ASEC BLOG

The Africa Sustainable Energy Centre (ASEC) has announced a projected 5–9% drop in fuel prices across Ghana in the upcoming pricing window, driven primarily by the recent appreciation of the Ghanaian cedi against the US dollar.  Ghana operates a bimonthly fuel pricing system, and as the next window approaches, market indicators point to a significant shift in pricing dynamics.  The strengthening of the cedi means importers now require fewer local currency units to purchase the same volumes of petroleum products. This development is expected to translate directly into lower pump prices, providing much-needed relief to consumers.  According to ASEC’s market assessment, petrol is expected to sell between GHS 12.00 and GHS 12.60 per litre, while diesel prices are forecast to range from GHS 12.60 to GHS 13.20 per litre.  This represents a reduction of between 5% and 9% compared to the previous pricing window. While global crude oil prices have also seen a decline, from ap...

The Africa Sustainable Energy Centre (ASEC) has strongly opposed any plans by the Public Utilities Regulatory Commission (PURC) to increase electricity tariffs.  The think tank argues that inefficiencies, illegalities, and a lack of consumer value in the sector must be addressed before any price adjustments are considered. ASEC insists that a rigorous national debate and a thorough examination of the electricity distribution system must precede any tariff hikes. The organisation contends that the Public Utility Act prioritises consumer interests in setting electricity rates, but this mandate has been overlooked for years. While reflective tariffs are essential for operational sustainability, ASEC maintains that the sector must resolve its deep-seated inefficiencies before shifting additional financial burdens onto consumers. “ASEC demands a regulatory framework that requires electricity distribution companies to show proof of at least a 95% collection rate before any tariff increa...

The 2025 Budget, presented by Dr. Cassiel Ato Forson, MP, Minister for Finance, outlined significant concerns and proposed reforms in Ghana’s energy sector. The budget emphasized the need to address the sector’s financial shortfalls, inefficiencies, and mounting debt while implementing strategies to enhance sustainability and efficiency. The energy sector remains a crucial pillar of Ghana’s economic growth, and addressing its challenges is essential for ensuring long-term stability, industrialisation, and social well-being. Key Issues in the Energy Sector The energy sector has been grappling with substantial financing shortfalls, which have escalated over the years. • The government spent GH¢20.8 billion in 2024 to support the energy sector, diverting funds that could have been used for social services and infrastructure development. • The financing gap for the 2025 fiscal year is projected at GH¢35 billion, despite previous interventions. • The total financing shortfall for the 2...

 The Africa Sustainable Energy Centre commends the new government for setting up a committee to oversee the privatization of the commercial aspect of the Electricity Company of Ghana (ECG). However, recent comments and suggestions seem to recommend just the need for private sector participation in ECG revenue mobilisation. The truth is that Ghana does not just need the participation of the private sector for revenue mobilisation. The current state of the ECG requires more than assistance in collecting money owed by customers. We need private sector capital and expertise in critical terms to recoup all revenues and achieve operational excellence before transitioning the ECG. This commercial sector privatisation is stringent because of the following areas: 1. Private sector capital and expertise are needed in the installation of smart meters to ensure accurate and real-time billing, reducing revenue losses due to faulty, inaccurate, or bypassed meters. Also, this is needed to up...

  Effective governance in Ghana’s energy sector depends on transparency, accountability, and efficiency.  A critical step toward achieving these objectives is ensuring that the boards of key entities within the energy value chain include representatives from other major stakeholders.  This cross-representation fosters collaboration, enhances decision-making, and aligns the interdependent roles of various entities, ultimately strengthening sector operations. Such governance reforms are particularly important for improving financial mechanisms like the cash waterfall system and ensuring the long-term sustainability of the energy sector. They also provide valuable insights for ongoing discussions about the privatisation of the Electricity Company of Ghana. Diversity in Board Composition Strengthening Decision-Making Ghana’s energy value chain is made up of key institutions, including the Ministry of Energy, the Public Utilities Regulatory Commission, the Electricity Compa...

  Image Source: The Borgen Project Through research and development, it is established that the lack of energy is as unsustainable as the overuse of energy. In our energy-yearning ordeal, energy harness and its security plays a vital role in sustainable development. This, thus manifests so intricately such that, the more we become developed, the more energy we use, and vice versa. One of the most fundamental issues that challenge the very being of us, poverty—widely conceptualised in a number of ways; economic and social. But the dimensions of research that conjuncts poverty and energy in rural regions of Africa is, however minimally explored. Along this breath, the tail of a complex problem which remains an ongoing dent on sustainability waggles—Energy Poverty. Widely defined, energy poverty is the lack of access to sustainable and affordable, clean energy services. Economically, the lack of energy and poverty often go hand in hand, both at national and rural levels, in African r...