Ghana’s 24-Hour Plus Economy Policy Implementation: Engr. Titus Kofi Andoh’s Take On Energy Demand And Challenges.

By: Engr. Titus Frank Kofi Andoh

Ghana’s ambitious 24-Hour Economy and Accelerated Export Development Programme (24H+), launched officially on July 2, 2025, aims to revolutionize the country’s economic landscape by extending productive activities beyond traditional working hours.

This policy is designed to create 1.7 million jobs over four years, boost exports, and foster continuous industrial and service sector operations across the country.

Central to this transformative agenda is the energy sector’s capacity to meet the increased and more evenly distributed electricity demand that a 24-hour economy will generate.

This article explores the energy demand implications of the 24H+ policy, the challenges, and the opportunities it presents for Ghana’s power system.

Current Energy Demand and Supply Context

As of December 2024, Ghana’s installed electricity generation capacity stood at approximately 5,260 MW, with a dependable capacity of about 4,855 MW. The system peak load recorded in December 2024 was 3,952 MW, representing a 9.2% increase from 2023.

For 2025, the peak load is projected to rise to 4,125 MW, a further 4.4% increase, driven by economic growth and expanding electricity access across distribution zones.

Total electricity consumption is expected to increase from an estimated 24,688 GWh in 2024 to 25,836 GWh in 2025, reflecting a 4.7% growth. The generation mix remains dominated by thermal (65.8%) and hydro (33.1%) power, with renewables contributing less than 1%.

Energy Consumption by Sector.

Energy Demand Implications of the 24-Hour Economy Policy

• Smoother and Increased Load Profile

The 24H+ policy encourages shift-based, round-the clock operations in manufacturing, agro- processing, logistics, healthcare, and retail sectors. This will:

1. Smooth out the traditional daytime peak demand, creating a more balanced 24-hour load
2. Increase base-load electricity demand during night hours, which currently experiences underutilization of generation capacity.
3. Drive higher overall electricity consumption due to extended operational hours across multiple sectors.

•  Incentives to Support Energy Demand

To facilitate this shift, the government is offering:

1. Discounted electricity tariffs for firms operating between 10 pm and 6
2. Tax incentives including corporate income tax rebates (25% for two shifts, 50% for three shifts), and exemptions on import duties for manufacturing equipment, renewable energy systems, and raw materials.
3. Enhanced nighttime security and infrastructure support to encourage participation

Challenges to Meeting Energy Demand

• Fuel Supply Constraints

Ghana’s thermal power plants rely heavily on natural gas, with projected consumption of about 151.4 TBtu (133,977 MMscf) in 2025. However, the country faces natural gas supply shortfalls, especially during scheduled maintenance periods, with deficits potentially reaching 102 MMscfd in peak months. This poses a risk to the reliability of power supply essential for continuous industrial operations.

• Infrastructure and Investment

The policy’s success depends on:

1. Upgrading and expanding the national grid to handle increased and geographically dispersed demand.
2. Mobilizing significant investment, with the government committing $300–$400 million as seed capital, and private sector commitments nearing $2 billion to bridge viability gaps and fund infrastructure development.

• Environmental and Cost Considerations

1. The heavy reliance on thermal generation raises concerns about greenhouse gas emission unless renewable energy integration accelerates.
2. Fuel costs for thermal generation are substantial, with 2025 fuel expenditure estimated at US$1.25 billion, mostly for natural gas procurement.
3. Without affordable and reliable electricity, the policy risks underperformance, as highlighted by energy analysts warning of potential failure without structural reforms in the power sector.

System Losses

Technical and commercial losses remain high, with distribution utilities losing nearly 32% of electricity purchased in 2024

Opportunities Presented by the 24-Hour Economy

1. Maximizing existing generation capacity by increasing utilization during off-peak hours, improving economic efficiency.
2. Facilitating renewable energy integration by creating a more stable and predictable demand
3. Boosting industrial productivity and export competitiveness through continuous
4. Reducing transmission losses by smoothing demand peaks and valleys, which currently account for nearly 4% of generated electricity.

Policy Recommendations

1. Accelerate grid upgrades and expand generation capacity, particularly from renewables, to support round-the-clock operations.
2. Implement demand-side management strategies, including incentives for off-peak usage and energy efficiency programs.
3. Strengthen regulatory frameworks to ensure transparency, investment security, and rapid response to grid challenges.
4. Enhance public-private partnerships to mobilize capital and expertise for infrastructure
5. Prioritize loss reduction through modernization of metering, monitoring, and enforcement against illegal connections.

Conclusion

Ghana’s 24 Hour Plus Economy policy is a bold step toward economic transformation, promising substantial job creation and export growth.

However, its success hinges on the energy sector’s ability to provide reliable, affordable, and sustainable power around the clock.

Addressing natural gas supply constraints, investing in grid infrastructure, and accelerating renewable energy deployment are critical to meeting the increased energy demand this policy will generate.

If these challenges are effectively managed, the 24H+ policy could unlock Ghana’s full productive potential and position the country as a competitive player in the global economy.

References

Citi Newsroom, “24-Hour Economy policy to be launched today,” July 2, 2025.

My Joy Online, “Explainer: What’s inside Ghana’s 24-hour economy blueprint?” July 3, 2025. Energy Commission Ghana, “2025 Energy Outlook for Ghana,” December 2024.

Energy Commission Ghana, “Electricity Outlook 2025,” December 2024.

Business & Financial Times, “Power struggle: Why the 24-Hr economy will fail without affordable electricity,” March 19, 2025.