President John Dramani Mahama has assured Independent Power Producers (IPPs) of the Government’s support for their efforts to generate energy to boost the country’s electricity supply.
While bemoaning the poor governance of the Electricity Company of Ghana (ECG), President Mahama pledged to reform the energy sector while ensuring the efficient running of the ECG.
“You can’t run an electricity utility and make 40 per cent commercial and technical losses and continue to think that you have a viable business,” he said.
“If we do it more transparently, more fairly, more competitively, I’m sure that we’ll get an efficient partner to join us in billing and metering so we can eliminate the huge losses that ECG is making.”
He reiterated the key role IPPs play in the country’s energy sector. They complement the government’s efforts to leverage the capital required to generate the country’s needed power.
The President gave the assurance during a meeting with IPPs in Accra on Monday to discuss the challenges they faced in their operations and how to find solutions through teamwork.
“It was important that we expand the space for independent power producers because the Government on its own cannot always leverage the capital to put in the generation that is required,” he said.
“And that’s how come many of you signed the PPAs (Power Purchasing Agreements) and set up the thermal plants that we have.”
He said this was to help increase generation, as the Akosombo Hydro Dam could not continue to be the country’s sole power provider forever.
The President said the time had come for Ghanaians to complement hydroelectricity with thermal power, which the Volta River Authority was responsible for.
“But mobilising capital early enough and being able to operationalise thermal plants was becoming a challenge for government and its state-owned power production companies,” President Mahama said.
That was when IPPs such as Sunon Asogli Power started participating. They have since played a critical role in ensuring the nation’s economy has the power to continue progressing.
“However, this has generated some debts, which had accumulated and become difficult to pay back,” he said.
The President noted that his previous administration introduced the Energy Sector Levy Act (ESLA) with the expectation that Ghana would be able to clear the legacy debt within five years, considering the revenues to be accrued by the sector.
However, with the change in government in 2017, President Mahama said the ESLA was not used for its intended purpose, adding: “The revenues of ESLA were mismanaged. And so, what should have gone to pay down a lot of the debt was used for other purposes.”
He said Ghana was open to business again and called for investment in the sector.
Credit: Ghana News Agency.
