IES warns Ghana’s Power grid has entered high-risk zone

Ghana’s national electricity transmission network is facing increased strain, with the Institute for Energy Security (IES) warning that it has entered a “higher-risk zone” due to years of rising demand without matching investment in grid infrastructure.

According to the IES, this growing imbalance now poses significant risks to energy security, industrial competitiveness, and Ghana’s role as a regional electricity exporter.

Data analysed by the think tank from the Energy Commission and the Ministry of Finance shows that peak electricity demand has surged from about 1,933 megawatts (MW) in 2015 to roughly 4,280 MW in 2025—more than doubling over the period, with an average annual growth rate exceeding 8 percent.

The report highlighted that the largest annual increases in demand occurred in 2018, 2024, and 2025, each recording increments of about 328 to 334 MW. This trend, the IES said, reflects sustained structural growth driven by economic expansion, population increases, and improved access to electricity.

“Except for minor slowdowns, demand rises every year, indicating structural, not temporal growth,” the IES noted, stressing that the upward trajectory is unlikely to reverse without deliberate intervention.

While electricity generation capacity has generally kept pace with demand, the transmission network—which delivers power from plants to consumers—has lagged behind. This gap has resulted in congested transmission lines, higher technical losses, ageing and overloaded equipment, and inefficiencies in moving power to key demand centres.

The IES warned that these challenges are undermining grid stability and reliability, increasing the risk of system disturbances and operational inefficiencies.

Beyond domestic concerns, the situation also threatens Ghana’s position within the West African Power Pool, where it has traditionally been a net exporter of electricity. Weak transmission capacity is now limiting the country’s ability to trade power effectively across borders, potentially reducing export revenues and weakening its regional influence.

“Without immediate intervention, the transmission network faces heightened risks, including increased frequency of system disturbances, reduced ability to evacuate generated power efficiently, higher operational costs, and growing constraints on regional electricity trade,” the report stated.

To address these issues, the IES is calling for a range of targeted interventions. These include upgrading existing transmission lines with higher-capacity conductors, constructing new high-voltage circuits, reinforcing critical transmission corridors, and investing in systems to improve voltage stability and support renewable energy integration. It also recommended replacing ageing transformers and upgrading substations at key points across the network.

However, the report identified financing constraints as a major barrier to progress. Limited funding has slowed the pace of transmission investment, restricting the ability of sector institutions to undertake large-scale infrastructure upgrades.

The IES is therefore advocating for innovative financing approaches, such as public-private partnerships, alongside stronger regulatory frameworks to support cost recovery, better coordination among institutions, and prioritisation of transmission projects in national energy planning.

The financing challenge is compounded by Ghana’s current fiscal pressures, including its ongoing programme with the International Monetary Fund and existing energy sector debts, which limit the government’s ability to fund major infrastructure projects.

Ultimately, the IES emphasised that the long-term sustainability of Ghana’s power sector depends not only on generating sufficient electricity but also on strengthening the transmission system that delivers it.

“The decisions taken today regarding transmission infrastructure investment will determine the reliability, efficiency, and competitiveness of the power sector for decades to come. Decisive action is not optional—it is imperative,” the institute concluded.