Keypoints:
- AfDB project adds 111 GWh by 2026
- First solar module plant planned for Kumasi
- Sector reforms critical for long-term gains
GHANA is edging closer to a modest but symbolically significant boost in clean-energy output, with roughly 111 GWh of additional solar-based electricity expected by 2026. The figure comes from a recent African Development Bank (AfDB) implementation report detailing progress on the Ghana Mini Grid and Solar PV Net Metering Project. The $85 million programme aims to improve rural electrification and reduce the country’s dependence on hydro and thermal power sources.
Power sector under persistent strain
Although the new solar capacity will not radically shift the national generation mix, it forms part of a deliberate effort to ease pressure on an electricity sector long constrained by structural weaknesses. Cash-flow imbalances at the Electricity Company of Ghana, political sensitivity around tariff-setting, and high technical losses continue to limit utilities’ ability to operate efficiently and attract robust investment. Heavy reliance on imported fuels also exposes the economy to global energy-price volatility.
Electricity demand grows by more than 4 percent annually, and with the government committed to providing universal access by 2030, diversifying supply is essential. Renewables excluding hydro currently account for less than one percent of Ghana’s generation mix, leaving the country far behind African leaders such as Kenya and South Africa.
AfDB-backed rollout advances, despite setbacks
The AfDB-supported programme seeks to accelerate diversification through decentralised solar systems. It includes installing 67.8 MW of new solar capacity via 35 mini-grids targeting island and lakeside communities, along with 12,000 rooftop solar systems for households, small businesses and public facilities.
In its November 2025 review, the AfDB rated project implementation as ‘satisfactory’, but cited delays arising from slow tax-exemption approvals and the late release of government counterpart funding. By late 2025, only 12.6 percent of project funds had been disbursed.
Still, the expected impact remains substantial. Once operational, the systems will deliver stable electricity to more than 84,000 people, support nearly 3,000 temporary jobs and reduce carbon emissions by an estimated 718,000 tonnes a year. The model aligns with a broader continental shift that increasingly sees mini-grids as a practical way to reach underserved communities.
Industrial momentum builds in Kumasi
The solar programme also exposes Ghana’s vulnerability to imported components and relatively weak maintenance ecosystems—factors that could undermine off-grid performance over time. But a new industrial strategy is beginning to take shape.
In late 2025, Germany’s development bank KfW launched an international tender for a solar module assembly facility in Kumasi. Designed to produce 75 MW of panels per year, the plant would be the first of its kind in West Africa if completed on schedule between 2026 and 2027.
The proposed factory is expected to anchor Ghana’s green industrialisation ambitions by enabling technology transfer, reducing reliance on Asian imports and positioning the country as a potential supplier to ECOWAS markets. The industrial push coincides with a rising pipeline of domestic projects, including the 200 MW Norbert Anku Solar Park, which could expand to 1 GW by 2032.
Ghana joins continental surge in renewable investment
The shift mirrors trends across Africa, where governments and investors are scaling up renewable ambitions. Nigeria is broadening its solar mini-grid programme as part of a clean-energy investment pipeline valued at $7.8bn. Kenya continues to lead the region with more than 400 operational mini-grids and Africa’s largest wind installation at Lake Turkana. Angola is advancing a 724 MW solar programme backed by Western partners, while Morocco is consolidating its vast solar and CSP footprint with future export potential to Europe.
If financing remains stable, Africa could surpass 100 GW of installed solar capacity by 2030, up from about 10 GW today.
Slow but strategic progress
Ghana’s additional 111 GWh of annual solar generation will support incremental improvements in energy access and reduce the carbon intensity of marginal supply. But analysts note that the more transformative development lies in the potential emergence of a local solar manufacturing base.
For this momentum to endure, the public sector will need to improve procurement efficiency, stabilise utility finances and implement predictable tariff reforms. Sustaining off-grid systems will also require stronger long-term operation and maintenance frameworks than those currently seen across much of the continent.
For now, Ghana’s renewable expansion remains gradual rather than transformative. But the next two years—shaped by the rollout of AfDB-supported systems and the possible commissioning of the German-backed plant—will determine whether the country can convert this slow, steady progress into a lasting structural advantage.
