GHANA's SOLAR ENERGY SECTOR: PROJECTS , PROGRESS AND CONTRIBUTIONS TO THE GRID

Ghana has made significant strides in diversifying its energy mix by integrating solar energy to improve energy security, reduce carbon emissions and counter the ever growing energy sector debt! Read about Ghana's energy sector debt

The enactment of the Renewable Energy Act 2011 (Act 832) and subsequent policy interventions have played a pivotal role in shaping the solar energy landscape. In this article we will explore Ghana’s solar energy progress, the projects implemented, and their contributions to the national electricity grid.

Ghana is endowed with abundant solar energy resources due to its geographic location. With an average solar irradiation of 4-6 kWh/m²/day, the country has great potential for harnessing solar power. The government and private sector have initiated multiple projects to increase solar energy’s contribution to the overall electricity generation mix. Solar irradiation refers to the amount of solar energy that reaches a unit area over a period of time.

The solar energy share in Ghana’s electricity generation mix has been gradually increasing due to declining costs and sustained government policies. As of 2020, solar energy accounted for a growing fraction of the country’s renewable electricity generation. In 2023, the total electricity generated from solar sources stood at 9,335 GWh

The following are the key developments in Ghana's solar energy sector:

• Policy Framework: The Renewable Energy Act 2011 (Act 832) established a legal and regulatory framework for the promotion of solar energy development.

• Renewable Energy Master Plan: This aims to achieve a 10% solar energy share in the national grid by 2030. This is a clear indication that investment by private entities is needed to boost the sector in order to accelerate and achieve this target.

• Feed-in Tariff (FiT) Scheme: This initiative encourages private investments in solar energy projects.

• Net Metering and Off-Grid Electrification Programs: These programs promote decentralized solar power solutions for homes and businesses

More About The Feed-in-Tariff (FIT)

In accordance with the provisions of the Renewable Energy Act, the Public Utilities Regulatory Commission (PURC) introduced the first Renewable Energy Feed-in Tariffs (RE-FiT) in September 2013. Less than a year later, the RE-FiT was reviewed and officially gazetted on October 1, 2014.

The updated RE-FiT maintains the core structure of the initial tariff system while introducing new guidelines for integrating utility-scale variable renewable energy technologies, particularly solar Photo Voltaic(PV) and wind energy. The key principles of the revised guideline include:

• The total national capacity for solar PV and wind plants without grid stability/storage systems is capped at 150 MW and 300 MW, respectively.
• A maximum of 10 MWp per solar PV plant without grid stability/storage systems can be connected to the distribution system at any generation site.
• A maximum of 20 MWp per solar PV plant without grid stability/storage systems can be connected to the national transmission system (161 kV or 330 kV) at any generation site.

The revised Feed-in Tariff rates for utility-scale renewable energy technologies, as gazetted by the PURC in October 2014, are presented in below.

Feed-in Tariffs for Utility-Scale Renewable Energy Technologies

Renewable Energy Technology	Feed-in Tariff (GH¢/kWh)	Feed-in Tariff (US$/kWh)	Maximum Capacity (MW)
Wind (with grid stability systems)	0.56	0.17	300
Wind (without grid stability systems)	0.51	0.16	300
Solar PV (with grid stability systems)	0.64	0.20	150
Solar PV (without grid stability systems)	0.58	0.18	150

This tariff framework is aimed at ensuring the integration of renewable energy into the national grid while maintaining stability and efficiency. The inclusion of grid stability systems enhances reliability, making higher tariff rates applicable to such projects. 

Ghana has undertaken multiple solar energy projects, ranging from small-scale installations to large-scale solar farms. Below are some notable projects:

1. Utility-Scale Solar Power Projects

   • Bui Solar Farm (55 MW, 2022) - Integrated with the Bui Dam to provide hybrid energy solutions

   • Navrongo Solar Plant (2.5 MW, 2013) - Ghana’s first utility-scale solar power plant.

   • Lawra Solar Plant (6.5 MW, 2021) & Kaleo Solar Plant (28 MW, 2022) - Both facilities contribute to the national grid.

   • Meinergy Solar (20 MW, 2020) - Supports industrial and commercial energy demand.

2. Distributed Solar Energy Projects

• Solar Rooftop Program (2018-Present) - Encourages businesses and households to install solar PV systems.

• Solar Mini-Grids (Ongoing) - Supports rural electrification efforts, particularly in off-grid communities.

• Public Institution Solar Installations (2021-Present) - Solar energy systems installed in schools, hospitals, and government buildings to reduce dependency on grid electricity.

Ghana’s electricity generation mix has evolved over the years, with solar energy playing a growing role:

• Grid-Connected Solar Contribution: Solar energy is contributing an increasing share to the national grid, reducing reliance on thermal plants.

• Decentralized and Off-Grid Solar Solutions: Rural communities are benefiting from mini-grids and standalone solar systems.

• Hybrid Systems: Solar power is being integrated with hydropower and battery storage to improve reliability.

Fig 1: Solar Panels Positioned In Most Optimum Direction

Challenges Facing Solar Energy Expansion 

Despite progress, Ghana's solar energy sector faces several challenges:

• High Initial Investment Costs: The capital-intensive nature of solar energy projects limits rapid expansion.

• Grid Integration Issues: Variability in solar energy generation poses challenges for grid stability.

• Financing and Investment Constraints: Limited financial incentives and access to credit hinder private sector participation.

• Regulatory and Policy Gaps: Inconsistencies in policy implementation can delay project execution.

Future Prospects and Recommendations 

Ensuring solar adoption is inevitable and here are some of the notes the Ghanaian goverment could take to be part of the universal energy transition.

• Expanding Incentives: Provide more financial support and tax breaks for solar energy investors.

• Improving Grid Infrastructure: Strengthen grid capacity to accommodate increasing solar energy penetration.

• Enhancing Research and Development: Invest in technological innovations to optimize solar energy utilization.

• Promoting Public-Private Partnerships (PPPs): Encourage collaborations between the government and private sector to scale up solar energy projects.

RALLYING CALL TO ACTION

Ghana's bid to transition to green energy is a massive call for investors to grab the opportunity in the renewable energy space. This is therefore a call to action for all potential interested parties to give it go!

This will accelerate the country's capacity in dealing with its major challenge, the further growth of the energy sector DEBT. 

Fig 2: Solar Panel Being Fixed

Future research will explore why solar energy is the best renewable alternative, using data from NASA's triangulation of Ghana's geographic position. Stay tuned!

Conclusion 

Ghana's solar energy sector has made commendable progress, with significant contributions to the national grid. Continued policy support, investment in infrastructure, and innovative financing mechanisms will be crucial in achieving Ghana's solar energy targets and ensuring sustainable energy development for the future.