2017.2033.3

Market entry in renewable Energy and energy efficiency for the productive sector in Ghana

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Bundesministerium für wirtschaftliche Zusammenarbeit u. Entwicklung
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–
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Ministry of Energy and Green Transition
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Context

Industry, trade, commerce and services are being thwarted and burdened by Ghana's often recurring electricity crisis resulting in meanwhile the highest electricity tariffs in West Africa. These can only be passed on to their customers to a limited extent due to the high level of competitive pressure, hindering economic growth. In order to reduce their electricity costs, electricity consumers can increasingly use renewable energy (RE) and/or improve their energy efficiency (EE).

However, the market so far for such investments is still nascent. The main obstacles include the lack of adequate financing, inadequate capacity of private sector actors and the lack of qualified specialists who can plan, install and maintain RE and EE solutions.

Objective

The prerequisites for the use of renewable energy and energy efficiency solutions by private-sector electricity consumers and energy supply companies are improved. This will be accompanied by a contribution to improving the conditions for the demand-oriented education and further training of the skilled workers needed in the sector.

Approach

The technical cooperation (TC) measure at national level provides training, advisory and other support services in order to strengthen the capacities of key market players to ensure that private companies with high electricity consumption increasingly cover their energy requirements from RE or reduce them by means of energy efficiency solutions.

The strategic focus of the project is on one hand to overcome barriers to market entry and development, which have so far prevented Ghana's private electricity consumers as well as businesses and households from making greater use of RE and EE. Further, the project is focused on preparing public electricity supply companies for the changes in the electricity sector associated with their customers' own RE electricity generation. On the other hand, to supply the market with the needed skilled workers in this area, the project will actively involve the participation of the private sector in the creation of a demand-driven occupation in the area of RE/EE and strengthen the personnel, institutional and cooperation capacities of vocational training institutions and develop approaches for the transition into (self-) employment

In summary, are the intervention areas of the project are the following:

1. Market development for RE/EE solutions

2. Investment support for large-scale electricity consumers

3. Business strategies for electricity suppliers

4. Demand-oriented vocational qualification for RE/EE

Results

Actual implementation of the project began in July 2019. So far, the following have been achieved:

1. Energy Service Centre

An Energy Service Centre (ESC) has been established under the project and hosted by the Association of Ghana Industries (AGI) to promote distributed renewable energy generation and energy efficiency solutions for large private commercial and industrial electricity consumers and renewable energy service providers, through the provision of independent advisory service.

2. Financial support to Energy Commission

The Energy Commission is being supported financially to organise the annual Renewable Energy Fair for 2019, 2020 and 2021. Additionally, the project is providing financial support to enable the Energy Commission to undertake:

a) Installation of the 200 Data Collection & Monitoring Equipment throughout Ghana to ensure the ready availability of data on solar PV investments and use for policy making.

b) Drafting of regulations to prescribe standards for construction, operation and maintenance of RE facilities.

3. Financial support for the West African Clean Energy & Environment Trade Fair & Conference (WACEE ’19)

The project is providing financial support for WACEE ’19, which is organised by the Delegation of German Industry and Commerce in Ghana to promote renewable energy and related industries.

4. Renewable Energy and Efficiency Week and study tour in Germany.

The project is organizing a study tour to Germany for technical officials and policy makers from government ministries, departments and agencies, power utility companies, RE/EE service providers, commercial and industrial electricity consumers and business associations in October 2019.

5. Sector Skills Body for Renewable Energy

Initial steps have been made together with the Council For Technical And Vocational Educational Training (COTVET) to set up a Sector Skills Body for the participation of sector stakeholders to advise on the development of vocational standards and curricula.

 
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CRS code
23210

Policy markers

Principal (primary) policy objective:

  • Climate Change: Mitigation

Significant (secondary) policy objective:

  • Gender Equality

Responsible organisational unit
1600 Westafrika 2 und Madagaskar

Financial commitment for the actual implementation phase
10,000,000 €

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