Ghana is in search of $250bn to fund energy transition plan

Ghana is looking to raise a whopping $250bn from domestic and international investors to finance its energy transition plan.

The anticipated $250bn funds, is based on projections for the country’s GDP growth, population and access to electricity in the next 50 years.

The anticipated funds from investors, the National Energy Transition Committee (NETC) says, will help Ghana transition to a net zero carbon economy by 2070.

Making the disclosure at a policy dialogue themed, Energy Transition in Ghana: Our state of play and agenda for COP 27, jointly organized by Action for Citizens-led Transformation Africa (ACT Africa) and the Natural Resource Governance Institute (NRGI), Callistus Nero, a member of the NETC quipped the Committee will soon be embarking on a roadshow to engage potential investors on the country’s energy transition plan.

According to him, the roadshow will showcase to investors, the various opportunities in the country’s energy transition plan.

“To entirely achieve our energy transition targets, the country will need a total of $250bn in financing from investors, we have not yet identified investors that will help finance the country’s energy transition plan, but we are planning to go on a roadshow to showcase to investors both locally and internationally, the opportunities that exist in our energy transition to attract them to help achieve our transition targets,” he remarked.

Speaking further at the policy dialogue, Mr Nero averred Ghana has already set in motion its energy transition plan evidenced by the 95% conversion of the country’s thermal plants to liquid fuels like natural gas, the zero gas flaring policy by government and the 2.4% renewable energy penetration in the country’s current energy mix.

According to Mr Nero, the country’s transition will be gradual, as a sudden transition from fossil fuel to clean energy, will result in some adverse impacts on Ghana’s economy.

These adverse impacts he noted, include potential threats to energy security, reduced funding for fossil fuel related projects, stranded assets in the petroleum industry, job losses and oil revenue losses to government.

In Ghana, the National Energy Transition Committee (NETC), is the statutory body tasked with the mandate of developing a national policy document and strategy on steps to successfully navigate the global energy transition.

Ghana’s emission of greenhouse gas as a proportion of global greenhouse gas emissions, is pegged at 0.51 tons per capita.

This is against the global average of 4.9 tons per capita.

The policy dialogue held by ACT Africa and NRGI, provided relevant stakeholders in the natural resources and environment, energy and transport sectors the platform to understand Ghana’s state of preparedness for energy transition and practical steps needed to be taken to avoid becoming victims of the transition both locally and within the global policy space.

The policy dialogue was held in preparation of the COP 27 to take stock of government’s plan and seek to understand and influence government’s position for the upcoming climate conference – exploring issues on energy transition, financing and its implications for the country and the African Continent at large.

Source: norvanreports