In view of the global trends, the Government of Ghana has identified renewable energy as one of the options that could contribute to the overall energy supply mix and minimise the adverse effects of energy production on the environment.
At the moment, no clear integrated roadmap exists for the long-term development and promotion of the different renewable energy resources in the country. To address the attendant effects of such short-term planning of the overall development of the renewable energy sector, the Renewable Energy Master Plan (REMP) has been developed with the goal to provide investment-focused framework for the promotion and development of the country’s rich renewable energy resources for sustainable economic growth, contribute to improved social life and reduce adverse climate change effects.
The Renewable Energy Master Plan (REMP) is funded by the “China-Ghana South-South cooperation on Renewable Energy Technology Transfer” project which is a collaboration between the Energy Commission in Ghana, the Ministry of Science and Technology in China together with the UNDP Country Offices in Accra and Beijing. The project with funding from DANIDA, is facilitating exchange of expertise and technology between China and Ghana, building on China’s unique development experience.
The implementation of the REMP starts from the year 2019 and run through to the year 2030. The scope of the targets and plan of actions are based on a thorough stakeholder consultation and analysis of the renewable energy resources and applications, economics and financial implications. The REMP also prescribe action plans for all the Renewable Energy Technologies (RETs).
For each of the RET areas (solar, wind, hydro, biomass, etc.), the action plan analysed the resource availability, opportunities in developing the resource, and recommends interventions for their promotion and development.
Further details and actions are provided given to the challenges and strategies for each of the technologies/ interventions. In line with the Renewable Energy Act, 2011 (Act 832), the Ministry of Energy will implement the plan through the REMP Coordinating Unit (REMP-CU). The REMP-CU shall be responsible for the overall procurement and fiscal management, coordination with key REMP Components Implementation Entities and Beneficiaries (CIEB) and reporting obligations. The Ministry of Energy will from time to time designate relevant entities to implement key components of the REMP.
The REMP is an US$ 5.6 billion investment mater plan, with more than 80% coming from the private sector. On annual basis, the REMP translates into an estimated US$ 460 million investment. Government shall continue to provide an enabling business environment and work to remove the bottlenecks that hinder growth in the private sector.
Manufacturing and assembling shall be continuously promoted. Incentives proposed for renewable energy manufacturing and assembling firms include: substantial tax reduction; exemption of materials, components, equipment and machinery; exemption of import duty on plants and plant ports for electricity generation from renewable energy resources.
The specific objectives of the REMP are to achieve the following by 2030: Increase the proportion of renewable energy in the national energy generation mix from 42.5 MW in 2015 to 1363.63 MW
- Reduce the dependence on biomass as main fuel for thermal energy applications
- Provide renewable energy-based decentralised electrification options in 1000 off-grid communities
- Promote local content and local participation in the renewable energy industry.