Policy and Regulatory Framework for Renewable Energy and Energy Efficiency Development in Ghana

The document assesses Ghana's progress in renewable energy (RE) and energy efficiency (EE), highlighting a government target of 10% RE in the energy mix by 2020. It identifies significant barriers, including the lack of a comprehensive legal framework, high upfront capital costs, and a pricing system that ignores environmental externalities. The author argues that international cooperation—through capacity building, credit support facilities, and the Clean Development Mechanism—is essential to accelerate the transition to a low-carbon economy and improve rural electrification.

• Ghana aims to have renewable energy constitute at least 10% of its grid electricity by the year 2020, a target that the author suggests could be exceeded with international cooperation.
• Integrating mini-grid and stand-alone systems into rural electrification policy could reduce transmission and distribution network losses from approximately 17% to between 10% and 12%, potentially saving US$ 60 million in annual network capital investment.
• The absence of a comprehensive legal and regulatory framework, including a lack of network access rules and transparent pricing, acts as a major barrier for independent power producers (IPPs) to invest in renewable energy technologies.
• Economic barriers include a pricing framework that undervalues renewable energy by ignoring the environmental and health costs of fossil-fuel emissions and the risks associated with volatile world crude oil prices.
• Financial institutions in Ghana are reluctant to fund renewable energy projects due to a perception of higher risk compared to conventional energy sources, which increases the cost of capital.
• Energy efficiency measures in Ghana's industrial and public sectors have demonstrated significant cost savings; for example, the Ghana Textile Manufacturing Company Limited saved 152,079 Ghana cedis through integrated energy management.
• The document recommends establishing a Credit Support Facility (CSF) with international donor support to facilitate commercial debt finance and share risks between the government and the financial sector.

APA

Gboney, W. (2008). Policy and Regulatory Framework for Renewable Energy and Energy Efficiency Development in Ghana. Climate Strategies. https://climatestrategies.org/wp-content/uploads/2014/11/gboney-011208-final.pdf

Chicago

Gboney, William. Policy and Regulatory Framework for Renewable Energy and Energy Efficiency Development in Ghana. Climate Strategies, 2008. https://climatestrategies.org/wp-content/uploads/2014/11/gboney-011208-final.pdf.

Wikipedia

{{cite report |last1=Gboney |first1=William |title=Policy and Regulatory Framework for Renewable Energy and Energy Efficiency Development in Ghana |publisher=Climate Strategies |date=25 November 2008 |url=https://climatestrategies.org/wp-content/uploads/2014/11/gboney-011208-final.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{gboney2008policy, author = {Gboney, William}, title = {{Policy and Regulatory Framework for Renewable Energy and Energy Efficiency Development in Ghana}}, institution = {Climate Strategies}, year = {2008}, month = nov, url = {https://climatestrategies.org/wp-content/uploads/2014/11/gboney-011208-final.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }