Accra: President John Dramani Mahama has assured Independent Power Producers (IPPs) of the Government's support towards generating the needed energy to boost the country's electricity supply. He bemoaned the poor governance of the Electricity Company of Ghana (ECG) and pledged to take the bull by the horns to reform the energy sector while ensuring the efficient running of the ECG.
According to Ghana News Agency, President Mahama highlighted the inefficiencies within the ECG, citing significant commercial and technical losses. He stressed the need for transparent, fair, and competitive practices to find an efficient partner for billing and metering, aiming to eliminate ECG's substantial losses.
The President reiterated the crucial role IPPs play in complementing governmental efforts by leveraging the capital necessary for power generation. During a meeting with IPPs in Accra, he discussed operational challenges and emphasized the importance of teamwork in resolving these issues.
President Mahama underscored the need to expand opportunities for IPPs, acknowledging that the government alone cannot always provide the required capital for power generation. He noted the significance of the Power Purchasing Agreements signed by many IPPs, which facilitated the establishment of thermal plants to supplement the Akosombo Hydro Dam's capacity.
He pointed out the necessity for Ghanaians to diversify their energy sources, integrating thermal power managed by the Volta River Authority with existing hydroelectric power. Mobilizing early capital and operationalizing thermal plants have posed challenges for the government and its state-owned power companies, he said.
IPPs, including Sunon Asogli Power, have played a vital role in ensuring the country's economic progress through adequate power supply. However, President Mahama acknowledged the resulting debts, which have accumulated and become challenging to repay.
He reflected on his previous administration's introduction of the Energy Sector Levy Act (ESLA), intended to clear legacy debts within five years. The change in government in 2017 led to the mismanagement of ESLA revenues, diverting funds intended for debt repayment to other uses. President Mahama emphasized that Ghana is open for business and called for investment in the energy sector.
