The Institute of Economic Affairs is advocating a shift towards gas power generation to further reduce the cost of electricity.

A fellow of the Institute of Economic Affairs, Dr William Brafu-Insaidoo says this is essential if Ghana is to create an enabling environment for the growth of businesses.

Cheaper electricity will also boost industry and accelerate the government's program of industrialization as one of the means to push forward national development.

Speaking at a dialogue on the theme: “A thriving private sector: The key to sustainable socio-economic growth, the IEA fellow added that there is also the need to improve the efficiency of electricity production, installations and distribution if the cost of power is to be reduced.

Ghanaians pay more per Kilowatt hour of electricity compared to neighbouring countries. This is partly attributable to a major reliance on light crude to fuel power plants.

The IEA estimates Electric power transmission and distribution losses (% of output) in Ghana currently stands at about 20%. These losses include transmission between sources of supply and points of distribution and in the distribution to consumers, including pilferage.

Dr Brafu-Insaidoo posits that until these factors are effectively addressed, the cost of electricity in Ghana will be on the high and remain a disincentive to the growth of business.