The Africa Sustainable Energy Centre (ASEC) has commended Ghana’s Energy Minister, John Abu Jinapor, for his decisive steps to reform the country’s energy sector, particularly his commitment to privatizing the commercial arm of the Electricity Company of Ghana (ECG) within six months.
ASEC, an energy and sustainability think tank, emphasized that this initiative aligns with recommendations it previously outlined in its press releases of August 2024, September 2024, and January 2025.
The organization believes that partial privatization, specifically focusing on ECG’s revenue collection and debt management, will improve efficiency, boost revenue, and curb financial losses within the power distribution sector.
ASEC praised the government’s decision not to privatize the Volta River Authority (VRA) and Bui Power Authority, both of which are profit-making entities.
“Instead of selling these state-owned assets, the government should invest in strengthening their operations to maximize profits for national development.
Africa Sustainable Energy Centre (ASEC)
ASEC strongly supports the Energy Minister’s decision to limit privatization to the commercial leg of ECG.
The technical operations of ECG, such as power distribution and infrastructure maintenance, should remain under public control, as Ghana possesses the technical expertise to manage these aspects efficiently.
Despite its support for privatizing ECG’s commercial wing, ASEC expressed reservations about the composition of the seven-member committee overseeing the process.
The organization questioned the lack of subject matter experts with direct experience in ECG’s operations.
“The absence of subject matter experts with in-depth knowledge of ECG operations calls for a restructuring of the committee to ensure strategic and effective decision-making.”
Africa Sustainable Energy Centre (ASEC)
However, the organization welcomed the framework of the privatization process, particularly the emphasis on local content and consensus-building to ensure national stakeholders are involved in decision-making.
Alongside its recommendations on ECG privatization, ASEC warned of an impending power crisis (commonly referred to in Ghana as “dumsor”) by 2026 if proactive measures are not taken to increase the country’s power generation capacity.
According to ASEC, Ghana’s peak electricity demand has surged from approximately 3,000 MW in 2022 to about 4,100 MW currently, with the country’s installed capacity at 5,260 MW and a dependable capacity of 4,800 MW.
With rapid urbanization and population growth, ASEC cautioned that the current power infrastructure is insufficient to sustain the increasing demand. The organization urged the government to prioritize investments in new power generation projects to prevent severe power rationing.
Caution Against VRA-Bui Power Merger
Another major concern raised by ASEC was the government’s proposal to merge the Volta River Authority (VRA) and Bui Power Authority. The think tank strongly advised against this move.
“Tampering with these two profit-making institutions is unnecessary.
“Instead, their profitability should be enhanced to further boost the energy sector’s contribution to the economy.”
Africa Sustainable Energy Centre (ASEC)
ASEC applauded the government’s commitment to local content and consensus-building in the ECG privatization process.
However, the organization urged Energy Minister John Abu Jinapor to address its outlined concerns to ensure the success of these initiatives.
The organization reaffirmed its commitment to supporting Ghana’s sustainable energy development and called for bold but well-calculated decisions to secure the country’s energy future.
“Ghana stands at a critical juncture in its energy sector transformation.
“Smart policies, strategic investments, and a focus on sustainability will be key to ensuring a stable and prosperous energy future for all.”
Africa Sustainable Energy Centre (ASEC)
With privatization efforts underway, rising energy demand, and a focus on transitioning towards sustainable energy, Ghana’s energy sector is at a pivotal moment.
Whether the ECG privatization succeeds, power shortages are prevented, and energy transition goals are met will depend on the government’s ability to execute strategic reforms effectively.
