Open Access

Perpetual Tindana

• Despite having abundant solar energy, moderate wind potential, and enabling policies in place for the last decade, Ghana’s energy transition continues to face challenges stemming from gaps in implementation, institutional silos, and a disconnect between financing and policy in the region. The long-standing dominance of hydropower, impacted by climate change (warming trends coupled with diminishing rainfall), has resulted in thermal energy generation (gas and oil) dominating instead of fostering non-hydro renewables, leaving solar and wind with a share of less than five percent. This thesis examines secondary data such as policy documents, national statistics, and stakeholder reports, as well as making cross-comparisons with Germany’s Energiewende policy. The findings reveal six interrelated bottlenecks: (i) lack of implementation of key policy components, including: (i) net metering, tax incentives and the Renewable Energy Fund; (ii) a lack of enforcement hierarchy at ECM, GRIDCo, VRA and ECG; (iii) off-taker and currency risks causing private funding to shy away, coupled with high local interest rates and delays in acquiring licences; (iv) deepening fuel dependence coupled with mounting losses in the transmission and distribution network, which is capped at 15% of generation; (v) insufficient infrastructure upgrades to meet demand driven by new EV technologies; and (vi) minimally competent grid deployment compounded by scarce storage and climate-related stresses on hydro resources. When scenario modelling is applied to the findings, the results show a significant difference between policy-driven and market-driven pathways for renewable energy penetration up to 2050. Current financing, grid enhancement and storage frameworks are insufficient to meet ambitious capacity targets of 1,095 MW by 2030 and 7,200 MW by 2050. The research proposes a comprehensive reform strategy that includes legally binding interim renewable energy targets, a one-stop shop for permits, a combination of risk guarantees and results-based incentives, mandatory storage integration for utility-scale projects, accelerated grid modernisation with a focus on reducing losses and increasing flexibility, and governance of the climate-hydrology system. Without these changes, tailoring Ghana’s 2030 and 2050 goals will undermine credibility and investor confidence.