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Transportation constitutes a vital component of Ghana’s energy system, as it does across Africa. The continent is often characterized by limited economic mobility, as highlighted by the NYTimes.
Nevertheless, the demand for transportation services has been on the rise, driven in part by population growth and economic development.
This surge in demand has had notable consequences, with emissions from Ghana experiencing a significant 42% increase over the past decade, as reported by the UNEPCCC in 2022. Notably, the transport sector accounts for 15% of the final energy consumption throughout Africa.
This global trend is transforming, as numerous countries in the West and Asia are transitioning towards more sustainable and cost-effective modes of mobility.
Ghana, like many other nations, is not exempt from this global shift, especially given its heavy reliance on second-hand vehicles and the accompanying benefits, such as the potential for improved air quality that Electric Mobility presents.
As of 2023, Ghana boasts a fleet of over 600 electric vehicles actively traversing its roads. In this viewpoint, we address common apprehensions about electric vehicles, notably the perception that they are inherently unaffordable and could exacerbate the strain on the nation’s already overloaded power systems.
Instead, we underscore the significance of innovative thinking, context-specific approaches, and the utilization of localized technologies that diverge from those prevalent in high-income countries.
In truth, electric vehicles hold the potential to address one of Ghana’s most pressing challenges, which is its heavy reliance on the volatile fluctuations in fuel prices. We delve into the critical components necessary for facilitating a successful transition towards electric mobility.
Introduction: Reimagining Electric Vehicle Adoption in Ghana from Its Foundations
Over the past decade, major global economies have collectively embraced electric mobility with a similar approach. A notable trend has been the mass production of high-end electric vehicles for urban use. This surge in electric vehicle adoption in Western economies has been significantly driven by government subsidies, as noted by Helvestion et al. (2015).
Additionally, these economies have demonstrated robust support from the electricity generation sector, ensuring a sufficient power supply to facilitate the transition to electric vehicles. When considering the overall demand sentiments in these economies, it’s evident that electric mobility has gained substantial momentum.
In comparing this particular feature to the Ghanaian scenario, we can discern three fundamental challenges that pose significant hurdles to implementing the same approach adopted by Western economies. To begin with, the distinctive patterns and characteristics of vehicles within the Ghanaian transportation industry set it apart.
Secondly, the accessibility to capital presents a unique challenge. Last but certainly not least, the reliability gap in Ghana’s electricity systems creates a substantial barrier to adopting the Western model.
Foremost, it’s imperative to acknowledge that the transport infrastructure in Ghana significantly differs from that of developed economies. Ghana’s transport industry primarily relies on privately owned vehicles and an informally managed public transport system referred to as Paratransit.
Remarkably, these vehicle categories, encompassing motorbikes (Okada), tricycles (Aboboyaa), and 16-seater minibuses (Trotro), play a crucial role in meeting the transportation needs of Ghanaians. As noted by Dumedah et al. (2020), Paratransit vehicles cater to a staggering 60% to 98% of passenger trips in Ghana, underscoring their pivotal role.
This situation contrasts significantly with Western economies, exemplified by the UK, where merely 13% of automotive journeys are undertaken via public transport, with a substantial 85% relying on private cars (Micheal Burrows et al., 2021). In the UK, public transport accounts for as little as 5%, while over 90% of journeys are executed via private usage. This distinctive data delineates the challenge of mirroring Western-style electric vehicle (EV) adoption in Ghana.
Therefore, replicating the Western model for EV adoption in Ghana, which predominantly caters to private vehicle owners, proves challenging, particularly in meeting the demands of the average Ghanaian. A more pragmatic approach involves crafting diversified business models that specifically target Paratransit vehicle owner-operators in Ghana.
Given their pervasive dominance and integral role in the transportation landscape, it becomes increasingly advantageous for EV investors and innovators to direct their focus towards the Paratransit sector. This approach aligns with the unique characteristics of the Ghanaian transport industry, ensuring a more tailored and effective transition to electric mobility.
Furthermore, the accessibility to capital in Ghana is notably more limited when compared to major developed and emerging economies. This capital gap significantly influences the vehicle landscape in the country, where a considerable portion of vehicles imported into Ghana are pre-owned, primarily sourced from high-income countries.
Notably, the average age of a vehicle in Ghana stands at 14.2 years, with even higher figures for public transport vehicles. A striking statistic reveals that over 95% of vehicles brought into Ghana are second-hand vehicles, as reported by the Ministry of Transport.
What further complicates the scenario is that these second-hand vehicles, though more affordable, often fall short of adequate safety and environmental standards within Ghana, as highlighted by Baskin (2020).
To facilitate a smoother transition to electric vehicles (EVs), it is imperative to identify a well-balanced price point that aligns with the expectations of vehicle owner-operators. This price point should be competitive with the affordability of pre-owned internal combustion engine (ICE) vehicles, making the transition to EVs a more attractive and feasible option.
The third and final aspect to consider is the persistent challenge in the room, which is the state of electricity supply. Over the past decade, Ghana has grappled with numerous unanticipated blackouts, notably in the years 2015 and 2016.
These power interruptions had far-reaching consequences, causing substantial negative growth within the service sector. In developed economies, the norm is a consistent and reliable power supply whenever needed. Regrettably, this isn’t the prevailing situation in Ghana.
As it stands, electricity coverage in Ghana only extends to about 85% of the population. The disparity in power availability between Ghana and developed economies presents a significant obstacle to achieving a seamless transition to electric mobility and sustaining a robust EV infrastructure.
Could Electric Vehicles be the Long-Awaited Solution for Ghana
We believe that with the prevailing issues with EV adoption in Ghana also presents us with a good opportunity. We would look at the benefit that Electric Vehicles can present to Ghana in this case looking at the major impact areas such as governments, Electricity providers as well as vehicle owners/operators in Ghana. We will begin by looking at the Government’s sector and the benefits EVs presents to them.
Government
One key advantage for the government lies in the potential for enhanced currency stability in Ghana. Over the past decade, significant price fluctuations in the fuel market have consistently impacted the national currency. This trend has persisted even in 2023. Currently, a substantial 30% of the government’s total imports consists of crude oil.
Transitioning from internal combustion engine (ICE) vehicles to electric vehicles (EVs) can markedly reduce the capital required for importing refined oil to Ghana. This shift holds the potential to exert a profound influence on currency stability.
Evidence of this pattern can be observed in the depreciation of Ghana’s currency following notable price movements in the gasoline market over the last decade. In 2022, Ghana allocated over Ghc 154 million for petroleum market subsidies, as disclosed by the CEO of the National Petroleum Authority.
This can be diverted to investing in cheap, clean electricity generation This underscores the financial burden imposed by fuel subsidies and the economic benefits that could be realized by embracing EVs as a means to reduce crude oil imports.
Examining the observed trend in oil prices and Ghana’s import demands, it becomes evident that import receipts for oil and gas are poised to surpass the 40% threshold in the foreseeable future.
This scenario exposes the nation to the consequences of currency depreciation, which, in turn, has significant ramifications for inflation rates and the cost of living in Ghana. Reduction in fossil fuel consumption has the ability to increase both geopolitical independence and the heavy demand on country’s foreign reserves in Ghana.
The second noteworthy advantage lies in the substantial reduction of emissions. Emission savings can be quantified by examining the energy mix and comparing the efficiency of electric vehicles (EVs) to internal combustion engines (ICE), which typically operate at approximately 12-40% efficiency (Brito et al., 2013). As demonstrated below, data reveals the potential savings achievable through the transition from ICE vehicles to EVs across the African continent, as elucidated in Katherine et al. (2022).
If the African continent embraces the electrification of its transportation sector, we can anticipate a significant decrease in emissions, with Ghana projected to achieve a reduction of 50 to 60%. Furthermore, as electricity generation becomes more decarbonized in the future, we can anticipate even greater strides in decarbonization.
An additional benefit on the horizon is the anticipated improvement in air quality throughout Ghana. “Annually, nearly 24,000 Ghanaians face untimely deaths as a result of the detrimental effects of air pollution. What’s more, childhood exposure to polluted air is associated with severe mental health issues in adulthood. Economically, Ghana bears a substantial burden, losing an estimated 1.6 billion U.S. dollars each year due to air pollution.
The Institute for Health Metrics and Evaluation (IHME) has singled out air pollution as the primary environmental risk factor in Ghana, responsible for the majority of fatalities and disabilities. Paradoxically, while accidents on specific roads often capture public attention, the insidious emissions from minibus exhaust pipes, locally referred to as “trotros,” continue to go unnoticed.
Experts are in unanimous agreement that Particulate Matter 2.5 (PM2.5) is the most perilous airborne pollutant, owing to the minuscule size of its particles.
Startling data from Kaneshie in Accra consistently reveals PM2.5 levels that far exceed the World Health Organization’s recommended 24-hour exposure limit of 15 μg/m3. For instance, on September 5, 2023, the PM2.5 levels in Kaneshie reached a hazardous 155 μg/m3, illustrating the gravity of the situation.” As reported by environtech just this year.
What is in for Electricity Providers?
The primary advantage of embracing electric vehicles (EVs) in Ghana lies in the potential boon for electricity providers. A significant upsurge in revenue is anticipated as we progressively transition to EVs, offering a lifeline to many providers currently grappling with challenges, as noted by Shirley et al. (2020).
Given the vast network of over 3 million roadways in Sub-Saharan Africa, including Ghana’s extensive 109,000 kilometers of roads, the electrification of even half of these roads could generate a substantial demand of 8 terawatt-hours (TWh) annually across Ghana. This surge translates into a potential revenue of US$560 million at present pricing, as highlighted by Katherine et al. (2021).
Meeting this demand necessitates the development of additional clean energy capacity, with a particular focus on solar photovoltaics (PV). The returns generated can be reinvested to bolster clean generation capacity and enhance the overall electricity infrastructure. Moreover, this transition holds a crucial value in terms of adaptability during times of need.
The concept of Vehicle-to-Grid (V2G) and Vehicle-to-Home (V2H) systems becomes instrumental. These mechanisms leverage EVs as energy storage assets, enabling the injection of surplus power back into the grid, homes, or buildings during periods of heightened demand. This innovation stands to enhance the reliability of electricity access in Ghana.
Benefits of EV Adoption for Operators
There are two considerations that takes place during understanding the opportunities EV adoptions offers the vehicle users in Ghana especially Paratransit operators, and the overall capital and operating cost gaps in the EV space in Ghana.
Looking at the life time savings (10 years in consideration) for an EV vehicle and ICE can lead to a substantial $106,000 savings over a period of 10 years even if the cost of the EV vehicle is twice the price of ICE vehicle. This is done in consideration of the cost of electricity in Ghana and that of Cost of Fuel.
Looking at the fig below you can see the clear trend of cost of ownership of EV vehicle as compared to ICE. Also, if fuel subsidies are well removed, this can lead to further benefits for transitioning to electric vehicles. Cost savings currently stands at $0.15/Km travelled in Ghana according to Katerine et al (2019). This also can lead to about $3000 yearly per electric vehicle.
The second significant challenge in adopting electric vehicles (EVs) in Ghana pertains to the perceived high cost, particularly for owner-operators of vehicles. The initial capital outlay for a new EV is often cited as a substantial barrier to widespread adoption. Addressing this issue necessitates a multifaceted approach, entailing policy initiatives and the local production or assembly of affordable EVs tailored to the Ghanaian context.
Local manufacturing and assembly, exemplified by companies like SolarTaxi in Ghana, offer a promising avenue. Additionally, retrofitting existing vehicles to convert them into electric counterparts can significantly reduce production costs, contributing to the scalability of electric mobility adoption.
To facilitate this transition, innovative financing and leasing models are imperative. Companies like SolarTaxi have already introduced leasing models for individuals seeking to participate in courier delivery services, while other electric mobility firms such as Kofa and Wahu in Ghana are also providing attractive financing options for riders.
Furthermore, the potential utilization of carbon credits presents an exciting opportunity to offset the overall ownership costs for individuals interested in transitioning to EVs. However, despite these avenues, challenges persist in the financing space, and there remains a gap in charging infrastructure that must be effectively addressed to accelerate EV adoption.
The Elephant in the Room: Charging Infrastructure
From an infrastructure perspective, the reliability of the electricity system in Ghana has often been a source of concern, characterized by its unreliability. At first glance, the notion of introducing an additional load in the form of EV charging might seem, at best, challenging or, at worst, ill-advised. However, there are promising developments in the country’s electricity generation mix.
As the cost of renewable energy continues to decline, and with an eye on climate change commitments outlined in the Paris Agreement and the National Energy Transition Framework, Ghana envisions a transition towards a more sustainable energy future. This transition is underpinned by aspirations to meet a peak demand of 84,000 megawatts (MW) by 2070 while achieving net-zero emissions within the same timeframe.
Crucially, this trajectory includes a diminishing reliance on natural gas, with expectations of a decline in its use by the mid-2050s. This shift will be facilitated by the optimal expansion of nuclear power within the generation mix. Furthermore, renewable energy sources, specifically solar and wind, are anticipated to contribute 20% of the installed generation capacity by 2070.
These forward-looking energy plans underscore the commitment to a more sustainable and reliable electricity system in Ghana, one that can potentially accommodate the charging infrastructure demands associated with electric vehicles.
In other sub-Saharan countries such as Ethiopia, and Tanzania, PV generation has shown significant potential ranging from 8 – 37 GW (Irena et al., 2021). Looking at the potential SolarPV systems with regards to Electric Charging infrastructure will not only provides additional generation to meet its growing demand.
Ghana for instance is investing also in SolarPVs with 912kWp Jubilee SolarPV project which has been completed, The Bui Power Authority 50MW Solar Power Plant and the VRA 13MW Kaleo solar Project all commissioned and operationalized. This would as well ease out the constraints on the local distribution networks and mitigates the need for reinforcing the network.
Technological decisions to empower EV Integration
Electric vehicle adoption in a developing economy like Ghana necessitates careful consideration of technology choices to ensure successful integration. The unique challenges and opportunities presented by Ghana’s context require tailored solutions that address the specific needs of the Ghanaian transportation landscape.
Ghana’s pursuit of sustainable and clean energy sources, coupled with the need to address the challenges of electric vehicle adoption, has created a unique opportunity for the integration of solar energy in the EV ecosystem. Let us look into the advantages, challenges, and prospects of solar integration for electric vehicles in Ghana.
In Ghana, we enjoy abundant sunlight throughout the year because we are situated close to the equator. This presents a promising avenue for EV industry. By generating electricity locally through solar integration, EVs can become less reliant on the often-unreliable grid infrastructure in Ghana, ensuring a more consistent and resilient energy supply.
By primarily considering the minibuses (Trotro) and buses within Ghana’s Paratransit sector, we can directly incorporate solar PV panels onto these vehicles themselves. The technology will enable the vehicles to charge while in motion or parked offering a continuous source of energy.
The solar panels can also be incorporated into the EV charging infrastructure to harness solar energy as this leads to substantial cost reductions. These solar-integrated charging infrastructures will contribute to reducing greenhouse gas emissions, aligning with the nation’s commitment to combating climate change and improving air quality.
Despite the numerous advantages, there are challenges related to the expense, weight, and vulnerability to vandalism associated with on-board solar panels. Addressing these challenges will be crucial to ensuring the successful and sustainable integration of solar energy into Ghana’s electric vehicle landscape, facilitating a cleaner, more reliable, and cost-effective transportation system for the nation.
Another technological decision is the improvement of battery technology. Electric vehicles rely on batteries for power, and advancements in battery technology can lead to longer driving ranges, faster charging times, and overall better performance.
From the perspective of efficiency, lithium-ion batteries are a promising alternative to consider. According to Jack (2015), several manufacturers, such as Tesla and Nissan have incorporated this technology in their EV operations. LIBs have high cyclability- they can be charged a lot of times while still maintaining its efficiency. Solid-state batteries can be integrated into Ghana’s EV landscape. These batteries offer cooling mechanisms and the ability to operate in a large temperature range.
Furthermore, the integration of power storage and grid flexibility will play a crucial role in creating a more sustainable transportation system. Considering the integration of EVs that can serve as mobile energy storage devices into Ghana’s EV system will definitely play an influential role in the energy ecosystem. This whole concept is known as vehicle to grid (V2G) technology Zamanov (2023). It makes it possible for EVs to not only consume energy directly from the grid but also provide stored electricity to the grid when needed and provide energy for other EVs.
Conclusion
We firmly believe that the adoption of electric vehicles (EVs) in Ghana is not just an idealistic notion. Despite facing several challenges during this transition, we maintain that EVs offer a more economically and environmentally sustainable alternative to traditional internal combustion engine (ICE) vehicles in the Ghanaian context. The key to realizing this potential lies in the development of the necessary infrastructure.
If we successfully establish this infrastructure, we anticipate that the majority of EVs in Sub-Saharan Africa (SSA), including Ghana, will not resemble the high-income private cars typically associated with EVs. Instead, they are more likely to take the form of commonly used transportation modes in Ghana, such as minibuses or motorbikes. Additionally, the vehicles and the associated charging infrastructure should be designed to bridge the gap between the previously separate realms of electricity and transportation.
Our viewpoint highlights the manifold advantages of embracing EVs in Ghana:
Significant Reduction in Vehicle Emissions: EVs can contribute to a reduction of over 90% in vehicle emissions compared to conventional ICE vehicles. This decrease in pollution holds the promise of improved air quality and public health.
Reduction in Petroleum Subsidies: Ghana, like many other countries in SSA, currently subsidizes petroleum products. Transitioning to EVs can diminish the reliance on these subsidies. This would free up resources for other critical needs.
Support for the Electricity Network: EVs can serve as a flexible load for the electricity grid. They can store excess electricity during periods of low demand and subsequently inject it into the grid during peak hours. This flexible load management has the potential to become a valuable revenue stream, potentially worth up to US$560 million annually.
Lower Vehicle Operating Costs: Generally, EVs come with lower operating costs when compared to ICE vehicles. They can be operated for as little as US$0.15 per kilometer, making them a cost-effective choice for individuals and businesses in Ghana.
Stimulating Clean Generation Investment: The shift to EVs can incentivize investment in clean and renewable energy sources. The increased demand for electricity to power these vehicles can contribute to reducing Ghana’s reliance on fossil fuels and its carbon footprint.
The adoption of electric vehicles in Ghana is not a fanciful idea; it offers concrete benefits for both the economy and the environment. To make this a reality, investments in infrastructure and policies that promote EV adoption are paramount for a sustainable and prosperous future in Ghana’s transportation sector.
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