Energy Minister, Dr. Matthew Opoku Prempeh has intimated that government is committed to ensuring long-term financial sustainability in Ghana’s power sector.
According to the sector Minister, Government has approved the Energy Sector Recovery Programme (ESRP),;which is being implemented to bring about long-term financial sustainability of the sector.
“We are fully committed to release funds as has been done since 2017 to improve liquidity of the value chain. These measures are part of the Akufo Addo led government’s broader strategy;to ensure long term financial sustainability in Ghana’s power sector.”
Dr. Opoku Prempeh
Speaking during a presentation to provide updates in the energy sector,;he explained that the ESRP came about due to the relocation of the Karpower Plant to the Ashanti Region. A move to ensure supply of power to the middle and northern belts.
He further noted that it was also due to payment of GH₵2.63 billion electricity bills owed ECG. He then added that plans to ensure that the Public Utility and Regulatory Commission (PURC) adjust electricity tariffs;is another factor.
Touching on power outages, Dr Opoku Prempeh reiterated government’s earlier stance that,;the current power outages is not due to financial constraints. He disclosed it is due to transmission upgrade;and maintenance works to ensure a lasting solution to the frequent power flickering. He revealed that;the roll-out of the Energy Sector Levy Act (ESLA), Cash Waterfall Mechanism, Gas Clearing House and Delta Fund, would go a long way to ensure reliable, affordable and sustainable power supply in the near future.
Load shedding ends today
Dr. Opoku Prempeh further noted that the load shedding timetable released by the ECG and GRIDCo to enable engineers working on the Pokuase BSP to perform transmission tie-in works would end today, May 17, 2021 but did not state whether there would be any extension.
The Minister believes that all the major transmission infrastructure upgrade would be completed;by the end of this year in order to end the intermittent power interruptions.
Government saves the nation US$2.761 billion
Dr. Opoku Prempeh revealed that Government has saved the nation US$1.426 billion;for deferment of three emergency Power Purchase Agreements (PPAs) since 2019.
He indicated that with respect to the over 40 PPAs signed by the previous government;with Independent Power Producers (IPPs), government managed to get some of them deferred. He said the savings that have been made on the deferment of agreements of Early Power, Jacobsen Power Ltd and Rotan are significant and sets the tone for a more sustainable energy sector financial management framework.
“We have made savings on deferment of 3 PPAs amounting to $1.426bn since 2019 amounting to $475.50m per deferred PPA. The total saving was sufficient to build 62 stadia the size of Tamale Stadium.”
Dr. Opoku Prempeh
He also added that;this is in addition to other savings of $1.335 billion in;the sector amounting to a total savings of $2.761bn in the energy sector.
The Minister also disclosed that since 2017,;the Akufo-Addo’s government has always made funds available to generation companies to procure fuel to power;the thermal plants which he says restored power generation to meet demand. He added that the Energy Sector Levy Act (ESLA),;Cash waterfall Mechanism, Gas Clearing House, and the Delta Fund, among other interventions, have improved Ghana’s Energy sector financing.
