The major objective of the power sector reform in Ghana, which began in 1994, is to ensure adequate, reliable and efficient supply of electricity by encouraging private sector investment and introducing competition in the wholesale power supply market and thereby increasing efficiency and reducing cost to the consumer. To achieve this, there was the need to create an Electricity Transmission Utility to provide a fair and open access for all market participants to the interconnected power system.

The Volta River Development (Amendment) Act 692, 2005, Clause 8 (3) and the Energy Commission Act, 1997 (Act 541) provide for the separation of the transmission functions from the other activities of the Volta River Authority (VRA). Pursuant to the above mentioned Acts, and the on -going Power Sector Reforms, a transmission utility company, the Ghana Grid Company Limited (GRIDCo) was established.

GRIDCO was incorporated on 15th December, 2006 as a private limited liability company and granted a certificate to commence business on the 18th December, 2006.

The functions of GRIDCo are as follows:

1. Undertake economic dispatch and transmission of electricity from wholesale suppliers to bulk customers
2. Provide fair and non-discriminatory transmission services to all power market participants.
3. Acquire, own and manage assets, facilities and systems required to transmit electrical energy.
4. Undertake metering and billing services.
5. Carry out transmission system planning and implement investments necessary to provide the capacity to reliably transmit electric energy.
6. Manage the Whole Sale Power Market.