Benjamin Boakye, Deputy Executive Director of the Africa Center for Energy Policy (ACEP), has warned that Ghana’s electricity supply would be at risk if the government stopped prioritizing the payment of electricity bills over critical development projects.
Speaking on Joy News’ Newsfile, Boakye stated, “The power situation got out of hand long ago, but because we are dealing with government and government is interested in paying the bills even when they are not supposed to, that is why we see the light on to some extent. But without government sacrificing development to pay for electricity bills, there’d be no power in Ghana.”
Boakye criticized the government’s focus on bill payments at the expense of essential services, saying, “That is the fundamental truth and we keep saying that government doesn’t need to be paying electricity bills. Even access to hospitals is a challenge, and we are sacrificing that to keep the lights on.”
This comes as Ghana’s energy sector faces an imminent crisis, with three major power plants on the brink of shutting down due to unpaid debts to Independent Power Producers (IPPs). The government’s inability to settle these arrears threatens the stability of the national grid and could lead to widespread power outages.
Dr. Elikplim Kwabla Apetorgbor, CEO of the Chamber of Independent Power Producers, Distributors, and Bulk Consumers (CIPDiB), warned that if no intervention occurs by November 22, 2024, three key power plants could cease operations by the following Monday. “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 grid. It is a serious matter, not fun,” Apetorgbor said.
The IPPs are owed $1.7 billion by the Electricity Company of Ghana (ECG), which has hindered their operations. Sunon Asogli, Ghana’s largest IPP, halted operations on October 8 due to the government’s failure to address its debts. Despite efforts to restructure some debt, the financial strain continues to undermine the sector’s stability.
The ongoing crisis casts doubt on the government’s assurances that new investments would resolve the country’s energy challenges. Apetorgbor remarked, “We have received these assurances several times, so this can’t sway us.”
With the government’s debt to IPPs reaching $2.3 billion in July 2023, the situation remains dire. IPPs have called on the Ministry of Finance to take urgent action, as the risk of “dumsor” (intermittent power outages) looms, potentially affecting industries and households alike.