Abstract:
While renewable energy is making inroads in certain jurisdictions, there appears to be little enthusiasm or effort
by many countries in the Global South when examining overall patterns of investment, despite numerous
countries announcing renewable energy adoption goals. Various studies attribute this apparent lack of interest to
a lack of legislative and regulatory instruments, promotional measures, and unattractive market structures. While
these may be relevant factors, this study demonstrates that lack of interest can also stem from concerns over
levels of unmet energy demand, coupled with the cost of energy generation. The influence of these two factors on
the decision to invest in renewable energy is discussed and demonstrated through a case study on electricity
generation planning in Ghana. The case study indicates that, given the projected levels of Ghana’s electricity
demand and expenses for generation capacity addition, the level of unmet demand could be as high as 18.5% if
Ghana were to follow through with its 10% renewable electricity target by 2030. Correspondingly, the cost of
electricity provision could increase by over US$221 Million annually – a substantial amount for any country, but
particularly for those in the Global South. Results from the case study indicate some of the key reasons why
Ghana is nowhere near its 10% renewable electricity target originally set for 2020, and why it is likely the new
target year of 2030 will suffer a similar fate. Having highlighted these concerns, the paper then offers suggestions
for increasing renewable energy in the Global South.