Government urged to create supportive licensing regime for renewable energy companies

Government urged to create supportive licensing regime for renewable energy companies.  Government has been urged to create a supportive licensing regime for renewable energy companies to ensure the attainment of decarbonisation targets for the benefit of the environment and the economy.

Research Consultant, Dr Charles Gyamfi Ofori, who made the call, said a supportive regime would help curb delays in license approvals, high licensing costs and fees, and complex documentation requirements impacting operations of these companies.

Presenting findings of a study on the renewable energy sector at Renewable Energy Licensing Forum organised in Accra by the Association of Ghana Industries, Dr Ofori said a non-supportive licensing regime had led to more than 40 per cent of companies in the sector operating without licence.

Out of the 28 companies who participated in the survey, 12 of them representing a percentage of 43 had no license, nine companies scoring a percentage of 32 had an active license and seven companies, representing 25 per cent had expired licences.

“If the government aims to improve renewable energy integration in line with decarbonisation goals and targets, it will be crucial to streamline the processes for businesses involved in this sector.

A key aspect of this streamlining is developing a licensing regime that supports rather than hinders business operations,” he said.

This, he said, should involve tackling delays in approvals, reducing costs and fees, and simplifying documentation requirements for these businesses.

He commended the Energy Commission for taking steps to digitise and innovate the licensing process, adding there was still considerable room for improvement to ensure that the majority of the challenges were resolved.

Dr Ofori said the sensitive nature of energy as a resource demanded that irrespective of a company’s size and the form of energy it provided, strict adherence to proper standards must be ensured.

“Energy is a very sensitive resource and we need to ensure that the standards are being followed so whether weather renewable or non-renewable, they need to get the requisite licensing and it should be done. Whether it’s a one-person business or a two-person businesses, “he explained.

“I think the first thing is to create a market for businesses to thrive and to operate”, he suggested as one of the means of improving renewable energy integration in the country adding that competition exist in a well regulated business and can also drive a lot of important reforms in the renewable space.

Source: GNA