Financing sustainable energy in the Ghanian market

Parth Ponkshe • 2022-09-27

The paper keeps sustainable development goal (SDG) 7 – affordable and clean energy – as its focal point, primarily focusing on enabling “affordability” of sustainable and clean energy sources. The goals of this paper are threefold. The first is to provide an overview of Ghana’s energy policy and apparatus. The second is to evaluate and highlight design flaws in the policy support mechanisms and financing constraints that dampen investor confidence and affect the risk profile of RE projects. Moreover, finally, to recommend alternative policies and fiscal mechanisms such as tax-based incentive structures that stimulate a broader base of equity financing participation; financially engineered securitization model of renewable energy assets to offset the inadequacies of the traditional means of project financing in order to create an enabling environment to accelerate the transition to affordable and clean energy.