Munich Personal RePEc Archive

Electricity Supply and System losses in Ghana. What is the red line? Have we crossed over?

Adom, Philip Kofi (2016): Electricity Supply and System losses in Ghana. What is the red line? Have we crossed over?

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Abstract

Electricity supply and sustainable economic development are two complementary forces. However, in Ghana, the capacity limitations in the electricity sector has restraint production levels threatening the sustainable development of the country. The aim of this study is to investigate the key drivers of electricity supply in Ghana. Specifically, we determine the red line in system losses and whether we have crossed over the red line. Further, the effects of pricing, climate change, investment, and economic growth are examined. We identified the major constraints to electricity supply as inefficient pricing, rising fuel cost, higher system losses, and climate change. Adopting the marginal cost pricing rule and reducing distribution losses below 5% will help improve electricity supply security significantly in the country. Further, achieving a sustained economic growth will help boost supply security as well as investing in renewable energies.

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