Renewable energy is a major area of investment in Ghana as the country is rich in resources such as biomass, solar, wind and hydropower potential, says GlobalData. The leading data and analytics company notes that with the demand of electricity surging 10% annually, renewable capacity is expected to increase to 1,969.5 MW in 2035, at a compound annual growth rate (CAGR) of 19.1%.

Attaurrahman Ojindaram Saibasan, Senior Power Analyst at GlobalData, comments: “The Ghanese government has been actively encouraging the use of renewable sources for energy generation to reduce its dependence on fossil fuels. For instance, the government established the Renewable Energy Act of 2011 (Act 832), which provides support towards the utilization and development of renewable resources and investments.”

According to GlobalData’s report, ‘Ghana Power Market Size and Trends by Installed Capacity, Generation, Transmission, Distribution, and Technology, Regulations, Key Players and Forecast, 2022-2035’, Ghana’s installed renewable capacity stood at 170.1 MW in 2021, having increased from 2.8 MW in 2010 at a CAGR of 45.1%. Solar PV and onshore wind constitute most of the installed renewable capacity.

As the Ghanese economy is slowing recovering from the COVID-19 pandemic, potential investment opportunities have emerged in line with the Sustainable Development Goals and climate pledges made under the Paris Agreement. The Ghanese government has pledged to scale up the penetration of renewable energy by 10% by 2030 under the Paris Agreement. Furthermore, under Ghana’s Integrated Power Sector Master Plan 2019, a major capacity amount through solar and wind power is aimed to be installed between 2022 and 2030, which is also part of the Renewable Energy Master Plan (REMP).

Saibasan adds: “Ghana requires huge investment to drive the power industry’s transformation. Local manufacturers and assemblers of renewable energy technology are urgently needed if the country is to add more renewable sources.

“To make the renewable sector more attractive to investors, the government is providing various incentives to increase the contribution of renewable energy to total power supply sources. Investing in the renewable sector would bring great perks for the country in terms of reduced air pollution levels and less dependency on imported fossil fuel resources.”