Catalysing Green Rural Job Creation with Decentralised Renewable Energies in West Africa

This report by the Alliance for Renewable Electrification (ARE) and Konrad-Adenauer-Stiftung (KAS) examines the potential for direct green job creation through Decentralised Renewable Energy (DRE) in Ghana and Senegal. It establishes a methodology for calculating an 'Employment Factor' to estimate jobs per kWp of installed capacity and provides scenarios for job growth by 2030 based on different policy approaches. The study highlights that DRE can serve as a catalyst for formalising employment in regions with high informal sector activity and can significantly increase induced employment through productive uses of energy.

• DRE solutions have a high potential for job creation, with the ability to create nearly three times as many jobs as fossil fuels per million dollars of spending. In some countries, DRE already creates as many jobs as the utility-scale power sector despite having lower installed generation capacity.
• In Ghana, DRE companies that participated in the study employ 2,511 people, with women making up 34% and youth (under 25) making up 7% of the workforce. The study estimates that 4,560 people were employed per 80 MW of DRE installed by 2020.
• In Senegal, DRE companies responding to the survey employ approximately 1,500 people directly or via sub-contractors. Women represent 23% of these employees, and 10% are under 25 years old.
• Under a 'Business as Usual' (BAU) scenario for 2030, Ghana could create 15,465 direct DRE jobs (based on 269 MW of off-grid DRE), while a 'Forward-Leaning Policy Scenario' could increase this to 23,519 direct jobs.
• For Senegal, the BAU scenario for 2030 predicts 12,269 direct DRE jobs (based on 375 MW of DRE), whereas a 'Forward-Leaning Policy Scenario' involving 25% DRE by 2030 would result in 20,449 direct jobs.
• DRE can significantly drive the formalisation of the economy in West Africa, where informal employment is prevalent: 85% of the population in Ghana is employed by MSMEs in the informal sector, and 97% of companies in Senegal operate informally.
• DRE creates substantial induced employment through productive uses of energy. Case studies show that in Ghana, induced jobs were tenfold after energy access, and in Senegal, a combination of energy access, entrepreneurship training, and micro-loans led to a 70-fold increase in induced jobs.

APA

Alliance for Renewable Electrification (2023). Catalysing Green Rural Job Creation with Decentralised Renewable Energies in West Africa. https://www.renewelec.org/wp-content/uploads/2023/11/Catalysing-Green-Rural-Job-Creation-with-DRE-in-West-Africa.pdf

Chicago

Alliance for Renewable Electrification. Catalysing Green Rural Job Creation with Decentralised Renewable Energies in West Africa. 2023. https://www.renewelec.org/wp-content/uploads/2023/11/Catalysing-Green-Rural-Job-Creation-with-DRE-in-West-Africa.pdf.

Wikipedia

{{cite report |author=Alliance for Renewable Electrification |title=Catalysing Green Rural Job Creation with Decentralised Renewable Energies in West Africa |date=October 2023 |url=https://www.renewelec.org/wp-content/uploads/2023/11/Catalysing-Green-Rural-Job-Creation-with-DRE-in-West-Africa.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{allianceforrenewableelectrification2023catalysing, author = {{Alliance for Renewable Electrification}}, title = {{Catalysing Green Rural Job Creation with Decentralised Renewable Energies in West Africa}}, institution = {Alliance for Renewable Electrification}, year = {2023}, month = oct, url = {https://www.renewelec.org/wp-content/uploads/2023/11/Catalysing-Green-Rural-Job-Creation-with-DRE-in-West-Africa.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }