Energy Crisis Worsens as IPPs Slash Power Supply Amid Rising Debt

Ghana’s energy sector is bracing for intensified challenges starting Monday, November 25, 2024, as major power producers, including Karpowership Energy, AKSA Energy, and Cenit Energy Limited, significantly reduce electricity supply.

This development raises concerns about widespread blackouts for businesses and households, particularly with the festive season around the corner.

Reports reveal that Amandi Energy and Karpowership are now entirely disconnected from the national grid, while AKSA Energy has slashed its output from 370MW to a mere 58MW. Market analysts warn this could lead to a power deficit of approximately 450MW.

The crisis deepens as two Independent Power Producers (IPPs), Sunon Asogli and Amandi Energy, have already ceased operations. Sunon Asogli blames its shutdown on unpaid debts by the Electricity Company of Ghana (ECG), while government officials claim Amandi Energy is undergoing maintenance with no clear timeline for resumption.

Last week, Dr. Elikplim Kwabla Apetorgbor, CEO of the Chamber of Independent Power Producers, cautioned that three additional power plants might shut down if the government fails to settle its debts to IPPs.

The financial impasse has exacerbated the ongoing power crisis, resulting in frequent outages—commonly referred to as dumsor—that have disrupted economic activities nationwide.

In response, ECG is reportedly intensifying efforts to address the mounting debt. Sources indicate a shift from monthly to weekly payments in a bid to reduce arrears owed to Sunon Asogli and other power producers.

With the festive season fast approaching, stakeholders are keenly watching whether these measures will stabilize power supply and avert a full-scale energy crisis.

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