Ghana's Energy sector teeters on brink of collapse amid $259M debt

Accra, Ghana - Nov 20, 2024 - Ghana's energy sector is facing a critical crisis as three major power plants are on the verge of shutdown due to unpaid debts totaling $259 million owed by the Electricity Company of Ghana (ECG), according to Dr. Elikplim Apetorgbor, Chief Executive Officer of Independent Power Producers (IPP).

Speaking in an interview with Citi Business News on Tuesday, November 19, Apetorgbor emphasized the urgent need for government intervention to prevent the impending shutdown.

The Crisis Unfolds

The situation has been exacerbated by the government's default on payments, leaving power producers like Sunon Asogli Power (Ghana) Limited with no choice but to consider shutting down their operations. This would have devastating consequences for Ghana's energy supply, potentially plunging the country into darkness.

A Call to Action

Dr. Apetorgbor has stressed that swift action is necessary to prevent the shutdown, urging the government to settle the outstanding debts and ensure sustained energy production.

However, he remains skeptical about President Akufo-Addo's assurances that the commissioning of the Bridge Power Project will eradicate energy shortages, commonly known as "dumsor".

“I can confirm that all is not well, if there is no intervention before Friday, I can tell you that by Monday three key power plants will be off the grids. It is a serious matter, it is not fun,” he asserted

He also stressed that: “We have received these assurances severally so this can’t sway us. We are resolute.”

“To say that the commissioning of this plant is going to put dumsor to rest I find it difficult to relate,” he added.

Source: Florence Kyei/ Lead News Online