Moratorium On New Wholesale Electricity Supply Licenses Lifted

The Energy Commission has announced that the moratorium on the issuance of new wholesale electricity supply licenses in the renewable energy sector put in place back in early 2020 has been lifted, effective from 5^th April 2023. The government has stated that this lifting is intended to facilitate the development of the renewable energy market and, therefore, help Ghana achieve its climate objectives under the Paris Agreement.

The moratorium, which formed part of wider reforms aimed at improving financial sustainability in Ghana’s energy industry, was implemented in response to under-utilization of existing renewable licenses (with only 3 projects being developed out of 124 licenses issued at the time) and excess generation capacity from existing power purchase agreements entered with the Electricity Company of Ghana. The suspension prevented any new entrants from obtaining a license to install and operate electricity generation facilities for sale of electricity directly to bulk customers, or to a distribution company for onward distribution and sale to consumers.

With the lifting of the moratorium, entities seeking to develop private renewable energy generation projects may apply for a wholesale electricity supply license to do so. The Energy Commission has also stated that it is in the process of publishing Guidelines for Distributed Renewable Energy Generation, which will be aimed at providing clear rules for all licensed entities operating within the industry.