President John Dramani Mahama held an urgent meeting with Independent Power Producers (IPPs) on Monday, January 13, 2025, to tackle Ghana’s looming power crisis.
The discussions focused on the financial challenges facing the power sector, particularly the government’s mounting debt to the IPPs, which reached $1.2 billion as of October 2024.
The government’s unresolved debt obligations have exacerbated fears of an energy crisis, with IPPs repeatedly threatening to halt power production unless their arrears are addressed. These producers are pivotal to the national grid, and their potential shutdown could severely disrupt electricity supply across the country.
During the meeting, President Mahama emphasised the urgency of resolving the financial disputes to stabilise the sector. The IPPs have long voiced concerns about the impact of the unpaid arrears on their operations, warning that their financial strain could force them to cease production.
Compounding the issue, the West African Gas Pipeline Company (WAPCo), which supplies gas to Ghana’s power plants, recently announced a planned maintenance shutdown. This development raised alarms about potential power shortages, as the pipeline is a key source of fuel for electricity generation.
In a temporary reprieve, WAPCo postponed its maintenance shutdown by two weeks, buying the government time to address the power supply challenges. The postponement offered some relief but underscored the pressing need for a long-term solution to Ghana’s energy crisis.
The dialogue between President Mahama and the IPPs is seen as a critical step towards averting an impending power crisis and restoring confidence in Ghana’s energy sector.
Credit to Mynewsgh
