Green energy for climate protection in Ghana
Project description
Title: Renewable energy and energy efficiency for climate protection in Ghana
Commissioned by: German Federal Ministry for Economic Cooperation and Development (BMZ)
Country: Ghana
Lead executing agency: Ministry of Energy, Ministry of Education
Overall term: 2022 to 2024
Context
In Ghana, current power generation capacity exceeds the country's national needs. One of the causes of this problem are long-term and expensive power purchase agreements that the state has concluded with private operators of thermal power plants in the context of the energy crisis of 2014-2016. These result in high electricity prices, which not only represent a challenge for private households and the economic sector, but also lead to high public debt.
Thereby, investment into renewable energy becomes more difficult. However, the saving potential, both from an energy and financial point of view, is enormous. Other challenges in the sector are the inadequate professional qualification of personnel in the field of renewable energy and energy efficiency, which leads to a lack of qualified workers.
The bilateral project "Renewable Energies and Energy Efficiency for Climate Protection in Ghana" aims to improve the institutional and regulatory framework for renewable energies and energy efficiency and to promote investment in this area.
Objective
The institutional and regulatory framework for the use of renewable energy and energy efficiency solutions has improved. This also improves the financial sustainability of the energy sector. In addition, the project supports the achievement of Ghana's climate goals and sustainable and inclusive economic development.
Approach
The project focuses on the following five areas: (i) advising the Ministry of Energy, (ii) improving the performance of state-owned energy supply companies, (iii) improving renewable energy and energy efficiency services of the Energy Service Centre of the Association of Ghana Industries (AGI), (iv) improving the energy efficiency and use of renewable energy solutions in public buildings, as well as (v) improving vocational training in the field of renewable energies and energy efficiency.
In the first year of implementation, the project has achieved major milestones, on which further project activities will build.
The project successfully supported the development of a regulation aimed at making the procurement process for additional power generation more transparent. In the long term, the regulation helps to establish the best prices and best contract terms for demand-driven energy procurement.
The two national utilities Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCo) are strengthened with technical assistance as well resources to develop and implement new renewable energy business models. ECG can now better advise their customers on their energy efficiency and renewable energy needs and possibilities. NEDCo, on the other hand, can now implement net-metering of privately produced solar power for their customers following the project’s support with smart energy net-meters.
Working towards raising awareness and improving knowledge on the importance of energy efficiency and solar rooftop installations for commercial and industrial consumers, the project supports the Energy Service Centre, part of the Association of Ghana Industries. The centre conducts energy audits, solar feasibility studies and second opinions on project proposals, with the purpose of reducing energy consumption.
The project also successfully supported the Ministry of Energy in the development and approval of a national Action Plan which promotes sustainable energy in public facilities, such as hospitals or schools. This way, electricity bills of public institutions can be reduced, which, in turn, helps to reduce the public debt.
Finally, the projects supported ten Technical and Vocational Education and Training (TVET) institutes in Ghana with technical equipment and extensive training for teachers. The activities also include the improvement of training courses in refrigeration and air-conditioning technology, which cover energy efficiency and the use of climate-friendly natural refrigerants, aiming at making qualified workers available to meet the foreseeable increasing demand in the sector.
Last update: March 2023