Ghana Renewable Energy
In 2020, Ghana’s Energy Commission announced a moratorium on the issuance of new wholesale electricity supply licenses in the renewable energy sector. The objective at that time had been to improve the financial sustainability of Ghana’s energy industry in the context of excess generation capacity under existing Power Purchasing Agreements with the Electricity Company of Ghana. Existing renewable licenses at that time had reportedly been underutilized, as well. On April 5, 2023, the Energy Commission lifted the moratorium to help facilitate the development of the renewable energy market, which in turn, would help Ghana achieve its climate objectives under the Paris Agreement.
Licensing Guidelines
The Energy Commission has also stated that it is in the process of publishing Guidelines for Distributed Renewable Energy Generation, which will be aimed at providing clear rules for all licensed entities operating within the industry. The latest information on licensing can be found at the Energy Commission’s website.
Technical and Performance Requirements
The two Renewable Energy Sub-Codes provide the minimum technical connection and performance requirements that a Variable Renewable Power Plant (VRPP) needs to comply with to connect its generating facility to the National Interconnected Transmission System (NITS) or a Distribution Network in Ghana. They also define the rules and standards to guide the network operators when connecting a VRPP to the NITS.
See the Net Metering Sub-Code for Connecting Renewable Energy Generating Systems to the Distribution System for information about the guidelines and technical connection conditions for the inter-connection of renewable energy generating facilities to the low voltage distribution system under the net metering scheme.
Commercial Opportunities
The suspension of the moratorium allows companies to now apply for a license to develop private renewable energy generation projects. This can include, for example:
- Installing electricity generation facilities; and
- Operating generation facilities to sell electricity directly to bulk customers or to a distribution company for onward distribution and sale to consumers.
It also creates supply opportunities for solar, wind or other renewable equipment manufacturers.
Please contact Commercial Service Specialist PaaEkow Quansah at Office.Accra@trade.gov for more information about Ghana’s renewables sector. Please Commercial Ghana’s other market intelligence reporting for further information about emerging regulatory measures and other laws affecting business in Ghana.