By Blessing Sarfo BOAKYE
The global shift towards transforming how energy is produced and utilized worldwide constitutes the energy transition.
As many nations transition from fossil fuels towards greener, more sustainable energy sources, it has become crucial to increase public understanding of this shift, especially within the context of Ghana.
The Intergovernmental Panel on Climate Change (IPCC) describes “transition” as the movement from one state or condition to another within a defined timeframe.
When discussing energy transition, it pertains to the worldwide move towards utilizing renewable energy sources and implementing low-carbon technologies with the goals of decreasing ecological harm and improving energy stability.
The article delves into the history of energy transition, underscores its importance, explores how Ghana has put it into practice, and discusses its pertinence.
The objective is to convey these intricate ideas in an understandable and accessible way, allowing people from different walks of life to grasp and interact with this significant worldwide concern.
The background setting for the shift towards alternative energy sources
The idea of shifting from one type of energy to another isn’t novel; people have experienced various changes in their primary energy sources over time. Here are some historical instances of these global energy transitions:
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Pre-Industrial Era
This period preceded the utilization of machinery and tools for various tasks. Early human communities mainly relied on biomass such as wood, peat, and animal dung for heat and cooking purposes. -
Initial Energy Shift (18th-19th Century)
The Industrial Revolution signified the transition from biomass energy sources to coal usage. Steam engines fueled by coal transformed various sectors including industry, transport, and city development. During this era, there was significant growth in coal extraction activities along with the creation of extensive railroad networks and factory systems that depended extensively on steam technology. -
The Second Energy Transition (20th Century)
The extensive use of oil and natural gas (commonly known as fossil fuels) started to displace coal as the primary energy resource. Oil became essential for contemporary transport systems, fueling cars, vessels, and aircraft. Significant discoveries of large oil deposits in regions such as the Middle East, the United States, and Russia fueled worldwide economic expansion. Additionally, natural gas gained prominence as a more environmentally friendly option compared to coal for producing electricity and providing heat. -
The Third Energy Transition ( Late 20th – 21st Century )
The increasing awareness of environmental concerns, coupled with technological progress, hastened the transition towards renewable energy sources such as solar, wind, and hydropower. The 1970s oil crisis underscored the risks associated with relying heavily on fossil fuels, leading to increased funding for research into alternate energy solutions. Over recent years, enhancements in battery storage systems, smart grid technologies, and overall energy efficiency have facilitated the adoption of renewable resources within conventional energy sectors.
Primary elements fueling the latest shift towards renewable energy
The 1970s oil crisis
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A major energy-related occurrence during the 20th century took place in the form of the oil crisis of the 1970s.
In 1973, OAPEC initiated an oil embargo against countries that backed Israel during the Yom Kippur War, notably targeting the United States and Western European nations.
This resulted in a significant rise in oil prices, fuel scarcity, and economic upheaval. Another energy crisis followed in 1979 as a consequence of the Iranian Revolution, intensifying the turmoil in the energy sector even more.
These occurrences highlighted the risks associated with an overreliance on fossil fuels and led developed countries to investigate renewable energy options, put money into improving energy use, and create regulations aimed at decreasing their dependence on oil.
Environmental challenges
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A key driver behind the shift towards renewable energy is tackling climate change. The global energy industry is responsible for approximately 73% of all greenhouse gases emitted worldwide.
The combustion of fossil fuels emits substantial quantities of greenhouse gases like carbon dioxide and methane, leading to increased global temperatures and severe climatic events.
Governments, companies, and global institutions have acknowledged the critical importance of decreasing carbon emissions, resulting in regulations that encourage renewable energy use, enhance energy efficiency, and achieve net-zero emissions.
Depleting fossil fuel reserves
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Fossil fuels are finite resources. As their supplies dwindle, obtaining them grows increasingly difficult and expensive, underscoring the urgency of developing alternate and more environmentally friendly energy options.
This reduction has prompted investments in renewable sources like solar, wind, hydropower, and geothermal energy to guarantee sustained energy security.
Progress in technology coupled with decreasing costs
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Technological advancements have increased the efficiency and reduced the cost of renewable energy.
The price of renewable energy technologies, especially solar and wind power, has dropped significantly in the last ten years.
This renders them more competitive compared to fossil fuels, thereby easing their broad acceptance.
State regulations and global accords
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International accords like the Paris Agreement have established significant goals aimed at decreasing carbon emissions and curbing the increase in global temperatures.
Countries around the globe are introducing strategies, rewards, and rules aimed at speeding up the shift towards sustainable power sources.
This encompasses measures like carbon pricing, incentives for renewable energy initiatives, and the gradual elimination of coal-powered stations.
Business and individual desire for environmentally responsible practices
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Companies and individuals are giving more importance to environmental responsibility.
A number of companies have established net-zero objectives, pledged to utilize exclusively renewable resources, and are incorporating Environmental, Social, and Governance (ESG) criteria into their business practices.
Moreover, customers are calling for more eco-friendly energy choices and sustainable goods, which is accelerating this shift.
Public health benefits
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Shifting to renewable energy also tackles public health issues. The pollutants released during the burning of fossil fuels contribute to respiratory illnesses, heart problems, and early fatalities. Utilizing cleaner energy alternatives decreases air contamination, thereby enhancing general well-being and cutting down medical expenses.
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Ghana and energy transition
Ghana has implemented various measures to synchronize with the worldwide shift toward cleaner and more sustainable energy sources. Below are some of the main strategies and policies:
1. Promotion of renewable energy projects.
2. Implementation of regulations for clean energy adoption.
3. Development of infrastructure aimed at supporting sustainable power solutions.
- In 2011, the Renewable Energy Act (Act 832) came into force aiming to facilitate the growth, oversight, and use of renewable resources for generating both heat and electricity in an effective and eco-friendly way. The introduction of this legislation stemmed from Ghana’s pledge made in 2010 to boost renewables within its overall energy supply, targeting a 10% share by 2020. However, due to updates outlined in the Strategic Energy Plan (2019), this objective has been rescheduled until 2030.
- In 2022, Ghana introduced its Energy Transition Framework (ETF) spanning from 2022 to 2070 with the objective of achieving net-zero emissions by 2070. The framework ensures both energy security and affordable power supply. Achieving net-zero emissions entails balancing the quantity of emitted greenhouse gases against those being extracted from the atmosphere. Essentially, all generated emissions should be counterbalanced through actions that either absorb or decrease an equal volume of emissions. Consequently, this approach aims at lessening and possibly nullifying the global warming effects triggered by such greenhouse gases.
- In 2024, the President of Ghana once again presented the Ghana Energy Transition and Investment Plan, which expands upon the country’s earlier Energy Transition Framework. This new strategy outlines how Ghana aims to reach net-zero emissions by 2060—a decade ahead of what was initially proposed in the ETF. During his address, the President emphasized, “This initiative underscores our commitment to promoting environmentally friendly sectors, supporting advancements in low-carbon technology, and driving a sustainable industrial transformation for both genders.”
- Additionally, the Bui Power Authority has built a floating solar power system at the Bui reservoir to advance its mission of developing and expanding solar photovoltaic infrastructure. This initiative aims to establish a combined hydro-solar photovoltaic hybrid setup as part of the government’s plan to boost the share of renewables in the national energy supply by 10% by 2030. As the inaugural project of this nature within the West African region, the floating solar array has seamlessly connected with Ghana’s nationwide transmission network, enhancing the dissemination of green electricity throughout the country.
- Ghana has implemented the National Electric Vehicle Policy aimed at fostering an environment conducive for adopting electric vehicles within the country. The purpose of this initiative is to decarbonize the transportation sector.
Why energy transition matters?
Environmental impact:
As mentioned earlier, the combustion of fossil fuels emits carbon dioxide (CO₂) along with various greenhouse gases into the air, resulting in global warming and severe climatic occurrences.
Nevertheless, renewable energy sources such as solar, wind, and hydropower generate minimal to zero emissions when contrasted with fossil fuels. In contrast, the processes of extracting and combusting fossil fuels lead to issues like smog, acid rain, and contaminated water supplies.
Transitioning to cleaner energy enhances air and water quality. In contrast to the effects of coal and oil extraction—processes frequently associated with deforestation and ecological damage—renewable energy sources leave a lighter environmental impact.
These environmental consequences underscore the necessity of this current shift towards cleaner energy sources, a move that is crucial today more than at any time before.
Energy security
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Energy security involves having dependable and cost-effective access to energy resources. Numerous nations rely on externally sourced fossil fuels, which exposes them to volatility in prices, political conflicts, and interruptions similar to those experienced during the 1970s crisis.
Combining various forms of renewables such as solar, wind, hydroelectric, and geothermal power creates a more robust energy framework. Similarly, putting money into renewable sources lessens vulnerability to fluctuating costs and financial downturns typically linked to the extraction and distribution of fossil fuels.
Finally, numerous renewable resources can be utilized locally, decreasing dependence on foreign providers and cutting down on transport expenses.
Economic expansion and employment generation
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Shifting towards clean energy substantially boosts economic growth. With greater acceptance of renewables, novel sectors, commercial prospects, and employment roles emerge.
The renewable energy industry provides jobs for millions globally, spanning fields such as producing solar panels, maintaining wind turbines, and developing energy storage systems. With technological progress and increased production efficiencies leading to lower costs, the expense of generating renewable energy keeps dropping.
Across numerous areas, solar and wind energy have become more cost-effective compared to coal and natural gas. Both governmental bodies and private enterprises are channeling funds into the exploration and advancement of environmentally friendly energy solutions, which fosters economic expansion and sparks new innovations in technology.
In 2024, during the launch of the Ghana Energy Transition and Investment Plan, the country’s president announced that “By following this revolutionary route, our aim is to attract roughly USD 550 billion in investments by 2060.” This underscores the vast economic potential that lies within the shift towards renewable energy for Ghana.
Public health benefits
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The combustion of fossil fuels emits contaminants that lead to respiratory illnesses, heart ailments, and early fatalities.
The shift towards clean energy directly enhances public health as it decreases harmful emissions, resulting in reduced instances of asthma, lung ailments, and cardiovascular conditions.
The process of extracting and refining fossil fuels frequently leads to the contamination of water supplies. In contrast, renewable energy generation from sources like wind and solar typically involves very little use of water and generates almost no pollutants. This reduction in pollution-related illnesses would ease the burden on health care services, potentially conserving billions of dollars in both medical costs and losses due to decreased productivity.
Obstacles and future prospects for the shift towards renewable energy in Ghana
Limited renewable energy infrastructure
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Ghana’s energy infrastructure remains largely dependent on fossil fuels and hydropower, with minimal large-scale solar and wind projects. Although hydropower constitutes a substantial part of Ghana’s energy mix, climate change-driven droughts lower water levels, thereby impacting electricity production.
Additionally, Ghana’s national power grid is not adequately equipped to incorporate sporadic renewable energy sources such as solar and wind. Once more, initiating extensive renewable initiatives demands considerable funding, posing an obstacle to swift implementation.
To address these issues, the government should concentrate on investing in updating the power grid and implementing battery storage technologies to improve stability. Additionally, expanding decentralized solar energy networks, especially in remote regions, is crucial.
Financial constraints
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Renewable energy initiatives, particularly, demand substantial initial funding. In Ghana, economic difficulties restrict the nation’s capacity to finance sizable renewable energy ventures and enhance current facilities.
Restricted access to global climate funds poses a significant challenge as well. Promoting cooperation between governmental bodies and the private sector could draw investments, alleviate financial pressures, and speed up the establishment of renewable energy facilities.
Weak enforcement of policies
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Even with legislation such as the Renewable Energy Act of 2011 (Act 832) in place, progress remains hindered by delays. The enforcement and execution continue to be uneven. Inconsistencies within regulatory structures, hold-ups in reforming the energy sector, and administrative hurdles impede the shift towards renewable sources.
To address these problems, the government needs to improve the implementation of current energy policies and make sure that the regulatory structures are clear, attractive for investors, and consistent with global standards. Regular assessments of policies along with active involvement of stakeholders are crucial.
Conclusion
The shift towards energy transition is not merely a worldwide necessity; it is also a route to achieving greater sustainability, resilience, and prosperity for Ghana’s future.
As climate change brings greater threats, along with uncertainties in energy supply and economic instabilities due to reliance on fossil fuels, Ghana needs to keep enhancing its initiatives in renewable energy.
Tackling problems such as inadequate renewable energy facilities, budgetary limitations, and poor implementation of current regulations is essential for speeding up the shift.
Through the modernization of energy infrastructure, attraction of investments, promotion of innovation, and the robust execution of policies such as the Renewable Energy Act, Ghana has the potential to harness all the advantages offered by clean energy sources. This includes stimulating employment opportunities, driving economic expansion, enhancing public well-being, and safeguarding the environment.
In essence, the shift towards renewable energy is crucial as it provides a solution for decreasing carbon emissions, ensuring energy security, and protecting the health of present and future populations. Through collaborative initiatives involving the government, private enterprises, and residents, Ghana has the potential to attain an environment that is cleaner, greener, and more sustainable in terms of energy use.
>>The individual serves as a Trainee Associate at Sustineri Attorneys PRUC
www.sustineriattorneys.com
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Blessing specializes in
Business and Corporate Practices, Energy Legislation, Environmental, Social, and Governance Issues, ConflictResolution, and IntellectualProperty
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