Strategic National Energy Plan (SNEP) 2006-2020

The Energy Commission of Ghana is required by law to prepare, review and periodically update indicative national plans to ensure the countrys energy needs are met in a sustainable manner. The goal of the Strategic National Energy Plan (SNEP) is to contribute to the development of a sound energy market providing sufficient, viable and efficient energy services required for economic development. The Plan seeks to identify the optimal path for the development, use and efficient management of the countrys energy resources. In terms of renewable energy, the Plan seeks to:

• Increase use of renewable energy sources to 10% of the Ghana energy mix by 2020;
• Achieve 30% penetration of rural electrification via renewable energy technologies by 2020.

To achieve this aim the Plan makes several policy recommendations, including: The establishment of a tariff regime friendly to renewable energy, namely a feed-in tariff, backed by a regulatory framework that allows such generation plants (namely existing biomass co-generation plants) to be connected to the national grid through issuance of licences for large renewable energy plants; Encouraging District Assemblies to provide electricity services to their off-grid communities via mini-grids and micro-grids through alternative distributed generation sources such as biomass; Investigating innovative financial schemes, including capital subsidy arrangements and micro-ficing, to overcome the cost barrier to renewable energy. For example, the Ghana Investment Promotion Council (GIPC) Investment Code should make provisions for tax exemptions for renewable energy manufacturing.

In addition, wind powered and solar energy generating sets, plants, machinery, equipment or parts for the establishment of manufacturing facility should be exempt from import duty, VAT and excise duties; Encouraging Ghanaian industrialists to partner with popular brand manufacturers to set up branches of production and assembly lines in the country; The Energy Commission establishes and enforces certification and licensing of dealers in renewable energy technologies based on predetermined requirements; The Government focus on provision of decentralised renewable energy power systems for public communal facilities and needs; The Government support the private sector to provide decentralised renewable energy systems for individual and commercial needs. Government support could include arranging concessionary credits for the local dealers; Having public -private sector partnership in large-scale centralised power projects through shared costs.

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