Financing Challenges Stall Off-Grid Power Expansion – Energy Minister
The Minister for Energy and Green Transition, John Abdulai Jinapor, has identified financing constraints as a key barrier to expanding microgrids and minigrids in Ghana’s drive towards universal electricity coverage.
In a speech delivered on his behalf at the National Forum on Microgrids and Minigrids for Off-Grid Electrification in Accra, the Minister indicated that steep initial investment costs and perceived financial risks continue to discourage private sector involvement.
He added that government is tackling the challenge through stable policy direction, improved regulatory frameworks, de-risking initiatives, capacity development and market support measures, while ensuring affordability and inclusiveness remain central to the strategy.
The forum, chaired by former Power Minister Kwabena Donkor, aimed to forge consensus on actionable measures to fast-track the rollout of decentralised renewable energy systems under Ghana’s electrification agenda.
Participants included government representatives, regulators, development partners, private investors, traditional authorities and civil society organisations. Discussions focused on the policy, regulatory and financing structures necessary to scale up the deployment of microgrids and minigrids.
Ghana’s national electricity access rate currently stands at 89.03 per cent, leaving an estimated 3.5 million people mostly in remote, island and lakeside communities without dependable power supply.
According to Mr Jinapor, extending the national grid to such areas is frequently slow and capital-intensive.
“This demands a rethink of how we plan, deliver and use energy,” he stated, describing microgrids and minigrids as critical components of Ghana’s energy future.
He explained that decentralised systems powered by solar energy, biomass and battery storage can provide reliable electricity close to end users, cut emissions and stimulate local economic activity.
“Electricity that ignores livelihoods, industry and services fails to transform,” he stressed, adding that microgrid-based energy parks must link power supply to agro-processing, cold storage, irrigation, healthcare, education and small-scale manufacturing.
The forum also reviewed progress made under the Africa Energy Parks initiative and the Scaling-Up Renewable Energy Programme (SREP), both of which are supporting solar mini-grids and solar home systems in off-grid communities.
Mr Donkor observed that despite notable achievements in electricity expansion, between 10 and 15 per cent of Ghanaians predominantly in rural and hard-to-reach areas still lack reliable access to modern energy services.
“Grid extension alone cannot deliver universal access within the required timeframe,” he emphasised, noting that decentralised renewable energy systems provide a complementary solution.
Also speaking at the forum, Paulina Różycka, Team Leader for Infrastructure and Sustainable Development at the European Union Delegation to Ghana, described microgrids and minigrids as indispensable for reaching underserved communities.
She cited the Africa Energy Parks project in Jang in the Savannah Region as a model, explaining that the renewable energy park supplies reliable electricity to more than 500 households while encouraging productive use and strengthening climate resilience.
The forum is expected to produce a summary of key recommendations, secure stakeholder endorsement of the Africa Energy Parks model and deepen collaboration among government, industry and development partners.
