The Political Economy of Renewable Energy Investment in Ghana

The high level of fossil fuel consumption globally is wreaking havoc on the global climate through the emissions of greenhouse gases. Against this backdrop, there have been calls from national and international stakeholders for a transition towards renewable energy (RE). However, the investment and adoption of renewable energy technologies especially, in developing countries have been woefully inadequate. Even though various policy and legislative instruments in support of RE development abound in Ghana, the contribution of RE to the energy generation mix is notably insignificant, due to constraints that limit high investment. Using the Political Economy Analysis (PEA) approach, this article examines the deficiencies in these policy strategies, and unravels the complexity as well as the alignments of interests of stakeholders regarding policies that could provide a more favourable investment in renewables in Ghana. The article recommends that Ghana’s leaders champion those policies with the highest support across all stakeholders.