The Ministry of Energy in Ghana: Functions, Structure, and Achievements

Dec 11, 2025 0

The Ministry of Energy (MoE) in Ghana is pivotal in formulating, implementing, monitoring, and evaluating energy policies to ensure a reliable and sustainable energy supply for the nation’s socio-economic development. The Ministry of Energy is the Government of Ghana Ministry responsible for energy policy formulation, implementation, monitoring and evaluation as well as supervision and coordination of activities of Energy Sector Agencies.

Established in 1957, the Ministry has undergone several restructurings to align with evolving energy sector demands. The Ministry of Energy has undergone restructuring and name changes over the years. The Ministry’s name was changed from Ministry of Energy to Ministry of Energy and Petroleum in 2012; split into Ministries of Petroleum and Power in November 2014 and on February 27, 2017, by Executive Instrument, (E.I.

Overview of Ghana's Energy Sector

Ghana’s energy needs continue to grow. In 2025, projected electricity consumption is estimated to reach 25,836 GWh, representing a 4.7% increase in demand year-on-year. Hydro, thermal, and renewables constitute Ghana’s electricity generation mix. Installed generation capacity, excluding embedded capacity as of November 2024, was 5,260 MW, with a total dependable capacity of 4,856 MW.

Thermal generation accounts for 66% of Ghana’s power generation, and hydro accounts for 33%. Ghana’s thermal power generation is fueled largely by natural gas, but occasionally uses light crude oil and diesel. Ghana exports power to Togo, Benin, and Burkina Faso.

The Government of Ghana remains heavily involved in the energy sector, with state entities having a controlling presence in the value chain. State-owned Ghana Grid Company (GRIDCO) is still solely responsible for transmission throughout the entire country. The final leg, distribution, is mainly controlled by the state-owned entities Electricity Company of Ghana (ECG) and Northern Electricity Distribution Company (NEDCO). A private entity, Enclave Power Company, plays a minor role in the distribution chain.

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Ghana’s energy sector has significant debt because of years of accumulated financial shortfalls from power pricing that does not recover full cost, although residential and business electricity consumers consider tariffs to be high. Debt within the energy sector, coupled with the high cost of power in Ghana, creates a brake on Ghana’s economic development.

In 2024, as part of its Rural Electrification Program, the Ghanaian Government connected 276 rural communities to the National Grid, increasing the access rate from 88.95% to 89.03%.

Key Functions and Responsibilities

The MoE’s mandates are derived from national development frameworks, including the National Medium-Term Development Plan Framework (NMTDPF) 2022-2025. The function of the ministry is to improve the distribution of electricity across the country, especially to communities and towns in rural Ghana. The ministry has increased the number of towns and communities on the national grid as well as improved the quality of supply of electricity.

The MoE plays a crucial role in:

Energy policy formulation
Implementation of energy policies
Monitoring and evaluation of energy sector activities
Supervision and coordination of Energy Sector Agencies

Organizational Structure

The Ministry is headed by the Minister of Energy, a political appointee accountable to the President and approved by Parliament. The minister for energy and petroleum is the head of the ministry and is directly accountable to the President of Ghana. The position is politically appointed and approved by parliament of Ghana. The current minister is John Abdulai Jinapor who succeeds Herbert Krapa under the Nana Akufo-Addo administration government.

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Supporting the Minister is the Chief Director, who oversees various directorates and departments. The organizational structure includes Civil Service Directorates such as:

Finance
General Administration
Policy, Planning, Budgeting, Monitoring and Evaluation (PPBME)
Human Resources Management and Development (HRMD)
Research, Statistics, and Information Management

Appointments within the Ministry are guided by the Public Services Commission’s regulations. The Minister is appointed by the President and approved by Parliament.

Renewable Energy Initiatives

Renewable energy sources are projected to generate an estimated 152-Gigawatt hour (GWh) of electrical energy at present. The renewable energy sources include grid connected solar RE farm at Bui, the embedded BXC and Meinergy solar plants and VRA’s facilities at Navrongo and Lawra/Kaleo. The BPA is committed to exploring renewable energy projects in line with the government’s target of increasing the share of renewable energy in the country’s energy mix.

The government of Ghana has undertaken a pilot solar energy project on Pediatorkope Island backed by foreign direct investment as part of the World Bank-funded construction of five pilot mini-grids under the Ghana Energy Development and Access Project. Small-scale solar power plants are widely regarded as being the most suitable to meet the energy needs of rural communities, often off-grid.

In April 2023, Ghana lifted its moratorium on the issuance of wholesale electricity supply licenses for renewable energy embedded generation projects, a temporary suspension it had instituted in 2020. Industry players can now apply for licenses to develop renewable energy generation projects for private use.

Utility-Scale Renewable Energy Projects:

Akosombo, Kpong and Bui: These dams constitute three of the major hydropower projects in Ghana that have been completed and are currently operational. The Akosombo and Kpong dams are two large hydropower stations which generate most of Ghana’s electricity, with an installed capacity of 1,020 megawatts (MW) and 600 MW respectively.
Bui Solar Farm: The Bui Power Authority, as part of the first phase of a 250 MW solar project, commissioned Ghana’s first hydro-solar hybrid power generating system in December 2020, which includes a 5 MW floating solar photovoltaic (PV) system and a 22.25 MW solar farm.
Mere Power: Blue Energy Plc, a UK-based renewable energy developer, is developing a 155 MW solar PV plant at Nzema near Aiwiaso in the western region of Ghana. Once completed, it will be the largest solar PV plant in sub-Saharan Africa.
Ayitepa: The Ayitepa Wind Farm is a 225 MW onshore wind power project planned in Greater Accra, Ghana.

GHANA'S ELECTRICITY SUPPLY: TEMA SOLAR POWER PLANT COMMISSIONED

Regulatory Bodies and Frameworks

A number of central government bodies (eg, the Energy Commission, the GSA and the EPA) and agencies play a direct role in the renewables industry. The state oversees the renewables industry through state institutions and different pieces of legislation.

Key regulatory bodies include:

Energy Commission: The Energy Commission regulates and manages the utilisation of energy resources in Ghana and sets technical performance standards for operators in the renewable energy sector and provides policy advice to the minister of energy.
Ghana Standards Authority (GSA): The GSA develops and monitors standards for renewable energy technologies and biofuel, whether imported or manufactured locally.
Forestry Commission: The Forestry Commission supports the development and execution of programmes for sustainable wood fuel production and usage.
Environmental Protection Agency (EPA): The EPA is responsible for regulating the environment and ensuring the implementation of government policies on the environment.

These bodies ensure compliance with environmental regulations and promote sustainable practices within the energy sector.

International Agreements and Collaborations

Ghana actively participates in international collaborations to address climate change and promote sustainable energy solutions.

Key agreements include:

Bilateral agreement with Switzerland: On 23 November 2020, Ghana and Switzerland entered into a bilateral agreement to facilitate the fulfilment of both countries’ obligations under the Paris Agreement. The agreement sets out the framework conditions for cooperation between the two countries. It is envisaged that the treaty will facilitate clean cooking and solar lighting in Ghana and benefit up to 5 million Ghanaian households.
The Glasgow Climate Pact: Adopted at the 2021 United Nations Climate Change Conference (COP26), this pact is the first climate agreement that explicitly aims to reduce unabated coal usage.
The Kyoto Protocol: This operationalises the United Nations Framework Convention on Climate Change by committing industrialised countries and economies in transition to limit and reduce greenhouse gas emissions in accordance with agreed individual targets.

In addition, Ghana has ratified all 12 international treaties set by the International Atomic Energy Agency governing the implementation of a nuclear power programme. As a result, Ghana is exploring sustainable options to generate affordable electricity to meet expected demand.

Licensing and Authorizations

To operate in the renewable energy industry, companies must obtain necessary licenses and authorizations. The applicant obtains a power generation licence from the Energy Commission and a grid connection agreement from the Ghana Grid Company, ECG or NEDCO, depending on the grid to which it intends to connect. This licence is usually a condition precedent to the effectiveness of a PPA. The applicant must also obtain approval from the PURC for the agreed tariff in the PPA.

The procedure involves obtaining a power generation license from the Energy Commission and a grid connection agreement from the Ghana Grid Company, ECG, or NEDCO, depending on the intended grid connection. Only then will they qualify to obtain a licence.

The licence can be renewed. An application for the renewal of a licence must be submitted to the Energy Commission not later than 60 days before the licence expires. The procedure for renewal of a licence is the same as that applicable to the granting of the original licence. A licence already granted can be modified by the Energy Commission where it deems fit if the modification is permissible under the terms of the licence or is required in the public interest.

Environmental and Safety Regulations

Renewables generators in Ghana must observe environmental regulations and health and safety requirements on an ongoing basis, from pre-development to decommissioning. The Environmental Protection Agency (EPA) may require a person responsible for an undertaking which, in the opinion of the board, has or is likely to have an adverse effect on the environment to submit an environmental impact assessment.

The Health, Safety, Security and Environmental Manual for Energy Sector Organisations published by the Ministry of Energy in 2019 provides companies in the energy sector with minimum requirements to guide them in the development of their respective operational procedures and processes in managing health, safety, security and environment issues. It provides such companies with the tools to develop a fit-for-purpose health, safety, security and environment management system and standard operating procedures, among other things.

Where a body corporate engages in commercial activity in the renewable energy industry without a licence, that body corporate, on summary conviction, is liable to a fine not exceeding 5,000 penalty units. Where it considers that the activities of an undertaking pose a serious threat to the environment or to public health, the EPA will serve on the person responsible for the undertaking an enforcement notice requiring that person to take the steps stipulated by the EPA to prevent or stop the activities.

Ministry of Energy and Green Transition

In a significant move reflecting Ghana’s commitment to sustainability and climate action, President John Dramani Mahama officially renamed the Ministry of Energy to the Ministry of Energy and Green Transition in January 2025.