The power sector in Ghana is facing a serious threat, as the Electricity Company of Ghana (ECG) fails to settle a crippling $259 million debt, putting the nation’s energy supply at risk. The debt is owed to independent power producers (IPPs), and the repercussions are dire, with three major power plants on the brink of closure if the debt is not cleared.
In a recent interview, Dr. Elikplim Apetorgbor, the CEO of the Independent Power Producers (IPP), revealed that without immediate intervention, three key power plants could be shut down by Monday, November 24, 2024.
“If there is no intervention before Friday, I can confirm that by Monday, three major power plants will be off the grid. This is a serious issue that cannot be ignored,” he said.
Nana Amoasi VII, Executive Director of the Institute for Energy Security (IES), also voiced grave concern over the situation, urging the government to take swift action to prevent a power shutdown. “This is not a joke. We are receiving strong indications that the plants will indeed shut down. If the government doesn’t act now, they may lose any leverage to resolve this issue with the next administration,” he warned.
This crisis has escalated following President Akufo-Addo’s inauguration of the Bridge Power Project, intended to address energy shortfalls. However, the underlying issue of unpaid debts continues to undermine the stability of Ghana’s power sector.
Despite repeated assurances, the lack of payment to IPPs has led to growing frustration within the sector. Nana Amoasi VII emphasized the urgency of the situation, recalling the shutdown of the Asogli Power Plant in early October 2024 due to similar issues. “If they are not taken seriously now, the next government will be left with even fewer options,” he added.
With the looming threat of power plant closures, experts are calling on the government to prioritize settling the ECG debt to avoid severe disruptions in the country’s power supply. The situation remains critical, and immediate action is needed to prevent a nationwide blackout.