The Africa Centre for Energy Policy (ACEP) has lauded President Nana Addo Dankwa Akufo-Addo for rescinding his decision to approve the controversial Ameri Novation and Amendment Agreement, which is currently before parliament.

According to the energy think tank, the president decision “is a significant contribution to the democratic practice of the country” and it shows that “governance can be a shared responsibility between leaders and the led.”

ACEP noted in a statement signed by the Executive Director, Benjamin Boakye that the problems of the power sector today could have been averted if the government had been this proactive in the first place prior to the signing of power deals during the power crisis that bedevilled the country between 2014 and 2015.

“Today, the cost of excess capacity of the power sector to the country is more than $200 million a year. This will grow in excess of $600 million by 2020 if drastic measures are not taken to cancel, renegotiate or defer some of the projects that are pending,” the statement said.

ACEP stated that it will monitor how the renegotiations are done to ensure that they rather lessen the economic burden on Ghanaians.

“We acknowledge that government, through the Ministry of Energy, has already cancelled some of the Power Purchase Agreements (PPAs) which would have deepened the woes of the country through unwarranted payments.

“Nonetheless, the power sector still remains a major risk to Ghana’s economic progress because of excess capacity which incidentally are also too expensive to encourage local demand growth, or for export.

ACEP said it is “encouraged to continue to support the governance process to ensure that the power sector does not derail Ghana’s economic prospects”, as a result of the decision of government to withdraw the agreement. “We will submit a full picture of the threats in the sector to the president in the coming days.”

President Nana Akufo-Addo cancelled the renegotiated Ameri deal which was revised by his ex-Energy Minister Boakye Agyarko, after scrutinizing the agreement.