Ghana’s Power Sector Enters ‘Higher-Risk Zone’ as Grid Investment Lags Demand Growth – IES
Ghana’s power sector is increasingly edging into a “higher-risk zone” as surging electricity demand continues to outstrip investment in critical transmission infrastructure, the Institute for Energy Security (IES) has warned.
According to the think tank, peak electricity demand has now exceeded 4,280 megawatts (MW), reflecting heightened economic activity and rising consumption across both households and industry. However, this demand growth has not been matched by corresponding upgrades in the transmission network, exposing structural weaknesses within the power system.
“The system is increasingly characterised by congested transmission corridors, rising technical losses, over-loaded infrastructure, and ageing, obsolete equipment; all of which collectively pose a direct threat to grid stability, system reliability, and the efficiency of power delivery,” the IES stated.
The institute cautioned that without timely capacity expansion and targeted grid modernisation, Ghana faces an elevated risk of power supply shortfalls, particularly during peak demand periods.
The IES further noted that persistent inefficiencies within the power sector could drive up operational costs for businesses, weaken industrial productivity, and ultimately dampen economic growth.
It therefore called for urgent and coordinated investment strategies, alongside regulatory reforms, to strengthen the resilience and efficiency of Ghana’s energy infrastructure.
“The Institute therefore urges government, regulators, and development partners to prioritise transmission network reinforcement as a matter of national strategic importance. The decisions taken today regarding transmission infrastructure investment will determine the reliability, efficiency, and competitiveness of the power sector for decades to come. Decisive action is not optional, it is imperative,” the report emphasised.
To address the emerging risks, the IES proposed a range of interventions, including the upgrade of existing transmission infrastructure with high-capacity conductors to reduce system overloading and minimise technical losses.
It also recommended the development of additional high-voltage transmission lines to enhance bulk power transfer capacity, improve supply security to major load centres, and increase system flexibility during peak periods.
Further measures include reinforcing key transmission corridors to reduce vulnerability to single-point failures, investing in reactive power compensation to improve voltage stability and support renewable energy integration, and replacing ageing transformers and substation equipment to eliminate operational bottlenecks.
Additionally, the institute highlighted the need to expand transformation capacity at critical nodes, optimise the network to reduce both technical and commercial losses, and strengthen interconnection capacity to boost cross-border electricity trade and enhance Ghana’s competitiveness within the regional power market.
The IES maintains that swift and decisive action will be critical to ensuring long-term reliability, efficiency, and sustainability of Ghana’s power sector.
