Ghana

Index rank 102

Balance Score

CCD

Energy Sustainability Index Rankings and Balance Score

 2011  2012  2013  Trend Score
Energy Performance  100  102  103   
Energy Security  86  90  85  C
Energy Equity  106  106  105  D
Environmental Sustainability  77  75  77  C
         
Contextual Performance  89  88  87   
Political Strength  64  64  62   
Societal Strength  83  75  75   
Economic Strength  121  121  120   
         
Overall Rank  102  104  102  CCD
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Fossil Fuel Reserves

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Key Metrics

Industrial sector (% of GDP) 27.4
TPEP / TPEC  (net energy importer) 0.43
Emission intensity (kg CO2 per USD) 0.26
Energy affordability (USD per kWh) n.a.
GDP / capita (PPP, USD); GDP Group 3,113 (IV)
Energy intensity (million BTU per USD) 0.26
CO2 emissions (metric tons CO2 per capita) 0.43
Population Access to Electricity (%) 60.5
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Index Commentary

Ghana improves its overall Index ranking by two places this year to finish at rank 102. Ghana’s three energy dimensions remain unbalanced, as its energy equity ranking continues to lag performance on the other two dimensions. Energy security performance improves this year, with a decreased energy consumption growth rate and increased strategic oil reserves. However, transmission and distribution losses of electricity remain among the highest in the world. Providing its people with access to modern energy services continues to be a challenge for Ghana, which has a 61% electrification rate that poses an obstacle that must be overcome if the country seeks to develop further economically. The environmental sustainability dimension is Ghana’s strongest, and overall performance remains mediocre and largely flat. The exception is a small increase in CO2 emissions from electricity generation, although this indicator is one of Ghana’s best because the country uses hydropower to generate the majority of its electricity. Contextual performance stays weak, with political and societal strength being more robust than economic strength. Nevertheless, slight improvements are made across the board, indicating that Ghana is heading in the right direction.

Trends and Outlook

In order to improve energy security, energy equity and environmental sustainability Ghana needs to address a number of related challenges, such as: 1) the lack of credible, sustained and focused energy policy; 2) the inability to execute policies; 3) governmental interference; and 4) ineffective regulatory authorities.

Recent policy developments include: 1) the enactment of Electricity Regulations, 2008 (L.I 1937), which is intended to provide for the planning, expansion, safety criteria, reliability and cost effectiveness of the Interconnected Transmission System, and to regulate the wholesale electricity market; 2) the enactment of the Renewable Energy Act, 2011 (Act 832) to improve the development, management and utilisation of renewable energy sources for production of heat and power in an efficient and environmentally sustainable manner; and 3) the incorporation of Ghana Gas Company in July 2011 with the responsibility to build, own, and operate infrastructure required for gathering, processing, transporting and marketing of natural gas in Ghana.