Ghana Seeks Private Investment to Boost Power Distribution

The Government of Ghana is set to attract private capital into its electricity distribution network as part of a 10-year national strategy aimed at creating a self-sustaining and resilient energy sector, the Ministry of Energy and Green Transition has announced.

Speaking at an energy sector roundtable themed Powering Ghana Forward: Strategizing for a Self-Sustaining and Resilient Power Sector in 10 Years, held ahead of the Ghana Economic Forum (GEF), Mr. Sulemana Abubakar, Deputy Director in charge of Power, said the initiative aligns with Ministry of Energy and Green Transition Hon. John Abdulai Jinapor’s vision for a modernized and financially robust energy system.

The government’s plan focuses on expanding private-sector participation, boosting renewable generation, and strengthening transmission infrastructure to meet rapidly growing national electricity demand. Mr. Abubakar emphasized that the reforms aim to make the power sector financially viable, digitally advanced, and less dependent on state support.

He noted that the ministry is prioritizing distribution network upgrades, digital monitoring to reduce losses, and cost-recovery measures through improved revenue systems. Transparent governance, efficient procurement, and stronger partnerships with investors are expected to be central to these efforts.

The government also plans to encourage local industrial participation in renewable energy production, including the assembly of solar and wind components, to stimulate job creation and curb heavy import reliance.

While acknowledging ongoing challenges—such as under-recoveries, financial shortfalls, and delayed tariff adjustments Mr. Abubakar stated that recent reforms, including tariff rationalization and the implementation of the cash waterfall mechanism, are already producing positive results.

The Ghana Grid Company (GRIDCo), however, warned that rising power demand is stretching the country’s transmission system. Peak demand has reached 4,070 megawatts and is projected to climb to 6,198 MW by 2030, requiring annual additions of around 374 MW.

GRIDCo stressed the need for new generation capacity and improved gas supply for thermal plants to prevent power shortages. Persistent financial constraints have slowed investments in transmission lines, particularly affecting the eastern and northern regions.

In a parallel development, Ghana has reached Phase Two of its nuclear power programme, joining Kenya and Nigeria in pursuing stable baseload energy at affordable, single-digit tariffs. Officials believe nuclear integration will shield the economy from volatile global fuel prices.

Mr. Abubakar concluded that the coming decade must mark Ghana’s bold leap toward energy sovereignty, green transition, and long-term resilience, positioning the country as a leader in sustainable power reform across Africa.