Over the past several decades, Ghana has emerged as a potentially highly attractive destination for foreign investment, boasting an abundance of raw materials and proven political stability.
However, a chronic shortage of reliable power – coupled with the associated negative business and economic effects – continues to remain a significant obstacle to Ghana’s socio-economic development.
On the other hand, this precise issue offers investment opportunities for independent power producers (IPPs), particularly those involved in the renewables sector.
- Over the past few years, the government of Ghana has increasingly emphasised the importance of developing the country’s renewable energy sector, and has established several policies, plans and laws to promote and regulate the development of renewable energy resources.
- While still a relatively youthful and underdeveloped sector, opportunities for investment are wide-ranging in the hydropower, solar power, wind power, wave power and biomass sub-sectors.
- However, while the government has made a concerted effort to create an attractive environment for businesses operating in the renewable energy sector, the nascent sector is still relatively underdeveloped, and continues to suffer from weak and unclear policies and regulations.