Financing constraints continue to hamper efforts to scale up microgrids and minigrids as Ghana pursues universal electricity access, the Minister of Energy and Green Transition, John Abdulai Jinapor, has said.
In a speech delivered on his behalf at a National Forum on Microgrids and Minigrids for Off-Grid Electrification in Accra, the Minister noted that high upfront investment costs and perceived risks remain key deterrents to private sector participation.
“Financing remains a hurdle, high costs and risks deter private players,” he said.
He, however, assured stakeholders that government was implementing stable policies, strengthening regulations and introducing de-risking mechanisms to attract investors.
According to him, capacity building and market support measures are also being rolled out, with affordability and inclusion at the centre of the strategy.
The forum, chaired by former Minister for Power, Kwabena Donkor, aimed to build consensus on practical measures to accelerate the deployment of decentralised renewable energy systems under Ghana’s broader electrification agenda.
Participants included government officials, regulators, development partners, private sector representatives, traditional authorities and civil society organisations.
Discussions focused on improving policy, regulatory and financing frameworks to drive large-scale adoption of microgrids and minigrids.
Ghana’s national electricity access rate currently stands at 89.03 percent, leaving an estimated 3.5 million people, mainly in remote, island and lakeside communities without dependable electricity. The Minister explained that extending the national grid to such areas is often slow and capital-intensive.
“This demands a rethink of how we plan, deliver and use energy,” he said, describing microgrids and minigrids as “vital pillars” in the country’s energy transition.
He stressed that decentralised systems powered by solar, biomass and battery storage technologies could deliver reliable electricity closer to underserved communities, reduce carbon emissions and stimulate local economic activity.
“Electricity that ignores livelihoods, industry and services fails to transform,” he noted, underscoring the need to link microgrid-based energy parks to agro-processing, cold storage, irrigation, healthcare, education and small-scale manufacturing.
The forum also reviewed progress under initiatives such as the Africa Energy Parks (AEP) and the Scaling-Up Renewable Energy Programme (SREP), which are supporting solar mini-grids and solar home systems in off-grid communities.
Mr Donkor observed that despite significant expansion in electricity access over the years, between 10 and 15 percent of Ghanaians largely in rural and hard-to-reach areas — still lack reliable modern energy services.
“Grid extension alone cannot deliver universal access within the required timeframe,” he said, adding that decentralised renewable energy systems provide a complementary and faster pathway.
Ms Paulina Różycka, Team Leader for Infrastructure and Sustainable Development at the European Union Delegation to Ghana, described microgrids and minigrids as a necessity rather than an option for reaching isolated communities.
She cited the Africa Energy Parks project in Jang in the Savannah Region as an example of how renewable energy parks can supply reliable power to more than 500 households while promoting productive use and climate resilience.
The forum is expected to produce a set of recommendations, secure stakeholder backing for the AEP model and strengthen collaboration among government, industry and development partners to accelerate off-grid electrification.
