Mr. John Abdulai Jinapor, the Minister of Energy, met with Civil Society Organizations (CSOs) in Accra to address the issues confronting the nation's power sector.
The event called "the Engagement Session on the Energy Sector," organized by the Growth Curve Initiative, aimed to provide answers for overcoming the obstacles hindering the development of the industry.
In his comments, Mr. Jinapor voiced worry over the dire fiscal condition of Ghana’s energy industry, cautioning that unless swift changes are implemented, the nation’s electrical distribution might encounter significant interruptions.
The minister stated that the Electricity Company of Ghana (ECG) faces an enormous debt of $68 billion, whereas its outstanding payments amount to only $8 billion.
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"Despite ECG collecting all overdue payments, it would still have debts amounting to roughly $60 billion. This escalating debt is making it progressively harder for the power sector to maintain financial sustainability," he clarified.
Mr. Jinapor pointed out that ECG’s failure to fully compensate power producers was a significant problem. He also mentioned that Karpower ships, which is among Ghana's principal energy providers, sends an invoice for $22 million monthly to ECG; however, ECG can manage to pay just $7 million each month.
"This results in an outstanding unpaid balance of approximately $15 million every month, which makes it difficult for power providers to maintain their operations and raises the risk of energy shortages," he added.
The Minister highlighted inefficiencies within the sector’s cost framework as well. He observed that there wasn’t a transparent method for verifying operational expenses, maintenance fees, capacity charges, or performance incentives.
Mr. Jinapor additionally pointed out that numerous public entities, such as hospitals and governmental organizations, did not settle their electricity bills promptly, which consequently diminished ECG's income.
Mr. Jinapor pointed out that these elements have established a debt cycle which jeopardizes the overall stability of the energy industry.
In response to these issues, the Minister suggested a set of immediate changes and requested the formation of a technical committee to verify assertions about electricity production and confirm that every expense—such as upkeep and capability fees—is accurately documented.
He stated this would introduce much-needed transparency and accountability into the industry.
Furthermore, Mr. Jinapor emphasized the importance of maximizing Ghana's gas infrastructure capabilities and disclosed that significant amounts of unused gas could be harnessed if appropriate facilities were established.
He pointed out that opening gas pipelines and investing in gas processing plants could decrease the nation's dependence on costly liquid fuels.
Moreover, he stressed the importance of eradicating corruption in fuel purchasing to maintain cost efficiency.
The Minister also emphasized how renewable energy can help tackle Ghana's electricity issues.
He proposed installing solar-powered streetlights to decrease peak power usage, cut down on electricity consumption, and enhance safety.
He additionally proposed fitting solar panels in secondary schools and setting up EV charging stations to alleviate strain on the national power supply.
He emphasized that these measures would not only reduce expenses but also help create a more environmentally friendly energy industry.
Regarding financial management, Mr. Jinapor advocated for more rigorous billing and collection procedures and stressed the importance of implementing payment deadlines at public institutions. He also proposed introducing penalties for repeated failure to pay, which could potentially include limitations on services.
Provided by Syndigate Media Inc. ( Syndigate.info ).
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