Energy expert and chairman of the energy subcommittee for the NPP 2024 Campaign, Kwadwo Poku has announced a significant development in Ghana‘s power sector.
The cabinet has given its approval for the merger of several entities, aiming to enhance supply efficiency and potentially allow for private sector participation.
The entities slated for merger include the Ghana Grid Company Limited (GRIDCo), Bui Power, the Northern Electricity Distribution Company (NEDCO), and the Electricity Company of Ghana (ECG).
While discussing the move, Nsafoah Poku emphasised that while there is approval for the merger of NEDCO and ECG, as well as Bui Power Authority and Volta River Authority (VRA), there will be careful considerations for entities like GRIDCo and VRA due to their critical technical roles and monopoly positions.
He explained, “There is a lot going on…NEDCo and ECG there is a cabinet approval for the two to be merged. Then there is also a cabinet approval for VRA hydro and BUI [power] Authority to become one. So you’re going to have BUI Authority and VRA as one entity.
“The government has stripped the VRA thermal as a separate entity,” he said, adding that when all the parliamentary processes are done, there will be a single entity representing Bui Power Authority and Volta River Authority.
“And we are going to have ECG and NEDCo as one entity and these are things that the government has given a cabinet approval for these processes to go ahead,” said Mr. Nsafoah on The Key Points on Saturday, April 20.
Regarding potential privatisation, Nsafoah Poku highlighted the need to reevaluate GRIDCo’s functions.
“GRIDCo carries a dual function, there is the function of being the transmission company but also plays a role which is more like a market administrator which is the dispatch of power and also looking at all these other auxiliary technical willing that they do.
“These things need to be streamlined and if you are able to take some of these powers away from some of these institutions, it will be okay to privatise some of them not necessarily selling them 100 percent but be able to bring in private sector participation as a minority state on some of these institutions,” he said.
He suggested that streamlining roles could facilitate partial privatization without compromising essential services.
He emphasized the importance of private sector involvement while retaining state oversight.
The developments reflect a strategic approach to optimizing Ghana’s power sector, balancing efficiency gains with considerations for public-private partnerships.