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Mahama engages IPPs to avert power crisis

13th January 2025 3:46:42 PM

2 mins read

By: Andy Ogbarmey-Tettey

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Mahama engages IPPs to avert power crisis

President John Dramani Mahama has held an urgent meeting with Independent Power Producers (IPPs) in a bid to prevent a looming power crisis in Ghana.

The high-level dialogue, which took place on Monday, January 13, 2025, focused on addressing the persistent challenges in the country’s energy sector, particularly the government’s unresolved financial obligations to the IPPs. As of October 2024, the government’s debt to the producers had reached a staggering $1.2 billion, sparking growing concerns about electricity supply stability.

The meeting was seen as a critical intervention following repeated warnings from the IPPs, who have expressed that their continued operations are threatened by the mounting debt. Several companies have previously cautioned that they might be forced to cease power production if the government fails to settle the arrears.

The IPPs, who supply a significant portion of the electricity to Ghana’s national grid, have consistently raised alarms about the financial strain caused by the unpaid debts, emphasizing the risk it poses to sustaining power generation across the country.

Compounding the energy supply concerns was a recent announcement from the West African Gas Pipeline Company (WAPCo). The company, responsible for transporting gas to power many of Ghana’s electricity plants, had initially informed the government of a planned shutdown for maintenance, which further escalated fears of power shortages.

However, in a temporary relief to the nation, WAPCo announced a two-week postponement of the scheduled shutdown, offering the government additional time to resolve its energy sector challenges and avoid immediate disruptions to power supply.

4o

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