Ghana's Energy Sector 70% Thermal Power Facing Oil Price Volatility

Ghana's energy supply relies heavily on thermal power, making it sensitive to global oil market shifts. An energy expert noted that 70% of Ghana's power comes from thermal sources. These sources depend on fossil fuels, which are linked to global oil prices.

The current crisis in the Middle East shows how vulnerable Ghana is. This crisis has disrupted global energy markets. It raised fears of oil supply problems and price changes. An emergency cabinet meeting in Ghana discussed these economic effects.

Ghana imports much of its fuel. This exposes the country to external shocks. The expert said Ghana has excellent potential for solar energy due to abundant sunlight. Investing in solar could change both power generation and transportation. This includes electric vehicles and buses.

Ghana has also planned for nuclear energy since 2007. Progress on this must speed up. There is also unused hydroelectric potential beyond the Akosombo and Kpong dams. Using these sources would lower reliance on thermal power.

Existing solar projects by the Volta River Authority and Bui Power Authority are small. They are not enough to make a difference. Without major changes, Ghana will remain at risk from international events. Longer-term solutions are needed. Policy should go beyond short-term fixes like fuel taxes.