Abstract for: Sustainable energy future: A System Dynamics approach to solving the Electricity shortfall in Ghana

Ghana has been experiencing electricity supply deficit over the past decade. The annual gap between the electricity demand and supply has been a major concern in the country. Even though this challenge often seems temporary, it has never been fully resolved. The electricity gap in Ghana is attributed to underutilization of existing capacity, significant loss of power generated through transmission and distribution, low investment in the electricity sector, and low electricity tariffs. A System Dynamics model is developed to create a vivid understanding of the complex feedback loops within the electricity sector. The results present an outlook of the electricity situation in Ghana. Policies discussed include the ideal investment pathways for sustainable electricity supply in the future. Declining cost of solar coupled with the constant gas shortages for thermal plants makes solar ideal power source for future energy needs in Ghana. The government of Ghana should review the existing regulatory framework to encourage private sector participation. A pricing system determined by free market activities will reduce government’s debt on electricity subsidy and also offer an incentive for private investors.