Why is Ghana’s Recurring Energy Crisis a Supply Chain Information Problem?
From the droughts of 1983, 1997–1998, and 2007–2008 that crippled hydroelectric generation at the Akosombo Dam to the infamous “Dumsor” blackouts of 2013–2015, the high distribution losses due to outdated equipment and “power theft”, down to the alarming $2.5 billion debt racked by the energy sector as of December 2024, Ghana’s energy sector has been marked by waves of instability.
Unfortunately, the conversations about the crisis tend to feel reductive — with debates narrowly focusing on mismanagement, contracts, and disputes with Independent Power Producers (IPPs) — all of which are symptoms, not root causes.
These discussions at face value, seem nuanced but if you look closely, they all have something to do with “physical resource allocation”.
This article offers a fresh perspective by exploring why Ghana’s energy crisis is not just a physical resource management issue but an information problem — and how reimagining the sector from an information systems viewpoint could provide sustainable solutions.
For instance, what if the 21.9% transmission and distribution losses recorded annually between 2006 and 2016 have more to do with the system’s inability to integrate geographic information systems with anomaly detection techniques to find hotspots for “power theft” and technical losses?
Between 2006 and 2016, Ghana Lost 21.9% of total electricity consumption annually.
If we peel back further we’d notice a significant loss due to unpaid bills and power theft.
This article makes a case for a first principles redesign of Ghana’s energy supply chain, rooted in optimising information flow instead of simply throwing more resources at the problem.
By exploring insights from applied information science, practical case studies, and cutting-edge information systems like digital twins, we will examine how Ghana can transition from a crisis to sustainability.
Ghana’s Current Energy Supply Chain at a Glance
Ghana’s energy mix comprises hydroelectric power (28.8%), thermal plants fueled by gas and oil (68.3%), and a small but growing share of other renewables (2.8%). This system has many moving parts with layers of stakeholders backing the energy supply chain to ensure proper function. I would argue that the string tying the energy supply chain and all these stakeholders together is information.
Under the current framework, Ghana Grid Company(GRIDCO) manages power production and transmission while the Electricity Company of Ghana and Northern Electricity Distribution Company manage power distribution for end users. In September 2023, the government of Ghana introduced an ambitious energy transition plan to guide the country in achieving net zero greenhouse gas emissions over the next 5 decades. However, the framework does not specifically address harmonising the organisation and access to information across the energy value chain.
Ghana’s Energy Transition Framework 2022–2070
While the Ghana Energy Transition Plan highlights the need for institutional frameworks like the National Energy Transition Implementation Committee and significant infrastructure investments, it provides limited indications of openness to solutions that leverage real-time data sharing, predictive analytics, or digital coordination tools.
Missed Opportunities in the transition plan:
- Data Governance: The absence of a robust data-sharing framework across stakeholders undermines the potential for a cohesive and adaptive energy system.
- Smart Grids and Digital Tools: The plan does not emphasize integrating smart systems, such as IoT-enabled monitoring, microgrids or digital twins, to streamline operations and reduce inefficiencies.
- Demand-Side Insights: There is minimal focus on demand-side management strategies that use real-time consumer data to optimize energy use.
It might be tempting for the Government of Ghana to roll out its energy transition plan on the existing information system without prioritizing a more future-forward foundation which I’m convinced should be rooted in having a seamless flow of information by design, throughout the energy supply chain.
I am making a case for us to reimagine the energy supply chain through the lens of applied information science to leapfrog our energy transition goals and guarantee a more proactive energy value chain.
Reimagining Ghana’s Energy Supply Chain
let’s think for a minute, about a highly adaptive, self-optimising energy supply chain which is underpinned by data governance, technology and analytics:
Data Governance
As a collection of data management processes and procedures, data governance helps institutions manage internal and external data flows. It is about aligning people, processes and technology to help the core stakeholders understand the data that the system generates.
On one hand, adopting data governance means ensuring data from the upstream energy supply chain is pooled and organised for secured access. Everything from the Internet of Things(IoT ) sensors to the market price of crude oil. On the other hand, it also means capturing and pooling all downstream data from the distribution to the consumption of electricity.
A logical step is to adopt a data governance framework in the energy supply chain that lays a proper foundation for Ghana to leverage cutting-edge technologies like smart grids and digital twins.
Technology
The established data governance will inform how we repurpose existing technologies or integrate new technologies needed to streamline the flow of information across the entire energy supply chain. We can consider cloud computing technologies like data lakes and cybersecurity-as-a-service (CSaaS). We can also incorporate hardware such as IoT devices and smart meters in building a robust information infrastructure.
Analytics
With the data governance and information infrastructure now in place, each component or player in the energy value chain can build their relevant “views” or applications based on the shared data to improve their operations in real-time. From the Ministry of Energy even down to the average household.
It would be useful to see your carbon footprint over time as you consume electricity the next time you open the ECG app, wouldn't it?
In theory, this reimagined energy supply chain improves visibility across the board. However, I’d argue that the real price is in the ability to simulate energy production and transmission scenarios that make the sector more proactive. Doing so, we can eliminate many expensive “firefighting” that the core stakeholders seem to be perpetually engaged in. This brings to mind the concept of Digital Twins.
Imagine having a virtual replica of Ghana’s entire energy system — a ‘digital twin’ — that uses real-time data to predict failures, optimize energy flow, and enable proactive decision-making. This isn’t science fiction; it’s a reality in countries like Singapore and the UK.
You can think of it as Ghana’s very own crystal ball for looking into our energy future.
With the right data governance, a well-integrated information infrastructure and analytics applications, it is possible to build a virtual replica of Ghana’s energy system, continuously updated with real-time data which would offer:
- Simulation Capabilities: Test scenarios to prevent failures and plan expansions.
- Optimization Potential: Identify inefficiencies and bottlenecks across the supply chain.
- Unified Integration: Facilitate collaboration among stakeholders, from policymakers to consumers.
Case Studies: Learning from Global Shifts
Singapore’s First Digital Twin for National Power Grid
In 2021, Singapore started developing a virtual replica of its energy system. here's a breakdown:
- The Grid Digital Twin: is a virtual representation of the physical power grid assets and network and operates using real-time and historical data. It comprises two key models:
- Asset Twin[1]for the health management of grid assets (such as substations, transformers, and cables); and
- Network Twin[2] is used to assess the impact on the grid when connecting new energy sources or consumers to the grid.
UK: National Grid ESO’s Digital Twin
In March 2022, National Grid ESO was awarded funding to develop a Virtual Energy System programme to enable the creation of an ecosystem of connected digital twins of the entire energy system of Great Britain, operating in synchronisation with the physical system.
It is proposed to include representations of electricity and gas assets and link-ups to other sectors to enable secure and resilient energy data sharing across organisational and sector boundaries and facilitate complex scenario modelling to deliver optimal whole-system decision-making.
Key Takeaways and Call to Action
Implementing digital twins is a concrete example of how prioritizing information flow can transform energy systems. By bringing together real-time monitoring, predictive analytics, and system-wide integration, digital twins address inefficiencies at their roots. However, the broader takeaway is not limited to this technology.
Ghana’s energy crisis is an information challenge at its core. By redesigning the energy supply chain with a focus on information systems — starting with a robust data governance framework, Ghana can efficiently track and allocate the physical resources needed to keep the energy sector running. Proactive and efficient allocation of resources depends on the quality and timeliness of information available to stakeholders.
To pave the way for a sustainable energy future, a great place to start is to call for an assessment of the data governance structure of the energy sector to determine alignment with our energy transition goals for the next 5 decades.
References
- McKinsey -What is a Digital Twin
- Ministry of Energy — Ghana’s National Energy Transition Framework
- Ebenezer Nyarko Kumi. 2017. “The Electricity Situation in Ghana: Challenges and Opportunities.” CGD Policy Paper. Washington, DC: Center for Global Development.
- Energy Market Authority — Singapore
- Smart Energy Global — National Grid ESO advances digital twin-focussed energy system data-sharing infrastructure in GB
