Clean energy adoption key to drive investments — Deloitte
The adoption of cleaner technologies and the development of power purchase agreements (PPAs) with private investors will be key to expanding renewable energy infrastructure, Deloitte has said.
The call by the audit and accounting firm is premised on the projection that in 2025, government will continue to push forward with energy transition initiatives, focusing on increasing renewable energy capacity, including solar, wind and hydroelectric power.
In its preview of the economy of this year, 2025, Deloitte said Ghana and also Nigeria, will aim to diversify their energy mix, reduce dependence on fossil fuels, and meet their commitments to global climate goals.
Minister of Energy designate, John Jinapor, during his vetting last week, was instrumental in advancing renewable energy projects and improving Ghana’s energy infrastructure.
He pledged to lead strategic initiatives to address longstanding issues such as erratic power supply and rising energy costs.
Meanwhile, stakeholders are also hopeful he will prioritise Ghana’s energy transition by fostering investments in renewable energy and ensuring the efficient management of the country’s oil and gas resources.
Foreign investment
Deloitte was optimistic that with a clear focus and investment in clean energy together with the right environment, foreign investors would be attracted to the sector.
“Investment in clean energy will attract more foreign investment in the renewable energy sector, with government incentives helping to create a favourable environment for international investors,” Deloitte said.
The audit and accounting firm held the firm view that diversification of energy supply would reduce dependence on fossil fuels, contributing to energy security and stability in the region.
With regard to Nigeria for instance, Deloitte said, there were expectations that the government would continue its reforms in the Nigerian oil and gas sector.
“These will include the implementation of various incentives and streamlining the involvement of the Nigerian Content Development and Monitoring Board (NCDMB), the NNPC in the contracting process in the industry, and addressing the cost premium issues in the sector.”
In addition, there are expectations that local refining of petroleum products will improve and Nigeria will move towards self sufficiency and market-driven pricing.
Energy storage/grid modernisation
Experts believe that energy battery storage systems are at the forefront of the renewable energy revolution, providing critical solutions for managing power demand, enhancing grid stability, and promoting the efficient use of renewable resources.
As more renewable energy sources are integrated into the grid, these sources' variability can lead to power supply fluctuations, hence the need for greater attention.
It is against this background that Deloitte believes that in 2025, the development of large-scale battery storage systems and smart grid technologies will be key to addressing the challenges of energy intermittency and ensuring reliable power distribution.
The focus will be on improving energy storage solutions and modernising electricity grids.
Energy reliability
It said grid modernisation and the deployment of energy storage solutions would enhance energy reliability, particularly in areas with unstable grid access.
Deloitte further observed that increased focus on technological innovation in energy storage would provide opportunities for local businesses and start-ups to enter the growing market.