the per-capita consumption of energy -- that is if we are to divide the total amount of energy consumed by the population -- about one individual consumes 180 Kilowatt hours of electricity annually as compared to 13,000 in the United States. So, while we consume 180 kilowatts, in the United States the energy consumption per capita is 13,000 kilowatts.
Mr Speaker, the African Development Bank estimates that for us to achieve universal access to energy by 2025, we would have to invest about US$90 billion per annum in energy investments alone.
Mr Speaker, this tells us that there is a whole lot of work for us to do as a country and as a continent. In Ghana, we have projected that by 2020, 10 per cent of our total energy mix ought to come from renewable energies.
Mr Speaker, let me clarify this. When we talk of renewable energy, we might decide to add our hydro dams or exclude our hydro dams, depending on how we would want to define renewable energy. And so I just went to the archives and took a journal. In the field of academia, it is only proper that one acknowledges
the work he quotes. This is Renewable Energy development in Ghana: beyond potential commitment by Isaac Ackah, a new use data error correction model and Joe Hanson model to model energy consumption renewables using some other variables.
Mr Speaker, it is interesting to note from the figures that thermal energy accounts for about 60 per cent of our total energy consumption; hydro, which I said we ought to distinguish, accounts for about 40 per cent. However, solar energy which is renewable energy accounts for 0.2 per cent of the energy mix in Ghana. It tells us that there is a lot of work for us to do because, over the world, people are shifting towards renewable energy. In fact, Norway has divested its US$2 billion or US$6 billion investment fund away from non- renewable sources. China, since 2014, spent so much on renewable energy and the curve has even turned in terms of renewable energy usage.
So what are we doing as a country to be ahead of the curve when all major policies around the world seems to be focusing on renewable energy? This is because, today, we even hand funds for renewable energy which we can tap into in consultation with the International Renewable Energy Agency (IRENA), the
International Energy Agency (IEA) and so many other agencies.
There are five key areas when it comes to renewable energy; solar energy, wind energy, hydro or thermal energy, geo thermal and biomass energy. The time has come for us to make progress in terms of our renewable energy improvement.
Mr Speaker, let me also acknowledge that some work has been done. In the year 2011, we passed the Renewable Energy Act. Before the National Democratic Congress (NDC) Government left office, I recalled that we had finished with the Volta River Authority (VRA) plant around Navrongo, and we were virtually done with the MAN Energy Plant which we had already started some testing on the about 20 megawatt facility. I am aware that under my good friend, Hon Peter Amewu who is seated right opposite in that beautiful white kaftan also did his part.
Mr Speaker, in order not to take too much time since I know that my Colleagues might also be interested in contributing. I think that we ought to look at a policy and take away the bottlenecks. This is because some of the renewable energy components, even today, when they are imported,
are taxed. In some countries, all those renewable components are identified and given some tax holidays.
Admittedly, the cost of solar energy has gone down tremendously. If we look at when solar was developed till today, it is just about 25 per cent of the original cost. Technology has also improved. With the battery technology, they are now moving into lithium batteries and other battery technologies which enables a lot more of that energy to be stored.
Mr Speaker, on this note, I can only thank my good friend and brother, the Hon Majority Chief Whip, Hon Frank Annoh-Dompreh, for this impressive and well-researched statement before this House.
Thank you very much, Mr Speaker.