The Fund will enhance the green credentials of the country, encouraging investments in renewable energy, and support the deployment and development of green technologies locally.

The initiative is expected to reduce the burden of electricity tariffs on state-owned institutions whilst freeing the grid connected power for productive and industrial ecosystems to create jobs.

Mr John Abdulai Jinapor, the Minister of Energy and Green Transition, said this at this year's Sustainable Energy Policy Dialogue in Accra.

It was on the theme: "Accelerating Energy Transition in Ghana."

The programme was hosted by the Ghana Institute of Management and Public Administration (GIMPA)-Public Utility and Regulatory Commission (PURC) Centre of Excellence in Public Utility Regulation.

He said a bill for the establishment of the Renewable Energy Agency was undergoing technical review and would be submitted to cabinet very soon.

The Agency, when established, will manage the Renewable Energy and Green Transition Fund and lead the government's green energy agenda.

The Minister said the government intended to use some money from fossil fuels and invest in renewable energy such as solar systems for homes, among other things, support with the solar-chargeable outboard motors to replace the premix fuel.

The Ministry, he stated, planned to undertake a pilot project where most of the fisherfolk would switch from fossil- based outboard motors to chargeable renewable-based outboard motors to reduce their cost.

"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," he said.

The initiatives, the minister saiu, form part of the five-point agenda to fast-track the country's energy transition.
He said the government was planning to deploy solar power streetlights across the country, adding that the current system of managing the solar streetlights had not been the best, where some areas barely work.

That, he stressed, posed security challenges for inhabitants in such areas, affecting the government's policy of the 24- hour economy.

Estimates by the Energy Sector Recovery Programme indicate that the streetlight levy is woefully inadequate to cover the cost of consumption, as well as infrastructure maintenance and the energy required to keep the lights on.

Data revealed that about 600 million people in sub-Saharan Africa do not have access to electricity, and about 1 billion people do not have access to clean cooking.

About 48 per cent of rural communities in Africa have access to electricity.
He said the Ministry was fast-tracking the inclusive and universal access to electricity with its development partners by deploying renewable energy mini-grids in areas where it was difficult to extend the national grid.

The Minister said the government was committed to implementing an open and competitive process for renewable energy capacity procurement.

"We do not intend to procure renewable energy through sole sourcing alone unless it becomes exceptionally important. We will ensure that we go through a competitive process.

"We are already working with the World Bank, and we are confident that through competitive procurement of renewable energy and other energy sources, we can attain a much more reduced cost of power generation, which translates into what we call the end-user tariff," he said.
He said Tamale Hospital alone consumed about Ghc 1.5 million electricity every month and was able to only pay Ghc 100,000 per month.

"The deficit of 1.4 million will have to be paid by the national budget, and you can imagine what Ghc 1.4 million per hospital per month will translate to annually if you put all the hospitals in the country together," he said.

Dr Shafic Suleman, Executive Secretary, PURC, said the country still relied a lot on thermal power and that energy transition required intentional policy to ensure affordable, reliable and sustainable energy systems.

The Commission is developing innovative tariff structures that incentivise investment in renewable energies whilst ensuring affordability for consumers.

Professor Stephen Adams, Coordinator, GIMPA-PURC Centre of Excellence in Public Utility Regulation, said the Centre was committed to developing evidence-based research for policy decisions on energy-related projects.