Energy Outlook 2025: Ghana’s Power Consumption Set to Increase by 4.7%

Ghana’s Rising Electricity Demand Signals Urgent Need for Energy Sector Investment and Reform

Ghana’s electricity consumption is on a continuous upward trend, highlighting the country’s increasing energy demands driven by population growth, industrial expansion, urbanization, and the government’s commitment to extending electricity access nationwide. According to the Ghana Energy Outlook Report 2025, electricity usage is forecast to rise steadily through 2025, with significant implications for the country’s energy infrastructure and policy direction.

National Electricity Consumption Surges
As of November 2024, Ghana recorded a total electricity consumption of 22,410 GWh, representing a 4.6% increase compared to the same period in 2023. Projections for the entire year suggest that total consumption will reach 24,688 GWh, up from 23,551 GWh in 2023—an annual increase of 4.8%.

Looking ahead to 2025, the report estimates a further 4.7% growth, pushing projected electricity consumption to 25,836 GWh. This forecast lies within a 95% confidence interval, with the lower and upper boundaries estimated at 23,275 GWh and 28,382 GWh, respectively.

This consistent upward trajectory reinforces the critical need for long-term strategic investments in the energy sector. “This consistent growth in demand highlights the need for long-term investment in power infrastructure, system efficiency, and load forecasting,” the report emphasizes.

ECG and NEDCo: The Backbone of Electricity Distribution
Ghana’s electricity distribution is primarily handled by the Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCo). Together, they are responsible for delivering electricity to millions of homes, businesses, and institutions across the country.

As of November 2024:

ECG recorded a consumption of 15,026 GWh, representing a 7.0% increase over the same period in 2023.

NEDCo registered 1,938 GWh, marking a 9.4% year-on-year rise.

By the end of 2024, ECG’s annual consumption is expected to hit 16,573 GWh, while NEDCo is projected to reach 2,131 GWh, representing yearly increases of 7.2% and 10.6%, respectively.

In 2025, ECG is forecast to consume 17,561 GWh, which would account for 68.0% of the country’s total projected electricity demand. NEDCo’s share is anticipated to reach 8.5%, underscoring their growing role in meeting the northern regions’ electricity needs.

Additional Electricity Consumers and Export Commitments
Beyond ECG and NEDCo, other significant electricity consumers include:

Power exports to Togo, Benin, Côte d’Ivoire, and Burkina Faso’s SONABEL, which are expected to represent 7.6% of Ghana’s electricity usage in 2025.

The mining sector, a major economic driver, is projected to consume 5.7% of the total electricity demand.

These figures highlight Ghana’s regional energy influence and the importance of balancing domestic needs with export commitments.

Managing Transmission Losses: A Persistent Challenge
One of the major concerns in Ghana’s energy sector has been transmission losses—the amount of electricity lost during transmission from generation plants to distribution networks. As of November 2024, transmission losses stood at 3.9% (equivalent to 874 GWh), unchanged from the previous year.

By the end of 2024, these losses are expected to rise slightly to 915 GWh, and further to 955 GWh in 2025—still maintaining the same 3.9% share of total electricity transmitted.

While keeping losses below 4% is commendable, the report warns that this achievement can only be sustained through continuous investment in modernizing the transmission grid, upgrading transformers, and reducing technical and commercial inefficiencies.

Infrastructure Expansion and Energy Diversification: The Way Forward
The rising demand for electricity presents both a challenge and an opportunity for Ghana. On one hand, it signals growing industrial and economic activity. On the other, it demands urgent action to increase generation capacity, modernize distribution infrastructure, and diversify the energy mix.

The Energy Outlook Report 2025 urges the government and stakeholders to focus on:

Expanding generation capacity through investment in both conventional and renewable energy sources.

Modernizing the national grid to improve reliability and efficiency.

Enhancing forecasting systems to better anticipate future load patterns.

Investing in rural electrification projects to ensure equitable access to electricity across all regions.

Encouraging clean and renewable energy adoption, such as solar and wind power, to reduce carbon emissions and enhance sustainability.

Policy Recommendations and Strategic Planning
To ensure energy security and economic growth, the report recommends evidence-based policymaking, targeted infrastructure development, and robust regulatory frameworks that incentivize private sector investment and innovation.

There is also a call for improved collaboration between ECG, NEDCo, and regulatory authorities to better manage peak demand, minimize outages, and optimize power distribution.

Furthermore, the government is urged to continue working closely with regional power pools and international partners to strengthen cross-border energy trade, which not only supports neighboring countries but also boosts Ghana’s foreign exchange earnings.

Ghana’s electricity consumption is increasing steadily and will likely continue its upward trend over the coming years. The Ghana Energy Outlook Report 2025 paints a clear picture: without proactive investment in infrastructure, transmission efficiency, and energy diversification, the country risks falling short of its energy needs.

However, with strategic planning, robust investment, and a forward-looking energy policy, Ghana is well-positioned to meet this growing demand—ensuring sustainable power supply, boosting industrial productivity, and supporting national development goals.

Source: Winston Tackie

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