Abstract

Abstract Power generation in Ghana has gone through a number of phases: starting with diesel generators and stand-alone electricity supply systems owned by industrial mines and factories, to the hydro phase following the construction of the Akosombo dam, and now to a thermal complement phase powered by gas and/or light crude oil. A power crisis has also become a perennial development challenge in Ghana, with increasing severity that threatens the country’s economic growth and transformation. The troubling rationing system, the slowdown in industrial activity, job and income losses, and disruptions in social life are telling reminders of what now seems a perennial drag on Ghana’s development agenda. While Ghana has committed itself to universal electricity access by 2020, the real challenge is the capacity to meet this goal and, most important, to ensure that supply is reliable and adequate. This paper outlines the state of current electricity demand and supply gap and the major impediments to resolving the supply bottlenecks and in managing demand, highlights institutional and regulatory constraints, and identifies some key issues that should be the focus of policy decision-making going forward.

Highlights

  • Electricity generation in Ghana has gone through a number of phases: starting with diesel generators and stand-alone electricity supply systems owned by industrial mines and factories, to the hydro phase following the construction of the Akosombo dam, and to a thermal complement phase powered by gas and/or light crude oil

  • While Ghana has committed itself to universal electricity access by 2020, the real challenge is the capacity to meet this goal and, most important, to ensure that supply is reliable and adequate

  • Environmental hazards and climate changes diminish the prospects for hydropower, which is mainly seen in the reduced water levels due to increased reservoir evaporation and droughts. This means that a power crisis is inevitable should water levels go down

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Summary

Introduction

Power generation in Ghana has gone through a number of phases: starting with diesel generators and stand-alone electricity supply systems owned by industrial mines and factories, to the hydro phase following the construction of the Akosombo dam, and to a thermal complement phase powered by gas and/or light crude oil. A power crisis has become a perennial development challenge in Ghana, with increasing severity that threatens the country’s economic growth and transformation. Electricity generation in Ghana has gone through a number of phases: starting with diesel generators and stand-alone electricity supply systems owned by industrial mines and factories, to the hydro phase following the construction of the Akosombo dam, and to a thermal complement phase powered by gas and/or light crude oil. For a lower middleincome country like Ghana, it is important to recognize the growth of industries and the increasing population growth in relation to the increase in power demand

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