Financial and institutional Impediments to Effective Implementation of Sustainable Green Financing of Renewable Energy in Ghana

Author(s)

Francis Atta Sarpong , Larsey Naphtali Akwetteh , Kalissa Fatoumata Kir , Jesse Jackson Makwetta , Benjamin Blandful Cobbinah ,

Download Full PDF Pages: 107-119 | Views: 500 | Downloads: 147 | DOI: 10.5281/zenodo.5482376

Volume 10 - August 2021 (08)

Abstract

Access to clean and reliable electricity is significant in many emerging African nations, including Ghana. The study examined the institutional and financial impediments to providing an investment-focused framework for promoting and developing the country's rich renewable energy resources for sustainable economic growth and improved social life. To accomplish this objective, unprecedented financial and technical expenditures will be needed. Ghana has difficulty achieving universal access to modern energy services due to a lack of energy sector investment. The impression is that the area contributes little to global greenhouse gas emissions and therefore provides limited opportunities to decrease emissions, thereby excluding climate financing initiatives. A power purchase guarantee has been proven to encourage energy industry investments. Due to various technological, legal, and financial obstacles, warranties of power purchases such as Feed-in Tariffs are sluggish to develop in Ghana. Using Ghana as a case study, this paper examines the difficulties of renewable energy deployment and climate change management in Sub-Saharan Africa. These challenges include a lack of high-quality investment risk assessment data, limited potential risk assessment, clarity about what green financing entails, credit and capital market risks, and a lack of domestic and green investors. A green finance maturity mismatch affects green sector investments. This research identified substantial investment possibilities in Ghana's energy, agricultural, transport, waste management, industrial, and construction sectors. They are essential to establishing a green economy, and national development strategies have been created to assist them.

Keywords

Green finance, Renewable Energy, Financial impediments, Institutional Barriers, Ghana

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