Introduction

Energy is the lifeblood of modern economies, powering industries, infrastructure, and daily lives. In Ghana, a nation endowed with substantial energy resources, inefficiencies in energy utilization have constrained economic growth. Despite an installed generation capacity of 5,194 MW as of November 2023, only about 40% of this capacity is utilized during off-peak hours, resulting in economic losses and missed opportunities. Additionally, transmission losses account for approximately 3.7% ($53.65 million) of total generated energy, compounding the problem.

This inefficiency presents a pressing challenge: how can Ghana leverage its existing energy infrastructure to stimulate economic growth and reduce wastage? The NDC’s proposed 24-hour economy policy led by JM, offers a bold and transformative solution. By advocating for the continuous operation of businesses and services, the policy aims to maximize energy utilization, reduce operational inefficiencies, and drive sustainable development.

This article examines how the 24-hour economy policy can revitalize Ghana’s energy sector, focusing on its potential to address inefficiencies, generate financial savings, and promote environmental sustainability. It also explores the policy’s broader socio-economic implications, implementation strategies, and challenges. If well implemented, this policy could position Ghana as a leader in sustainable energy utilization, setting an example for other nations grappling with similar challenges.

The Current State of Ghana’s Energy Sector

Ghana’s energy sector forms a critical pillar of its economic infrastructure, driven by contributions from hydroelectric, thermal, and renewable energy sources. As of November 2023, the country’s installed energy generation capacity stood at 5,194 MW, with a dependable capacity of 4,756 MW, as reported by the Ghana Energy Commission’s “2024 Outlook for Ghana”. This capacity is distributed across hydroelectric power (34.9%), thermal plants (64.4%), and renewable energy sources constituting the remainder. Among these, the Akosombo Dam serves as the cornerstone of Ghana’s hydroelectric power generation, while the Aboadze Thermal Plant plays a vital role in the country’s thermal energy production. Additionally, the Atuabo Gas Processing Plant, with its capacity to supply 300 MMScfd of gas, significantly bolsters the efficiency and reliability of thermal energy output.

Despite the commendable capacity of Ghana’s energy sector, persistent challenges continue to undermine its operational efficiency and economic potential. A notable concern is the suboptimal utilization of energy resources, particularly during off-peak hours when utilization rates drop to approximately 40%. This inefficiency arises from the continuous operation of energy plants, which generate power regardless of fluctuating demand, resulting in significant wastage. Furthermore, transmission losses—estimated at 3.7% of total generated energy—exacerbate these inefficiencies, translating into approximately 913 GWh of lost energy annually. This wastage equates to millions of dollars in economic losses, highlighting the urgent need for strategies to optimize energy utilization and reduce inefficiencies within the sector.

The implications of these inefficiencies are profound and multifaceted. Businesses that depend on affordable and reliable energy face increased operational costs due to energy wastage and underutilized capacity. Similarly, households experience the adverse effects of these inefficiencies through elevated electricity tariffs and periodic supply inconsistencies. Additionally, the environmental repercussions of wasted energy, particularly from fossil-fuel-based thermal plants, significantly contribute to Ghana’s carbon footprint, undermining efforts toward environmental sustainability.

The proposed 24-hour economy policy presents a transformative approach to addressing these challenges. By fostering continuous energy demand, the policy aims to synchronize energy supply with economic activity, thereby optimizing the utilization of available resources and minimizing waste. The subsequent section delves into the conceptual framework of this policy and its alignment with the operational dynamics of Ghana’s energy sector.

The 24-Hour Economy Policy Framework

The concept of a 24-hour economy centres on the continuous operation of businesses, services, and industries to ensure uninterrupted economic activity throughout the day and night. This model capitalizes on the inherent operational characteristics of energy plants, which generate power continuously regardless of demand fluctuations, thereby optimizing energy utilization and fostering economic growth.

In the Ghanaian context, the 24-hour economy policy proposed by JM presents a strategic solution to address inefficiencies within the energy sector. By extending business hours across key economic sectors, the policy aims to generate a consistent demand for energy, particularly during off-peak hours, thereby minimizing wastage and enhancing operational efficiency. For instance, manufacturing facilities, which often operate in shifts, could expand production schedules to utilize the available energy during nighttime hours more effectively. Similarly, service industries such as logistics and transportation could maintain continuous operations, contributing to a more dynamic and resilient economy.

International Comparisons

Countries such as Singapore and South Korea provide valuable insights into the transformative potential of 24-hour economies. In Singapore, an advanced energy management strategy underpins the city-state’s 24/7 economic framework, ensuring uninterrupted operations across key sectors such as finance, logistics, and retail. This approach maximizes energy efficiency and supports the seamless functioning of a highly dynamic economy. Similarly, South Korea’s industrial hubs capitalize on continuous operations to sustain their export-driven economy, minimizing downtime and optimizing energy utilization to achieve significant economic gains.

Although Ghana’s energy landscape and economic context differ, the underlying principles of maximizing resource efficiency and fostering economic productivity are universally relevant. By addressing energy inefficiencies, the proposed 24-hour economy policy not only promotes optimal resource utilization but also aligns with broader national objectives, including job creation, industrial expansion, and enhanced service delivery. These international examples underscore the potential for Ghana to harness similar strategies tailored to its unique context to achieve sustainable economic growth.

Alignment with Ghana’s Energy Sector Dynamics

The 24-hour economy policy aligns closely with the operational characteristics of Ghana’s energy infrastructure, presenting an opportunity to optimize resource utilization and improve efficiency. Thermal plants, such as the Aboadze facility, achieve peak efficiency under consistent demand conditions. By fostering a continuous cycle of energy consumption, the policy could mitigate operational losses caused by fluctuating demand patterns. Similarly, hydroelectric facilities like the Akosombo Dam would benefit from stabilized output levels, reducing energy wastage and enhancing cost-effectiveness.

Furthermore, the Atuabo Gas Processing Plant, which already generates significant savings of approximately $300 million annually by reducing Ghana’s reliance on crude oil imports, stands to amplify its economic contributions under a 24-hour economy. Sustained demand would enable the plant to consistently operate at optimal capacity, resulting in increased financial savings and a diminished environmental footprint.

This policy also complements ongoing efforts to diversify Ghana’s energy mix through the integration of renewable energy sources. By extending energy demand to non-peak hours, the nation can accelerate the adoption of solar, wind, and other renewable energy technologies, thereby decreasing reliance on fossil fuels and advancing environmental sustainability. This alignment underscores the potential of the 24-hour economy policy to serve as a catalyst for both economic growth and sustainable energy development.

Benefits of Maximizing Energy Utilization

The implementation of a 24-hour economy policy in Ghana offers multifaceted benefits, ranging from economic advancements to environmental sustainability and social improvements. These advantages underscore the policy’s potential as a strategic solution to the challenges of underutilized energy capacity and operational inefficiencies.

These economic benefits highlight the transformative potential of the 24-hour economy policy in addressing energy inefficiencies while fostering sustainable growth and regional integration.

Environmental Benefits

The environmental benefits of implementing a 24-hour economy policy in Ghana are significant, aligning with global sustainability goals and addressing climate-related challenges.

These environmental benefits underscore the dual advantage of the 24-hour economy policy in enhancing economic productivity while promoting sustainable energy practices.
Socioeconomic Impact
The 24-hour economy policy presents significant socioeconomic advantages, fostering employment, enhancing services, and improving overall quality of life.

By addressing inefficiencies and maximizing resources, the 24-hour economy policy can catalyze economic growth while fostering environmental and social benefits. This holistic approach aligns with Ghana’s vision of becoming an upper-middle-income economy by leveraging its natural and human resources efficiently.

Financial Implications of the Policy

The 24-hour economy policy carries significant financial implications for Ghana’s energy sector and broader economic landscape. By addressing inefficiencies, optimizing energy utilization, and fostering a consistent demand for power, the policy has the potential to unlock substantial economic value and drive long-term financial sustainability.

Quantifying Savings from Energy Efficiency

Ghana’s current electricity generation is approximately 14,500 GWh annually, of which 3.7% (equivalent to 913 GWh) is lost due to transmission inefficiencies. These losses represent millions of dollars in economic wastage. By implementing a 24-hour economy that balances energy usage across peak and off-peak periods, transmission losses can be significantly reduced.

For example, a 1% reduction in transmission losses would save approximately 145 GWh annually. At an average tariff of $0.10 per kWh, this equates to $14.5 million in annual savings. Over five years, these savings would amount to $72.5 million. Such financial gains could be strategically reinvested to achieve:

• Expansion of Renewable Energy Infrastructure: Funding the development of solar and wind energy projects to diversify Ghana’s energy mix and reduce reliance on fossil fuels.
• Modernization of the National Grid: Enhancing the efficiency and reliability of energy distribution systems to minimize future losses.
• Subsidization of Electricity Tariffs: Supporting low-income households by reducing their energy costs, thereby improving affordability and energy accessibility.

These reinvestments would not only enhance the resilience and sustainability of Ghana’s energy sector but also create broader economic benefits, including increased energy security, improved service delivery, and equitable access to electricity for all citizens.

Revenue Growth from Continuous Operations

A 24-hour economy creates opportunities for businesses and industries to generate additional revenue. For example:

• Manufacturing: Longer production cycles in factories mean higher output and profits.
• Retail and Hospitality: Businesses operating round the clock can cater to more customers, increasing sales and employment.
• Logistics and Transportation: Night-time operations can reduce congestion and enhance supply chain efficiency, lowering costs and boosting competitiveness.

The increase in business activities will directly impact tax revenues, providing the government with additional resources to fund development projects.

Economic Multiplier Effect

The financial gains from improved energy utilization extend beyond direct savings. The policy’s implementation will stimulate secondary benefits, such as:

1. Job Creation: Businesses expanding their operations to 24-hour cycles will require additional staff, reducing unemployment and increasing household incomes.
2. Increased Consumer Spending: Higher incomes and improved access to services will boost consumer spending, driving growth in other sectors.
3. Attracting Foreign Investment: An efficient energy sector and a dynamic economy is attractive to foreign investors, particularly in industries like manufacturing, IT, and logistics.

Minimizing Energy Subsidy Costs

Currently, the government subsidizes energy costs to make electricity affordable for households and businesses. However, inefficiencies in energy utilization inflate these subsidies. A 24-hour economy could reduce these costs by ensuring optimal use of energy, allowing the government to redirect funds toward other critical sectors like healthcare, education, and infrastructure.

Potential Export Revenue

As Ghana optimizes its domestic energy utilization, opportunities for exporting surplus energy to neighbouring countries within the West African Power Pool (WAPP) could emerge. This export potential could generate additional revenue for the energy sector, strengthening Ghana’s economic position in the region.

Long-Term Economic Resilience

By reducing reliance on fossil fuels and promoting renewable energy, Ghana can protect its economy from the volatility of global oil and gas prices. The savings and revenue generated through the 24-hour economy policy can be reinvested in sustainable energy projects, ensuring long-term resilience and energy independence.

The financial implications of the 24-hour economy policy are transformative. From direct savings and increased revenues to broader economic benefits, this policy represents a practical and impactful solution to Ghana’s energy inefficiencies. The next section explores the strategies required to implement this vision effectively while addressing potential challenges.

Challenges and Opportunities in Implementing the 24-Hour Economy Policy

Key Implementation Challenges

1. Resistance to Change: Transitioning to a 24-hour economy may face resistance from businesses and workers accustomed to traditional operating hours. Concerns about increased operational costs, workforce fatigue, and adaptation to non-standard schedules must be addressed.

To overcome this, the government could offer:

Incentives for businesses adopting 24-hour operations, such as tax rebates.

Public awareness campaigns to communicate the economic and social benefits of the policy.

Phased implementation to allow businesses and workers time to adapt.

2. High Initial Costs: Upgrading energy infrastructure and implementing the required policy frameworks will involve substantial investment.
   To mitigate financial burdens:

The government can seek funding from international organizations like the World Bank or African Development Bank.

Public-private partnerships can share the financial responsibility for infrastructure upgrades, such as renewable energy expansion and smart grid technology.

3. Workforce Adjustments: Moving to a 24-hour economy requires a workforce capable of handling non-traditional schedules.

To ensure smooth transitions:

Workers should be provided with capacity-building programs and training to meet the demands of extended operations.

Labour policies must ensure fair wages, proper compensation for night shifts, and adequate rest periods to maintain productivity and well-being.

4. Energy Demand Management: The increased overall demand from a 24-hour economy could strain Ghana's current energy capacity.
   Sustainable solutions include:

Encouraging energy efficiency practices, such as the adoption of energy-saving appliances and retrofitting buildings for better insulation.

Accelerating the integration of renewable energy sources to meet demand sustainably.

5. Security Concerns: Night-time operations may heighten security risks for businesses and workers.
   Addressing this requires:

Strengthening law enforcement and increasing patrols in industrial and commercial areas.

Investing in security technology, such as surveillance systems and improved lighting.

Opportunities for Innovation

1. Technology Integration:

The adoption of smart energy systems, such as real-time energy monitoring and predictive analytics, can improve efficiency and optimize operations.

Digital platforms for logistics and transportation can enhance the efficiency of nighttime supply chains.

2. Job Creation in Emerging Sectors:

Supporting industries like renewable energy installation, energy consultancy, and nighttime logistics can create new employment opportunities, diversifying Ghana’s economic base.

3. Fostering a Competitive Business Environment:

Continuous operations can boost competitiveness in sectors like manufacturing and export, aligning with regional initiatives like the West African Power Pool.

By addressing these challenges and leveraging opportunities, Ghana can build a robust framework for the successful implementation of the 24-hour economy policy. This strategic approach ensures that the policy’s potential—economic growth, environmental sustainability, and social progress—is fully realized while mitigating risks effectively.

Conclusion

The 24-hour economy policy proposed by the NDC offers a transformative pathway to address Ghana’s energy inefficiencies and drive sustainable economic growth. By fostering continuous operations across industries and services, the policy seeks to capitalize on Ghana’s existing energy infrastructure to optimize resource utilization, reduce operational wastage, and enhance overall productivity.

This analysis underscores the revolutionary potential of the policy in addressing key energy sector challenges such as off-peak underutilization and transmission losses.

The projected financial savings, amounting to millions of dollars annually, provide a compelling case for reinvestment in critical areas such as renewable energy development and infrastructure modernization. These reinvestments would bolster long-term economic resilience while advancing Ghana’s commitments to environmental sustainability.

The benefits of the 24-hour economy extend far beyond the energy sector. The policy promises significant socioeconomic gains, including job creation, improved service delivery, and an enhanced quality of life for citizens. Moreover, Ghana’s proactive implementation of this policy could serve as a blueprint for other developing nations facing similar challenges, positioning the country as a leader in energy efficiency and sustainable development.

Nonetheless, the successful implementation of this ambitious policy requires addressing critical challenges such as resistance to change, high initial costs, and workforce adjustments. A collaborative approach involving government, businesses, and civil society will be vital to overcoming these hurdles. Key strategies, including public awareness campaigns, policy reforms, and investments in technological innovation, will play a central role in ensuring the policy’s success.

As Ghana aspires to transition into an upper-middle-income economy, the 24-hour economy policy represents a bold and forward-thinking step. It is a vision that demands collective action, strategic planning, and unwavering commitment but holds the promise of a brighter and more resilient future for the nation.

Now is the time for Ghana to unlock the full potential of its energy resources. By embracing the opportunities of a 24-hour economy, the nation can address its current challenges, pave the way for sustainable growth, and set a global precedent for innovative energy utilization and economic development.