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Regulatory Review of the Electricity Market in Ghana
Thursday, December 30, 2021
Regulatory Review of the Electricity Market in Ghana

This report provides an analysis of Ghana’s electricity sector policies, laws, and regulations in relation to crowding-in private sector participation in developing national electricity infrastructure. The report is part of the United Nations Economic Commission for Africa and RES4Africa Foundation joint program on Regulatory Review of the Electricity Sector in Africa: Towards Crowding-in Private Sector Investment. Ghana’s power sector reforms were initiated in the 1990s to open the system to private participation, introduce competition, and enhance the efficiency of electricity service provision. The review of the policy and regulatory framework indicates that Ghana has been quite successful in defining an enabling legislative environment to govern the electricity supply industry. All the regulations governing the value chain originate from a primary enabling law that seeks to promote private sector participation Private sector participation in Ghana’s electricity market has been mostly confined to generation, where several independent power producers are active. The Energy Commission Act also envisages private sector participation in electricity brokerage, sale and exports. Nevertheless, the private sector appears not to have made substantial inroads into the value chain beyond the generation segment. Ghana has also opted for a public-led model for the development of mini-grids as alternative electricity supply solutions, limiting private sector contribution in the off-grid space. The purpose of this regulatory review is to pinpoint the main strengths and gaps of the policy and regulatory framework currently in force related to private sector participation in the entire electricity market. It further aims to offer concrete recommendations for regulatory improvement and reform towards attaining a competitive, resilient, and sustainable electricity market.

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