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Ghana’s energy sector faces a grim reality as major Independent Power Producers (IPPs) cut back electricity supply due to the government’s failure to settle mounting debts. Starting today, November 25, 2024, companies such as Karpowership Energy, AKSA Energy, and Cenit Energy Limited have significantly scaled down their operations, threatening widespread power outages during the festive season.
Major Supply Cuts
The situation has reached critical levels, with Amandi Energy and Karpowership completely disconnecting from the national grid. Meanwhile, AKSA Energy has slashed its power contribution from 370MW to a mere 58MW. This has resulted in an alarming shortfall of approximately 450MW, leaving businesses and households bracing for potential blackouts.
Reasons Behind the Crisis
The crisis is largely attributed to the government’s failure to settle debts owed to power producers. Sunon Asogli Power, one of the affected IPPs, cited the Electricity Company of Ghana’s (ECG) inability to pay outstanding arrears as the reason for its shutdown. Amandi Energy, on the other hand, is reportedly undergoing prolonged maintenance, though stakeholders remain skeptical about the timeline for its return to operation.
Warnings Ignored
Last week, Dr. Elikplim Kwabla Apetorgbor, CEO of the Chamber of Independent Power Producers, sounded the alarm, cautioning that three additional plants were at risk of shutting down if debts were not cleared. Despite these warnings, no concrete solutions have been implemented, escalating the nation’s power woes and reigniting fears of the dreaded dumsor.
Government Efforts
To mitigate the crisis, the ECG has reportedly transitioned from a monthly to a weekly payment schedule to settle arrears with IPPs such as Sunon Asogli. While this is seen as a step in the right direction, experts question whether these measures will be sufficient to restore stability in time for the festive season.
Implications for Ghana
The ongoing power challenges have already disrupted economic activities, with businesses struggling to maintain operations amid inconsistent power supply. As the festive season approaches, the stakes are even higher, with households and industries heavily reliant on electricity to meet increased demands.
The energy crisis underscores the urgent need for sustainable financial and operational solutions to stabilize Ghana’s power sector and prevent a full-blown collapse.