The LPG household market in Ghana could triple by 2030, as the country pushes ahead with reforms and projects to accelerate uptake of this clean cooking fuel.
This was a key finding of a new report which aimed to estimate the national demand potential for LPG under optimized conditions, such as implementation of a new national model for LPG market design and cylinder control reflecting global best practices, and major increases in reliable LPG supply, infrastructure, distribution networks and safe cylinders.
The analysis revealed that the potential LPG household cooking market size could double within 5 years as a result of such well-planned national initiatives, and could continue to grow by about 20% every 5 years thereafter. The projected increase would mean that about 16 million Ghanaian people (approximately 40% of all households) could be using LPG by 2030.
This would, in turn, significantly reduce pressure on forest resources presently used for cooking fuel, and significantly reduce deaths and illness caused by the smoke from widespread use of solid fuels for cooking.
The report “Econometric analysis of potential LPG household cooking market in Ghana” was commissioned by GLPGP and funded by the European Union-Africa Infrastructure Trust Fund (EU-AITF). The analysis was conducted by UK-based energy economics consultancy Economic Consulting Associates with support from the Kumasi Institute of Technology and Environment (KITE) in Ghana.
The report also stated that Ghana’s LPG market growth will require “major improvements to the existing LPG supply chain, including storage capacity, filling, distribution and retailing, and the number of safe cylinders in circulation.”