Draft LA Ghana Country Study, En-1

Lighting Africa Policy Support Project
Ghana Country Study Report

First Version for PAG Meeting
Jonas Capôco (Leader)

XXXXXXXXXX (Assistant)
XXXXXXXXXX (Assistant)
Lighting Africa Policy Support Project: Ghana Country Study Report
Table of Contents
ACRONYMS....................................................................................................................................... 4
0.0 PREAMBLE............................................................................................................................. 5
0.1 Purpose ......................................................................................................................................... 5
0.2 Study Justification ......................................................................................................................... 5
0.3 Methodology................................................................................................................................. 5
0.4 Expected outcome from the Study ............................................................................................... 5
1.0 INTRODUCTION ..................................................................................................................... 6
1.1 Economic Indicators...................................................................................................................... 6
1.2 Overview ....................................................................................................................................... 6
1.3 Investment Climate....................................................................................................................... 7
1.3.1 Macroeconomic Situation............................................................................................................ 7
1.3.2 Business Environment.................................................................................................................. 8
1.3.3 Privatisation ................................................................................................................................. 8
1.3.4 Power Sector................................................................................................................................ 8
2.0 STATUS OF ELECTRIFICATION IN GHANA ................................................................................. 9
2.1 National Grid................................................................................................................................. 9
2.2 Specific Rural Electrification efforts, grid and /or decentralised................................................10
2.3 Monitoring of rural electrification and energy access progress.................................................11
2.4 Prospect for rapid development.................................................................................................12
3.0 STATUS OF LOW-COST LIGHTING ...........................................................................................13
3.1 Description of any (formal) projects ...........................................................................................13
3.2 Description of informal activities................................................................................................13
3.3 Description of any organizations that might be interested........................................................14
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3.4 Summary results of LA study (if available)..................................................................................14
3.5 Estimation of potential beneficiaries + potential benefits .........................................................15
3.6 Description of efforts to disseminate other consumer items in rural areas ..............................15
3.7 Issues (quality, costs, availability of products, etc.)....................................................................15
4.0 PREVAILING POLICY ENVIRONMENT TO PROMOTE LOW-COST LIGHTING SOLUTIONS – OR

ABSENCE THEREOF...........................................................................................................................17
4.1 Fiscal measures ...........................................................................................................................17
4.2 Subsidies (describe if any, also for competing solutions) ...........................................................17
4.3 Legal (laws that govern electrification, private business development, etc.) ............................18
4.4 Organizational support available ................................................................................................19
4.5 Awareness raising mechanisms ..................................................................................................20
4.6 Financing mechanisms ................................................................................................................20
4.7 Private sector effectiveness........................................................................................................21
5.0 SHORT DESCRIPTION OF MAIN BARRIERS....................................................................................22
5.1 Sociological........................................................................................................................................22
5.2 Technological ....................................................................................................................................22
5.3 Economic...........................................................................................................................................22
5.4 Environmental...................................................................................................................................22
5.4 Political..............................................................................................................................................22
6.0 SUMMARY OUTCOME OF ONE-ON-ONE MEETINGS .....................................................................23
7.0 WAY FORWARD..........................................................................................................................27
LIGHTING AFRICA INITIATIVE ............................................................................................................28
REFERENCES ....................................................................................................................................30
ANNEXURE A: INSTITUTIONAL PROFILE.............................................................................................31
ANNEXURE B: LIST OF STAKEHOLDERS CONSULTED............................................................................ 1
ANNEX C: MEMBERS OF AGSI ............................................................................................................ 2
3
ACRONYMS
CEB Communaté Électrique du Bénin

CIE Compagnie Ivoirienne d’Électricité
CHRISMASCS Christian Mothers Association Credit Scheme
eCARE eCommerce and Renewable Energy
EC Energy Commission
ECG Electricity Company of Ghana
EDAP Ghana Energy Development and Access Project
EF Energy Foundation
EPA Environmental Protection Agency
GEF Global Environment Facility
GH¢ Ghana Cedi
GNPC Ghana National Petroleum Corporation
GOG Government of Ghana
GPRS Ghana Poverty Reduction Strategy
GTZ German Technical Cooperation
GWCL Ghana Water Company Limited
LCO Light Crude Oil
NBSSI National Board for Small Scale Industries
NED Northern Electrification Department
NHIL National Health Insurance Levy
OMCs Oil marketing companies
PAP Public Awareness Programme
PURC Public Utilities Regulatory Commission
RESPRO Renewable Energy Services Project
RBCs Rural Business Centres
SHEP Self Help Electrification Programme
SNEP Strategic National Energy Plan
TOR Tema Oil Refinery
VRA Volta River Authority
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0.0 PREAMBLE
0.1 Purpose
The main objective of the case study is to assess policy and regulatory barriers to modern lighting
delivery in Ghana and recommend improvements. The case study will identify policy and regulatory
barriers in Ghana’s lighting Sub-Sector of the Energy Sector. Recommendations, aiming at improving the
affordability and access to modern lighting products and services by the low-income group in the
country, will be made. Ghana is among the eight (8) countries where the study is being undertaken.
0.2 Study Justification

The Government of Ghana through policy enactments is aiming at integrating the application of
renewable energy as a major component in the provision of increased energy in the country. Ghana, like
other developing countries has the advantage in applying solar technology to tap into the energy from
the sun to generate electricity for basic applications. The mass of its poor population living in the
country side and are confronted with issues of poverty are likely to gain from the provision of solar
energy for lighting, radio use, mobile phone charging, income generation enhancement and the
provision of water.
The study recall that pioneer projects on the continent introduced community-based PV water pumping
systems for schools and institutions as well as for communication. Such projects are important because
Africa has the lowest rural access to electricity connection of any continent with the exception of South
Africa, and the highest cost delivery of electricity to its rural people. The view has been expressed that
since Africa is the least developed, least contributor to global warming, the least energy intensity user,
the continent must be allowed to use any forms of energy to accelerate her socio-economic
development. However, such views possess serious challenges for energy management. The most
obvious choice of energy for the teeming poorer segment of the population must be the least cost
option and here, the choice of using Solar PVs and lanterns for electricity need to be examined again by
policy makers.
0.3 Methodology
The methodology of this study involved the review of Ghana`s lighting Sub-Sector of the energy sector
to establish opportunities and barriers faced as well as barriers related lessons learned. A typical
method employed is the review of relevant research and documentation from similar interventions as
well as interviews with stakeholders and members of LANAC during a mission to Ghana in mid January
2010. The aim was to look at the overall renewable energy situation albeit low-cost lighting products in
the national energy supply chain. Several initiatives were examined and we looked at Lighting Africa
projects that were already implemented under the programme and those that are pending, document
country-specific policy and regulatory barriers encountered notwithstanding success story out of Ghana.
0.4 Expected outcome from the Study
Country-specific policy and regulatory barriers are identified

Results of different policy actions applied in Ghana are presented
Specific solutions to the problems identified are proposed
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1.0 INTRODUCTION
1.1 Economic Indicators
Table1. Economic indicators for Ghana Figure 1: Country Map - Ghana
Population (2009) 23.1 million
Population Growth 1.88
GDP 2009 (US$ million) $ 14.8 billion
GDP Growth 2009 (%) 4.5%
Inflation Rate 2009 18.5%
GNP/capita 2009 (US$) 390
GDP/capita 1998 PPP (US$) 1 1800
Current account balance (2006) 219 million
(est)
Human Development Index 1995 (%) 0.473
Local Currency and Exchange (Jan 2010) 1.00 US$ =
GHC 1.44
Stock Exchange Yes
Number of Households rural/urban 2.3 / 1.5
million
People per Household rural/urban 5 / 4.5
Access to electricity (% of population) 64%
Source: Consultant Research Source: Lighting Africa
1.2 Overview
There are several factors favouring the use of off-grid lighting for service provision in rural areas in
Ghana. In spite of Ghana’s impressive electrification rate of 64% of its population with access to grid
based electricity, rural electricity penetration is limited to 15% - 17%. Ghana has an established
renewable energy sector and the market for off-grid lighting products is fairly well developed, with
many products on the market. The latter are different types of lighting products within several different
product classes; Torch, Floodlight, Task Light, Lantern, and Spot light. Economic growth is sound,
although inflation remains high.
A quarter of Ghana’s 3.8 million homes are estimated to be electrified. Electricity satisfies about 10% of
total energy demand and is mainly produced from hydro sources. The average unelectrified household
in Ghana uses firewood and charcoal to meet the demand for process heat, and kerosene and dry cells
for lighting. Black and white TVs, radios and tape players are quite popular in rural areas, powered by
lead-acid batteries or dry cells. LPG Distribution in rural areas is rare, but several bottling facilities exist
in urban centres across the country. Efforts are also being made to develop low-cost gas appliances for
dissemination in rural areas. Predominant environmental issues linked to energy resources are
deforestation (22,000 hectares or 2.1% per annum), desertification and land degradation (soil erosion).
Application of modern RE technologies in Ghana is rather small, even though drought over the last few
6
years (2007) has caused a significant power shortage and reinforced the need for additional power
sources. As a result, the Ministry of Energy has created a Renewable Energy Development Programme
and a Self Help Electrification Programme (SHEP) to help rural communities hook up to the grid. The
SHEP has ended and followed by Ghana Energy Development and Access Project (GEDAP) which aims at
providing financial subsidy to off-grid rural communities that would not have access to grid
electrification in the next 5 – 10 years. The latter is a five (5) programme financed by the World Bank.
The Global Environment Facility (GEF),World Bank and the Spanish Government conduct programmes in
the country that promote modern off-grid lighting. Lighting Africa Project has been involved in Ghana for
the provision of reliable non-fossil fuel lighting products to unserved areas and making Lighting Products
and services accessible for the poor through its on-going ‘‘Affordable Lightings for All (ALFA) Project’’.
The ALFA project objective which is on-going is to develop and test commercially sustainable (non-
exclusive) distribution and marketing chains for electric lighting products/services for deprived people in
un-served areas.
As recent, the Government of Ghana (GOG) intends to integrate renewable energy (RE) in its national
energy mix and engaged the Ministry of Energy on behalf of GOG to finalise a renewable energy policy
and regulatory framework that is to draft a renewable energy law to facilitate a wider adoption of
renewable energy technologies and methods for energy production and modern off-grid lighting in
Ghana to reduce the dependence on kerosene for lighting.
Overall, Ghana Strategic National Energy Plan (SNEP) (2006) envisages a significant role for renewable
sources and targets to meet at least 10% of its demand from RE sources by the year 2020. This would
translate into a generation capacity of 380 MW from renewable sources and modern lighting products
alike. Not least, Association of Ghana Solar Industries (AGSI) a recognized industry association in the off-
grid lighting business, established in the objectives of the association to have a common representation
and voice to government and donors on policy issues and needs affecting the industry, continue to
dialogue with policymakers and donors to see the need to support the development of renewable
energy in a sustainable way to help achieve the needed energy security in the form of low-cost off-grid
lighting products / solar PV systems for the development of the country.
1.3 Investment Climate

1.3.1 Macroeconomic Situation
The economy of Ghana, West Africa, has a diverse and rich resource base, and as such, has one of the
highest GDP per capita in Africa. Ghana remains somewhat dependent on international financial and
technical assistance as well as the activities of the extensive Ghanaian diaspora. Gold, timber, cocoa,
diamond, bauxite, and manganese exports are major sources of foreign exchange. An oilfield which is
reported to contain up to 3 billion barrels (480×106 m3) of light oil was discovered in 2007. Oil
exploration is ongoing and, the amount of oil continues to increase .
The domestic economy continues to revolve around subsistence agriculture, which accounts for 50% of
GDP and employs 85% of the work force, mainly small landholders. On the negative side, regional
peacekeeping commitments have led to continued inflationary deficit financing. Furthermore, Ghana's
per capita income has barely doubled over the past 45 years. Even so, Ghana remains one of the more
economically sound countries in all of Africa.
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The country has, since July 2007, embarked on a currency re-denomination exercise, from Cedi (¢) to the
new currency, the Ghana Cedi (GH¢). Value Added Tax is a consumption tax administered in Ghana.
The tax regime which started in 1998 had a single rate but since September 2007 entered into a multiple
rate regime. In 1998, the rate of tax was 10% and amended in 2000 to 12.5%.
1.3.2 Business Environment
Economic reforms have created a new business environment / liberal trade environment for the
private sector. They include removal of price controls, the lowering of the corporate tax, sales tax and
excise tax, removal of controls on interest rates, bank charges and credit allocation. The private sector
can now source equity and loans through venture capital companies, equity through the Ghana Stock
Exchange and equipment from leasing companies. Current trade liberalisation includes tariffs reduction
to a maximum of 25% and the abolition of the import licensing system. Empretec Ghana Foundation and
the National Board for Small Scale Industries (NBSSI) have been active over the last couple of decades
facilitating the development of private enterprises in Ghana.
The private sector’s contribution to the development of the lighting industry in Ghana is growing with
the growth and expansion of the economy. Coupled with the government policy of extending
electrification through the National Electrification Scheme, the private sector has been the main
importer of the lighting products into the country.
1.3.3 Privatisation
The Government has accelerated its program of divestiture of state owned enterprises and
rehabilitation of roads, ports and the telecommunication systems, and highlighted the promotion of
private sector participation in the power industry in its “Ghana Vision 2020”. “Through public-private
partnerships and joint ventures into commercial viable Ghanaian power utilities the state-owned
entities transform themselves and assume a leadership role in the development of the proposed West
Africa Power Pool.
1.3.4 Power Sector
In the power sector the Government has introduced Independent Power Production (IPP) schemes, and
reforms, such as increasing low electricity tariffs towards international levels. Since the mid-1980s the
Government of Ghana has been financing projects using small levies on petroleum products. The US$
250,000 raised annually is paid into an Energy Fund and used to promote renewable energy and energy
efficient projects to ensure that off-grid areas have access to improved lighting systems. Institutional
reforms of existing power utilities, including the establishment of Independent Power Production (IPP)
schemes, aim to shift the power sector away from its monopolistic and centralised structure. So far only
one private company entered the power sector in Ghana. The CMS of Michigan bought a 50% share in
the Aboadze thermal power plant. The sector remains largely state-owned.
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2.0 STATUS OF ELECTRIFICATION IN GHANA

2.1 National Grid
Ghana’s first major generation project was the Akosombo hydroelectric dam, commissioned in 1965
with an initial output of 588 MW. Prior to this, several small diesel plants were in operation, providing
services to local communities, mines, industries, hospitals and educational institutions around the
country. These smaller and more expensive plants were phased out as cheap electricity gradually
became available through the national grid. Power output from Akosombo was increased to 912 MW in
1972; followed in 1982 by the addition of 160 MW from a second hydroelectric plant located at Kpong,
downstream from Akosombo. In 1998, poor rainfall in the catchment area of the Akosombo dam led to
sharply reduced output from the plant, and two foreign companies, Cummins Ltd and Aggrekko Ltd
were contracted to run two 30 MW diesel power plants to feed power directly into the national grid.
These plants were classified as “Emergency Power Producers” and were eventually shut down in 2000
when the electricity supplied by Volta River Authority (VRA) increased to normal levels. However, a 30
MW diesel plant, commissioned in 1992, is run by VRA in Tema.
Further expansion took place in 1999 with the completion of a 330 MW-combined Cycle Thermal Plant
at Aboadze in south-western Ghana. Output at the Aboadze plant was increased in 2000 with the
addition of a 220 MW simple cycle thermal generator using waste heat from the original turbines. The
expanded plant is jointly owned by the Volta River Authority and CMS Energy of Michigan, USA. In 2000,
the Government purchased a 125 MW power barge to generate electricity from natural gas from the
Tano fields but this is yet to be commissioned.
Ghana’s electricity grid is interconnected with those of the neighbouring countries of Benin, Burkina
Faso, Côte d’Ivoire and Togo. Before 1995, Ghana had a surplus of electric power, allowing VRA to
export electricity to Compagnie Ivoirienne d’Électricité (CIE) of Côte d’Ivoire and Communaté Électrique
du Bénin (CEB) of Togo and Benin. However, as demand grew within Ghana, the country began to face
an electricity deficit. VRA now augments electric power supply by buying from Côte d’Ivoire, which has
expanded its generation capacity. VRA imports up to 250 MW of power from Côte d’Ivoire, and
transmits power onwards to Togo and Benin. Power purchases from CIE have been mixed, with VRA
having to import more power during times of crises, for example, during the 1998 drought, which led to
a drastic fall in hydro-capacity from Akosombo. There is also some standby generation capacity
available. Notably, mining company Anglogold-Ashanti has a 21 MW diesel plant at Obuasi, and the
Tema Oil Refinery operates a 6.5 MW diesel plant at Tema. The Volta Reservoir received substantially
above-average inflows during 1999, enabling output from Akosombo and Kpong to be raised from 3,830
GWh in 1998 to 5,169 GWh in 1999. By 2003, the water level in the lake fell again to as low as 237 feet
in July and about 247 feet in November. The minimum operating level of the dam is 248 feet.
Electricity Company of Ghana (ECG) is responsible for distribution of electricity to consumers in southern
Ghana, namely in the Ashanti, Central, Greater Accra, Eastern and Volta Regions. The Northern
Electrification Department (NED) is responsible for power distribution in northern Ghana, serving the
Brong-Ahafo, Northern, Upper East and Upper West Regions.
In spite of the achievements that Ghana has made in its electrification distribution of electricity to
consumers and the fact that Ghana with a per capita electricity consumption of 301kWh (2007) has one
of the lowest consumption levels among developing countries, only 55% of its population has access to
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grid based electricity, while rural electricity penetration is limited to 15% -17%. Traditionally, the focus
of the electricity sector has been on commercial grid electricity and import of fossil fuels. All rural and
urban households in Ghana benefit from the lifeline tariff. The electricity tariff in Ghana was 12 Usc
(2003). Ghana had concessionary tariffs. In Ghana these tariffs are intended to benefit the low-
consumption customers.
This study argues that large portions of the country are still without electricity. Consequently, other
forms of modern lighting need to be diffused to address the problems in the rural areas.
2.2 Specific Rural Electrification efforts, grid and /or decentralised
Ghana has had many interventions to improve access to modern energy services by the rural folk in
order to support socio economic development. The objective of these interventions has been to create
wealth (cottage industries etc.) employment and alleviate poverty. The key vehicle for improving access
to modern energy in the rural areas is the Government's rural electrification program.
Access to electricity is one of the essential services needed to meet the basic needs of rural households.
Rural electrification involves bringing electricity to rural and remote areas. Ghana have a majority
population in rural areas (56%), which have limited access to grid supply (15 - 17%). Electrification of
remote areas in Ghana through the national grid is economically unfeasible as well as ecologically
harmful, because of the following factors:
a) The low density of potential consumers.

b) The low income levels of rural societies.
c) The high cost of imported equipment and transmission of electricity.
d) Using fossil fuel is politically, economically, and socially unfavourable.
Renewable energy resources in Ghana, which include solar, biomass, wind, and hydro, can be tapped in
rural areas to meet the local energy demand. This has already been initiated, in particular, with Solar PV
based rural electrification projects and modern lighting products in isolated remote communities. Two
national projects: Off-Grid Solar PV Electrification project; and UNDP/GEF/Renewable Energy Services
Project (RESPRO), have made a positive impact on the rural communities. Over 3,500 solar systems were
installed in remote rural communities throughout the country for various applications including home
lighting, TV and radio operation, vaccine refrigeration and lighting in rural health centres, solar
streetlights for public places and street illumination, battery charging, and water pumping.
German Technical Cooperation (GTZ)`s Programme for Sustainable Economic Development (PSED)
Ghana office is supporting District Assemblies, micro and small enterprises in selected urban and peri-
urban centres in the establishment of light industrial zones with emphasis on Energy for Productive
Uses. This is mainly based on the extension of the national electricity grid. Grid electricity is available in
all district capitals peripheries. GTZ initiative started based on the demand of enterprises mainly in the
area of car repair, metal and woodworks for grid electricity.
Royal Danish Embassy (DANIDA) in Accra was one of the donors who earlier supported and funded
renewable energy projects in Ghana. Their last project in providing support to the Energy Commission
(EC) and funding battery charging services did not go well and they left the renewable energy sector.
10
The policy and legislative initiatives taken in Ghana to promote renewable energy based off-grid/ mini
electrification are classified as follows:
Ghana Poverty Reduction Strategy (GPRS), 2002: Objective – Stimulation of production

activities among poor in rural areas through supply of power to them with renewable energy
systems (PV, wind power, biomass).
National Electrification Programme: Objective - To extend electricity supply to all communities

with population above 500 inhabitants by 2020. For remote off-grid institutions and island
communities, the strategy is to support the initial investment cost for solar PV products.
Strategic National Energy Plan 2006 – 2020: Objective: Increase access to modern energy
services for poverty reduction in off-grid areas. Target: 30% penetration of rural electrification
via renewable energy technologies by 2020.
Special financial mechanisms have been instituted to facilitate rural electrification and renewable
energy /low-cost lighting investments. This includes the Ghana Energy Development and Access Project
(GEDAP) housed at the Ministry of Energy and World Bank sponsored that has been instituted to
provide partial guarantees (50%) for private sector borrowing from the local financial markets to
develop RE projects and modern lighting products. Participating Financial Institutions (PFIs) include ARB
APEX Bank Ltd and microfinance institutions (MFIs) include; E + Co and Rural Energy Foundation.
So far, many rural communities have benefited from the available electric power, even though power
supply to the rural areas has been unreliable with frequent power outages and low voltage situations. It
is in this light that modern off-grid /low-cost lighting can be a transition strategy to improve access to
modern energy services.
However, the policy and legislative initiatives discussed above emphasise RE technologies which are Solar
PV base rural electrification projects and nothing about low-cost lighting solutions. Future updates or
revision of these policies and legislative initiatives should encompass low-cost lighting solutions in
National Electrification Programme.
2.3 Monitoring of rural electrification and energy access progress
Ghana has an installed capacity of 2,237 MW of which 53% is hydro and 47% is thermal. VRA operates
the Akosombo and Kpong electricity generating stations as a cascade of hydro plants. The Takoradi
thermal power station can be run as a combined power plant (330 MW) or as a single cycle plant (220
MW) using Light Crude Oil (LCO).
Ghana has achieved electrification rate of 54% by 2005. The achievements are mainly in the urban areas
where access is about 80% leaving the greater part of the country’s population in the rural areas without
access to the national grid. It is estimated that a quarter of Ghana’s 3.8 million homes are electrified and
as high as 50% of Ghanaians in the rural areas depend on kerosene for lighting.
Ghana’s Government embarked upon the Economic Recovery Programme (ERP) in the 1980s. These
reforms included the establishment of a National Electrification Scheme (NES) in 1989 with the aim of
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providing nationwide access to electricity by 2020. Under this scheme all communities with populations
above 500 were to have access to electricity. Over the years, funding for NES has been mainly through
grants, concessionary credit, government sources, and the national electrification fund levy.
An extension to the NES for rural electrification is the Self Help Electrification Project (SHEP) followed by
Ghana Energy Development and Access Project (GEDAP). SHEP allowed for the electrification of
communities not directly covered under NES but which are within 20 km of an existing or planned 11 kV
or 33 kV transmission line. The community is required to provide a certain minimum contribution to the
project, usually in the form of wooden poles at a cost of approximate GHC 200 per pole for the
distribution wires. Government would then provide additional assistance to complete the project.
2.4 Prospect for rapid development
Ghana’s generation capacity expansion plans include scaling up the contribution from renewable energy
to 10% in the generation mix by 2020. It is expected that the demand for electricity will increase in
future and will reach 4,000 MW by 2019. The RE based generation capacity is targeted to reach 380 MW
and Ghana has a potential of 300 - 400 MW for wind, at least 95 MW from biomass, and solar intensity
of 4 - 6.5 kWh/m/day. The Strategic National Energy Plan (SNEP) target to achieve 10% RE capacity (380
MW) by 2020 will require substantial investment. Recent assessment estimates that addition of 380 MW
of RE generation capacities in the country would require an investment of US$ 446 million over the
period 2010 to 2020. The aggregate power purchase costs from renewable energy sources during this
period would be approximately USD 1 billion which is quite substantial and brings to fore the key
question of how this can be supported.
RE sector in Ghana is still in the nascent stage. Some of the major issues inhibiting the attraction of
international investment in RE sector in Ghana are a lack of RE technology/ equipment suppliers in the
country and lack of an attractive policy and regulatory regime for Renewable Energy. Besides, the
limited ability of local investors to infuse equity and raise debt for capital intensive RE projects is
another key issue constraining the acceleration of investments in RE projects in Ghana. However, the
Government is committed to electrifying all communities with a population size of over 500 by 2020. RE
technologies such as PV are included, mostly through SHEP and now GEDAP project. Plans also exist for
the Volta River Authority to build a 300 MW thermal power plant, while Ghana National Petroleum
Company is installing a 150 MW natural gas power plant. To ensure effective and rapid development of
the energy sector, the government is in the process of introducing or finalizing policy documents and
laws. The first of them is the National Energy Policy which has been sent to the parliament in November
2008 for approval. The policy succinctly outlines the government’s vision and development objectives
for the energy sector. Other important laws under preparation are the Renewable Energy Law and
Ghana Renewable Energy Policy and Regulatory Framework.
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3.0 STATUS OF LOW-COST LIGHTING
3.1 Description of any (formal) projects

Solar 4 Ghana Ltd is in charge of handling and developing the project ‘‘One Child One Solar-Light’’ in
Ghana on behalf of SOLUX e.V. with market penetration of 7,200 volumes in 2009 and a projection of
12,000 low-cost lighting products in 2010. Their solar lamp can be purchased by paying in cash, using a
micro-finance scheme, making a personal saving or joining a saving group (Subu) which is promoted by
Solar 4 Ghana as their marketing strategy/tool.
Toyola Group is running a successful solar energy project and micro financing scheme (Toyola Box) for
their low-cost lighting products. They have been in energy efficiency cook-stoves business and
diversified into low-cost lighting industry 2 years ago because of a niche market using mobile concept as
their marketing strategy with a market penetration of 30,000 units in 2008 alone. Toyola Group
anticipates selling 100,000 units per year the moment they turn 7 years in modern lighting business.
Lighting Africa Project has been involved in Ghana for the provision of reliable non-fossil fuel lighting
products to unserved areas making Lighting Products and services accessible for the poor through its on-
going ‘‘Affordable Lightings for All (ALFA) Project’’. The ALFA project is developing supply chain for both
products and after sales services as well as monitoring of the supply chain. The project has rolled-out
(facilitated) approximate 15 kiosks/SMEs around the country and the latter sold 3,000 solar lanterns so
far.
There are as many as 33 formal (registered) distribution companies in Ghana who are engaged in the
distribution of low-cost lighting products although the majority of them are small companies. The main
off-grid lighting products covered by these companies are mainly solar lanterns, CFL and LED task lights
and there is a high demand for CFL lanterns, LED torch lights, and CLF task lights for the country. Major
low-cost lighting projects in the country are run by major players for the supply/import of solar
equipment and off-grid lighting products among others: Power World; Wilkins Engineering; Darwig
Energies; Deng Company Limited; Solar Light Company Ltd and Seli Technologies with presence in all
regional capitals as well as district capitals.
3.2 Description of informal activities
The informal market traders in Ghana operate from Mokola market in Accra and other markets around
the country and they can also be found at traffic lights selling their goods either to small retailers or
directly to consumers. They are mobile and move from one town to another. Such importers are very
smart and import goods depending on the market conditions. The cited example is;, during the energy
crisis, a number of such individuals imported electric generators and moved from office to office, town
to town to sell their products. Due to their small overheads, the prices of their goods are competitive.
They are also cross-borders importers and exporters of goods i.e. they “export” goods of great
demand to a neighbouring country and import other goods to their country. Their informal activities
help in creating markets in the other countries where a particular product is not well distributed or
even not known. Due to their entrepreneurial skills, they can create demand for new products and
13
maintain a large clientele base which can be exploited for the modern lighting products. The issue of
quality products is a concern when dealing with informal activities because they import products
without regard to quality. However, the main lighting products importers and suppliers are of the
opinion that some of their products made their way into neighbouring countries through informal
activities.
3.3 Description of any organizations that might be interested
The following government institutions hold the key to the successful integration of modern lighting
products into the energy resources of the country and they might be interested, i.e. Ministry of Energy;
Energy Commission; Energy Foundation of Ghana; Oil Marketing Companies and their Retail Outlets.
Empretec Ghana Foundation and the National Board for Small Scale Industries (NBSSI) have been active
over the last couple of decades facilitating the development of private enterprises in Ghana and they
might be interested to stimulate a new industry of low-cost lighting. Aid Missions such as UNDP/GEF,
GTZ, and DANIDA are potential organizations that might be interested to partake into off-grid lighting
initiatives because of their previous intervention in related RE projects roll-out in the country. There are
5 cell-phone service providers in the country and they are good candidates for the roll-out programme
because cell-phones users in the remote areas can now charge their handsets with a special adapter
using solar energy.
3.4 Summary results of LA study (if available)
A research by IFC under the Lighting Africa Project in Ghana identified a number of modern off-grid
lighting products with rechargeable solar batteries in the market of the country. These include
rechargeable torch lights, task lights, flood lights and lanterns. The same study also emphasized the
dissatisfaction of the people with the use of traditional lighting products due to poor illumination and
threat to their health among others. The study estimated that only 15% of households outside Accra
have access to electricity with a greater part of the rural areas of Ghana not connected to the national
grid and this provides a big potential market to exploit with modern lighting products. Due to
investment challenges in this sector, the study conclusion is to critically find a way to supply relatively
cheap but high quality products to the market to meet the interest expressed in the products by the
consumers in the rural areas.
Another research was undertaken with the goal of finding out the distribution channels of the off-
grid products in Ghana and the study identified 33 existing and potential off-grid distributors in the
country although the majority of them are small companies. Out of the 5 responded companies
interviewed, they had a combined annual unit sold of 7000 with a combined estimated turnover of
U$ 230,000. Key constraints in the distribution channels for the smaller companies versus big
companies is that the latter have access to financing through banks and other financial institutions
while the smaller companies do not have access to financing to allow their businesses to grow.
Products are mainly imported from China, UAE, Taiwan, Hong Kong, Spain and UK.
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3.5 Estimation of potential beneficiaries + potential benefits
Demand for off-grid lighting products is expected to come from both rural and urban market segments.
The latter is another potential market due to the rampant power outages in the urban areas and that
these market segment will easily switch over to modern off-grid lighting as a back-up to their energy
supply. Market estimates based on the populations for rural households for solar lanterns, LED Lanterns
and LED torchlight’s is about 4 million and with a market penetration of say 10% per annum, this
translate into 400,000 potential beneficiaries. Evening trader’s sector potential size is estimated at
600,000 and with market penetration of 20% this translate in 120,000 units as another potential
beneficiaries for low-cost lighting products. With the necessary support and structures in place it is
expected that the market in Ghana can grow within two years to about 1 million units per year.
Potential benefits: An investment in a solar lamp today will save rural folk money and protect their
health instead of burning kerosene. Sufficient lighting in the evening is an important condition for
unhindered learning for children, working and communication. A solar lamp will provide enough lighting
for all.
3.6 Description of efforts to disseminate other consumer items in

rural areas
eCommerce and Renewable Energy (eCARE) Project is a United Nations Foundation sponsored project
that aim to bridge the digital divide and the programme is deploying 69 Rural Business Centres (RBCs),
providing enterprise development services to rural entrepreneurs and establishes RBCs offering voice
telephony, internet connectivity and a variety of other ICT products and services involving the use of
cleaner and/or renewable energy technologies to peri-urban and rural users.
CMA is a Christian non-governmental organization providing civic education and supporting income
generating activities of women through its Christian Mothers Association Credit Scheme (CHRISMASCS).
CMA operates in 19 Dioceses in Ghana and has undertaken development projects in the areas of poverty
reduction, entrepreneurship, micro-finance and raising leaders to partake in Ghana's decentralization
process. S4G Ltd and CMA have agreed to cooperate in providing school children and their families as
well as other clients in rural areas in Ghana with mobile solar lanterns. The objective of this Agreement
is for CMA to organize clients for the solar lanterns in accordance with the spirit and procedures of the
CMA micro finance program in order to run a sustainable solar lantern project.
3.7 Issues (quality, costs, availability of products, etc.)
The challenges in the use of low-cost lighting like solar lanterns, CFL , LED task lights as well as CFL
lanterns, LED torch lights, and CLF for rural electrification include the high cost of energy delivery vis-à-
vis the ability to pay in remotely located low income households in rural areas in Ghana. Subsidising low-
cost lighting delivery does not guarantee energy access to the poor. The subsidy or support provided by
the World Bank (U$ 6 million) as partial guarantees (50%) for private sector borrowing must be targeted
in order to ensure that they reach those who need it most. A large number of technology driven
15
schemes currently adopt a strategy of trying to increase sales through subsidy/guarantees. This is
particularly the case with low-cost lighting products. It is argued that increased sales will reduce the cost
of these products and, more importantly, enable the overhead costs of providing technical support and
supplying retail credit to be spread over a larger number of unit sales and in Ghana, little is being seen
that prices for low-cost lighting products are reducing when transactions are done through ARB APEX
Bank Ltd, E + Co or Rural Energy Foundation who are the implementing financial institutions for the
GEDAP. The prime rate presently in Ghana is 18.00% and the end-users for the low-cost lighting
products are charged 29% interest. These should be soft loans intended for low-cost products which
should be charged below prime or worse, prime + 1% as seen in other developing countries in Africa.
However, commercial banks interest rate in Ghana is anything between 29% - 49% which is very high.
The arguments for using money that is supplied at less than full commercial rates of interest are
overwhelming if large numbers of people are to be given access to improved energy services. This “soft
money” will be required to enable people with insufficient purchasing power to gain access to modern
lighting, and to other more convenient forms of energy. The evident danger of such an approach is that
“soft” money intended for low-cost solutions is often used to subsidize the costs of these supply options
for those who could readily afford to pay the true cost if they genuinely regarded this as a priority area
of expenditure. Lastly, the use of the World Bank guarantees linked to a particular supplier can “pollute
the well” for other entrants to the low-cost lighting market segment.
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4.0 PREVAILING POLICY ENVIRONMENT TO PROMOTE LOW-

COST LIGHTING SOLUTIONS – OR ABSENCE THEREOF
4.1 Fiscal measures
Applicable taxes on imported off-grid products in Ghana are twofold, namely value added tax (VAT) of
12.5% and the National Health Insurance Levy (NHIL) of 2.5%. On-grid lighting is subject to 10% import
duty and other fees include ECOWAS levy (0.5%) and export development levy (0.5%).
CFL Off-grid Lighting, CFL off-grid Lighting with Solar panel and LED Off-grid Lighting are all subject to
10% import duty and 12.5% VAT plus other fees (ECOWAS/EDIF). It is only the Solar panels that are
exempt from import duty.
The exemption of duties and taxes on certain types of lighting and photovoltaic system components
favours the importer of finished products and works against the local manufacturing or assembly of
components. An importer of finished goods will be able to sell on the market at lower cost than the
manufacturer who imports components for local assembly because the latter must bear the full burden
of duties and taxes. Enforcement of tax laws and exemption on low-cost lighting solutions will result in
first cost reduction of these products.
4.2 Subsidies (describe if any, also for competing solutions)
All rural and urban households who are gird-connected, benefit from the lifeline tariff. These tariffs are
intended to benefit the low-consumption customers. Under the current tariff structure, residential
customers are cross subsidised by industrial customers. Low-cost lighting solution with solar panel are
not subsidised except in the event were PV systems- solar panels are exempt of import duty.
However, direct and indirect subsidies can be an important environmental policy instrument for Ghana.
This measure will either reduce the cost of the investment or increases low-cost lighting solutions
investors net revenue after taxes from the sales of the output. Subsidies hereby contemplated are;
Exemption from payment of VAT on low-cost lighting solutions;

Exemption from import duties for low-cost lighting solutions;
Accelerated tax deductions for investments in low-cost lighting solutions; and
Tax breaks on returns from investments in environmentally sound initiatives.
Incentives to encourage diffusion on new technologies such as for low-cost lighting solutions will
promote emissions reductions. The significant advantage when considering subsidies is that they have
politically positive distributional consequences. A point in case is the subsidizing of compact fluorescent
lights (CFLs) in the whole country by the government whereby 6 million CFLs were diffused. The costs of
subsidies for this project were often spread broadly through an economy whereas the benefits were
more concentrated. This means that subsidies are easier to implement politically than many other forms
of regulatory instruments in the country. Also, incentives have attractive properties in terms of
environmental effectiveness, distributional implications and institutional feasibility.
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The following subsidies, each driven by a specific motivation, can be considered as a financial incentive
to promote low-cost lighting solutions in the country and to make a mechanism of subsidies and
financial incentive a success.
‘’Sustainable development’’ subsidies to low-cost solutions. These subsidies allow off-grid

lighting with an economic cost of production higher than conventional power production to gain
market share. Because conventional power production uses finite resources and contributes to
global warming it is not considered to be sustainable.
‘’Learning curve’’ subsidies to low-cost solutions with a strong potential for technological
progress. They create the mass market demand which motivates manufacturers of low-cost
lighting to invest considerable amounts in R&D bringing down each year the cost of production.
Subsidies, which increase consumer demand for new modern lighting, thus, expand the market
directly in the short term and, by accelerating the rate of cost reductions in the subsidized
modern lighting market also in the long term.
‘‘Market jump-start” subsidies to low-cost solutions with a mass market potential, which creates
the minimum demand needed to motivate entrepreneurs to invest in an effective marketing and
after-sales-service infrastructure for the low-cost lighting products;
Subsidies to low-cost lighting solutions to compensate for weaknesses in the financial markets,
which prevents low-cost lighting suppliers from getting access to debt finance on competitive
terms with conventional power plants;
Subsidies given to RETs to compensate for price distortions in the energy market, which prevent
economically viable RETs from competing on equal footing with conventional power supply.
“Picking the winner” subsidies to R&D&D in potentially promising low-cost solutions that are at
the pilot stage of development.
4.3 Legal (laws that govern electrification, private business

development, etc.)
To support a growing agro-industrial and services sector, as well as the needs of households, the policy
thrust for the sector is set within the context of ensuring a reliable supply of high quality energy
services. The broad policy interventions outlined to achieve this overall goal include: ensure increased
access to modern forms of energy to the poor and vulnerable; modernise and expand power
infrastructure; improve the regulatory environment in the power sector, ensure full cost recovery for
power supply and delivery while protecting the poor; and ensure productive and efficient use of energy
and minimise the environmental impacts of energy supply and consumption through increased energy
efficient technologies. Other policy objectives include:
To promote and encourage private sector participation in the energy sector, and
To diversify the national energy mix by implementing programmes to support renewable energy
sources in Ghana (i.e. hydro, wind, solar PV etc.).
Energy Commission Act 541 of 1997 mandates the Commission to license and regulate the technical
operations of service providers in the electricity supply industry. The regulatory functions are carried out
through elaborations and enforcement of licensing conditions, technical rules of practice and standards
of performance. The Public Utilities Regulatory Commission (PURC) is mandated to regulate and
oversee the provision of utility services – mainly water and electricity generation and transmission.
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Most of the PURC’s activities are concentrated on the major utility companies such Electricity Company
of Ghana (ECG), Ghana Water Company Limited (GWCL), Volta River Authority (VRA) and private power
generating companies. The PURS’s regulatory activities are in the areas of: Rate Setting, Regulations,
Monitoring of Public Utilities and Public Awareness Programme (PAP).
Ghana is in the process of finalizing the energy policy for the country. The vision of the draft energy
policy is to develop an ‘energy economy’ that will ensure secure reliable supply of high quality
energy services for all (both urban and rural) Ghanaian homes, businesses, industries and the
transport sector, while making significant contribution to the export earnings of the country.
Ghana had developed the Strategic National Energy Plan (SNEP) (2006 – 2020) which contained some
policy recommendations to facilitate the development of the energy sector. The SNEP has the goal of
supporting the development of a strong energy sector that would provide sufficient, viable and efficient
energy services for Ghana’s economic development. Access to off-grid lighting system featured as one of
the specific policy objectives of the SNEP. The government intends to address this objective among
others through the development of decentralized power sources to reduce the dependence on kerosene
for lighting. The emphasis here is on solar generating system to provide community-based lighting and
not individual lighting gadgets for households.
The trade policy is based on two-prong strategies: an export-led industrialization and domestic market-
led industrialization strategies, based on import competition. The trade policy and the liberalization of
the economy have facilitated the influx of imported consumer products in the local market. It has been
more beneficial to trade the imported products than products manufactured locally and there are no
barriers to trade and this provides opportunities for developing markets for modern off-grid lighting
products.
4.4 Organizational support available
The key to any successful energy sector is to have a strong institutional and policy framework. This
means that there is both a strong policy-led government commitment to its energy sector plus the
institutional framework to make it success. The energy sector in Ghana is managed at different levels by
the following organizations; Ministry of Energy, Energy Commission, Public Utilities Regulatory
Commission (PURC), Environmental Protection Agency (EPA), Volta River Authority (VRA), National
Petroleum Tender Board, Electricity Company of Ghana (ECG), Northern Electrification Department
(NED), Tema Oil Refinery (TOR), Energy Foundation (EF) Ghana, Ghana National Petroleum Corporation
(GNPC), Bulk Oil Storage and Transportation Company (BOST), Oil marketing companies (OMCs) and
retail outlets and Solar Laboratory Kwame Nkrumah University of Science and Technology (KNUST). The
various institutions are responsible for policy, regulatory, operational, research and development (R&D)
and related support required. The institutions have recognized the importance of off-grid power system
to augment nation power supply. They also hold the key to the successful integration of modern lighting
products into the energy resources of the country. Institutional profile of these organizations is attached
as Annex A.
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4.5 Awareness raising mechanisms

One of the PURS’s regulatory activities outlined earlier is in the areas of Public Awareness Programme
(PAP) and PURC can play a big role of awareness raising mechanisms for off-grid lighting products. The
market for low-cost lighting products is mainly in the rural areas. Each supplier / distributor of these
products uses its unique way/marketing tools to maximise sales. Many of the suppliers have brochures
printed and distributed country-wide to raise awareness of low-cost lighting solution. Real
entrepreneurs in their own way, they target community centres, schools and even the churches to carry
out promotional activities. They distribute (leave behind) minimal demo /samples and return the next
day to obtain results and there are quite aggressive marketing going on among various distributors for
them to remain competitive in a turbulent market environment. Innovatively, some of the suppliers
prefer carrying out their awareness campaign during the night with customised vehicles (mobile
concept) and the trick is; ‘‘we do not need to do the talking, the solar light has to talk the moment it is
switched-on and that has to be during the night’’, being the secret of night-marketing or mobile
concept.
4.6 Financing mechanisms

The cost of borrowing plays a major role in the viability of low-cost solutions. Financing assistance in
terms of low-interest, long-term loans and loan guarantees can play an important role in overcoming
this obstacle. Lowering the cost of capital can bring down the average cost of low-cost lighting products
and reduce the risk of investment. The Energy Commission Act, 1997 (ACT 541) of Ghana has made
provision for the Energy Fund. One of the areas of fund utilisation is to be the promotion of renewable
energy sources in Ghana and this should be extended to low-cost lighting solutions.
E + Co Ghana office provide funding through debt or equity for clean energy businesses /off-grid
products and provided funding to 15 entrepreneurs in Ghana at average 29% interest rate. Minimum
loan is U$ 50,000 and maximum U$ 2 million and 6 months moratorium. Rural Energy Foundation builds
sustainable market chain and provides funding /micro-finance of GHc 5,000 minimum and GHc 10,000
as maximum. They also provide short term credit (90 days) to end-users / solar lanterns as part of their
business portfolio.
ARB Apex Bank Ltd through Rural Banks across the country is the major implementing financing agent of
the U$ 6 million World Bank/GEDAP Project and their financing plan to renewable energy and low-cost
lighting products (3 year tenure) at 29% interest rate is illustrated in the diagram below.
Full amount
(cost of
installation,
maintenance
and battery From PRCB
Remaining
replacement amount after Loan
/ low-cost ___________
grant
product) Less 50% grant deduction Less 10% consumer component
From line of
(B) down payment (C)
(A) credit
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4.7 Private sector effectiveness

The private sector operating in the low-cost lighting business have extended the industry not only
technically, but also with its wide range of products size and its possibilities for off-grid and
decentralized energy solutions. The private sector has also enabled the insertion of new players in the
field. In comparison to conventional energy, low-cost lighting has also widened the range of financial
tasks to be solved. As such, financial needs for low-cost solutions exist at three levels as demonstrated
in the diagram below to allow create enabling environment for market deepening of low-cost lightings.
Households and 1
community groups
need soft loans for
low-cost solutions
Entrepreneurs
need long-term 2
patient capital that
allows them time22
to develop
products and
services based on
low-cost solutions
Investors need
reduced or shared
credit risks until 3
confidence in low-
cost solution in
Ghana grows and
track records of
success emerge
In the final analysis, the market deepening of low-cost lighting solutions will lift market demand to a size
that is sufficiently large to permit commercial delivery structures to be developed. The strategic
objective is to get the development of this natural commercial market jump started to a level that
makes investments by the private sector in a nation-wide low-cost lighting marketing and service
infrastructure commercially viable. On the other side of the range are low-cost lighting solutions which
cost U$ 20 – U$ 300, but this is already exceeding by far the usual accumulated savings of the
customers, making it necessary to find an adequate financing schemes. The objective of market
deepening is to expand sales to reach the poorer household. The 3 level approach as per above exhibit
could play an important role to improve the financial viability of low-cost lighting solutions by an
approach to increase funding availability, aiming at leverage of private finance with a risk sharing
approach and the facilitation of the bundling of low-cost lighting products to help absorb their high
proportional level of transaction costs.
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5.0 SHORT DESCRIPTION OF MAIN BARRIERS
5.1 Sociological
Continued view by policymakers, donor community and multilateral organizations of low-cost lighting
products as a welfare good and continued view of low-cost lighting as a small energy source is a social
barrier inhibiting market deepening of low-cost solutions.
5.2 Technological
Lack of appreciation of associated benefits to low-cost lighting solutions and the absence of local
technology base for low-cost lighting solutions excludes low-cost products in energy planning and from
main stream industry. The low-cost lighting is than disadvantaged by energy pricing hence market-
ingress of sub-standard technologies in the informal market.
5.3 Economic
Poor fiscal and macro-economic policy result in poor volumes of lighting products trade and divert
investors to other areas. Failure for the business community to benefit from existing policy as well as the
failure to secure investment support due to lack of collateral, there is to be ‘‘continued demand’’ for
grant funding (subsidies) in low-cost lighting industry.
5.4 Environmental
The main push for renewable energy sources in the OECD countries is due to environmental concerns
and the business aspect in power generation. The situation is however different in Africa, where the
thrust for renewable energy sources is developmental based. Beyond developmental, low-cost lighting
solutions in Africa is creating a market for emission reductions, in effect enabling individuals, community
and companies low-cost solutions to reduce greenhouse gas emissions (GHG) thereby contributing to
global environmental benefits. GHG reduction through off-grid lighting solutions must be the focus of
much analysis and innovation. However, many renewable energy sources projects in developing
countries tend to be small scale in nature and sometimes fail to attract conventional CDM participation.
Accordingly, low-cost solutions activity could consider Programmatic CDM (pCDM) as a way of capturing
the potential offered by the new approach and in this way, generate ‘‘development dividends’’ /
monetary revenue stream emanating from Certified Emission Reduction (CER).
5.4 Political
Inaction by government on the one hand and business/AGSI inability to connect / fast track with
relevant government bodies on the other hand because of bottlenecks, inhibit market deepening for the
low-cost lighting solutions.
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6.0 SUMMARY OUTCOME OF ONE-ON-ONE MEETINGS
One-on-one consultation was undertaken with Association of Ghana Solar Industries (AGSI)`s President
and the Secretary, Financial Institutions (micro-finance), Private Sector (low-cost lighting products),
Energy Services Consulting Company (ESCO), The World Bank Ghana Office, Ghana Standards Boards
(GSB) and Ministry of Energy. These consultations took place in Accra between the dates: 18th to the
27th January 2010.
ASSOCIATION OF GHANA SOLAR INDUSTRIES (AGSI)
The members (25) of the AGSI are the industry players, which are about four of the major companies in
the country, and quite a number of associate members consisting of the installers, NGOs, researchers
and consultants. They have wide experience in the business of promotion of off-grid lighting products in
the country and have been involved in major government installations in Ghana. The association is
founded in 2006 and recognized by Government in 2007. AGSI Secretary reiterated the need for the
accreditation of its members as this will solve some of the barriers the industry have to content with
over the past years namely, taxes, duties and tariffs on imported off-grid lighting products. The
association runs an advocacy program and vocal on lobbying advocacy to parliament to revise the tax
regime which is not in favour of the low-cost lighting industry including renewable energy
(photovoltaic). AGSI feel household electricity use be subsidised at all time though industry sector be
subsidised in terms of energy efficiency compliance. Ghana utilities are unable to break-even and this
constitutes a barrier to a competitive households’ subsidy which is so much needed. Other barriers cited
are high interest rate between 25 – 40% charged by APEX Community Bank as well as poverty among
the community who in return will not be able to afford low-cost lighting products.
PRIVATE SECTOR (SUPPLIERS/DISTRIBUTORS/IMPORTERS/CONSULTANTS)
‘‘When the going get tuff, you must keep going’’ and their main barrier is access to finance and high
interest rates to keep them going and expand their businesses. Difficult to determine their margin on
their imported products sourced all over the world, the private sector tend to pass the blame on
production line/plant abroad that they cannot lower prices unless the production line lower their output
costs. This is a barrier to the ‘‘first cost reduction’’ strategy although private sector are playing open
cards rather close to their chests.
Low-cost lighting products are now associated with FMCG (fast moving consumer goods) by some
suppliers in the supply of electronic / engineering products. These are companies who opted not to
enter the distribution channels of low-cost lighting solutions and concentrate on turn key projects
involving PV solar projects (major government installations). It is their view that low-cost lighting is a
bulk business and in bulk (mass) business, it is best to make room for the new players (SMEs) to enter
the main stream economy also. New entrances to this market evolved and SMEs got to a bandwagon.
Enterprises participating in low-cost lighting solutions distribution channels are keen to establish
agencies or distribution centres in neighbouring countries (ECOWAS) and in this way, grow the industry
to the limit and market deepening but unfortunately, they lack financial means.
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Economy of scale could solve high price issue currently experienced in Ghana market but the private
sector does not have the financial muscle/capacity to venture into quantity /bulk import. Many of
private sectors (formal) have assembly facilities because products have to be assembled locally to take
advantage and the profit associated with value added. On the other hand, this is where import duty
applies to low-cost lighting products imported as unfinished product. Private sector is engaged in micro-
finance (short-term credit) but not all of the private sector who go to an extent of supplying credit to
rural community. It is the private sector view that by providing micro-finance is the only answer
because financial institutions will not grant loan to rural customers the moment their credit record could
not be verified or unable to provide collateral.
How do they do it? ‘‘Give a solar lantern to a household and no deposit is required, provide the
household with a special tin with little hole in it, ask the household not to buy kerosene anymore as
from today because you will from now on be using my solar lantern for the following 3 months, instead,
each time you were to spend money on kerosene, drop that same amount of money in the tin and will
collect the tin after 3 months. Upon calling after 3 months, the total money put in a tin equal the price
of solar lantern and the deal is done, chapter closed’’.
It is the private sector view that; until such time the tax regime is revisited by the policy makers, the
prices of goods will keep increasing because of high inflation rate in the country and high finance
charges. However, private sector also believe that their presence is indispensable in the sense that amid
the rural electrification programme to electrify the rest of the country by 2020, in the interim, low-cost
lighting products solution is the transition that is now in place before the lapse of the remaining 10 years
for reason that the folks out there in the remote rural need to access modern energy and private sector
are taking advantage of the loophole and they are in business as never before. With a boom in mobile
telephony, suppliers have now added a solar energy charger with a special adapter which fit cell phones
as part of their business portfolio.
In the final analysis, flexibility for the suppliers to meet obligations in a cost effective manner, through
mechanisms such as banking and borrowing to finance off-grid lighting remain a barrier. Exceptions are
there when the off-grid industry financing is backed up by securitization of funds / returns through a
Government Scheme or Grant from Multi Lateral or Bi Lateral agency.
FINANCIAL INSTITUTIONS
The 3 financial institutions cited in the report provide capacity building in the area of innovative
financing mechanisms as cash flow based financing through a ‘‘Special Purpose Vehicle’’ provided by the
World Bank / GEDAP Project. Out of the 3 of these institutions, 2 institutions are member of LANAC.
Flexibility for the suppliers to meet obligations in a cost effective manner, through mechanisms such as
banking and borrowing to finance upfront cost for off-grid lighting necessitated the infusion of U$ 6
million grant by the World Bank. Since the scheme is backed-up by the World Bank, the grant
component is only an ‘‘add on’’ to the regular schemes of the 3 financial institutions and valid only till
the ‘‘Grant Component’’ is available to these institutions. The scheme is more a ‘‘portfolio
enhancement’’ and ‘‘marketing strategy’’ of the 3 financial institutions. On paper they look attractive
but when these financial intermediaries are approached for details, the requirements for approval are
same as for any other bank-financing product, so to say they require collateral and rural poor are still
24
being excluded to access the facility because they do not have collateral or credible credit record. The
scheme has come up as a result of Ministry of Energy, which is a ‘‘Regulation Driven Mechanism’’.
Fostering off-rid lighting schemes in the low-cost financing solutions would also need a ‘‘Market
Mechanism’’ which can be driven through the ‘‘Market Pull’’, created by the commercial interest of the
stakeholders involved, i.e. bankers and SMEs / suppliers. In other word, the program must run
concurrently with sensible financing scheme; a combination of government-led model and markets-
based models. Whereas, the market based systems are competition driven and have an inherent
incentive for business to follow, hence market based initiatives have higher probability of success. The
harmonisation of support schemes could simplify the regulatory environment, allow low-cost lighting
sectors` growth and boost economies of scale for the private sector, and provide a clearer framework
for the efficient exploitation of low-cost solutions across Ghana.
In the final analysis, off grid/mini grid RE based electrification programmes supported solely by donors
without local contribution face the risk of being abandoned once project funds are exhausted. Local
involvement is also important for ensuring the systems are operated and maintained, and the
investments’ service delivery is sustained.
MULTILATERAL / AID AGENCIES
Some of the aid agencies who earlier supported and funded renewable energy projects in Ghana did
not go well and so they left the energy sector while other multilateral agencies like GEF/UNDP/RESPRO
programme has ended. Other agencies are supporting District Assemblies, micro and small enterprises
in selected urban and peri-urban centres in the establishment of light industrial zones with emphasis on
energy for productive uses. This is mainly based on the extension of the national electricity grid. There is
a continued view by aid agencies that low-cost lighting is a small energy source in a country were access
to electricity is high (now being estimated at 65%). The focus is on grid-electricity and much of their
resources are geared towards programs for rural electricity. However, high inflation rate in Ghana
(estimated at 18% -19% ) is a concern to aid agencies and subsidised electricity tend to prevent would
be customers to switch to low-cost lighting solution and the fact that compact fluorescent lamps (CFLs)
are well adopted in the country after a distribution of 6 million CFLs by the government.
PUBLIC SECTOR (GHANA STANDARDS BOARDS (GSB), MINISTRY OF ENERGY)
Ghana Standards Board (GSB) is a watch-dog that all low-cost lighting products imported into the
country are of the good quality and conform to international standards – ISO or other ISO recognized
national standards bodies. GSB has testing laboratories across the country and carries out quality
evaluation of low-cost lighting solutions from time to time and subject when they are informed by the
importer. GSB is concern of sub-standards products that are finding their way into the country and on
alert to curb the dumping of such low-quality low-cost lighting products.
Under the Ministry of Energy, the thrust is to increase energy access through grid extension to attain
100% country coverage. The Electricity Master Plan is retrospective 1990 and cut-off/target year 2020.
Since the strategy faced areas which are very remote to grid-electrify, PV Solar was brought in as
transitional phase or to an extent permanent, and one example of this transition phase is the RESPRO
25
project implemented under ‘fee-for-service’’. The RESPRO project did not go well just because there
were no ownership element under fee-for-service and consequently, the project could not sustain itself.
During RESPRO era, kerosene was also subsidised but very much abused by the business community
because this particular subsidy was not reaching the intended poor in the remote area (prices of
kerosene was still high to the rural poor). In context, when petroleum prices were liberalized in Ghana in
2001 prices of gasoline, diesel and kerosene doubled. Increases in petroleum prices are passed on to
consumers for goods and services through higher transport costs. The increase in the price of kerosene
affects poor households in particular because 60% of the poor use it as their lighting fuel. It had the
greatest impact on rural households where up to 82% use kerosene as the main fuel to provide light.
Hence kerosene is no longer subsidised.
The RESPRO is now replaced by GEDAP Project housed at the Ministry of Energy and also in off-grid
lighting provision and incorporating ownership criteria, in other word, the beneficiary will own the
system and responsible for operation & maintenance. The GEDAP spearheaded by the World Bank is a 5
year project and extend subsidy through APEX Bank-Rural Bank for off-grid lighting projects. Upon exist
of the GEDAP programme in 2015; the programme will be transformed into a Government Agency, a
parastatal for the continuation of off-grid lighting projects / activities.
To achieve its goals in off-grid lighting involvement, the Ministry of Energy work in tandem with Energy
Commission. The Ministry of Energy cited LED lamps retailing for GHc 3.00 and in this way, facilitating
access to modern lighting in rural area. In spite of the achievements that Ghana has made in its
electrification programmes, it is the ministry view that large portions of the country are still without
electricity and accordingly, the Ministry of Energy is amenable to the efforts that other forms of lighting
need to be diffused to address the problems in rural Ghana.
26
7.0 WAY FORWARD

Ghana is a leading Lighting Africa Project` country in sub-Saharan Africa and presents an important
element in the overall development and investment platform for the changing paradigms low-cost
lighting solutions. The low-cost lighting will continue to play an important role in the years to come. As
the sector faces considerable financing needs which cannot all be mobilised from public sources,
overcoming investment and funding constraints is a major challenge for Ghanaians policymakers, and
the way in which these constraints are overcome will to a large extend determine the country’s ability to
equip unconnected households with affordable modern lighting in the medium to long term, i.e. up to
2020.
In the event that financial needs are to act as a “brake” on low-cost lighting related projects
development, this will retard economic growth and increases poverty and inequality. Therefore,
development of a robust, broad based private sector and international diplomacy such as bilateral and
multi-lateral international agreements on investment in low-cost lighting solutions is the only means by
which projected targets will be achieved. Existence of financial market frictions can be the critical
mechanism for generating persistent income inequality or poverty traps. There is also a significant and
robust relationship between financial depth and economic growth. Financial depth is not only
associated with higher growth rates but also has an additional pro-poor effect, disproportionately
boosting the income of the poor. In consideration of the foregoing assumptions, the way forward
consists of intervention along four inter-linked pillars:
1. Support access to commercial finance by making equity and long-term debt finance available for
the low-cost lighting projects.
2. Create a market expanding regulatory framework, which reduces risks, keeps down the costs of
low-cost lighting solutions.
3. Create a favourable tax regime for importing equipments used in providing solar energy
products and other components.
4. Offer financial subsidy-instruments to ‘‘bridge’’ the gap between economic and financial
viability, thereby making otherwise financially unviable low-cost lighting projects ‘‘bankable’’.
However, there are a number of risks that the measures set out in this report, e.g. ‘‘it is expected that
the market in Ghana for low-cost solutions can grow within two years to about 1 million units per year’’
or that off-grid solutions may not deliver its required share. These include the risk that:
Policies and / or frameworks will not prove sufficient to overcome the barriers;
The response from the investment community and individuals will not be sufficient to meet the
off-grid solutions targets;
The costs will turn out to be greater, and
The risks that other constraints, supply side barriers, or unidentified impacts will emerge.
Given the above scenarios, there are risks of changes that will require amendments to the final strategy.
The Ministry of Energy and Energy Commission should seek to mitigate these risks by undertaking a full
consultation and maintaining ongoing dialogue with AGSI in order to identify any further constraints or
issues in low-cost solutions. This will also require high level government engagement and high level
international integration and co-operation in the form of international diplomacy such as bilateral and
multi-lateral international agreements.
27
LIGHTING AFRICA INITIATIVE
KEY POLICY RECOMMENDATIONS: THE GHANAIAN PERSPECTIVE
Policy statement 1: Soft money will be required to enable people with insufficient purchasing power to
gain access to modern lighting, and to other more convenient forms of energy. Soft money intended for
low-cost solutions is often used to subsidize the costs of these supply options for those who could readily
afford to pay the true cost if they genuinely regarded this as a priority area of expenditure.
Strategies to achieve that:
Focus on increasing access by lowering the initial costs (technical advice, capital investment)
rather than lowering the operating costs;
Provide strong cost minimization incentives such as retaining the commercial orientation to
reduce costs;
Remain technologically neutral;
Cover all aspects of the project including end-use investments, particularly to encourage pro-
poor end-uses.
The policy and regulatory mechanism for low-cost lighting products must address these issues to
ensure effective utilisation of modern lighting products and the benefits of the same to
consumers in rural areas.
Policy statement 2: To avoid further handicap of competitiveness in comparison to conventional energy,

low-cost lighting solutions need cash-flow adequate terms.

Create financing mechanisms that cater for the long to extra-long maturities.
Maintain interest rates that are in the lower range of the market due to limited return of
investment.
Policy statement 3: Develop indicators that measure success of low-cost lighting solutions

Multilateral and bilateral agencies must undertake a ‘holistic’ approach (involving various
stakeholders) to design programs and strategies for transforming financing market of low-cost
lighting solutions.
Be focused on tangible deliveries to SMEs rather than creating an all round awareness on off-
grid lighting.
The Government can help the low-cost lighting financing of the projects in SME`s by declaring
them as ‘Priority Lending Areas’.
Develop a ‘‘Standardized Project Appraisal Criteria’’ that can be followed by all commercial
banks in a transparent manner across off-grid lighting sectors.
28
Design the guaranteeing mechanism for ensuring collateral security free loans to SMEs and
unconnected rural households with an objective to facilitate the flow of collateral free credit to
the modern lighting sector and encourage lenders to shifts from collateral based or security
oriented lending to project based lending.
29
REFERENCES
Lighting Africa: Value Chain and Distribution Channels Analysis and Country Profiles –
Ghana, 2009
Lighting Africa: Qualitative Off-Grid Lighting Market Assessment – Ghana, 2008
Lighting Africa: Quantitative Market Assessment Results – Ghana, 2008
Lighting Africa: Lighting Devices Test Results – Ghana, June 2009
Energy Commission Statistics, Ghana, 2000 – 2008
Evaluation of Renewable Energy Service Centres in Ghana. Energy Commission, 2005
Report on the Socio-Economic Impact Assessment of the RESPRO and SPANISH Solar PV
Projects in Ghana. Energy Commission, February 2007
Energy Efficiency Standards and Labelling. Ghana Standards Board
Poverty Reduction Strategy Paper. Ghana 2006
Renewable Energy Policy and Regulatory Framework, Final Draft Report (Volume I), Ministry of
Energy, Republic of Ghana. September 2009
The Association of Ghana Solar Industries (AGSI) News Letter, First Edition, May 2007
Guide to Electric Power in Ghana, First Edition. Resource Center for Energy Economics and
Regulation, July 2005
30
ANNEXURE A: INSTITUTIONAL PROFILE

Table 2: Government Energy Organisations
Organisation Activity
Ministry of Mines and Energy As part of the executive arm of Government, the Ministry is the
(MOME) ultimate body responsible for development of energy policy for
Ghana. The ministry is responsible for developing and implementing
energy sector policy in Ghana, and also supervises the operations of
the agencies associated with the sector including, renewable energy
unit - GEDAP Programme
Energy Commission (EC) An independent agency responsible for licensing, regulating and
monitoring private and public entities operating in the energy sector.
The commission also collects and analyses energy data and
contributes to the development of energy policy for Ghana. EC was
established in 1997 in accordance with the recommendations of the
Power Sector Reforms Commission (PSRC)
The Public Utilities Regulatory An independent agency set up as recommended by the Power Sector
Commission (PURC) Reforms Commission (PSRC) to oversee the performance of the public
utilities. PURC is mandated to protect the interest of consumers and
to examine and approve the rates chargeable by the utilities
Environmental Protection Responsible for establishing, monitoring and enforcing environmental
Agency (EPA) policies for the country. EPA has oversight responsibility in any
activity that is likely to have an environmental impact. EPA monitors
the activities involved in the production and use of energy
Volta River Authority (VRA) This wholly state-owned entity is responsible for generation and
transmission of electricity in Ghana. VRA was established in 1961
under the Volta River Development Act (Act 46) to generate electric
power by means of the water in the river Volta, and to supply
electricity through a transmission system
National Petroleum Tender Supervision of international competitive bidding and award of

Board contracts for the procurement of crude oil and petroleum products
for Tema Oil Refinery.
The Electricity Company of 100 per cent state-owned entity responsible for distribution of
Ghana (ECG) electricity to consumers in southern Ghana, namely in the Ashanti,
Central, Greater Accra, Eastern and Volta Regions. Established in
1967, ECG, the nation’s main electricity distributor, is responsible for
providing line connection to domestic and certain categories of
industrial consumers. ECG is responsible for billing and maintaining a
reliable supply of electricity to its customers.
The Northern Electrification Established in 1997 as a subsidiary of VRA, it is responsible for power
Department (NED) distribution in northern Ghana, serving the Brong-Ahafo, Northern,
Upper East and Upper West Regions.
Tema Oil Refinery (TOR) Responsible for the importation of crude oil and petroleum products.
Also undertakes the refining of all the crude oil imported into the
country and bulk sale of petroleum products to OMCs and bulk
consumers.
31
TOR was incorporated in 1960 under the companies’ code of Ghana

The Energy Foundation (EF) Established in November 1997 by the Private Enterprise Foundation in
Ghana collaboration with the Government of Ghana, the Energy Foundation
is a non-profit institution with the goal of promoting sustainable
development and efficient consumption of energy as a key strategy to
manage Ghana’s growing energy needs in a sustainable manner. The
Foundation offers energy efficiency and renewable energy advice and
support to residential, industrial and commercial energy consumers in
Ghana.
Ghana National Petroleum Established by law in 1983 to promote the exploration and
Corporation (GNPC) development of petroleum resources in Ghana, GNPC is currently
responsible for oil and gas exploration and production
Bulk Oil Storage and Bulk Oil Storage and Transportation is a Government-owned, limited
Transportation Company liability company that undertakes planning for storing and managing
(BOST) strategic stocks of petroleum products. BOST runs several storage
depots in the port cities of Tema and Takoradi, and in seven other
locations around the country. In addition, BOST is responsible for
primary distribution of the products. Funding for maintaining the
reserves comes from a special levy on petroleum products
Oil marketing companies The oil marketing companies are responsible for distribution and
(OMCs) and retail outlets marketing of petroleum products, mainly through small retail outlets
countrywide
Solar Laboratory Kwame Research & Development
Nkrumah University of Science
and Technology (KNUST),
Agricultural Engineering Research & Development
Department of KNUST(biogas
development),
Physics Department of the Research & Development
University of Ghana, CSIR,
FORIG
32
ANNEXURE B: LIST OF STAKEHOLDERS CONSULTED
Date Organisation / Institution Contact Capacity

18/01/10 The World Bank – Ghana Office Mr. Sunil Mathrani Senior Energy Specialist
19/01/10 Association of Ghana Solar Industries (AGSI) / Mr. Samuel Adu Asare Secretary of AGSI (outgoing) & Country
LANAC Manager of Global Sustainable Energy
Solutions Ghana Ltd.
20/01/10 Ghana Standards Boards (GSB) / LANAC Mr. Jacob Baiden Technical Officer
21/01/10 KITE / LANAC Mr.Ishmael Edjekumhene / Mr. Director / Snr. Projects Manager
Frank Atta-Owosu
22/01/10 Solar 4 Ghana Ltd. (Mr.) Nana Asante Frempong Company Director
F. Malawi Engineering Co. Ltd. Mr. Ahmad F. Karime Deputy Managing Director
23/01/10 Rural Energy Foundation / LANAC Mr. Frank Aggrey Solar Business Advisor / Micro Finance
25/01/10 E + Co / LANAC Mr. Vincent Yankey / Mr. Investment Officer / Investment Analyst
Marindame Kombate
26/01/10 Deng Limited / Proposed PAG Mr. Frede Bosteen Chairman of Deng Ltd and outgoing
President of AGSI
ARB APEX Bank LTD /LANAC Mr. Frank Yeboah Dadzie Project Manager – Solar PV HS
IFC Mr. Leo J. Blyth Consultant Lighting Africa
27/01/10 Toyola Group ( EE Cook stoves, Solar Energy Mr. Suraj Wahab CEO
Products, Energy Financing (micro-finance) )
Ministry of Energy / LANAC Mr. Wisdom Ahiataku-Togobo Renewable Energy Expert / Planning
/ Mr. Joseph Tawia Quayson Engineer and also in attendance:
1) Leo J. Blyth – IFC Consultant
2) Albert Kwaw Eliason – Country
Officer Lighting Africa Program in
Ghana
ANNEX C: MEMBERS OF AGSI
MEMBERS OF THE ASSOCIATION OF GHANA SOLAR INDUSTRIES AS AT November 2009.
Name Email Address Website Membership Category/Paid
1. Deng Limited info@dengltd.com www.dengltd.com Industrial

2. Wilkins Engineering Ltd. Wilkins@africaonline.com.gh www.wilkins-org.com Industrial
3. Wise Energy Ltd. Richcollins2k@yahoo.com www.wise-energy.org Industrial
4. EandCo EandCo.Ghana@EandCo.net www.eandco.net Associate
5. Global Sustainable Energy Solutions gses.ghana@gses.com.au www.gses.com.au Industrial
6. GW Solar And Security Installation Ltd g.gibons@btconnect.com www.gw-industries.com Associate
7. Jak Solar jakaddae@yahoo.com Associate
8. MAMS Electrical Engineering Ltd mamselectricals@yahoo.com Associate
9. Rural Energy Foundation aggrey@ruralenergy.nl Associate
10. ASKN Electricals asknelectric@yahoo.com Associate
11. New Energy mahama.amadu@gmail.com Associate
12. String Electric Works stringelectrica@yahoo.com Associate
13. Dr. Jonas A.S Redwood Sawyerr
(Associate Professor) Fourah Bay College University Sierra Leone jredwood1952@yahoo.co.uk Associate
14. Power World georgepspsl@yahoo.com Industrial

15. Rural Energy & Environmental Systems giftytetty@yahoo.com Associate
16. Toyola Energy toyolaenergy@yahoo.com Industrial
17. Vyne Horizon samappiah4u@yahoo.com Associate
18. DSTC Industry
19. North lite akasobasasua@yahoo.com Associate
20. Geothermal Management Services morrisanna@gmail.com Associate
21. Fred Akuffo foakkufo@gmail.com Honorary Member
22. DAAS GIFT Quality baabagift@yahoo.com Associate
23. Real Integrated Ghana Ltd Associate

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Lighting Africa Policy Support Project

Ghana Country Study Report

Jonas Capôco (Leader)

0.1 Purpose ......................................................................................................................................... 5

0.2 Study Justification ......................................................................................................................... 5

0.4 Expected outcome from the Study ............................................................................................... 5

1.0 INTRODUCTION ..................................................................................................................... 6

1.1 Economic Indicators...................................................................................................................... 6

1.2 Overview ....................................................................................................................................... 6

1.3 Investment Climate....................................................................................................................... 7

1.3.1 Macroeconomic Situation............................................................................................................ 7

1.3.2 Business Environment.................................................................................................................. 8

1.3.3 Privatisation ................................................................................................................................. 8

1.3.4 Power Sector................................................................................................................................ 8

2.0 STATUS OF ELECTRIFICATION IN GHANA ................................................................................. 9

2.1 National Grid................................................................................................................................. 9

2.2 Specific Rural Electrification efforts, grid and /or decentralised................................................10

2.3 Monitoring of rural electrification and energy access progress.................................................11

2.4 Prospect for rapid development.................................................................................................12

3.0 STATUS OF LOW-COST LIGHTING ...........................................................................................13

3.1 Description of any (formal) projects ...........................................................................................13

3.2 Description of informal activities................................................................................................13

3.3 Description of any organizations that might be interested........................................................14

3.4 Summary results of LA study (if available)..................................................................................14

3.5 Estimation of potential beneficiaries + potential benefits .........................................................15

3.7 Issues (quality, costs, availability of products, etc.)....................................................................15

4.0 PREVAILING POLICY ENVIRONMENT TO PROMOTE LOW-COST LIGHTING SOLUTIONS – OR

4.1 Fiscal measures ...........................................................................................................................17

4.2 Subsidies (describe if any, also for competing solutions) ...........................................................17

4.4 Organizational support available ................................................................................................19

4.5 Awareness raising mechanisms ..................................................................................................20

4.6 Financing mechanisms ................................................................................................................20

4.7 Private sector effectiveness........................................................................................................21

5.0 SHORT DESCRIPTION OF MAIN BARRIERS....................................................................................22

5.2 Technological ....................................................................................................................................22

6.0 SUMMARY OUTCOME OF ONE-ON-ONE MEETINGS .....................................................................23

7.0 WAY FORWARD..........................................................................................................................27

LIGHTING AFRICA INITIATIVE ............................................................................................................28

ANNEXURE A: INSTITUTIONAL PROFILE.............................................................................................31

ANNEXURE B: LIST OF STAKEHOLDERS CONSULTED............................................................................ 1

ANNEX C: MEMBERS OF AGSI ............................................................................................................ 2

CEB Communaté Électrique du Bénin

0.2 Study Justification

0.4 Expected outcome from the Study

Country-specific policy and regulatory barriers are identified

Source: Consultant Research Source: Lighting Africa

1.3 Investment Climate

1.3.2 Business Environment

1.3.4 Power Sector

2.0 STATUS OF ELECTRIFICATION IN GHANA

2.2 Specific Rural Electrification efforts, grid and /or decentralised

a) The low density of potential consumers.

Ghana Poverty Reduction Strategy (GPRS), 2002: Objective – Stimulation of production

National Electrification Programme: Objective - To extend electricity supply to all communities

2.3 Monitoring of rural electrification and energy access progress

2.4 Prospect for rapid development

3.0 STATUS OF LOW-COST LIGHTING

3.1 Description of any (formal) projects

3.2 Description of informal activities

3.3 Description of any organizations that might be interested

3.4 Summary results of LA study (if available)

3.5 Estimation of potential beneficiaries + potential benefits

3.6 Description of efforts to disseminate other consumer items in