Energy Security in Ghana

A Quantitative Approach to a Sustainable Energy Policy Relative to Domestic Versus Foreign Origin of Total Energy Use

Abstract

The Ghanaian energy sector has gone through a major phase reform and change since the mid-1980s. A shift in overall policy framework involving a process of reforming and restructuring the energy sector to improve operational efficiency and increase consumer access to electricity and related energy products; based on private sector participation hitherto, financed by the central government and managed by public utilities and companies. Ghana, imports nearly a third of its energy resources especially, in the form of hydro-carbons. An import-driven energy policy is not sustainable and thus, making energy insecure in the long- term. Apart from being a drain on the country’s scare foreign exchange reserves, it thus exposes the economy to international energy price shocks, putting the entire economy at risk through inflation. Inflationary pressures not only reduce the competitiveness of the country’s exports, but equally constrain the economy’s ability and/or capacity to pay for energy imports thus, adversely affecting general economic well-being of its citizens. This article investigates and examines total domestic and foreign energy use in Ghana between the years 2000 to 2020 relative to the concept of human security with reference to the processes of economic growth and development. Furthermore, the paper analyses Ghana’s energy security applicable to the theory of realism premised on the Four (4)A dimensions involving availability, applicability, acceptability, and affordability within Leontief 1936 Input-Output (IO) model within a quantitative research methodology/approach. The outcome of the article is intended to benefit the efficient application of total energy mix relative to energy security policy/ies within the processes of sustainable economic growth and development of a developing economy with Ghana as a laboratory.