Ghana has been urged by the International Monetary Fund (IMF) to implement robust reforms aimed at empowering utility service providers to recover costs and ensure reliable and sustainable power supply for households and industries. During a press briefing in Accra, IMF Deputy Director Ms. Catherine Pattillo and Mr. Luc Eyraud, Division Chief of the African Department, emphasized the need for a conducive environment to boost private sector participation in renewable energy.
Currently, Ghana’s tariff setup hinders utility service providers from recovering costs, affecting their operational capabilities. Ms. Pattillo noted that this challenge is common among many African countries, where the energy sector setup often prevents utilities from operating profitably and efficiently. The IMF encourages countries to manage their energy sectors effectively, ensuring cost recovery and service provision.
Mr. Eyraud stressed the importance of recalibrating tariff systems to enhance cost recovery. He also encouraged the government to establish mechanisms that promote private sector participation in renewable energy, citing South Africa as a success story in this area. South Africa has successfully increased private sector involvement and reduced market barriers, leading to improved renewable energy production.
In recent weeks, Ghana has experienced intermittent power outages due to financial constraints in procuring fuel for power plants. Nana Amoasi VII from the Institute for Energy Security (IES) emphasized the need for adequate resourcing of the Electricity Company of Ghana (ECG) to address the power outages. He urged the Ministry of Energy to collaborate with the Ministry of Finance to find alternative funding sources and procure fuel to get power plants online.
Meanwhile, President Nana Addo Dankwa Akufo-Addo expressed optimism about sustained power supply during the 2024 May Day celebration in Accra. He indicated that challenges related to transformers and gas supply have been resolved, resulting in improved power supply reliability.
