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      Energy prices in Ghana and across global markets are rising, volatile and increasingly difficult to predict. For businesses that have not yet treated energy as a strategic priority, the cost of inaction is growing constantly. Rising tariffs, fuel price exposure and system constraints are already eroding margins, disrupting operations and influencing investment decisions across sectors.

      This dynamic is not simply a price volatility issue. Energy is no longer a background cost that can be managed through procurement and or viewed pure as an external factor. It is emerging as a strategic variable that directly affects operational continuity, cost competitiveness and long-term planning.

      In Ghana, businesses are exposed to an inherent risk in the energy industry that relates to unreliable grid supply, transmission constraints and a relatively slow pace of infrastructure investment. This creates a more complex and layered energy risk profile that cannot be managed through traditional approaches alone.

      This briefing examines what is driving the emerging price volatility, why it matters beyond the energy sector and what corporate leaders in Ghana should consider in managing this risk, with a clear focus on the direct implications for businesses.

      This challenge is shaped by both global pressures and local system dynamics. Businesses are exposed not only to movements in global energy markets

      What is happening: A system under pressure

      Globally, the definition of energy security has evolved. It is no longer about securing access to fuel, but about building energy systems that can withstand disruption, adapt to volatility and reduce dependence on concentrated infrastructure. Recent geopolitical events, including the wars in Ukraine and the Middle East, have underscored how quickly energy markets and corporate cost structures can be destabilised.

      In Ghana, these global pressures interact with a system that has its own structural characteristics. Power generation, transmission and distribution are heavily state influenced, with institutions such as the Electricity Company of Ghana playing a central role in how power is delivered. Thermal generation remains dependent on gas supply linked to national infrastructure and policy decisions. As a result, the cost and reliability of power reaching businesses are shaped as much by public sector performance as by market dynamics, making system reliability and institutional performance central to business outcomes.

      In this context, energy security is increasingly a question of how the system functions. For businesses in Ghana, this reflects a combination of global energy dynamics and local realities, including how electricity is generated, transmitted and delivered to end users. This creates a multi-layered risk profile. Understanding how these factors interact is the starting point for any credible corporate energy strategy.

      Taken together, these dynamics point to a clear conclusion. Energy risk in Ghana cannot be understood through a single lens. It sits at the intersection of global markets, public sector systems and corporate decision making, and businesses that focus on only one of these dimensions are likely to underestimate their exposure.

      Why this matters: Energy is now everyone’s business

      Energy volatility is no longer confined to the energy sector. The sharp rise in global oil and gas prices has transmitted directly into industrial input costs, logistics and consumer prices across multiple sectors. In Ghana, this dynamic reflects a system influenced by both market conditions and public sector structures. Fossil fuels underpin not only power and heat but also the cost structure of manufacturing, agribusiness, logistics and services businesses exposed to global supply chains.

      For businesses in Ghana, there is an additional and often under recognised dimension. A significant part of energy risk is system driven and therefore partially outside corporate control. Grid reliability, transmission constraints and the availability and pricing of gas all influence what energy actually costs and how reliably it is delivered. These factors are influenced by regulatory decisions, infrastructure investment cycles and fuel supply arrangements that are ultimately government managed. The implication is direct and often under recognised.

      This changes how the problem must be approached. Managing energy risk requires understanding where exposure is systemic, where it is commercial, and where it can be actively reduced.

      In practice, this exposure becomes visible in how energy costs and supply conditions translate into day-to-day business operations. Tariff adjustments can move faster than companies can absorb, while supply side constraints can interrupt operations with limited commercial warning. Businesses that treat energy purely as a pass-through cost are exposed to risks, they have not fully mapped, let alone mitigated.

      How companies are responding: Practical lessons from the field

      The energy challenge is not hypothetical. Businesses across sectors have already made moves, some under pressure, others as a deliberate strategy. What follows draws on real examples to show what action looks like, and what it can deliver. Each pattern has direct relevance for companies operating in Ghana today.

      This shift is not limited to corporate energy users. It is also happening at the source. Energy producers themselves are repositioning in response to the same pressures, reflecting a broader change in how energy is produced, supplied and consumed.

      Shell and TotalEnergies, two of the world's leading energy producers, are actively diversifying away from the very fossil fuels they produce. This is a commercial read of where energy markets are heading.

      Shell’s response to volatility in oil and gas markets, rising emissions pressures and the need for reliable energy supply has been to reposition its business beyond traditional hydrocarbons. The company has invested in renewable energy and integrated power solutions, including solar, wind and energy trading, while developing distributed and client-focused energy systems. This has diversified revenue streams, reduced exposure to single commodity cycles and strengthened its ability to provide end to end energy solutions to corporate clients. 

      TotalEnergies has responded to fossil fuel price volatility and growing client demand for cleaner and more stable energy by repositioning itself as a multi-energy provider. The company has expanded into solar generation, battery storage and distributed energy solutions, particularly across Africa, while developing solar projects and entering into long term power supply arrangements with commercial and industrial clients. This has strengthened its ability to provide more stable and diversified energy solutions while reducing long term exposure to fossil fuel volatility.

      The signal for corporate leaders is clear. If the companies producing fossil fuels are actively diversifying away from them, the case for corporate energy users to reduce their own dependence is not ideological but grounded in rational risk management. What energy producers are doing by strategic design, corporate energy consumers in Ghana can do by deliberate choice.

      This broader shift is reshaping how energy is produced, supplied and consumed. As energy providers evolve their models, corporates are also rethinking how they source and manage energy, moving from passive consumption to active management. This is increasingly translating into four concrete patterns of action.

      1. Invest in self-generation to reduce grid dependency

      The most direct response to unreliable grid supply is to reduce dependence on it. This is not a future consideration, it is already underway in Ghana with companies across sectors investing in on-site generation to improve resilience and manage energy costs. It is about reducing dependence on an increasingly constrained system and improving continuity." so the last paragraph should read like this "This illustrates a broader shift in how companies are approaching energy. In the Ghanaian context, the focus is moving from cost optimisation to operational control. Self-generation is not simply about reducing cost. It is about reducing dependence on an increasingly constrained system and improving continuity.

      Ghana’s largest steel producer commissioned a 4.3MW grid-tied solar system at its Kumasi factory, one of the largest distributed solar installations for an industrial manufacturer in the country. The system is expected to supply approximately 20 percent of the plant’s 40MW energy requirement and was developed with no upfront capital, financed by Daystar Power under a long-term payment structure. Over its lifetime, the installation is projected to offset nearly 50,000 tonnes of carbon emissions while reducing reliance on grid power.

      At its Tema facility, Nexans Kabelmetal deployed a 532kWp grid-tied solar system, providing approximately 55 percent of daytime electricity needs and covering around 25 percent of total energy consumption. The installation reduces greenhouse gas emissions and provides greater cost stability in an environment of rising electricity tariffs.

      AngloGold Ashanti is advancing solar power installations across its Ghanaian operations, including large-scale projects at Iduapriem and Obuasi. In partnership with the Volta River Authority, the company is progressing a 100MW solar development as part of a broader strategy to reduce emissions and strengthen energy security across its mining operations.

      A key feature of these projects is the financing model. In each case, solar systems have been deployed with limited or no upfront capital, typically structured through long-term agreements with third-party providers such as Daystar Power. This allows companies to access reliable and lower-cost energy while preserving balance sheet flexibility. Across markets, similar models have enabled businesses to reduce energy costs by up to 30 percent while improving reliability.

      While Ghana is already seeing adoption, similar approaches have been deployed at scale in other African markets. MTN South Africa for instance responded to prolonged load shedding, which exceeded 6,800 hours in 2023, by deploying a hybrid energy system combining solar, battery storage and backup generation at its Johannesburg campus. This enabled the site to operate independently during outages, reducing reliance on grid and diesel power by 40 percent and delivering annual cost savings of approximately USD 650,000, while improving operational resilience and limiting exposure to rising electricity prices.

      This illustrates a broader shift in how companies are approaching energy. In the Ghanaian context, the focus is moving from cost optimisation to operational control. Self-generation is not simply about reducing 

      2. Use long-term contracting to lock in cost certainty

      Another response has been to reduce exposure to price volatility through structured, long term energy arrangements.

      Pick n Pay addressed rising electricity tariffs and unreliable grid supply by entering into a rooftop solar power purchase agreement at its Longmeadow Distribution Centre. The system, financed and operated by a third-party provider, required no upfront capital investment and reduced grid electricity consumption while delivering long-term cost savings under a fixed tariff.

      Shoprite Group responded to energy cost volatility and supply constraints by rolling out rooftop solar installations across its network, reaching more than 100 sites with over 43,300 kWp of capacity. This has improved operational resilience, reduced exposure to electricity price increases and enabled renewable energy generation at scale.

      A key enabler of this model is financing. In many markets, third party developers finance, build and operate solar installations under long term power purchase agreements, allowing corporates to access renewable energy without upfront capital investment.

      In Ghana, this financing layer is beginning to take shape. Financial institutions such as CalBank are supporting renewable energy adoption through dedicated green financing programmes, including initiatives such as SUNREF, which provide loans, grants and technical support for solar and energy efficiency projects. This reflects a broader shift in which access to financing, rather than technology, is becoming the key consideration to scaling distributed energy solutions.

      For businesses in Ghana, this highlights the growing importance of cost predictability. Long term contracting can reduce exposure to volatility, but value depends not only on structuring agreements correctly and aligning them with operational demand, but also on access to appropriate financing solutions. This creates an opportunity for banks and financial institutions to support clients through structured energy financing and risk sharing arrangements.

      3. Drive energy efficiency as the fastest available lever

      While supply side solutions are critical, many companies are also focusing on reducing demand.

      Unilever has responded to rising energy costs and emissions targets across multiple markets by implementing large-scale energy efficiency programmes alongside a transition to renewable electricity across its operations. This has resulted in a 28 percent reduction in energy consumption since 2008 and a 64 percent reduction in operational emissions since 2015, while strengthening resilience to energy cost pressures.

      For many companies in Ghana, energy efficiency remains the most immediate and practical starting point. It reduces baseline demand and improves resilience regardless of how the energy system evolves.

      4. Map and manage energy exposure across the supply chain

      Energy risk extends beyond direct consumption to suppliers, logistics and production inputs.

      In one example from West Africa, a beverage company transitioning from diesel generation to solar, reduced energy costs significantly, but the full benefit was only realised after mapping energy exposure across the value chain.

      The lesson from these cases is consistent. The companies managing energy risk most effectively are not waiting for the system to improve. They are reducing their dependence on it through efficiency, self-generation, contracting and supply chain redesign. Each of these moves is available to businesses in Ghana today.

      Four things most businesses may not be aware of about their energy position

      Most companies track electricity spend. Fewer have mapped the energy embedded in their logistics, raw materials, suppliers and production inputs. The full number is almost always larger and the exposure, more distributed than the bill suggests. Until you have that number, you cannot size the risk or prioritise the response.

       

      Grid reliability, tariff decisions and gas supply in Ghana are system-level variables. No procurement strategy fully hedges them. The companies managing these well have separated what they can control from what they must plan around, and they treat the two categories completely differently.

       

      Solar costs, PPA tariffs and efficiency investment paybacks are all more favourable today than they are likely to be in three years as demand increases and regulatory requirements tighten. Delay is not neutral, it is a cost. Every month of inaction is a month of exposure that a competitor may have already addressed.

      Energy strategy needs to sit alongside capital allocation, supply chain planning and regulatory engagement not in a sustainability annex or a procurement workstream. If it still lives there, the business is not managing energy as a strategic input. 

      The energy transition: an accelerator, not just a climate agenda

      The current geopolitical environment is strengthening the case for renewables, not only as a climate response but as a strategic component of more resilient energy systems. Once built, renewable assets reduce dependence on imported fuels, are not exposed to commodity price cycles in the same way as thermal generation and can support more distributed and adaptable energy infrastructure when combined with storage and grid investment.

      In Ghana, this logic is compelling but must be understood alongside real near-term constraints. Thermal generation and gas supply remain central to the current system. Any credible transition pathway will need to manage the balance between short term reliability and long-term diversification, and the pace of that transition will depend on policy direction, regulatory consistency and the willingness of the state to enable private sector participation at scale.

      This creates a set of practical trade-offs. Prioritising cost today may increase exposure to volatility tomorrow. Accelerating renewables without system readiness may introduce reliability risks. Delaying transition may lock businesses into structurally higher and less predictable energy costs.

      The value proposition for investing in renewables is shifting. Energy security, resilience and the transition are converging into a single strategic agenda for government and the private sector alike. The more structural question is whether this moment re-anchors the energy transition as a security imperative rather than solely a climate one. If it does, that could become one of the more important accelerators of renewable deployment and system investment in Ghana over the coming decade.

      Implications for corporate sectors in Ghana

      Energy is becoming harder to treat as a background issue. Across sectors, it is increasingly a strategic input with direct implications for cost, competitiveness and continuity. The following summarises the most material implications by theme.

      What these themes means for businesses in Ghana

      Energy price volatility flows directly into operating margins, particularly for energy-intensive sectors. Businesses that have not modelled their sensitivity to energy cost movements are carrying unquantified financial risk.

      Companies that invest in efficiency and resilience now will face lower and more predictable energy costs over time. Those that do not, may find themselves at a structural cost disadvantage relative to better-prepared peers.

      Energy exposure does not end at the factory gate. It is embedded in transport, logistics, raw materials and industrial intermediates. Businesses need a full-chain view of energy risk, not just their own consumption.

      The energy transition in Ghana is now as much about supply security and affordability as it is about climate. For corporates, this means renewable procurement and efficiency investment can be framed and funded as business resilience initiatives — not only ESG commitments.

      Energy policy, tariff frameworks and infrastructure investment decisions will shape the operating environment for years. Businesses that understand and engage with the regulatory landscape will be better positioned to structure investments, manage risk and influence outcomes.

      Energy risk is increasingly a due diligence and value creation issue. Asset-level energy exposure, supply risk and transition readiness are becoming relevant to investment decisions across sectors.

      How KPMG can help

      KPMG works with businesses across sectors to develop energy strategies grounded in commercial reality, reflecting both global market dynamics and the specific characteristics of the systems in which they operate. Our support spans strategic assessment, structuring and transaction advisory.

      We support clients in:

      • Energy strategy and risk assessment - Mapping corporate energy exposure, modelling cost scenarios and identifying the most material risks across both global markets and the local system.
      • Regulatory and policy navigation - Interpreting tariff frameworks, policy direction and regulatory risk to inform energy investment decisions and long-term planning.
      • Efficiency and demand management - Identifying opportunities to reduce consumption and exposure and supporting the design of programmes with clear commercial returns independent of commodity movements.
      • Transition and renewables structuring - Advising on renewable procurement, self-generation feasibility and project structuring, including transactions involving public sector or government stakeholders.
      • Supply chain energy risk - Assessing energy exposure across the value chain, identifying areas of vulnerability and supporting decision-making around substitution and operational optimisation.
      • Investor and private equity advisory - Integrating energy risk and transition readiness into due diligence, value creation planning and portfolio strategy for private equity and asset manager clients.

      Taken together, these capabilities are designed to help clients move from exposure to action, managing energy not only as a cost, but as a strategic lever for resilience and competitiveness.

      Conclusion

      The companies that will be most resilient are not those that wait for the system to stabilise. They are those that act early to understand their exposure, diversify their options and integrate energy into core decision making.

      Our people

      Kwame Sarpong Barnieh
      Kwame Sarpong Barnieh

      Partner, Head of Advisory, GRC & ESG Services

      KPMG in Ghana

      Partner, Head of Tax and Regulatory Services
      Kofi Frempong-Kore

      Partner, Tax

      KPMG in Ghana