The Africa Centre for Energy Policy (ACEP) plays a pivotal role in addressing the challenges and opportunities within Ghana’s energy sector, particularly as the nation grapples with the dual demands of economic recovery and sustainable energy transition. As we move into 2025, it is crucial to reflect on the strategies necessary for sustaining the energy sector, which is integral to both economic stability and environmental sustainability.
Addressing Energy Sector Challenges
Ghana’s energy sector faces significant hurdles that threaten its sustainability. Issues such as high technical and commercial losses—rising from 24% to about 30%—and under-recoveries in revenue have exacerbated financial strains across the power sector. The recent increases in petroleum prices have also placed additional burdens on consumers and businesses alike, highlighting the urgent need for a comprehensive review of fiscal policies related to energy pricing and taxation.
ACEP emphasizes that efforts towards economic recovery will falter without critical reforms. The organization advocates for a multifaceted approach that includes improving governance, increasing transparency, and fostering accountability within the sector. This is crucial not only for enhancing operational efficiency but also for restoring public trust in energy institutions.
Embracing Renewable Energy
A key focus for ACEP is promoting a transition towards renewable energy sources. With climate change posing a global threat, Ghana must balance its reliance on fossil fuels with commitments to reduce carbon emissions. ACEP’s initiatives, such as solar energy projects for irrigation in Northern Ghana, exemplify how clean energy can be harnessed to drive local development while mitigating environmental impacts.
The organization calls for an enabling environment that supports renewable energy companies, facilitating innovation and investment in sustainable technologies. This transition is not merely an environmental imperative; it represents an opportunity for economic transformation by creating jobs and fostering new industries.
Sustaining Ghana’s energy sector requires a concerted effort from all stakeholders—government, private sector, and civil society. ACEP’s leadership in research and advocacy is vital in shaping policies that address current challenges while paving the way for a sustainable energy future. By prioritizing transparency, reforming governance structures, and embracing renewable energy solutions, Ghana can ensure that its energy sector not only supports economic growth but also contributes to a resilient and sustainable environment for future generations.