The government says reforms in Ghana's energy sector are beginning to ease long-standing financial pressures, with more than $240 million in savings recorded from the renegotiation of agreements with Independent Power Producers.
Deputy Energy Minister Richard Gyan-Mensah said the reforms are designed to put the sector on a more sustainable footing by cutting costs, improving revenue collection and preventing a return to the large debt burdens that previously weighed on power producers.
He made the remarks at the 60th Annual Meeting of the African Power Pool in Accra.
Government cites progress
According to Mr Gyan-Mensah, the sector inherited significant challenges, including mounting debts owed to IPPs and operational inefficiencies.
He said government has since pursued tariff reviews and strengthened the cash waterfall mechanism to improve revenue management across the electricity value chain.
"Which is one of the reasons why we keep saying that we haven't gone back to the system where we have high outstanding debts, because we are able to pay IPPs," he said.
He added that some Independent Power Producers are currently receiving between 80 and 90 percent of their monthly payments, with government aiming to reach full payments in the future.
"We are looking forward to a time where we will be able to achieve 100 percent monthly IPP payments," he stated.
Mr Gyan-Mensah also credited improved revenue collection by the Electricity Company of Ghana and the Northern Electricity Distribution Company for strengthening financial discipline within the sector.
Reliable power remains key
Also addressing the meeting, Volta River Authority Chief Executive Officer Edward Obeng Kenzo underscored the role of dependable electricity in driving economic growth.
He said reliable and affordable power is essential for expanding industrial production, supporting mining operations and helping small and medium-sized enterprises thrive.
"The bedrock now of the economy is reliable and affordable electricity power to power the mining industry as well as small and medium enterprises," Mr Obeng Kenzo said.
The government's latest update comes as efforts continue to improve the financial health of Ghana's energy sector while ensuring electricity remains available to households and businesses across the country.
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