By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
The High Street Journal
  • HOME
  • BUSINESS & ECONOMY
  • NEWS & UPDATES
  • WORK & CAREERS
    • THSJ Resources
  • LEGAL INSIGHTS
  • INNOVATION
  • OPINIONS
  • #STOPGALAMSEY
The High Street JournalThe High Street Journal
Search
  • HOME
  • BUSINESS & ECONOMY
  • NEWS & UPDATES
  • WORK & CAREERS
    • THSJ Resources
  • LEGAL INSIGHTS
  • INNOVATION
  • OPINIONS
  • #STOPGALAMSEY
Follow US
© 2024 | The High Street Journal. All Rights Reserved.
News

Financing Constraints Slowing Microgrid Expansion – Energy Minister

Energy Minister John Jinapor says high financing costs and risks are slowing microgrid expansion, urging stronger policies and private investment to accelerate off-grid electrification for remote communities in Ghana.

Energy Ministry Confirms Escalating Israel-Iran Tension & Rising Fuel Prices Forces Behind ₵1 Levy Pullback
Minister of Energy and Green Transition John Abdulai Jinapor
Stanley Senya
Feb 19, 2026

Financing challenges continue to impede the expansion of microgrids and minigrids in Ghana, threatening efforts to achieve universal electricity access, Mr John Abdulai Jinapor, Minister of Energy and Green Transition, has stated.

Speaking through a representative at the National Forum on Microgrids and Minigrids for Off-Grid Electrification in Accra, the Minister said high upfront capital requirements and perceived investment risks were discouraging private sector participation.

“Financing remains a hurdle. High costs and risks deter private players,” he noted, adding that government was working to create a more supportive investment environment.

According to him, Ghana is responding with stable policy and regulatory frameworks, de-risking mechanisms, targeted capacity building and broader market support measures, while ensuring that affordability and social inclusion remain central to electrification efforts.

Ghana’s national electricity access rate currently stands at 89.03 percent, leaving an estimated 3.5 million people, mostly in remote, island and lakeside communities without dependable power supply.

READ ALSO

MTN Ghana’s GH¢15bn Revenue Growth Signals Expanding Digital Economy and Investment Push
German Embassy Wraps Up Nationwide Dialogues to Protect Communities from Climate
December in GH 2026 Targets Tourism Spending, Local Business Growth With 100 Events

Mr Jinapor explained that extending the national grid to such hard-to-reach areas is often slow and capital-intensive, requiring significant public investment with limited short-term returns.

“This demands a rethink of how we plan, deliver and use energy,” he said, describing microgrids and minigrids as critical components of the country’s energy transition strategy.

He noted that decentralised renewable energy systems powered by solar, biomass and battery storage technologies could deliver electricity directly to underserved communities, reduce greenhouse gas emissions and stimulate local economic activity.

However, he stressed that electrification must go beyond household lighting.

“Electricity that ignores livelihoods, industry and services fails to transform,” he said, advocating for microgrid-based energy parks that connect power supply to agro-processing, cold storage, irrigation, healthcare delivery, education and small-scale manufacturing.

The forum, chaired by Mr Kwabena Donkor, a former Minister for Power, aimed to build consensus on practical strategies to accelerate deployment of decentralised renewable energy systems under Ghana’s broader electrification agenda.

It brought together policymakers, regulators, development partners, private investors, traditional leaders and civil society representatives to examine the policy, regulatory and financing frameworks required to scale up microgrid and minigrid solutions nationwide.

Discussions also highlighted progress under initiatives such as the Africa Energy Parks (AEP) and the Scaling-Up Renewable Energy Programme (SREP), which are supporting the installation of solar mini-grids and solar home systems in off-grid communities.

Mr Donkor acknowledged that although Ghana had made significant strides in expanding electricity access over the years, between 10 and 15 percent of the population primarily in rural and isolated areas still lacked reliable access to modern energy services.

“Grid extension alone cannot deliver universal access within the required timeframe,” he said, emphasising that decentralised renewable systems provide a complementary and often more cost-effective pathway.

Ms Paulina Różycka, Team Leader for Infrastructure and Sustainable Development at the Delegation of the European Union to Ghana, described microgrids and minigrids as essential tools for bridging the energy access gap in remote communities.

She pointed to the Africa Energy Parks project at Jang in the Savannah Region as an example of how renewable energy parks can supply reliable electricity to more than 500 households while promoting productive use and strengthening climate resilience.

The forum is expected to generate a set of actionable recommendations, secure stakeholder endorsement of the Africa Energy Parks model and deepen collaboration among government, industry players and development partners to fast-track decentralised renewable energy deployment across the country.

Share this:

  • Share on X (Opens in new window) X
  • Share on Facebook (Opens in new window) Facebook

Like this:

Like Loading…

Related

Subscribe to Our Newsletter
Subscribe to our newsletter to get our newest articles instantly!
[mc4wp_form]
Share This Article
Facebook Whatsapp Whatsapp LinkedIn Email
Previous Article Political Interference Undermines Cocoa Sector, Experts Recommend Technocrat-Led Board Expert Urges Revival of Cashew and Coffee to Reduce Ghana’s Dependence on Cocoa
Next Article Standard Chartered Jumps GH¢2.93 as Banking Stocks Extend GSE Surge Investors Continue Driving Price Rally Across 12 Major GSE Stocks; MTN GH Climbs to GH¢5.40
- Sponsored Content -
Ad imageAd image

LATEST NEWS

Ghana’s Fiscal Turnaround Wins Regional Applause, but Sustaining Productive Sectors Remain a Hurdle
Ghana’s 22 New Laws: Will They Reduce Business Risks and Investment Uncertainty?
Business & Economy
GEXPO 2026 To Power Ghana’s Export Drive with Dedicated Export School at Black Star Square
Business & Economy
Africa's Urban Growth Is Outpacing Its Economic Transformation, World Bank Finds
Africa’s Urban Growth Is Outpacing Its Economic Transformation, World Bank Finds
Business & Economy
Ghana Targets Nine Job-Creating Sectors Under GH¢10 New Economy Policy
Business & Economy
National Fuel Consumption Climbs 13.37% Year-on-Year in Early 2026
Mixed Outlook at the Pumps as Petrol and LPG Prices Ease While Diesel Faces Upward Pressure
Business & Economy

You May Also Like

PURC Assures Grid Stabilisation After Akosombo Fire Disrupts Power Supply 

PURC Assures Public of Grid Stabilisation After Akosombo Fire Outage

MIIF Clarifies Act 1137 to Strengthen Royalty Education and Encourage Compliance

MIIF Pushes Transparency Drive, Clarifies Act 1137 to Boost Royalty Compliance

Staying Relevant in a Low Interest Rate Regime: A Case for Non-Funded Income Sources for Banks

CalBank’s Q3 Surge: Profits Up, Costs Down, and Digital Rising

Telecom Giant Deepens Investment in Small Business Growth

people protesting on the street

Nigeria Fines Meta, Parent Company of Facebook $220 million

Sumaila Abdul Rahman and 3 Others Convicted in Northern Development Authority Corruption Trial

Sumaila Abdul Rahman and 3 Others Convicted in Northern Development Authority Corruption Trial

Ato Forson Calls for Urgent Digital Sovereignty as Africa Risks Repeating Historic Value Extraction Pattern

U.S. economy grows solid 2.3% in October-December on eve of Trump return to White House, 2.8% in ’24

Donald Trump Wins 2024 US Election, Returns to White House with 277 Electoral Votes

The High Street Journal

About Us

Delivering focused and insightful business perspectives; impacting lives.

Email: [email protected]

Useful Links

  • About
  • AI Strategy & Policy
  • Advertise
  • User Policy
  • Be a Guest Author
  • Contact Us
  • Sitemap

Stay Connected

© 2026 | The High Street Journal. All Rights Reserved.

%d