Sunon Asogli Power Plant closes due to ECG's $259M unpaid bill

Oct 16, 2024 - 17:53

Accra, Ghana - October 16, 2024 - The 560-megawatt Sunon Asogli Power Plant in Ghana has ceased operations due to unpaid debts totaling $259 million owed by the Electricity Company of Ghana (ECG), the company revealed in a statement released on October 16, 2024.

Despite accommodating ECG by waiving idle capacity charges, Sunon Asogli's debt has surged 23% since January 2024, with only 22.6% of invoices settled through the Cash Waterfall Mechanism.

The shutdown is expected to impact Ghana's national power supply significantly. Sunon Asogli expressed regret over the situation but emphasized that it had no alternative due to the unsustainable financial burden.

The company has called on the Ministry of Finance to intervene and facilitate a resolution to enable it to resume operations as soon as possible.

This development highlights the ongoing challenges faced by independent power producers (IPPs) in Ghana, who have long complained about government debt and unpaid bills. The issue has sparked concerns about the viability of continuing operations, with some IPPs warning that they are "on life support" and cannot guarantee continuity.

Key Facts:

Debt Owed: ECG owes Sunon Asogli $259 million, excluding fuel costs, as of September 2024
- Debt Increase: 23% surge in debt between January and September 2024
- Invoice Settlement: Only 22.6% of invoices settled through the Cash Waterfall Mechanism
- Impact: Shutdown expected to affect national power supply significantly

Find the full statement below