Renewable energy and energy efficiency in the public sector in Ghana

Project description

Title: Renewable Energy and Energy Efficiency in the Public Sector Ghana (REEEPublic)
Commissioned by: Federal Ministry of Economic Cooperation and Development (BMZ)
Countries: Ghana
Lead executing agency: Ministry of Energy
Overall term: 2019 to 2021

Context

Ghana has made significant strides in improving access to electricity with the country having achieved an electrification rate of 83 per cent in 2017. However, energy supply is more expensive due to short- and medium-term power purchase agreements of additionally installed conventional power plants during the energy crisis from 2012 to 2016. At the same time, the state-owned electricity distribution companies Electricity Company of Ghana and Northern Electricity Distribution Company are in critical financial situations as end-user tariffs are insufficient to cover high electricity costs.

The public sector consumers do not pay their electricity bills at regular intervals or do not pay at all, which endangers the effective management of the state-owned electricity distribution companies as well as reliable electricity supply. Since 2017/2018 the government of Ghana has focused on debt recovery in the energy sector, particularly in the public institutions – to reduce their electricity consumption and promote alternative, ‘greener’ energy solutions as well as ensure payment of electricity bills, the government has rolled out an initiative to equip all government buildings with solar PV systems. The REEEPublic project through the attainment of improved energy efficiency for public buildings and the subsequent adoption of Renewable Energy systems for these facilities, will reduce electricity costs for these buildings which in turn will contribute to an improved financial situation in the sector.

Objective

Public institutions in Ghana have the necessary prerequisites to utilise renewable energy (RE) and energy efficiency (EE) solutions.

Approach

The project Renewable Energy and Energy Efficiency in the Public Sector Ghana (REEEPublic) project will advise the Ministry of Energy and other relevant actors on implementing the Renewable Energy Act (RE Act). At the same time, it will support the government in reducing the electricity costs of public facilities by promoting energy efficiency solutions and own electricity generation from renewable sources. Moreover, the project will support the technical regulator, the Energy Commission, in setting up a system for certifying buildings with regard to their energy consumption. This is flanked by offering training for skilled workers. Demonstration projects will be carried out in selected regions and municipalities.