GlobalData says that Ghana’s rich resources, including solar, wind, and biomass, make renewable energy a popular area for investment. GlobalData, a leading data and analytics firm, notes that the demand for electricity is increasing by 10% per year, so renewable capacity will increase to 1,969.5MW by 2035 at a compound annual rate of growth (CAGR) 19.1%.
GlobalData Senior Power Analyst Attaurrahman Ojindaram Saibasan comments that the Ghanese government encourages the use of renewable energy sources to lower its dependence on fossil fuels. The Renewable Energy Act of 2011, Act 832, was created by the government to support the development and utilization of renewable resources as well as investments.
GlobalData’s report, “Ghana Power Market Size & Trends by Installed Capacity, Generation, Transmission and Distribution, Technology, Regulations and Key Players and Forecast 2022-2035” states that Ghana’s installed renewable power capacity was 170.1 MW in 2021. This is an increase of 2.8 MW from 2010 and a 45.1% CAGR. The majority of installed renewable capacity is made up by onshore wind and solar PV.
The Ghanese economy is still recovering from the COVID-19 epidemic. Potential investment opportunities are now available in accordance with the Sustainable Development Goals as well as the climate pledges under the Paris Agreement. Ghanese officials have pledged to increase renewable energy penetration by 10% by 2030, as part of the Paris Agreement. In addition, Ghana’s Integrated Power Sector Master Plan 2019 aims to install a significant amount of solar and wind power between 2022-2030, as part of the Renewable Energy Master Plan.
Saibasan says that Ghana needs huge investments to transform its power industry. If the country wants to increase its renewable sources, local manufacturers and assemblers are essential.
The government offers incentives to encourage investors to invest in the renewable energy sector. The country would see great benefits from investing in the renewable sector, including a reduction in air pollution and a decrease in dependence on imported fossil fuel resources.