Energy Ministry, CSOs discuss challenges facing sector
The Minister of Energy, Mr John Abdulai Jinapor, has engaged Civil Society Organisations (CSOs) in Accra to discuss the challenges facing the power sector in the country.
The programme, dubbed: ‘the Engagement Session on the Energy Sector and organised by the Growth Curve Initiative,’ was to proffer solutions to address the challenges thwarting the growth of the sector.
Mr Jinapor in his remarks expressed concern about the poor financial state of Ghana’s power sector, warning that without urgent reforms, the country’s electricity supply could face major disruptions.
According to the minister, the Electricity Company of Ghana (ECG) is burdened with a staggering $68 billion in liabilities, while its receivables stand at just $8 billion.
“Even if ECG manages to collect all outstanding payments, it would still owe around $60 billion. This growing debt is making it increasingly difficult for the power sector to remain financially sustainable,” he explained.
Mr Jinapor highlighted ECG’s inability to fully pay power producers as a key issue and explained that Karpowership, one of Ghana’s main power suppliers, bills ECG $22 million per month, but ECG could only afford to pay $7 million.
“This leaves an accumulating unpaid balance of about $15 million each month, making it hard for power producers to sustain operations and increasing the risk of power shortages,” he further elaborated.
The Minister also pointed to inefficiencies in the sector’s cost structure. He noted that there was no clear process for validating operational and maintenance costs, capacity charges, or efficiency payments.
Mr Jinapor also indicated that many public institutions, including hospitals and government agencies, failed to pay their utility bills on time, further reducing ECG’s revenue.
“These factors have created a cycle of debt that threatens the stability of the entire energy sector,” Mr Jinapor stated.
To address these challenges, the Minister proposed a series of urgent reforms and called for the establishment of a technical committee to validate power generation claims and ensure that all costs—including maintenance and capacity charges—are properly accounted for.
This, he said, would bring much-needed transparency and accountability to the sector.
Moreover, Mr Jinapor stressed the need of optimising Ghana’s gas infrastructure and revealed that large quantities of stranded gas could be utilised if the right infrastructure is developed.
“Opening gas pipelines and investing in gas processing facilities would help reduce the country’s reliance on expensive liquid fuel,” he noted.
Additionally, he emphasised the need to eliminate corruption in fuel procurement to ensure cost efficiency.
The Minister further highlighted the role of renewable energy in addressing Ghana’s power challenges.
He suggested deploying solar-powered streetlights to reduce peak power demand, lower electricity consumption, and improve security.
He also suggested installing solar panels in secondary schools and developing electric vehicle (EV) charging stations to reduce pressure on the national grid.
These initiatives, he stressed, would not only cut costs but also contribute to a more sustainable energy sector.
On financial management, Mr Jinapor called for stricter billing and collection measures and emphasised the need to enforce payment deadlines for public institutions and introduce punitive measures for consistent non-payment, including possible service restrictions.
BY AGNES OPOKU SARPONG
