Ghana’s Energy Transition Framework Targets $562 Billion Investment for Sustainable Energy Security

Takoradi – Ghana is positioning itself as a leader in sustainable energy with the announcement of its Energy Transition Framework, estimated to involve an investment of $562 billion. This ambitious initiative, outlined by Dr. Robert Sogbadji, a member of the Energy Transition Committee, aims to diversify the nation’s energy sources while ensuring equitable access to electricity and supporting economic development through the exploitation of natural resources.

According to Ghana News Agency, who spoke at a capacity building workshop organized by the Natural Resources Governance Institute (NRGI) for oil-producing communities in the Western Region, the framework is designed to provide the best fuel supply security with a mix that includes natural gas and nuclear energy. The workshop in Takoradi focused on enhancing participants’ understanding of Ghana’s energy transition, raising awareness of its priorities, targets, and opportunities, and promoting dialogue to hold the government accountable.

The Energy Transition Framework plans to achieve universal electricity access of about 98 percent by 2030, with an installed capacity of 21 Gigawatts (GW). Additionally, it aims to keep the long-term cost of electricity below 4.5 cents per kilowatt and meet a future electricity demand of 380,000 GW due to fuel switching. Dr. Sogbadji highlighted the framework’s potential health benefits, including the reduction of energy-related indoor air pollution and the avoidance of approximately 48,218 premature deaths.

Furthermore, the framework anticipates the avoidance of about 200 metric tonnes of carbon dioxide emissions and the gain of 30.05 million productive hours due to the adoption of clean cooking fuels. This shift is expected to significantly benefit women and children, who are the primary gatherers of firewood.

Dr. Sogbadji also discussed new opportunities arising from Ghana’s discovery of critical green minerals like lithium and graphite. These minerals are key components in the production of Lithium-Ion Batteries (LIBs), increasingly in demand for electricity storage and power generation in electric vehicles and electronics. He suggested that the government establish investor-friendly mechanisms for the commercial exploitation of these minerals and the management of the revenues they generate.

However, the transition also presents challenges. Dr. Sogbadji listed potential threats to energy security, reduced funding for fossil-fuel-related projects, the risk of stranded assets, job losses in the fossil fuel industry, and revenue loss. He noted the difficulty in accessing affordable funding for developing countries to build essential energy infrastructure and technological challenges as additional concerns.