The Institute for Energy Security (IES) has advised the government to address the substantial debt of over $2 billion owed to independent power producers (IPPs) before moving forward with the creation of new energy authorities.
This recommendation comes amid concerns about a draft bill proposing to merge the Volta River Authority (VRA) with the Bui Power Authority, combine the Electricity Company of Ghana (ECG) with the Northern Electricity Distribution Company (NEDCo), and establish an independent Thermal Power Authority based on VRA’s thermal plants.
Nana Amoasi VII, Executive Director of IES, highlighted the crucial role of IPPs in Ghana’s power supply and warned that any shutdowns due to unpaid debts could severely disrupt electricity reliability, potentially leading to widespread power outages and significant economic impacts.
“With the government currently owing independent power producers (IPPs) over US$2 billion, it is critical to address this debt before creating any new energy authorities.”
“The IPPs play a crucial role in maintaining power supply, and any shutdown threats due to non-payment could severely affect the reliability of Ghana’s electricity supply,” he stated
