Ishmael Mensah Blog of Monday, 13 January 2025
Source: Ishmael Mensah
To examine strategies for preventing a possible power crisis, President John Dramani Mahama has called an urgent meeting of the Independent Power Producers (IPPs).
This crucial discussion, which took place on Monday, January 13, 2025, was intended to address the persistent issues in Ghana's power sector.
It took place against the backdrop of major financial disputes, specifically the government's outstanding debt to the IPPs, which as of October 2024 had grown to an astounding $1.2 billion.
With the government’s debt obligations remaining unresolved, concerns about a potential energy crisis were rapidly escalating, especially after repeated threats from the IPPs to halt power production.
A crucial first step in resolving the financial issues plaguing Ghana's energy sector was the conversation between President Mahama and the IPPs. The IPPs have been severely strained by the unpaid debt, which has built over several months.
Many of them have frequently threatened to stop production if the government does not pay the arrears.
The national grid depends on the IPPs to supply power, and they have frequently expressed concern about the growing debt and how it may affect their capacity to continue operating.
In the past, some of the companies had issued public threats to shut down their plants due to the government’s inability to settle the outstanding payments.
A recent declaration by the West African Gas Pipeline Company (WAPCo), which runs the pipeline that delivers gas to Ghana's power plants, added to the mounting concern.
Further raising the possibility of power outages in the nation, WAPCo had notified the government that it will be ceasing operations for planned repair.
Both the public and the government expressed anxiety at the announcement because the maintenance shutdown would have cut off a vital gas supply that fuels many of Ghana's power facilities.
However, in a brief reprieve, the scheduled shutdown by WAPCo was postponed for two weeks, alleviating some immediate fears of a widespread power crisis.