plantation field.
Ghana has put in place mechanisms to attract investments into its
biomass and
bio-energy sectors to stimulate
rural development, create
jobs and provide
foreign exchange. The vast arable and degraded
land mass of Ghana, has the potential for the cultivation of
crops and
plants that could be converted into a wide range of solid and liquid
bio-fuels, as the development of alternative
transportation fuels could help
Ghana to diversify and secure its future energy supplies. Main investments in the
bio-energy areas existed in the areas of production are
transportation, storage, distribution, sale, marketing and exportation. The goal of
Ghana regarding bio-energy, as articulated its energy sector policy, is to modernize and examine the benefits of
bio-energy on a sustainable basis.
Biomass is Ghana's dominant energy resource in terms of endowment and consumption, with the two primary
bio-fuels consumed being
ethanol and
biodiesel. To that effect, the Ghana ministry of Energy in 2010 developed the energy sector strategy and development plan. Highlights of the key policy objectives strategy for the renewable energy areas include sustaining the supply and efficient use of
wood-fuels, while ensuring that their utilization does not lead to
deforestation. The plan would support
private sector investments in the cultivation of
bio-fuel raw materials, extraction of
bio-oil and its refining into secondary products, thereby creating appropriate financial and tax incentives. The Ghana Renewal Energy Act provides the necessary fiscal incentives for
renewable energy development by the private sector, and also details the control and management of
bio-fuel and
wood- fuel projects in Ghana. The Ghana National Petroleum Authority (NPA) was tasked by the
Renewable Energy Act 2011, to price Ghana's
bio-fuel blend in accordance with the prescribed
petroleum pricing formula. The combined
effects of climate change and global economic turbulence, had triggered a sense of urgency among Ghanaian policymakers, industry and development practitioners to find sustainable and viable solutions in the area of
bio-fuels. Currently,
Brazil, which makes
ethanol from
maize and
sugarcane, is the world's largest
bio-fuel market. == Energy sector in Ghana-statistics and facts ==