Promoting the Solar Industry in Ghana through Effective Public-Private Partnership (PPP): Some Lessons from South Africa and Morocco

Abstract

Over the past decades, solar energy has gained much attention in Ghana, especially after the 2012–2016 power crisis. The government through Public-Private Partnerships (PPPs) has attempted to increase the shares of solar generation to augment its efforts in reducing the energy deficit of the country, especially in remote and off-grid communities. However, the extent to which PPP has been utilized as a viable tool for solar sector development in Ghana is questionable. This study discusses the current state of PPPs in Ghana’s solar industry and compares how it has been efficiently used as a tool to promote the solar industry in South Africa and Morocco. Fundamental theories such as Altruism, Game, Principal-agent, and Pareto Optimality (PO) were used as analytical tools to examine how PPPs are handled in the selected cases. The study ascertains that the Game and PO are applicable theories that have guided SA and Morocco’s solar infrastructural development. This study discovered that PPP has been efficiently used in SA and Morocco to push its solar industry to be among the best in the world and Ghana can perfectly emulate it. The study further reveals that the Principal-agent analogy and altruistic intent of the Ghanaian government tend to discourage Private sector participation in the solar industry. It further suggests the Pareto Optimality, Game approach, and a win-win transparent attitude towards PPPs. This study recommends a well-developed PPP structure and law for Ghana. It encourages transparency and discourages partisan preferentialism to increase PPPs in Ghana’s solar industry.