Energy expert Oscar Amanor has cautioned that while Ghana’s transition toward renewable energy is commendable, rising energy costs and operational challenges are undermining the competitiveness of local industries and discouraging new manufacturing investments.
Amanor said that although Ghana is adding more renewable energy projects to diversify its energy mix, the cost of electricity and power reliability remain critical concerns for key sectors such as cement manufacturing, breweries, and small-scale enterprises.
“We must balance our renewable energy ambitions with cost efficiency and reliability,” he said. “Energy remains one of the biggest determinants of whether Ghana attracts or loses manufacturing investors.”
According to him, industries that rely heavily on power, especially cement producers, beverage manufacturers, and agro-processing firms, are struggling to remain competitive due to high energy tariffs and erratic supply.
He noted that while Ghana’s push toward cleaner energy sources such as solar, wind, and natural gas is necessary for sustainability, the cost of transition and infrastructural inefficiencies are being transferred to end-users, putting pressure on production costs.
“Energy prices directly affect production costs, and when those costs rise faster than productivity, businesses either scale down operations or pass the burden to consumers,” he explained. “In the long term, this weakens our industrial base.”
Amanor also expressed concern that small and medium-sized enterprises (SMEs), which form the backbone of Ghana’s economy, are disproportionately affected by unstable and expensive power.
He warned that without targeted support measures such as tiered tariff systems or dedicated renewable incentives for SMEs, the energy transition could widen the cost gap between large corporations and small local producers.
“Many SMEs are spending more on generators or battery storage than on actual production. That’s unsustainable,” he said. “We need a framework that ensures affordable, accessible, and predictable energy for all businesses.”
Amanor further acknowledged the Energy Commission’s progress in expanding Ghana’s renewable capacity but said cost optimization and grid management must be prioritized to prevent green energy projects from becoming an additional financial burden.
“Renewable energy is not just about adding solar farms, it’s about ensuring those projects reduce costs, not increase them,” he added. “We must strengthen the regulatory environment, invest in local manufacturing of renewable components, and promote efficiency across the value chain.”
He further called for private-sector participation in energy infrastructure financing and transparent tariff-setting mechanisms that reflect real costs while encouraging industrial growth.
The energy expert warned that Ghana’s ability to attract and retain manufacturing investors depends heavily on its energy policy choices.
“Every investor looks at the cost and reliability of energy before deciding where to put their money,” Mr. Amanor emphasized. “If energy remains expensive and unpredictable, manufacturers will look elsewhere and that’s a risk we can’t afford.”
He urged policymakers to align the country’s renewable energy expansion plan with its industrialization goals, ensuring that energy reforms promote both sustainability and competitiveness.
