Ghana must balance hydrocarbons and renewables to secure energy sovereignty – COMAC CEO

Ghana must pursue a balanced energy strategy that safeguards hydrocarbons, expands renewable energy, and prioritises domestic value creation to ensure energy sovereignty amid the accelerating global energy transition, Dr. Riverson Oppong, Chief Executive Officer of the Chamber of Oil Marketing Companies (COMAC), has said.

Speaking at a public lecture in Accra titled “Energy sovereignty in the context of global energy transition: What Africa should know”, Dr. Oppong warned that Ghana and the African continent risk losing control over their energy future if they fail to clearly define their role in the evolving global energy landscape.

“If Africa does not decide whether it is part of the energy transition, others will decide for us,” he said. “And those decisions will not necessarily favour our development priorities.”

Dr. Oppong challenged the notion that the energy transition requires a wholesale move away from fossil fuels, noting that energy systems historically evolve by addition rather than substitution. “Coal did not replace oil, oil did not replace gas, and gas was not replaced by nuclear or renewables,” he said, emphasising that hydrocarbons remain central to the global energy mix.

Despite a 36 percent improvement in global energy efficiency over the past two decades, energy demand and supply rose by 63 percent, he noted, showing that efficiency alone does not curb consumption. “When energy becomes affordable and accessible, demand increases,” he added.

Highlighting the experience of major economies pursuing net-zero targets, Dr. Oppong pointed out that oil, gas, and coal remain key energy sources. “China still derives about 70 percent of its energy from hydrocarbons, Japan nearly 87 percent, and coal remains significant in the US and UK. No country has transitioned at the expense of energy security,” he said. He urged Ghana and Africa to approach their energy transitions based on domestic priorities and needs.

Dr. Oppong also praised Ghana’s electricity access, which now exceeds 90 percent, but warned that access alone does not guarantee energy security. “Energy security is about accessibility, availability, and affordability. You cannot industrialise if power is available but unaffordable, or affordable but unreliable,” he said.

He cited Ghana’s decision to use domestically produced gas for power generation as a strategic example of energy sovereignty, noting that it has delivered greater economic value than exporting the resource as liquefied natural gas.

However, Dr. Oppong highlighted ongoing challenges, particularly clean cooking, with nearly one billion people across sub-Saharan Africa still reliant on charcoal and biomass. “Distributing gas cylinders without reliable refill infrastructure forces households back to charcoal,” he said.

The COMAC CEO also cautioned that emerging global trade mechanisms, such as the European Union’s Carbon Border Adjustment Mechanism (CBAM), could penalise carbon-intensive African exports. “As Ghana advances in manufacturing and processing, the carbon intensity of our energy will increasingly affect competitiveness,” he said.

Dr. Oppong warned against over-dependence on oil and gas revenues, citing fiscal shocks in countries like Angola, Nigeria, and Venezuela during price declines. “When oil prices fall, deficits widen and debt rises,” he said, urging stronger savings frameworks and economic diversification.

He concluded that Africa’s energy transition must be pragmatic, combining hydrocarbons, renewables, and emerging technologies to support industrialisation.

“The energy transition is not a threat if we manage it strategically. For Ghana, the priority must be energy security, local value addition, and long-term economic resilience,” Dr. Oppong concluded.