The Electricity Situation in Ghana: Challenges and …

CGD Policy Paper 109 September 2017 The Electricity Situation in Ghana: Challenges and OpportunitiesIn the past decade, Ghana has experienced severe Electricity supply Challenges costing the nation an average of US $ million in loss of production daily. This Situation has developed even though installed generation capacity has more than doubled over the period; increasing from 1,730 MW in 2006 to 3,795 MW in 2016. The peak Electricity demand only increased by 50 percent during this same period, increasing from 1,393 MW in 2006 to 2,087 MW in 2016. The Electricity supply Challenges can be attributed to a number of factors, including a high level of losses in the distribution system, which is mainly due to the obsolete nature of distribution equipment, as well as non-payment of revenue by consumers. Other factors are overdependence on thermal and hydro sources for Electricity generation and a poor tariff structure, which makes it difficult for the utility companies to recover the cost of Electricity production.

development trends and this is also true with energy. As one of the first African countries to aggressively pursue electrification, Ghana has among the highest access rates on the continent. Yet, the country also suffers from chronic power shortages and has struggled to expand capacity to meet growing demand.

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