LocationsGhana Accelerates Electric Vehicle Adoption with New Market Opportunities
December 11, 2024
Group Photo of participants at the Market Opportunity Study Sensitization Workshop
The United Nations Development Programme (UNDP), together with the Energy Commission of Ghana and the Ministry of Environment, Science, Technology and Innovation (MESTI), have held a stakeholder workshop to explore market opportunities for Electric Vehicle (EV) charging stations in Ghana, as highlighted in the Electric Vehicle Market Opportunity Study report.
The report suggests that operating a charging station alone is not yet a profitable venture in Ghana, emphasizing the need for a circular business model that incorporates additional revenue streams. It is evident in the report that Level 2 charging stations face significant financial challenges, requiring over 5,000 charging hours to break even, equivalent to continuously charging every day for 208 days.
The report underscores the importance of reducing electricity tariffs, highlighting that this can significantly reduce the breakeven point for charging stations. According to the report, successful business models in the electric vehicle charging sector will require a multifaceted approach, incorporating the sale and lease of electric vehicles, warranties, and servicing centers.
Sukhrob Khoshmukhamedov, UNDP Ghana’s Deputy Resident Representative, emphasized the organization's dedication to facilitating investments in clean energy solutions.
“Through this report and subsequent engagements, UNDP Ghana aims to drive investments that will help reduce Ghana’s dependence on fossil fuels, create green jobs, and ensure inclusivity in the efforts to promote access to renewable energy technologies, contributing to our energy moonshot of 500 million more people gaining access to clean energy”, he stated.
Sukhrob Khoshmukhamedov, our Deputy Resident Representative delivering his remarks at the Market Opportunity Study Sensitization Workshop
Mr. Kofi Agyarko, Director at the Energy Commission Ghana, stressed on the importance of partnership in driving Ghana's transition to Electric Vehicles. He stated that, “We commend UNDP Ghana for their invaluable support and resources, which have been a game-changer for us”.
Sukhrob Khoshmukhamedov, our Deputy Resident Representative delivering his remarks at the Market Opportunity Study Sensitization Workshop
The report recommends that to drive growth in the electric vehicle market, the government and stakeholders must provide incentives for importing and manufacturing charging stations, offer skills training and certification for charging station installers, and develop policies that encourage investment and innovation in the sector.
Additionally, introducing a tariff bandwidth for charging stations will make electric vehicles more competitive, and implementing a circular business model that incorporates additional revenue streams will be crucial for the success of charging stations.
By addressing these challenges and opportunities, Ghana can create a thriving electric vehicle market that supports a sustainable and environmentally friendly transportation system.
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