Determinants of institutional change towards a sustainable energy transition in Ghana: A political economy analysis of solar photovoltaics

Abstract

The transition to sustainable energy systems does not only entail changes to existing technologies or infrastructure. It also involves significant changes in a country's institutional frameworks that are rarely examined. Anchored in institutional analysis, this paper analyses the political economy factors influencing institutional change towards a sustainable energy transition in Ghana, with a particular focus on solar photovoltaics (PVs). The findings indicate that even though progress has been slow moving and incremental, the process of institutional change is cumulative and constitutes a fundamental third-order change. Institutional legacies within the energy sector present strong but not prohibitive barriers to renewable energy adoption. Initially, the relatively homogenous nature of preferences among key actors facilitated the introduction of solar PV. However, conflicting interests among policymakers, who simultaneously support solar PVs and fossil-fuel agendas emerged during a later phase and undermined progress. The declining cost of solar PV systems over time has, nonetheless, provided new momentum for change. Environmental conditions or shocks exogeneous to the reform domain have had mixed effects on Solar PV adoption. While Ghana's numerous power crisis exposed the inadequacies of hydro and thermal sources and created an opportunity for solar PVs, the discovery of oil and gas resources in 2007 significantly slowed change. Although international concerns about climate change and sustainable development have provided some momentum for policy change, perceived injustices in international relations between countries in the Global South and those in the Global North tend to slow the transition process down.