Accra: Professor Elvis Asare-Bediako, Vice-Chancellor of the University of Energy and Natural Resources (UENR), has raised alarms about Ghana’s significant reliance on fossil fuels, warning that it threatens the nation’s energy security, fiscal stability, and environmental sustainability. He emphasized the urgent need for reforms and investments in renewable energy, describing the current dependency as economically unsustainable, environmentally damaging, and socially unjust.
According to Ghana News Agency, Professor Asare-Bediako made these remarks at the ActionAid Ghana Civil Society Forum on ‘Powering Crisis: Fossil Fuel Investments, Debt and Energy Insecurity in Ghana.’ He likened Ghana’s dependence on fossil fuels to wearing a heavy coat in a warming world-once protective, now burdensome. This dependency, he noted, is a national challenge that undermines the economy, businesses, and the well-being of citizens.
The Vice-Chancellor highlighted that despite Ghana’s abundant solar, wind, and biomass resources, fossil fuels power more than 60 percent of its electricity generation. This reliance exposes the country to volatile global oil prices, debt accumulation, and energy insecurity. The energy sector faces an annual shortfall of approximately 1.7 billion cedis, with supplier debts exceeding 68 billion cedis. Issues like governance gaps, policy inconsistencies, and inefficiencies among agencies such as GNPC, GRIDCo, ECG, and PURC further hamper growth.
Professor Asare-Bediako criticized ‘take-or-pay’ power agreements that require Ghana to pay for energy it does not consume, calling them economically disadvantageous. He urged the government to renegotiate these contracts and focus resources on renewable energy initiatives. He also mentioned that the Cash Waterfall Mechanism, though good for transparency, needs full enforcement to be effective. He advocated for the expansion of decentralised solar mini-grids to provide affordable power, particularly in rural and peri-urban areas, and highlighted the importance of universities and research institutions in driving energy innovation.
Dr. Charles Gyamfi Ofori, Policy Lead for Climate Change and Energy Transition at the Africa Centre for Energy Policy (ACEP), also emphasized the need for a socially sensitive and efficient energy system. He pointed out that the use of the Annual Budget Funding Amount (ABFA) from petroleum revenues has been overly focused on infrastructure at the expense of social welfare initiatives. Dr. Ofori expressed concerns over amendments to the Petroleum Revenue Management Act (PRMA) that reduce funding for the Public Interest and Accountability Committee (PIAC), which plays a critical accountability role.
Dr. Ofori called for enhancements in net metering and off-grid renewable systems, noting that rooftop solar installations and independent renewable ventures could stabilize the national grid. He warned that inefficiencies in the power sector, such as transmission losses and poor tariff recovery, are costing Ghana resources that could be redirected to social development.
Mr. John Nkaw, Country Director of ActionAid Ghana, highlighted the role of his organization in advocating for sustainable and equitable energy sector reforms. He stressed that energy should be viewed as a human rights issue, not just an economic commodity. He referenced ActionAid’s ‘Gaslighting Report,’ which highlights the debt crisis, inefficiencies in gas management, and problematic agreements with independent power producers.
Mr. Nkaw welcomed the government’s plan to build a new gas processing facility but stressed that infrastructure alone will not resolve the issues without proper governance and transparency. He urged the government to be transparent in renegotiating energy contracts and to update citizens regularly on progress. He also noted the disproportionate impact of energy insecurity on women, urging a gender sensitivity analysis in the petroleum and energy sectors and prioritizing ‘people over profit.’