Adnan Adams Mohammed
Three major Independent Power Producers (IPPs) are likely to shut down due to unpaid debt of $259 million owed by the Electricity Company of Ghana (ECG), if government fails to act swiftly, the Executive Director of the Institute for Energy Security (IES) has disclosed.
Nana Amoasi VII, has therefore advised government to immediately take steps to avert a return to the power supply challenges experienced in the past.
The shutdown of three key plants may result in a combined loss of over 1,418 megawatts from the country’s installed capacity.
“We have already lost 550 megawatts from Asogli, 200 megawatts from Amandi, and another 200 megawatts from Enipower,” Nana Amoasi VII explained. “When you add Karpower, which is currently operating at less than 53 megawatts, we are left with less than 4,000 megawatts of available capacity, far below the peak demand of 3,700 megawatts.”
This deficit, he warned, will result in prolonged power outages, commonly known as “Dumsor,” potentially destabilizing the national grid and discouraging investor confidence.
The IPPs operations are severely affected by growing government’s indebtedness to the IPPs.
“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. We have received these assurances severally so this can’t sway us. We are resolute,” CEO of Chamber of IPPs, Dr. Elikplim Apetorgbor said in an interview last week.
To this, while commenting on the challenge, Nana Amoasi VII urged government to act on the matter with some urgency.
“The bird whispered to us at the IES that they intend to take such a step. There is a fear that if they don’t act now, they won’t have the leverage or that audacity to convince the next government to pay them, and so they are venting out their frustration.
“I believe that they will make do their word judging from where Asogli took us from. We never believed that any IPP would shut down for the second time. Asogli did as of the 8th of October.
“…We believe strongly that they will make do their word and that government must take them seriously and act now to avert any [power shutdown],” he urged.
The government has touted the Bridge Power Project as a solution to the country’s power challenges, with President Nana Akufo-Addo recently commissioning the project.
Apparently, Nana Amoasi VII cast doubt on these assurances, noting that the project had already been operational earlier this year and was not a new addition to Ghana’s power gener ation infrastructure.
“What we witnessed yesterday was a political commissioning. Bridge Power has already been included in our power generation capacity for months. It’s not new, and it hasn’t solved the ongoing crisis,” he said.
Despite public claims by Finance Minister Ken Ofori-Atta during the IMF annual meetings that funding was secured to resolve the Asogli Power Plant’s issues, Nana Amoasi VII revealed that no payments had been made, leaving the plant offline.
“Asogli is still offline because the financial arrangements promised by the government have not materialized,” he said.
Nana Amoasi VII emphasized the dire state of Karpower operations, which he described as producing far below its potential, with output dipping to just 53 megawatts over the past two weeks.
“Karpower’s reduced output has been a long-standing issue, and the signals have been clear for some time. This is the final nail in the coffin if urgent action isn’t taken,” he warned.
With peak electricity demand exceeding available supply, the energy sector is bracing for disruptions that could ripple through households and industries.
Stakeholders are urging the government to expedite financial settlements and adopt sustainable strategies to stabilize the energy landscape.
