The Africa Center for Energy Policy (ACEP) has called on the Ghana Grid Company (GRIDCo) to address the power deficit and inform customers about the situation, especially in light of recent intermittent power cuts.

This call comes amidst reports that GRIDCo and the Electricity Company of Ghana (ECG) have successfully restored power following the intermittent outages. The restoration was attributed to the resumption of gas supply to the generating plants in Tema from Takoradi, allowing power restoration across the country.

According to ACEP Executive Director Ben Boakye, despite GRIDCo’s awareness of the deficit, it has gone silent on the generation shortfall.

“We do know there is a generation shortfall, and everybody in the power sector is trying to escape that fact. Nobody wants to communicate that we have a generation shortfall accounting for the load being shed, and I don’t understand why that struggle.”
Ben Boakye, Executive Director ACEP

Ben Boakye stressed that GRIDCo must take the initiative to communicate this deficit to the public rather than relying on ECG.

GRIDCo had previously explained that the power cuts were due to limited gas supply to Tema, leading to a shortage of 550MW at peak time. This shortage caused power outages in some parts of the country. Despite the restoration, there were concerns about outages not being formally announced, and no timetable was provided for when normal supply would resume.

Consumers have been experiencing unstable power supply in various parts of the country. Consequently, the Minority in Parliament, civil society organizations (CSOs), and energy sector players have called for an ECG load-shedding timetable to help citizens plan their daily activities.

The situation underscores the challenges faced by GRIDCo and the broader Ghanaian power sector, which has been grappling with issues related to limited gas supply and the need for infrastructure upgrades to meet increasing demand.

The government of Ghana has been accelerating reforms and investing in transmission infrastructure, including the construction of the Pokuase Bulk Supply Point (BSP) and the Kasoa BSP, as well as ongoing rehabilitation of the Tema to Achimota line. These efforts are aimed at ensuring that the grid can accommodate the growing load being transmitted.

Many power consumers believe that the country is experiencing severe power outages akin to the era that birthed the term ‘dumsor’ some years ago. However, the national power distributor ECG insists that the company is not undertaking any load shedding that requires a timetable. ECG explained that the intermittent power outages are caused by maintenance issues, an overload on their transformers in some cases, and some localized underground cable faults.

Generation Shortfall Impact on Ghanaians

The generation shortfall in Ghana has significant impacts on consumers, contributing to a broader economic crisis that affects various sectors of the economy. The shortfall leads to intermittent power cuts, which disrupt businesses and households, particularly those dependent on electricity for essential services and operations. This situation exacerbates the economic challenges Ghana is already facing, including high inflation, a depreciating currency, and a rise in the cost of living.

“GRIDCo must let the country know that we are experiencing a generation shortfall, and therefore, we cannot give ECG what will be optimal for them to serve the country with. But for everybody to be quiet and try to massage the obvious truth is incredible”
Ben Boakye, Executive Director ACEP

Small businesses, like Doris Oduro’s store in Odorkor, are struggling due to the high cost of living and the inability to restock their shelves. The generation shortfall and subsequent power cuts make it difficult for businesses to operate efficiently, leading to financial losses and potentially forcing some to close.

The generation shortfall indirectly contributes to increased costs for consumers. For instance, the cost of electricity has risen by 27 percent, and water by 22 percent, further straining the economy and making it more challenging for individuals and businesses to afford necessities.

The generation shortfall in Ghana has a cascading effect on the economy, affecting businesses, consumers, and the broader social fabric of the country. It is part of a larger set of challenges that Ghana is facing, including economic instability, inflation, and a weakening currency, which are exacerbated by the generation shortfall and contribute to the overall economic crisis.