In spite of Ghana’s vast potential, especially in the solar energy sector, renewable energy (RE) resources and the implementation of energy efficiency (EE) measures still offer great potential for expansion. To attain energy sufficiency, the Government of Ghana aims to promote RE and EE measures and has set a target of 10 percent renewables by 2030. To increase access to energy as well as access to renewables, Ghana must tackle the considerable demand for energy in areas that cannot currently be reached through the grid. Off-grid solutions therefore represent a way to increase access to renewable energy for all. The financial sector and a green credit line can be a powerful tool to finance and thus support access to off-grid renewables.
KfW, the German development bank, thus assisted the Government of Ghana to implement RE and EE programs to achieve the above-mentioned objectives. Thus, Econoler was hired to undertake a prefeasibility study to assess the viability of financing RE and EE initiatives through the financial sector in Ghana and to propose a green credit line concept.
Econoler conducted a pre-feasibility study and a market assessment including an analysis of barriers to EE/RE financing for various sectors. The findings and conclusions were incorporated in a recommended concept design for the green credit line, which was presented in a workshop attended by KfW, key government stakeholders and representatives of selected financial institutions. More specifically, this assignment included the following activities:
- Conducting a pre-feasibility study, including an assessment of the regulatory framework relevant to RE/EE and a high-level evaluation of the EE/RE potential present in various sectors.
- Analyzing the whole business model of a given lending product to understand the financial viability (for all parties potentially involved) of a dedicated EE/RE financing products supported by KfW.
- Proposing a green credit line for RE/EE financing in Ghana.
- Organizing and delivering a workshop attended by various stakeholders to ensure that recommendations are well aligned with market conditions and needs.
In an attempt to provide strong support to Ghana in striving towards its target of 10% renewables by 2030, the green credit line concept recommended by Econoler definitely offers a powerful tool to finance and support access to off-grid renewables in Ghana.