agriculture lands being used for large-scale renewable energy installation. Policy
directions • Explore the use of water surfaces non-agriculture lands for renewable
energy development. • Explore the option of tidal and wave energy within the
maritime domain. Issue 3 Inadequate data on renewable energy resources and their
utilisation. Policy direction • Conduct renewable resource assessment and mapping to
provide adequate and reliable data on renewable energy resources and utilisation.
Issue 4 Insufficient regulatory framework to support private sector participation in
renewable energy deployment. Policy direction • Establish the Renewable Energy
Authority. Issue 5 Inadequate Local Content and Local Participation in the renewable
energy industry. National Energy Policy, 2021 52 Policy directions • Promote Local
Content and Local Participation in the renewable energy industry. • Encourage Private
Investment in Renewable Energy Industry. Issue 6 Difficulty in accessing long-term
low-cost financing, especially for interested residential customers. Policy directions •
Initiate and promote capacity building for financial institutions. • Operationalise the
Renewable Energy Fund. • Facilitate the development of low-cost financing schemes
for renewable energy end-users. Issue 7 Inadequate skilled manpower in the
development and deployment of renewable energy technologies. Policy direction •
Promote technical and vocational education and training to local entrepreneurs. •
Establish a certification regime for trained renewable energy technicians and
engineers. Issue 8 Low public awareness of renewable energy technologies and
benefits. National Energy Policy, 2021 53 Policy direction • Increase public
awareness of the benefits of renewable energy technologies. Issue 9 Disposal of
renewable energy waste. Policy direction • Establish renewable energy recycling and
waste management industry. • Promote the proper disposal of renewable energy waste
through regulations. Issue 10 Inefficient management of the production, transportation
and marketing of wood fuel. Policy direction • Intensify the promotion of commercial
cultivation of woodlots and non-woody plant species. Issue 11 Lack of regulations to
facilitate the development of bioenergy and the non-existence of bioenergy pricing
mechanisms. Policy direction • Develop regulations to promote and govern the
bioenergy (biofuel, biogas and biomass) industry. • Promote the blending of biofuel
with petroleum products. National Energy Policy, 2021 54 4.2.3 Distributed
Renewable Energy Generation Sub-Goal To create the enabling environment to
enhance the contribution of distributed renewable energy in the overall electricity
supply mix. Policy Objective • To increase investment in distributed renewable
electricity generation in a manner that sustains the viability of the distribution
companies. Issue 1 Inadequate regulatory regime for distributed generation. Policy
direction • Develop regulations for distributed renewable systems. Issue 2 Lack of
Net-Metering tariff regime. Policy directions • Engage with relevant stakeholders to
ensure a tariff regime that is fair to both consumers and utilities. • Promote renewable
energy distributed generation, including a Net-Metering Scheme. Issue 3 Impact of
distributed renewable energy generation on the revenue of electricity distribution
companies. National Energy Policy, 2021 55 Policy direction • Develop and or adopt
innovative business models to ensure the financial sustainability of distribution
companies. 4.2.4 Off-Grid Renewable Electricity Sub-Goal To increase the
contribution of off-grid renewable electricity in the generation mix. Policy Objective
To deploy off-grid renewable energy solutions in a sustainable manner to facilitate
universal access to electricity. Issue 1 Difficulty in extending the national grid to
islands, lakeside and remote rural communities. Policy directions • Develop mini-grid
electrification options for islands, lakeside and remote rural communities in line with
the National Electrification Scheme. • Intensify the promotion of stand-alone
renewable energy options for isolated homes and facilities that cannot benefit from
minigrid systems. • Intensify the promotion of solar lanterns as a pre-electrification
solution. Issue 2 Importation of substandard renewable energy products. National
Energy Policy, 2021 56 Policy directions • Develop a regulatory framework and
standards for renewable energy products and systems. • Ensure enforcement of
standards for renewable energy products. Issue 3 High investment cost of off-grid
renewable energy stand-alone systems in remote areas. Policy direction • Develop
innovative financing schemes for off-grid electrification. Issue 4 Lack of financing
mechanism for the operation and maintenance of public renewable energy
installations. Policy direction • Provide adequate budget for the operation and
maintenance of public renewable system installations. 4.2.5 Bioenergy and End-Use
Technologies Sub-Goal To increase the contribution of bioenergy in the renewable
energy supply mix. National Energy Policy, 2021 57 Policy Objectives • To establish
sustainable, efficient and affordable wood fuel value chain. • To develop and improve
capacity for efficient biomass conversion technologies and end-use devices. • To
develop and promote the supply of biofuels such as biogas and bioethanol for
households and commercial use. • To develop regulatory frameworks for the
promotion and efficient utilisation of bioenergy resources. Issue 1 Unsustainable
exploitation, processing and use of wood fuel resources. Policy directions • Promote
the sustainable cultivation, harvesting and utilisation of fast-growing wood fuel
resources. • Discourage harvesting of fuelwood from uncultivated sources. • Promote
the use of agricultural and wood wastes as wood fuel. Issue 2 Adverse health and
environmental impacts of biomass conversion and end-use devices. Policy directions •
Implement behavioural change campaigns • Promote the development and use of
clean biomass cookstoves. • Promote efficient end-use biomass technologies National
Energy Policy, 2021 58 Issue 3 Low penetration of efficient biomass conversion
technologies (charcoal, briquette, pellets, etc.). Policy direction • Promote the
development and use of efficient and clean biomass conversion technologies. Issue 4
Low efficiency of available biomass cookstoves. Policy direction • Promote research
and development of efficient biomass cookstoves and fuels that meet the needs of
consumers. Issue 5 High cost of improved biomass cookstoves and fuels. Policy
directions • Provide incentives to attract private sector investment in the local
production of improved cookstoves. • Establish sustainable, cost-effective and
marketable wood fuel production methods. Issue 6 Low prioritisation and support for
biomass fuels and end-use devices. Policy direction • Provide incentives for the
development, commercial production and use of efficient biomass conversion
technologies. National Energy Policy, 2021 59 Issue 7 Low public awareness of the
benefits of efficient biomass cookstoves. Policy direction • Increase public awareness
of the benefits of efficient biomass cookstoves Issue 8 Limited technical capacity for
the design, production, installation and management of other technologies such as
biogas and bioethanol plants. Policy direction • Train entrepreneurs in the design,
production, installation and marketing of bioenergy technologies. Issue 9 Low
awareness of the potentials of biogas and bioethanol as alternative sustainable
bioenergy sources. Policy direction • Promote the adoption of biogas and bioethanol
in households, public institutions, industries and commercial ventures as an
alternative energy source. Issue 10 Lack of pricing mechanism for liquid biofuels.
Policy directions • Develop a pricing mechanism for liquid biofuels. • Promote
blending of biofuels in petroleum products. National Energy Policy, 2021 60 Issue 11
Lack of adequate regulatory frameworks for the bioenergy industries. Policy direction
• Develop regulations for the promotion of bioenergy (biofuel, biogas, biomass, etc.)
industries. 4.2.6 Other Non-Electricity Renewable Energy Systems Sub-Goal To
increase the contribution of non-electricity renewables in the overall energy supply
mix. Policy Objective To promote the non-electricity applications of renewable
energy to supplement the country's sustainable energy needs. Issue Low utilisation of
non-electricity renewable energy technologies such as solar water heaters, wind water
pumping systems, solar crop dryers and solar air-conditioners. Policy directions •
Increase awareness of the benefits of non-electricity renewable energy technologies. •
Promote the productive uses of renewable energy in irrigation, crop drying and
processing.

NUCLEAR POWER
4.3.1 Nuclear Power Sector Overview The long-term national vision of Ghana
harnessing atomic energy to enhance its national development projects was first
echoed by the first president, Dr. Kwame Nkrumah on November 25th 1964 during
the inaugural ceremony of the Ghana Nuclear Reactor Project16. Progress on earlier
plans to harness nuclear energy for power slowed down until 2008 when Cabinet
approved the adoption of nuclear power as part of Ghana's energy supply mix. The
Ghana Nuclear Power Programme Organization (GNPPO)17 has therefore been set up
with the mandate to see to the development and implementation of the necessary
nuclear infrastructure for the country's first nuclear power plant

Nuclear Power Sector Goals, Objectives, Issues and Policy Directions Sub-Goal To
integrate nuclear power into the national electricity generation mix as baseload to
guarantee long-term supply security, address the issues of climate change and reduce
air pollution. Policy Objectives • To secure competitively priced baseload electricity
for long-term energy supply through the utilisation of nuclear energy. • To develop a
resilient energy infrastructure to include nuclear power generation. Issue 1 Inadequate
coordination among key players in the development of the nuclear power programme.
Policy direction • Enhance coordination amongst the nuclear power programme and
key energy sector players. Issue 2 Limited industrial capacity in the development of
the nuclear programme. Policy direction • Create an enabling environment for local
industries to upgrade and expand facilities and programmes for effective industrial
participation. National Energy Policy, 2021 67 Issue 3 Inadequate funding and
financing mechanism for nuclear power programme. Policy direction • Develop and
implement a functioning mechanism for funding and financing nuclear power
programme. • Establish strategic bilateral and multilateral partnerships with nuclear
power countries and international Institutions. • Encourage Public-Private Partnership
(PPP) investments in the development of nuclear power projects. Issue 4 Public
concerns about the risks and safety of nuclear power plants. Policy direction • Educate
and sensitise the public (policymakers, legislators, media, educational institutions,
chiefs and opinion leaders) to address their concerns. • Regularly review regulatory
frameworks to address issues of safety, security and safeguards in accordance with
international best practices. • Ensure the deployment of proven technology for the first
nuclear power plant to engender public confidence.

4.4 PETROLEUM

The goal of the Petroleum sector is to make Ghana's petroleum industry transparent
and sustainable for the benefit of present and future generations.

Petroleum Upstream Sector Goals, Objectives, Issues and Policy Directions Sub-goal
Increase Ghana’s share in the petroleum sector. Objectives The objectives are: • To
explore and develop the petroleum resources of the country. • To acquire sufficient
and quality data on all the sedimentary basins in the country. • To ensure strict
compliance with the Petroleum (Exploration and Production) Act, 2016, Act 919 and
other related Laws and Regulations. • To promote the development of marginal
discoveries. • To address the gaps, strengthen and enforce the legal, regulatory and
fiscal frameworks. • To create a favourable environment for investment in the
upstream industry and minimise economic risk. To collaborate with relevant bodies in
minimising the possibility of boundary disputes. • To promote Ghanaian Content and
Ghanaian Participation in the upstream industry. • To improve cost and recovery
efficiency of producing fields. • To ensure the provision of adequate infrastructure to
link Upstream and Downstream operations. • To ensure sustainable operations to
minimise social and environmental impacts. • To build a resilient petroleum industry
against natural disasters and national health emergencies. National Energy Policy,
2021 76 • To explore and establish the hydrocarbon potential of the extended
continental shelf regions. Issue 1 Insufficient data on the Voltaian Basin, offshore
Central and Eastern Basins and the extended continental shelf regions. Policy
directions • Acquire sufficient quality data on all the sedimentary basins in Ghana. •
Improve data quality to boost confidence in exploration. • Accelerate the
reconnaissance exploration programme in the Voltaian Basin. • Pursue aggressive
promotion of the Basins to attract investment, particularly Majors and Large
Independents, into the industry. • Initiate research programmes to unearth the resource
potential of the Extended Continental Shelf Regions. Issue 2 Inadequate development
and production infrastructure. Policy direcvbc bctions • Promote infrastructure for
hub-based development and production. • Promote the construction of infrastructure
networks to link upstream and downstream. Issue 3 Inadequate Ghanaian Content and
Ghanaian Participation. National Energy Policy, 2021 77 Policy directions • Facilitate
partnership among Ghanaian companies with requisite technical and financial
capabilities. • Sustain the accelerated oil and gas capacity programme. • Ensure the
utilisation of local expertise in the procurement of local goods and services. • Ensure
the transfer of technology and know-how to Ghanaians. • Incentivise local companies
to develop relinquished marginal fields. • Promote temporary warehousing of local
participation requirements by NOC or related state enterprises where there is no
private sector capacity. • Establish a National Petroleum Technology Institute to
develop Ghanaian technological research capability for the petroleum industry. •
Promote local fabrication and construction capability. Issue 4 Low recovery
efficiency. Policy directions • Promote enhanced recovery methods to improve
recovery efficiencies. • Create an environment for the sharing of facilities and
capacities by industry players for optimum resource exploitation. • Introduce fiscal
based incentives to enhance recovery efficiency. Issue 5 Gaps in the legal, regulatory
and fiscal frameworks. National Energy Policy, 2021 78 Policy directions • Ensure
attractive and predictable legal, fiscal and regulatory regimes to encourage investors. •
Ensure passage and enforcement of relevant regulations for the efficient and
sustainable conduct of petroleum activities. • Ensure clarity in Institutional and
Regulatory roles in the natural gas sector. • Ensure that production facilities conform
to international standards. • Ensure that the operation of the gas transmission network
is a natural monopoly. • Encourage the amendment of the Ghana Boundary
Commission (GBC) Act, 2010 (Act 795) to include implementation of Article 82 of
the United Nations Convention on the Law of the Sea (UNCLOS) for the exploitation
of seabed and subsurface resources of the Outer Continental Shelf such as oil and gas.
Issue 6 High capital requirements and financial risk of petroleum exploration and
development. Policy directions • Promote competitive tender processes in the award
of petroleum exploration and production rights. • Attract companies that have
financial and technical capacity. Issue 7 Potential international boundary disputes.
National Energy Policy, 2021 79 Policy directions • Delimit and demarcate Ghana's
boundaries and proactively resolve disputes with neighbours. • Ensure the
implementation of the United Nations’ Recommendations on the Outer Limits of the
Continental Shelf beyond 200 nautical miles. • Collaborate with relevant bodies to
establish agreements with neighbouring countries to avoid conflict in the event of
crossborder activities. • Promote dialogue with cross-border communities affected by
oil activities and implement appropriate mitigation measures. Issue 8 Impact of
natural disasters and national health emergencies or pandemics. Policy directions •
Implement fiscal incentives such as cost uplifts, investment allowances, and
investment credits to reduce the cost of operations, particularly for companies that
retain activity and labour during national emergencies. • Toll or adjust work
programmes in return for accelerated activity when conditions have become
normalised after natural disasters. • Develop a National Petroleum Emergency Plan to
regulate operations of petroleum service companies during national emergencies. •
Review fiscal regime to address volatility in the industry arising from crisis. Issue 9
Dwindling reserves. National Energy Policy, 2021 80 Policy directions • Accelerate
exploration to increase reserves and production. • Ensure an attractive and enabling
environment through legal, fiscal and regulatory regimes to encourage investors. •
Promote competitive tender processes in the award of production rights and
exploration. • Promote enhanced oil recovery methods in development and production
areas, and in producing fields.

ENERGY TRANSITION 4.5.1 Energy Transition Overview Energy Transition refers

to the shift of the global energy sector from fossil fuel-based systems of energy
production and consumption to carbon-free energy sources. The need to reduce CO2
emissions to limit climate change is a dominant theme in Energy Transition. The
Energy sector (petroleum and power) is the biggest emitter of Greenhouse Gases
(GHG) making it a key target for decarbonisation. In 2015, world leaders met in Paris
to address the negative impacts of climate change. Key decision from this summit
include: National Energy Policy, 2021 89 a. To hold the rise in the global average
temperature to well below 2°C above pre-industrial levels while pursuing efforts to
limit the temperature increase to 1.5°C above pre-industrial levels, recognizing that
this would significantly reduce the risks and impacts of climate change; b. To enhance
the ability to adapt to the adverse impacts of climate change and foster climate
resilience and low greenhouse gas emissions development, in a manner that does not
threaten food production; and c. To make finance flows consistent with a pathway
towards low greenhouse gas emissions and climate-resilient development.22 Climate
change concerns are key drivers of the global Energy Transition, nonetheless, it must
be situated within the context of the Sustainable Development Goals (SDG),
particularly SDG 7 which is to ensure access to affordable, reliable, sustainable and
modern energy for all'23 . Energy Transition will be driven mainly by technology,
policy frameworks and market instruments and investments. Clean energy and energy
storage technologies are poised to see significant growth and advancement over the
coming years and will be instrumental in the move towards a Net Zero Emissions
(NZE) world. Policy frameworks which provide a clear long-term vision, encourage
competition and reduce risks for investors will be influential in scaling up renewable
and low-carbon energy portfolio share in the global energy mix.

Energy Transition Sector Goals, Objectives, Issues and Policy Directions Sub-Goal
The goal is to develop low-carbon energy resources and infrastructure to deliver clean
energy in an environmentally responsible manner for socioeconomic growth. 26
Updated Nationally Determined Contribution under the Paris Agreement (2020-
2030) National Energy Policy, 2021 93 Policy Objectives • Develop a comprehensive
national energy transition plan • Achieve energy sector net-zero carbon emission •
Ensure the generation of electricity from cleaner sources • Implement carbon pricing
in the petroleum sector as a measure against environmental pollution Issue 1 Threat to
energy security Policy directions • Adopt natural gas as a transition fuel for power
generation and transportation • Integrate nuclear power into the national generation as
baseload power • Promote energy efficiency and energy conservation practices •
Promote and incentivise the use electric propulsion vehicles • Establish the National
Renewable Energy Authority and other relevant institutions to scale up renewable
energy in the national energy mix • Explore the production of bioenergy and green
hydrogen as alternative fuels for transportation Issue 2 Potential revenue loses Policy
directions • Increase trade among African countries • Refine petroleum products and
use them locally National Energy Policy, 2021 94 • Explore the opportunities for
emissions trading and debt carbon swap as instrument Issue 3 Potential stranded
assets Policy directions • Fast track the sustainable exploration, development &
production of oil & gas resources • Accelerate the sustainable exploration,
development and production of petroleum • Accelerate the operationalisation of the
Petroleum Hub Cooperation • Develop a comprehensive national energy transition
plan Issue 4 Reduced funding for fossil related projects Policy directions • Cooperate
with other governments in the ECOWAS region to establish a regional fund •
Capitalise the national oil company Issue 5 Potential job loses Policy directions •
Collaborate with academia to provide clean energy solutions educational certificate
programmes in modules for energy sector workers. National Energy Policy, 2021 95
Issue 6 Intermittency of electricity supply from modern renewable energy Policy
directions • Ensure the hybridisation of mini-hydro power with intermittent renewable
energy. • Promote the sustainable production of biofuel for electricity and transport. •
Explore the option of hydrogen fuel and large battery storage systems. Issue 7
Resistance to the adoption of new technologies Policy directions • Incentivise the use
of cleaner fuel and cleaner technology Issue 8 Impact of climate change interventions
on petroleum activities. Policy directions • Aggressively accelerate exploration to
discover and monetise petroleum reserves. • Introduce Carbon Capture, Utilisation
and Storage (CCUS) and sequestration technologies in petroleum activities. • Promote
the use of renewable energy in offshore petroleum infrastructure. • Develop the
petrochemical industry to utilise domestic petroleum resources for domestic and
export markets.
ENERGY EFFICIENCY AND CONSERVATION 4.6.1 Energy Efficiency and
Conservation Overview The Government is committed to ensuring efficient
production, transportation, as well as end-use efficiency and conservation of energy in
the country. Energy Efficiency refers to products or systems using less energy to do
the same or better job than conventional products or systems. Energy Conservation,
on the other hand, is the practice of reducing consumption. Individuals and
organisations that are direct consumers of energy may want to conserve energy in
order to reduce energy costs and promote economic and environmental sustainability.
On a larger scale, energy conservation can reduce fuel consumption and energy
demand per capita, and thus offset the growth in energy supply needed to keep up
with population growth. The reduced energy demand can provide more flexibility in
choosing the most preferred methods of energy production. Demand-side
Management There has been significant penetration of efficient electrical appliances
in recent years which is due to efforts by the sector Ministry, Energy Commission and
other agencies to promote energy efficiency and conservation in homes and industries.
Specially targeted interventions such as the introduction of Energy Performance
Standards, the prohibition of importation and use of used appliances, labelling of
electrical appliances and special promotion packages have been used in the past with
very high success rates. These efforts have, however, not resulted in universally
sustained adoption of energy efficiency and conservation in the country owing to a
number of financial and institutional obstacles. To encourage and sustain energy
National Energy Policy, 2021 97 efficiency and conservation in the development of
the sector would require new and innovative interventions to deal with the challenges.
Fuel Efficiency and Conservation Increased petroleum use has direct and indirect
implications for the total energy consumption and socio-economic growth potential of
the country. The sector's existing challenge is how to ensure efficient use of
petroleum products. This is determined by the quality of transport systems, the
standard of vehicles used, fuel efficiency standards, and the mode of transport. The
shift from one mode of transport to a more efficient one is more fuel efficient. For
instance, haulage by rail instead of road reduces fuel consumption by 15% on average
whilst resorting to mass transport for public transportation tends to be more fuel-
efficient than individual private transportation. Shifting to electric propulsion also has
the potential to reduce the cost of fuel and the environmental effects of transportation.
Fuel-efficient devices for vehicles capable of 15-20% savings on fuel, are also
commercially available. These devices have however been found to work well only
with vehicles with good maintenance records. Promoting conservation practices, such
as reliance on non-motorised systems, walking short distances, telecommunication
and bicycle riding would save fuel and should be encouraged. Improvement in the
reliability of the grid electricity supply would also significantly reduce the industrial
use of diesel as backup fuel. Improved Cookstoves The use of biomass for cooking
and heating-related applications is still dominated by the use of inefficient conversion
and end-use devices, leading to a lot of waste and loss along the wood fuel value
chain. National Energy Policy, 2021 98 The cookstove market is also dominated by
artisans who produce simple stoves like the conventional 'coalpot' and aluminium
stoves, which are inefficient. Although there are a few improved technologies on the
market, they are not widespread due to the limited skill and production capacity of the
producers. Besides, the relatively high cost of improved cookstoves and low public
awareness of their availability and benefits are some of the barriers to their patronage.
The improved biomass cookstoves save up to 40% of fuelwood over and above the
traditional versions. Furthermore, an expenditure survey conducted among households
indicated that it saved between 15-20% of the amount of money normally spent on
fuelwood27 . Government has distributed about 800,000 improved biomass
cookstoves have been distributed and are being used nationwide. The target is to
distribute about three million by 2030. The wood fuel and cookstove market in Ghana
has a lot of economic, social and environmental prospects if well managed. The sector
is currently largely unregulated and underdeveloped. In this regard, regulations are
being developed to facilitate the formalisation and sustainable management of the
wood fuel and cookstove market in the country. The private sector should be support
to facilitate the rapid development, sustainable harvest, processing and use of wood
fuel resources and improved cookstoves in the country. 27 Rapid Assessment Gap
Analysis, 2012. SE4All (Ghana) National Energy Policy, 2021 99 Charcoal
Production The earth-mound kiln continues to be the most popular carbonisation
method used by charcoal producers in the country. It is estimated to have efficiency
rates of 18-23% of dry weight. There are however, some limited number of charcoal
producers in the country who use improved carbonization method with a higher
efficiency rate and these are largely producers who produce for the export market.
The adoption and use of improved carbonization methods by charcoal producers will
ensure the sustainable use of wood fuel resources in the country. Sensitization efforts
through public education should be embarked upon to spread the benefits of using
improved method of decarbonization in charcoal production. 4.6.2 Energy Efficiency
Sector Goals, Objectives, Issues and Policy Directions Sub-Goal To ensure efficient
production, transportation, distribution as well as enduse efficiency and conservation
of fuel and energy across the economy. Policy Objective To apply demand-side
management, fuel substitution, conservation and energy efficiency measures in the
energy supply value chain. Issue 1 Low level of Energy Efficiency practices. Policy
direction • Promote standards and labels for appliances. • Promote energy efficiency
in buildings. National Energy Policy, 2021 100 Issue 2 High cost of energy efficient
products. Policy direction • Provide fiscal incentives for energy-efficient products. •
Provide incentives for the local manufacture/assembly of energyefficient technologies
Issue 3 Inadequate financing for the promotion of energy conservation and efficient
technologies. Policy direction • Encourage financial institutions to support energy
conservation and energy efficiency initiatives. Issue 4 Limited awareness of energy
conservation and fuel substitution measures. Policy direction • Educate and create
public awareness on energy conservation and fuel substitution measures. Issue 5 Low
level of implementation of identified demand-side management measures in
industries. National Energy Policy, 2021 101 Policy directions • Develop and
implement programmes on Productive Uses of Energy (PUE). • Develop and
implement programmes and measures to help consumers optimise their energy use. •
Promote Industrial Energy Efficiency and conservation in accordance with
international standards and practices. Issue 6 Inefficient use of fuel in the transport
sector. Policy directions • Develop fuel efficiency standards and labels for vehicles. •
Develop emission standard and labels for vehicles. • Educate motorists on methods
for improving fuel efficiency in vehicles. • Create awareness of the benefits of fuel
efficiency for all stakeholders. • Develop and implement measures to reduce
petroleum product consumption in transportation. • Encourage the use of proven fuel
efficiency-enhancing additives. • Encourage fuel substitution and the use of electric
vehicles. 4.7 CROSS-CUTTING AREAS A number of issues that cut across the
energy value chain have been identified. Key among them are local content and local
participation, health, safety, security and environment, gender mainstreaming, persons
with disability and research and development. National Energy Policy, 2021 102 4.7.1
Ghanaian Content and Ghanaian Participation Local content involves setting
minimum thresholds for the utilisation of Ghanaian goods and services and Ghanaian
shareholding in enterprises operating in the energy sector. Ghana has been
implementing Ghanaian Content and Ghanaian Participation Regulations in the
energy sector. In 2013, comprehensive Regulations in the upstream oil and gas sector
were introduced, as well as in the electricity supply industry in 2017. 4.7.2 Ghanaian
Content and Ghanaian Participation Sector Goals, Objectives, Issues and Policy
Directions Sub-Goal To maximise Ghanaian participation in the energy sector. Policy
Objective To strengthen Ghanaian Content and Ghanaian Participation in the energy
sector. Issue 1 Low Ghanaian Content and Ghanaian Participation in the energy
sector. Policy direction • Ensure enforcement of Ghanaian Content and Ghanaian
Participation regulations. • Promote the participation of local enterprises in the energy
industry. • Promote the utilisation of local goods and services in the energy industry.
National Energy Policy, 2021 103 • Develop the needed institutional and human
resource capacity to meet the demands of the energy sector. Issue 2 Limited capacities
of local financial institutions in providing funds to support investment in the energy
sector. Policy direction • Encourage local companies, especially financial institutions
to form consortia and participate as a single entity in the energy industry. • Expand
local content fund • Use local content fund to securitise private sector financing •
Develop the needed institutional and human resource capacity to meet the demands of
the energy sector. Issue 3 Limited capacities of small and medium-scale enterprises
(SMEs) to meet the minimum technical and financial requirements. Policy direction •
Create the enabling environment to enhance local fabrication, installation and
manufacturing of components used in the energy industry. • Sustain the accelerated
oil and gas capacity development programme. National Energy Policy, 2021 104 4.7.3
Health, Safety, Security and Environment Health, Safety, Security & Environment
(HSSE) describes the processes or activities that are carried out by companies in
protecting the environment and maintaining a healthy, safe and secure workplace for
employees. The energy sector players must be committed to providing a healthy, safe
and secure workplace for employees and also ensure their activities do not adversely
impact the environment. To achieve adequate HSSE implementations in the energy
sector, there is the need to promote continuous safety education and training for all
employees, assigning responsibility for all aspects of the HSSE Policy, ensuring
thorough evaluation of all incidents and regularly review HSSE Policy for
improvement. 4.7.4 Health, Safety, Security and Environment Sub-sector Goals,
Objectives, Issues and Policy Directions Sub-Goal To ensure that energy sector
activities do not negatively impact the security of energy infrastructure, the health and
safety of people and the environment at large. Policy Objectives • To secure energy
systems from physical and cyber-attacks. • To protect the occupational health and
safety of energy sector employees. • To ensure environmental sustainability in the
energy value chain. • To protect the public from negative health and safety impacts in
energy production, transportation and utilization. National Energy Policy, 2021 105
Issue 1 Inadequate security for energy infrastructure Policy directions • Ensure the
development and implementation of national security strategies including cyber
security for the energy sector. • Facilitate the implementation of the National
Maritime Security Strategy (NMSS). Issue 2 Threats posed by local communities in
catchment areas of energy installations. Policy directions • Ensure community
sensitization in the execution of energy projects. • Promote the necessary social,
environmental and economic interventions to minimize community agitation. • Ensure
the designation of all vital energy installations as security zones. Issue 3 Inadequate
skilled workforce to ensure the protection of cyber systems. Policy direction •
Promote the training of ICT personnel to maintain the security of energy installations.
National Energy Policy, 2021 106 Issue 4 • Inadequate enforcement of occupational
health and safety laws in the energy value chain. Policy directions • Ensure the
implementation of the Health, Safety and Environment Manual for the energy sector •
Ensure that all energy facilities and associated infrastructure are constructed, operated
and decommissioned in line with laid down national laws and regulations. Issue 5
Inadequate implementation of disaster and emergency management plans in the
energy sector Policy directions • Ensure the development of laws that require the
energy sector industries to submit and update regulators with their emergency
management plans. • Enforce the development and timely updates of emergency
management plans • Enforce the development and timely updates of disaster
management plans. Issue 6 Limited technical capacity and expertise of SMEs on
HSSE matters Policy direction • Build capacities of SMEs on HSSE matters • Enforce
HSSE requirements National Energy Policy, 2021 107 Issue 7 Inadequate climate
change interventions in the energy sector Policy directions • Integrate climate
resilience considerations in energy sector planning. • Support and actively participate
in international efforts to improve climate adaptation and mitigation actions. • Support
the capacity-building efforts in the fight against climate change. • Support efforts to
meet Ghana’s obligations in the Paris Agreement. Issue 8 Low level of awareness and
understanding on the part of the public on the impacts associated with energy
production, transportation and utilisation. Policy directions • Promote environmental
protection awareness programmes. • Sensitise the public on the dangers associated
with the energy sector and the necessary safety practices. • Ensure adequate dialogue
between industry and catchment communities of energy installations throughout the
lifecycle of a project. 4.7.5 Gender Mainstreaming and Persons with Disabilities
Gender refers to the array of socially constructed roles and relationships, personality
traits, attitudes, behaviours, values, relative power and influence that society ascribes
to the two sexes (male and female) on a National Energy Policy, 2021 108 differential
basis. Lack of gender-disaggregated data or analysis hinders efforts to recognise the
need for and design of specific gender-focused interventions within the energy sector.
The energy sector should also recognise the potential role of people with disabilities.
4.7.6 Gender Mainstreaming and Persons with Disabilities Sector Goals, Objectives,
Issues and Policy Directions Sub-Goal To mainstream gender and persons with
disabilities in the energy sector. Policy Objective To promote gender equality and
equity across the energy sector. Issue 1 Low participation of women and persons with
disabilities in managerial positions in the energy sector. Policy directions • Support
the capacity development of women and persons with disabilities. • Involve women in
leadership and decision-making processes of the energy sector. • Encourage female
enrolment in STEM education and skills training programmes. • Increase internship
opportunities for females studying STEM programmes. National Energy Policy, 2021
109 Issue 2 Low participation of women in the private sector throughout the energy
value chain. Policy directions • Promote and support women's businesses in the
energy sector. • Enhance national awareness creation aimed at addressing cultural
beliefs and practices hindering gender equality in the energy value chain. Issue 3 Low
awareness of gender issues in the energy sector among policymakers and the general
public. Policy directions • Create awareness aimed at addressing issues hindering
gender equality in the energy sector. • Build the gender sensitivity of decision-makers
and technical officers in all energy sector institutions, to facilitate gender
mainstreaming into energy-related interventions. • Institute a gender focal unit in all
energy sector institutions. Issue 4 Inadequate gender-disaggregated energy data,
which creates difficulty for proper planning of gender issues in the energy sector.
Policy directions • Enhance gender-disaggregated energy data collection, management
and publication towards ensuring gender- National Energy Policy, 2021 110
responsive analysis, planning, implementation, monitoring, and evaluation. • Conduct
regular participatory gender audits of the energy sector. • Establish a Measurement,
Reporting and Verification (MRV) system to monitor gender mainstreaming in the
energy policy.