GHANA’S Energy Minister, John Abdulai Jinapor, has dismissed claims that the government intends to privatise the Electricity Company of Ghana (ECG) or the Northern Electricity Distribution Company (NEDCo). Speaking at a press briefing on Friday, he assured Ghanaians that while ECG is facing financial challenges, any reforms will prioritise Ghanaian businesses and entrepreneurs.
‘We have not taken any decision to sell ECG or NEDCo. However, the company currently collects only GHS1.5bn ($96.8 million) of its expected GHS2bn monthly revenue, creating a deficit of GHS6bn annually. This situation must be addressed through transparent, competitive reforms,’ Jinapor stated.
Government to build second gas processing plant
Beyond ECG, Jinapor outlined several urgent measures to stabilise Ghana’s energy sector, including the construction of a second gas processing plant. The minister revealed that Ghana requires $700 million worth of liquid fuel to meet its current energy demands. ‘Our gas supply is inadequate, making this investment critical for stability,’ he explained.
The Cabinet has approved a set of short, medium, and long-term strategies, including collaboration with the Ministry of Finance to expedite the second gas plant project.
No load-shedding timetable as power exports continue
The minister also refuted calls for a load-shedding timetable, stating that Ghana is not currently rationing electricity. ‘We are not shedding load, so there is no need for a timetable. In fact, we are exporting 300 megawatts of power to neighbouring countries such as Benin,’ he noted.
However, he acknowledged the fragility of the system, citing fuel supply constraints and outstanding payments to independent power producers. He confirmed that Bridge Power, a major independent power producer, had resumed operations after negotiations to settle unpaid debts. Similarly, ENI Gas, which had threatened to halt supply, has agreed to continue operations, increasing gas supply for power generation.
Renewable energy and cost-cutting measures introduced
As part of efforts to ease the burden on the power sector, the government has approved the operationalisation of the Renewable Energy Investment Fund. This initiative will support solar rooftops, EV charging stations, chargeable outboard motors, and solar-powered streetlights. ‘By reducing peak demand, solar streetlights alone will generate significant cost savings,’ Jinapor said.
To control expenditures, all agencies within the energy sector have been directed to suspend non-essential spending, with even critical expenditures requiring prior approval. ‘The sector is financially strained, and tough but necessary decisions must be made,’ the minister emphasised.
Second mooring system and fuel storage expansion
The government has also approved the construction of a second mooring system in Tema, known as the CBM, to improve fuel import capacity. Since 2006, demand for fuel has surged by 186 percent, yet Ghana still relies on a single mooring system, leading to high demurrage costs and supply disruptions. Additional fuel storage tanks will also be built in Takoradi to enhance supply flexibility.
Jinapor assured the public that further measures will be announced in the coming weeks to reinforce Ghana’s energy security.
