Accra, Ghana – 27 February 2025 | Report by Edem Alorzuke, Sweet Melodies FM
Ghana is set to ramp up its transition to sustainable energy with the establishment of a Renewable Energy and Green Transition Fund, President John Dramani Mahama has announced.
Speaking during his State of the Nation Address, Mr. Mahama outlined the government’s commitment to reducing dependence on fossil fuels and investing in clean energy solutions.
“The global energy landscape is changing, and Ghana must not be left behind,” he told Parliament. “This fund will drive investment in solar, wind, and other renewable energy sources, ensuring a more sustainable future.”
A Move Towards Sustainability
Ghana’s energy sector has long been reliant on thermal power plants, many of which use expensive and environmentally harmful fossil fuels. The President said the new fund would accelerate the country’s transition to low-carbon energy sources, helping Ghana meet its climate commitments while also improving energy security.
The fund is expected to support public-private partnerships, encourage local innovation, and attract foreign investment into the renewable energy sector.
“We will work closely with industry players and development partners to ensure this initiative delivers tangible benefits to all Ghanaians,” Mr. Mahama said.
Tackling the Energy Crisis
The move comes as Ghana grapples with a deepening energy crisis, with a GHS 70 billion debt burden in the sector and Independent Power Producers (IPPs) warning of possible shutdowns due to unpaid arrears.
The President said the government was committed to diversifying the energy mix, reducing reliance on imported crude oil, and transitioning to 100% gas utilization for power generation.
“This is a long-term solution that will not only stabilize the energy sector but also create jobs and boost industrial growth,” he added.
Challenges and Road Ahead
While the initiative has been largely welcomed, energy experts caution that strong policy enforcement, infrastructure investment, and transparent management of the fund will be crucial to its success.
Analysts say previous renewable energy projects in Ghana have faced setbacks due to bureaucratic hurdles and inadequate funding, and the success of this fund will depend on sustained government commitment.
For many Ghanaians, particularly those affected by frequent power cuts and rising electricity costs, the government’s renewable energy push is seen as a step in the right direction. However, they will be watching closely to see if this initiative delivers real and lasting change.
Edem Alorzuke, reporting for Sweet Melodies FM.
