Ghana Energy Efficiency
Ghana has announced that it will procure one million smart meters to help improve revenue collection and increase access to electricity in the country. The rate for access to electricity in Ghana is 88.85%, one of the highest in Sub-Saharan Africa. However, Ghana’s inefficient revenue collection has led to severe financial constraints for the main power distributor, the Electricity Company of Ghana (ECG). Many instances of power theft have resulted in ECG not being able to sufficiently collect utility payments from customers. This, in turn, has contributed to ECG’s growing debt to power generation companies. Ghana is also experiencing intermittent power cuts.
To resolve the central issue of revenue collection, Ghana’s Minister of Finance announced in April 2024 that Ghana would procure smart meters as part of the World Bank’s Programme for Results (PforR) initiative. The World Bank’s PforR financing instrument links the disbursement of funds to the direct achievement of specific, measurable outcomes. The Finance Minister further highlighted that Ghana wants to harmonize and standardize its metering system which the program would help it to do. He said that the program would further help Ghana attain universal electricity access by the end of 2024 and close the energy sector financing gap of some US$1.9 billion.
Opportunity:
The PforR project on smart meters (Ghana Energy Sector Recovery Program (P173258) presents opportunities for US suppliers of smart metering solutions including the supply and installation of equipment: smart meters, metering systems, software, and IT hardware. Effective and environmentally sound disposal of faulty, expired, and non-smart meters is another element of the project.
There are also opportunities related to consulting services. The Ghanaian Ministry of Energy Program Coordination Unit (PCU) will be responsible for the overall management of the PforR including the Investment Project Financing component by facilitating procurement of consulting services and coordinating activities of the ECG and GRIDCo Project Implementation Units (PIUs), and managing consultants providing services including strategic analysis, capacity building and policy advice.
U.S. energy technology companies have worldwide reputation for innovation, quality, and after-sale service, and are well-positioned to compete in Ghana’s energy sector.
For more information on World Bank projects, see: https://projects.worldbank.org/en/projects-operations/projects-home
For more information about developments related to, and commercial opportunities arising from Ghana’s Energy sector contact Commercial Service Ghana at Office.Accra@trade.gov or +233(0)30-274-1870. Please see our other market intelligence reporting at https://www.trade.gov/market-intelligence-search/633.