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GeneralHeadlines

IES warns of power crisis as demand outpaces infrastructure

The Institute for Energy Security warns that Ghana’s rising electricity demand is outpacing transmission infrastructure, posing serious risks to power reliability and energy security.

Hamdia Mohammed By Hamdia Mohammed Published March 25, 2026
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The Institute for Energy Security (IES) has raised concerns over growing pressure on Ghana’s power transmission network, warning that rising electricity demand is outpacing infrastructure development and threatening system reliability.

According to an analysis of data from the Energy Commission and the Ministry of Finance, Ghana’s peak electricity demand has more than doubled over the past decade—from about 1,933 megawatts (MW) in 2015 to approximately 4,280 MW in 2025.

The IES noted that the consistent annual growth, averaging over 8 percent, reflects deeper structural changes in the economy and population. “The growth reflects deeper economic and demographic drivers,” the report stated, adding that demand increases have been steady, not temporary.

Despite this expansion, the Institute warned that investment in transmission infrastructure has failed to keep pace, leading to congestion, technical losses, and overburdened systems.

“With demand now exceeding 4,280 MW, Ghana’s power system is now entering a higher-risk zone for supply shortfalls if capacity expansion and grid upgrades lag behind demand growth,” the report cautioned.

IES further highlighted that the imbalance between demand and infrastructure could result in frequent system disturbances, inefficiencies in power delivery, and rising operational costs.

“The structural imbalance between demand growth and transmission capacity expansion has therefore reached a critical point requiring urgent policy and investment response,” it stressed.

To address the looming risks, the Institute proposed a range of interventions, including upgrading transmission lines, expanding high-voltage networks, reinforcing key corridors, and replacing ageing transformers and substation equipment.

It also called for improved system efficiency, enhanced voltage stability, and strengthened cross-border interconnections to boost regional electricity trade.

However, the report identified financing constraints as a major barrier to progress, urging the adoption of innovative funding approaches such as public-private partnerships, alongside stronger regulatory frameworks to ensure sustainability.

The Institute concluded with a strong warning on the future of the sector: “The sustainability of Ghana’s power sector depends not only on generation capacity but, more importantly, on the strength and resilience of its transmission backbone.”

It added that failure to act decisively could undermine energy security, industrial growth, and investor confidence, stressing that “decisive action is not optional, it is imperative.”

Source: Starrfm.com.gh

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TAGGED:Ghana NewsIESInfrastructure demandspower crisis
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