Dr Sulemanu Koney, Chief Executive Officer of the Ghana Chamber of Mines, said the high statutory payments were disincentive to the change to renewable energy.

The system, constructed by Ghanaian firm, Stella Futura, at a total cost of US$122,316.35, was designed to meet the Chamber’s electricity requirements.

At peak conditions, the system has the capacity to generate 111,000 kWh, and its use has reduced the Chamber’s consumption of electricity from the national grid by nearly 75 per cent.

“It is instructive to note that nearly 11 per of the contract cost represents statutory taxes and levies, which is a disincentive to the government’s energy transition agenda,” Dr Koney said.

While the government has exempted imported solar panels from VAT and other levies, the payments for a completed project are still subject to these statutory taxes and levies, he said.

He said the government was fully aligned on the global initiative to transition to clean and sustainable energy, however, the ecosystem required to encourage households and firms to invest in clean energy was still in its infant stage.

Dr Koney said the solar system symbolised the mining industry’s transition from reliance on fossil-based energy to cleaner alternatives.

“This investment represents a significant milestone in the Chamber’s commitment to promoting sustainable energy and reducing its carbon footprint as embodied in Sustainable Development Goal (SDG) 7,” he said.

“This system is about more than just reducing our carbon footprint. It is also about leading by example and inspiring others to follow in our footsteps as an institution at the fore front of promoting environmentally and socially responsible mining,” he added.

Dr Koney said the investment in the solar PV system demonstrated the mining industry’s commitment to sustainable development and expressed the hope that the actions would inspire others to follow suit and take similar steps to reduce their impact on the environment.

He said the absence of a net metering system implied that a consumer would be subsidizing the operational cost of ECG anytime the solar plant feeds its excess generation beyond its demand into the national grid.

He urged the government, particularly, the Public Utility Regulatory Commission (PURC), to expedite its work on the net metering framework.

Inaugurating the facility, Mr George Nutor, the First Vice President of the Ghana Chamber of Mines, said climate change effects had shown the need to pay critical attention to issues of clean energy and sustainability, especially for the mining industry.

According to the United Nations Sustainable Development Goals, Goal 7 is about ensuring access to clean and affordable energy, which is key to the development of, business, communications, education, healthcare, agriculture, and transportation.

He said cheap electricity from renewable sources could provide a chunk of Ghana’s total electricity supply and decarbonize the power sector by massively cutting carbon emissions and helping to mitigate climate change.

Given the effects of climate change and our aspirations of promoting environmentally and socially responsible mining in Ghana, improving energy efficiency and transitioning to clean energy are just some of the ways of ensuring sustainability and mitigating the effects of climate change in Ghana.

“We are in an era of implementing Environment, Social and Governance (ESG) principles in our business operations. The transition to renewable or clean energy falls under the ESG. It is therefore imperative that we take the lead to transition to clean energy since most investors and financial institutions also favour renewable and clean energy,” Mr Nutor added.