Exploring the Macroeconomic Impacts of Low-Carbon Energy Transitions: A Simulation Analysis for Kenya and Ghana

The study applies purpose-built dynamic computable general equilibrium models for Kenya and Ghana with a disaggregated country‑specific representation of the power sector, to simulate the prospective medium-run growth and distributional implications associated with a shift towards a higher share of renewables in the power mix, up to 2025. In both countries, the share of fossil fuel-based thermal electricity generation in the power mix will increase sharply over the next decade and beyond according to current national energy sector development plans. The overarching general message suggested by the simulation results is that in both countries it appears feasible to reduce the carbon content of electricity generation significantly without adverse consequences for economic growth and without noteworthy distributional effects.