The Africa Sustainable Energy Centre (ASEC) has welcomed several energy sector interventions announced in the 2026 Mid-Year Budget Review but has urged the government to adopt a more balanced approach that aligns with Ghana's long-term energy transition and climate goals.

In a statement, ASEC said the government's commitment to strengthening the energy sector has the potential to improve energy security and support economic growth.

However, it stressed that some of the proposed policies require broader stakeholder engagement and greater emphasis on renewable energy development.

ASEC particularly welcomed the government's proposal to develop a 1,200-megawatt thermal power plant, describing it as an important step towards meeting Ghana's growing electricity demand and supporting industrialisation.

The Centre, however, cautioned that expanding thermal generation without corresponding investments in renewable energy could undermine Ghana's target of achieving a 10 per cent renewable energy share in its electricity generation mix by 2030.

According to ASEC, renewable energy currently accounts for only about two per cent of Ghana's electricity generation, and increasing thermal capacity alone would make it even more difficult to meet the country's renewable energy targets.

It therefore called on the government to complement the planned thermal plant with accelerated investments in utility-scale solar, wind power, battery energy storage systems and distributed renewable energy projects.

"Energy security and the green transition should advance together—not compete with one another," the Centre stated.

ASEC also expressed concern that despite the renaming of the Ministry of Energy to the Ministry of Energy and Green Transition, the budget did not adequately reflect the government's green transition agenda.

While describing the renaming of the ministry as a positive policy signal, the Centre said the commitment must be backed by tangible investments in renewable energy, energy efficiency, battery storage, electric mobility and other low-carbon technologies.

"The Ministry's mandate should be reflected not only in its name but also in its priorities, programmes and investments," it noted.

On petroleum pricing, ASEC described the government's decision to retain the GH¢1 fuel levy as disappointing.

The Centre argued that removing the levy would ease the financial burden on households and businesses by reducing fuel prices, transportation costs and inflationary pressures.

It called on the government to provide greater transparency on how proceeds from the levy have been utilised and to outline a clear roadmap for its eventual removal.

ASEC also welcomed plans to expand the use of Liquefied Petroleum Gas (LPG) to improve household energy access but said Ghana's long-term strategy should extend beyond LPG to include cleaner cooking technologies such as electric cooking, bioethanol, biogas and improved biomass cookstoves.

According to the Centre, a comprehensive national clean cooking strategy is needed to achieve universal access to modern cooking energy while supporting Ghana's climate commitments.

The Centre further welcomed the government's commitment to constructing a second gas processing plant to strengthen domestic gas processing capacity and enhance energy security.

However, it raised concerns over the decision to shift the project from a government-owned model to a private sector-led arrangement without broader public consultation.

ASEC urged the government to ensure that fiscal terms governing the project—including royalty arrangements, local content requirements and long-term value retention—are structured to maximise benefits for Ghana.

The Centre concluded by commending the government for prioritising investments aimed at improving energy security but stressed that future budgets should strike a better balance between expanding conventional energy infrastructure and accelerating Ghana's transition to a cleaner and more sustainable energy future.

It said Ghana's energy future should be built on four key pillars: energy security, affordability, sustainability and resilience.