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.
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.
