Energy experts, regulators and financiers have outlined an ambitious reform blueprint aimed at transforming Ghana’s troubled power sector into a self sustaining system over the next decade, with price hikes, local ownership requirements, and depoliticized management among the key prescriptions.
The roadmap emerged from five working groups at Wednesday’s Energy Sector Roundtable, convened by B&FT ahead of the 14th Ghana Economic Forum. Participants from the Ministry of Energy, Public Utilities Regulatory Commission, financial institutions, and private investors addressed persistent challenges including debt accumulation, inefficiency, and unreliable generation that continue constraining industrial growth.
Dr. Edith Dankwa, Board Chair of B&FT, opened the session by declaring that Ghana can’t keep diagnosing the same problems every year without action. Reliable power, she said, is the backbone of national growth and competitiveness, and the roundtable’s purpose was to move beyond analysis to measurable reform.
The urgency is undeniable. Despite national installed generation capacity exceeding 5,200 megawatts, inefficiencies and legacy debts estimated at over $1.5 billion continue undermining investor confidence. Available capacity often falls below 3,500 MW due to fuel shortages and maintenance constraints, leaving industries vulnerable to disruptions.
The event, organized in partnership with Fidelity Bank Ghana and Arthur Energy Africa, produced practical recommendations designed to inform broader discussions at this month’s GEF. If implemented, the proposals could significantly reduce the sector’s debt burden while positioning Ghana to meet rising power demand.
The first working group called for establishing a national energy planning commission or coordinating body to harmonize data collection, oversee long term strategy, and prevent duplication among existing agencies. Weak governance and opaque decision making, participants argued, have discouraged private capital and contributed to inefficiencies that plague the sector.
A centralized, data driven structure would improve accountability and restore confidence in sector management. One participant framed the challenge simply: energy isn’t just about generation, it’s also about trust, transparency, and governance.
On the technical front, the second group emphasized diversifying the fuel mix to reduce dependence on imported liquid fuels while strengthening domestic gas infrastructure. Participants called for accelerated investment in gas pipelines and regional interconnections to secure consistent supply, along with realistic renewable energy targets aligned with industrial demand.
While renewable energy remains essential, the group warned that excessive reliance on intermittent sources without adequate storage or backup could undermine grid reliability. The future, they argued, must balance natural gas, hydro, and renewables. Some experts suggested nuclear energy could play a stabilizing role in Ghana’s base load supply over the next decade.
The third group tackled investment structure and pricing, urging reforms to ensure greater local equity participation in power infrastructure projects. Current frameworks heavily favor foreign investors who repatriate profits in foreign currency, draining resources that could strengthen domestic capacity.
Participants recommended revising local content policies to include ownership stakes for local firms, not merely service provision. They also proposed replacing take or pay contracts, which require payment for unused power, with take and pay models tied to actual consumption. Shifting from rate of return regulation to market based pricing, they argued, would promote efficiency and cost recovery.
The fourth working group called for stronger institutional performance monitoring and depoliticization of leadership appointments. They proposed mandatory Key Performance Indicators for utilities covering loss reduction, cost efficiency, and revenue collection, with results published annually to ensure public accountability.
Separating policy formulation, regulation, and commercial operations is essential, participants insisted. Political interference in management decisions undermines professional accountability and operational stability, creating cycles of dysfunction that perpetuate the sector’s problems.
The fifth group focused on financing, estimating Ghana will require between $7 billion and $10 billion in new investments over the next decade to upgrade generation, transmission, and distribution networks. That’s a massive commitment requiring creative funding solutions beyond traditional government budgets.
Participants recommended diversifying funding sources through syndicated lending, pension fund participation, and using the Ghana Stock Exchange for long term energy bonds and green financing instruments. They also urged the Bank of Ghana to adjust prudential rules enabling collaborative lending for large scale infrastructure projects that exceed single bank limits.
Across all groups, the recurring message was clear: Ghana’s energy transition can’t rely on short term fixes or political cycles. Stakeholders insisted the country must embed transparency, local capital mobilization, and regulatory predictability into its reform process if meaningful change is to take root.
The proposals represent a comprehensive vision for addressing systemic challenges that have plagued the sector for decades. Implementation won’t be easy, requiring political will, regulatory courage, and willingness to make tough decisions on pricing and governance that may prove unpopular in the short term.
But the alternative is continued dysfunction, with mounting debts, unreliable supply, and lost economic opportunities undermining Ghana’s industrial ambitions. The power sector’s problems touch every aspect of economic life, from manufacturing competitiveness to household welfare.
One participant captured the stakes succinctly: the goal isn’t simply to keep the lights on, but to build a power sector that powers confidence in institutions, industries, and the country’s future. Whether Ghana’s leaders have the political courage to implement these reforms remains to be seen.
The 14th Ghana Economic Forum later this month will provide a broader platform for debating these proposals and building consensus around implementation timelines. The energy roundtable has done its part by outlining a clear, comprehensive roadmap. Now the hard work of execution begins.
