Energy transition: $32bn needed from govt — Director
The government would have to provide $32 billion to support Ghana’s energy transition agenda by 2070, a Deputy Director for Renewables and Green Emerging Technologies at the Ministry of Energy and Green Transition, Dr Robert Sogbadji, has disclosed.
The amount forms part of a $562 billion needed to fully achieve its target.
The $562 billion is expected to come from a co-financing model, including sources such as Government of Ghana (GoG), Multilateral Development Banks (MDBs), Development Partners (DPs) and Private Financiers and Beneficiaries.
Giving a breakdown of the investment needs, Dr Sogbadji, said MDBs alone would have to provide $113.2bn representing 43 per cent of the total investment needed, while development partners and Private Financiers and Beneficiaries are expected to bring $29.0bn and $ 91.9bn respectively.
The investment would help complete a nuclear power project, with construction scheduled to begin in 2027, development of 33 new solar mini-grids for island communities among other targets.
"We need about $562 billion to complete this energy transition by 2070. It is not only the government that has to provide this money. It includes the private sector, development partners and multinational development banks to bring in funds to ensure that we transition smoothly,” he said at a stakeholder engagement on the assessment of Ghana’s energy transition framework.
Engagement
The stakeholder engagement was organised by the Natural Resource Governance Institute (NRGI), a non-governmental organisation (NGO) that focuses on improving the governance of natural resources, particularly in the oil, gas and mining sectors, to promote sustainable development and reduce poverty.
Reflecting on the progress made since the implementation of the energy transition planning in 2022, Dr Sogbadji reported that over 89 per cent of Ghana's energy assets were currently operational, with renewable energy contributing more than 3.5 per cent.
He also mentioned that ongoing projects such as the construction of mini-grids for island communities and solar installations on hospitals and industrial sites were in the right direction.
He bemoaned the significant challenges posed by illegal mining activities on water bodies.
Dr Sogbadji stated that illegal mining was exacerbating water turbidity and disrupting river ecosystems, which complicated the feasibility studies necessary for developing hybrid energy projects that integrated solar and hydropower.
“The illegal mining activities on these rivers require us to conduct re-feasibility studies to assess their viability for energy generation," he explained.
He said that without addressing these issues, the country’s transition to green energy could be severely hindered.
Rationale
The Africa Director, NRGI, Nafi Chinery, explained that the engagement was to understand Ghana’s energy transition framework and implementation efforts.
She added that it was also to Identify key risks and challenges facing Ghana’s Energy Transition Framework, harnessing domestic and external resources to support the implementation of Ghana’s transition targets, among others.
Dr Chinery commended the government for significant progress in the energy transition plan, highlighting the inclusion of diverse energy sources such as gas, nuclear and solar, and the realistic target of $562 billion by 2070.
She called for coordination and collaboration between relevant government agencies to ensure a cohesive and coordinated approach to the energy transition plan.
She also underscored the need to leverage revenue from transition minerals to support the transition from fossil fuels to green energy while ensuring transparency and stakeholder engagement, including civil society and renewable energy experts, in the development of the renewable energy master plan.