The Independent Power Generators (IPGs), Ghana have formally confirmed the settlement of a substantial portion of legacy arrears owed to power generation companies, describing the development as a major turning point in restoring stability and confidence within Ghana’s energy sector.
In a press statement issued in Accra on January 12, 2026, the association commended the Government of Ghana for what it described as decisive action to address long-standing financial obligations that had constrained the sector for years.
“The clearance of these long-outstanding obligations, including the payments made in 2025 to the Independent Power Generators, represents a major milestone in restoring financial stability and operational confidence across the power sector.”
Independent Power Generators Ghana
The group noted that the settlement of these obligations has eased financial pressures on power producers, improved liquidity across the value chain, and strengthened the foundation for reliable electricity supply.
Disciplined Fiscal Management and Coordinated Leadership
The IPGs attributed the progress to disciplined fiscal management and coordinated leadership by the Ministry of Finance and the Ministry of Energy and Green Transition.
The association highlighted the strategic role of the Ministry of Finance in mobilising and deploying substantial financial resources to address the debt overhang, while crediting the Ministry of Energy and Green Transition for the consistent implementation of sector reforms, particularly the Cash Waterfall Mechanism.
According to the statement, the effective application of the Cash Waterfall Mechanism has improved payment discipline and ensured more predictable cash flows to service providers. This, the IPGs said, has helped to stabilise operations and restore trust between government and private sector participants in the energy industry.
The association described the clearance of legacy arrears as a powerful signal to domestic and international investors that Ghana is committed to honouring its contractual obligations and strengthening governance within the power sector.
It said the move has meaningfully restored investor confidence, positioning the country to attract new capital, advanced technology, and long term partnerships necessary to support industrial growth and economic transformation.
Individual Payments
As part of the settlement, individual payments were made to several power generation companies operating in Ghana. Karpowership Ghana received 120 million United States dollars, while Cenpower Generation was paid approximately 59.4 million dollars. Twin City Energy, also known as Amandi, received nearly 38 million dollars, and Early Power was paid 42 million dollars.
Other beneficiaries included Sunon Asogli Ghana with 54 million dollars, AKSA Energy with 30 million dollars, Cenit Energy with 30 million dollars, BXC Company with about 10.6 million dollars, and Meinergy Technology with 8.82 million dollars. In total, payments to independent power producers amounted to about 392.8 million dollars.
Beyond these payments, the IPGs disclosed that the Ministry of Finance paid approximately 1.47 billion dollars in the 2025 fiscal year as part of a broader effort to rescue and restore Ghana’s energy sector. These payments covered not only arrears owed to independent power producers but also other critical obligations within the power value chain.
The IPGs further noted that, in addition to clearing inherited debts, the government has largely remained current on independent power producer invoices for 2025. This, the association said, reflects a firm commitment to improving payment performance and preventing the re accumulation of arrears that previously undermined the sector.
Commitment to Supporting Ghana’s Energy Security
In their statement, the power producers reaffirmed their commitment to supporting Ghana’s energy security, economic transformation, and industrial development.
“We pledge our full cooperation with the Government and all sector agencies to sustain a reliable power supply, support sector reforms, and promote efficiency, transparency, and value for money across the power value chain.”
Independent Power Generators (IPGs), Ghana
The association stressed that reliable electricity supply is critical to national development, particularly for manufacturing, mining, services, and small and medium enterprises.
It said the improved financial health of the sector will enable power producers to invest in maintenance, upgrades, and operational improvements, reducing the risk of disruptions and enhancing system reliability.
The IPGs also expressed confidence that the collaborative approach demonstrated in resolving legacy arrears would continue to guide relations between government and private power producers.
They described the partnership as essential to building a sustainable and resilient energy sector capable of meeting growing demand while supporting Ghana’s broader development agenda. In a reassurance to the public and international partners, the government stated that the era of uncontrolled energy sector debt accumulation is over.
According to the IPGs, this assurance, combined with tangible actions taken over the past year, marks a clear break from past challenges and sets the stage for long term financial discipline in the sector.
Energy analysts say the settlement of arrears and improved payment discipline could have far-reaching implications for Ghana’s power market. By reducing financial uncertainty and rebuilding trust, the reforms are expected to lower investment risk, improve creditworthiness, and encourage further private sector participation.
For independent power producers, the payments provide relief after years of delayed settlements that strained operations and balance sheets. For government, the move represents a critical step toward stabilising a sector that underpins economic activity and public confidence.
As Ghana continues to pursue energy sector reforms under the current administration, stakeholders say sustained discipline, transparency, and collaboration will be key to ensuring that recent gains translate into long term stability and shared prosperity for the country.
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