Analysts back energy mix as Ghana explores green fuel options

Analysts have urged Ghana to adopt a balanced approach to its energy transition, advocating for green fuels and renewable energy sources to complement rather than abruptly replace fossil fuels. Speaking on August 31, 2026, Dr. Riverson Oppong, CEO of the Chamber of Oil Marketing Companies, referred to the shift to cleaner energy as "energy addition" rather than energy transition.

He encouraged Ghana to embrace various energy sources as it works to meet its escalating energy demands. Dr. Oppong noted that Ghana saw a notable rise in electric vehicle adoption, encompassing hybrids and electric cars, alongside a substantial surge in conventional fuel consumption. This concurrent growth in EVs and traditional fuel use signifies that fossil fuels maintain a significant role in Ghana's energy mix, even as cleaner alternatives gain traction.

Dr. Adu Owusu Sarkodie, Executive Director of the Centre for Policy Scrutiny, echoed these sentiments, advocating for a diversified energy portfolio instead of a rapid departure from crude oil. He emphasized that Ghana should capitalize on its petroleum resources while concurrently investing in renewable sources like solar and wind.

"We must have the mix and exploit our crude production, as Ghana too will benefit from maximizing the economic benefits of its petroleum resources," Dr. Sarkodie stated. He also highlighted the increasing presence of Chinese electric vehicles in the Ghanaian market, suggesting a gradual transition from conventional vehicles to electric alternatives.

However, he cautioned that this transition should unfold gradually, given the largely price-inelastic demand for crude oil-based fuels. Dr. Sarkodie attributed this to the scarcity of viable substitutes for conventional fuels, which would keep consumers reliant on them despite rising prices. He therefore argued that Ghana would need to maintain fossil fuel usage alongside renewable energy sources until alternative energy becomes abundant and accessible.

These remarks came as Ghana continues to explore cleaner energy options while striving to maintain energy security and maximize the economic gains from its petroleum resources. Green fuel, derived from renewable materials, is environmentally friendly, emitting far fewer carbon emissions compared to fossil fuels, which are natural energy sources formed from ancient plant and animal remains buried deep within the Earth for millions of years.