Ghana is set to launch the Renewable Energy Investment Fund (REIF), a groundbreaking initiative that will source domestic and international funding for the country’s renewable energy projects. The move comes after the West African nation’s cabinet gave its approval for the establishment of the fund earlier this month.
The establishment of the fund signals a major stride in Ghana’s push to embrace sustainable energy and reduce its dependence on fossil fuels. Historically, the West African nation has prioritised fossil fuels to meet its energy deployment goals, but this move signals a strategic shift toward cleaner alternatives.
According to Energy and Energy Transition Minister, Mr. John Abdulai Jinapor, a bill to establish a Renewable Energy Agency, which would oversee the fund, is undergoing technical review and will be submitted to the cabinet soon.
Fund to help Ghana meet renewable energy targets
REIF will help Ghana achieve its renewable energy targets, including increasing the share of renewables in the national energy mix to 10% by 2030. The fund will prioritise projects in solar, wind, hydro, and biomass energy, with a focus on rural electrification and energy access for underserved communities.
The approval comes at a time when global energy markets are grappling with volatility, highlighting the need for diversified and resilient energy systems. Ghana’s push toward renewables is seen as a strategic effort to enhance energy security and reduce the country’s vulnerability to external shocks.
“We will aggressively promote the use of electric charging vehicles, solar for irrigation facilities, providing solar systems for hospitals, public schools, including universities, and small and medium-scale enterprises, and support energy efficiency education,” said Energy and Energy Transition Minister, Mr. John Abdulai Jinapor.
Ghana is aiming to introduce competitive procurement processes for renewable energy projects as part of its strategy to lower power costs. Jinapor explained, “We are collaborating with the World Bank and are confident that by competitively procuring renewable energy and other energy sources, we can achieve a significant reduction in power generation costs.”
According to data from the International Renewable Energy Agency (IRENA), Ghana had installed 169 MW of solar capacity by the end of 2023.
