Ghana’s current energy generation mix is inadequate to support the country’s industrialisation ambitions and must shift towards nuclear energy and clean coal if the country is serious about building a globally competitive manufacturing sector.
This is the position of the former Power Minister, Dr. Kwabena Donkor, who maintains that while the existing power system can sustain “business as usual”, it cannot provide the reliable, affordable and large-scale electricity required for heavy industries such as iron and steel production, aluminium smelting and petroleum refining.
Speaking in an interview with veteran journalist Kwesi Pratt Jr., Dr. Donkor said Ghana must begin making bold long-term investments in cheaper baseload power instead of relying predominantly on thermal generation, whose costs remain too high for industrial competitiveness.
Current Energy Mix Cannot Power Industrialisation
Dr. Donkor explained that hydropower from Akosombo, Kpong, and Bui currently accounts for about 35% of Ghana’s electricity generation, while thermal plants produce the bulk of the remaining power. Other renewable sources, mainly solar, contribute between 3% and 5%.
Although hydro is itself a renewable energy source, he said Ghana has already exploited most of its major hydropower potential, leaving limited room for significant expansion.
In his view, the current energy mix may be adequate for maintaining existing economic activity but falls short of supporting the rapid industrialisation needed to transform the economy.
Gas Constraints Threaten Long-Term Sustainability
He warned that Ghana’s heavy dependence on thermal power is becoming increasingly unsustainable because the country lacks sufficient natural gas reserves to support future electricity demand.
According to him, stand-alone gas fields are more expensive because production costs are recovered solely through gas sales, unlike associated gas produced alongside crude oil, where much of the cost is borne by oil production.
Looking ahead over the next five to ten years, he said Ghana’s current energy model cannot guarantee affordable electricity for an industrial economy.
Power Costs Remain Too High for Heavy Industry
Dr. Donkor noted that although some thermal plants now generate electricity at less than 10 US cents per kilowatt-hour, the national average remains above that level. Once transmission and distribution costs are added, electricity becomes even more expensive, making Ghana less competitive for energy-intensive industries.
“For serious industry, that is not good enough,” he stressed, arguing that affordable electricity remains one of the biggest determinants of industrial competitiveness.
Solar Has a Role, But Not for Heavy Industry
While dismissing suggestions that he opposes renewable energy, Dr. Donkor clarified that he strongly supports solar power for households, schools, Community-based Health Planning and Services (CHPS) compounds, and other public institutions.
He said the government should aggressively promote rooftop solar installations in homes to reduce pressure on the national grid and free up hydropower for industrial users.
However, he argued that current battery storage technology cannot reliably provide the large-scale baseload electricity required by heavy industries.
“You cannot store 200 megawatts of solar,” he observed.
Nuclear Energy Is the Long-Term Solution
Dr. Donkor believes nuclear power offers Ghana its best long-term opportunity to secure reliable and low-cost electricity. Although establishing nuclear plants could take at least a decade, he said nuclear power could cost as little as two to four US cents per kilowatt-hour, making it one of the cheapest sources of electricity available.
He is therefore urging the government to accelerate implementation of Ghana’s nuclear programme, noting that considerable groundwork has already been completed, including establishing the Ghana Nuclear Power Company, building local expertise and creating the necessary regulatory framework.
According to him, Ghana should begin with about 2,000 megawatts of nuclear capacity before expanding to 6,000 megawatts or more over the next two decades, adding that “then we can say we are serious about industrialisation.”
Clean Coal as the Medium-Term Bridge
While nuclear infrastructure is being developed, Dr. Donkor proposed that Ghana invest in clean coal-fired power plants as an interim solution.
He argued that modern clean coal technology could be deployed within three years and deliver electricity at between four and six US cents per kilowatt-hour, significantly cheaper than much of Ghana’s existing thermal generation.
Such power, he said, would support industries while allowing hydropower from Akosombo to be prioritised for energy-intensive sectors until nuclear generation becomes operational.
Safety Concerns Should Not Stall Progress
Responding to concerns over nuclear safety, Dr. Donkor argued that no technology is entirely risk-free and that modern nuclear plants operate under stringent international safety standards.
He noted that Ghana has operated a research reactor for many years, developed skilled personnel and established the institutional framework needed to safely manage nuclear energy. He added that several African countries are already pursuing nuclear power and warned that excessive caution could leave Ghana behind in its industrial development agenda.
“There is nothing that is risk-free in life,” he said. “If you are over-cautious, you remain behind.”
The former minister and legislator is convinced that if Ghana genuinely intends to industrialise rather than merely sustain current economic activity, it must invest now in reliable, low-cost baseload power capable of supporting factories for decades to come.
