Independent Power Producers — private energy generators to whom Ghana owes substantial arrears being settled through government payment plans and interventions.
Deputy Secretary General of the Trades Union Congress (TUC), Dr Kwabena Nyarko Otoo, has attributed part of Ghana’s persistent energy-sector challenges to the contractual arrangements with Independent Power Producers (IPPs). …
… He added that the situation affects the ability of the sector to meet its obligations to Independent Power Producers (IPPs) and adhere strictly to the cash waterfall mechanism. …
… He explained that while the government has made progress in settling obligations owed to Independent Power Producers (IPPs), other debts within the sector remain unresolved. …
… Dr Sulemana said Government had injected about GH¢15.2 billion to address financing shortfalls in the power sector and more than GH¢1.4 billion to settle legacy debts owed to Independent Power Producers to support fuel supplies for thermal plants. …
… Speaking at the 60th Annual General Meeting of the Association of Power Utilities of Africa (APUA) in Accra yesterday, Mr Djan-Mensah indicated that about GH¢1.4 billion had been spent to clear legacy debts owed to Independent Power Producers (IPPs). …
… It explained that under the existing Tolling Agreement with Independent Power Producers (IPPs), the Government of Ghana took responsibility for supplying fuel for thermal plants and designated Ghana Gas as the state vehicle for processing and distributing domestic gas. …
… He said the funds had been used to settle most arrears owed to Independent Power Producers (IPPs), restore risk guarantees linked to the Sankofa Gye Nyame gas project and clear debts that had negatively affected Ghana’s credit standing. …
… The largest payments included GH¢5.46 billion to settle outstanding gas invoices owed to Eni and Vitol for power generation, GH¢4.54 billion to pay legacy debts owed to Independent Power Producers, GH¢6.94 billion to restore the World Bank Partial Risk Guarantee and GH¢5.73 billi …
… As of January 2026, the government paid US$1.47 billion to clear legacy energy-sector debts to Independent Power Producers (IPPs) and gas suppliers, restoring World Bank guarantees. …
… The Minority Chief Whip urged government to suspend the levy, publish an audit of the energy sector and immediately engage Independent Power Producers and gas suppliers to restore full generation capacity. …
TUC Deputy Secretary General Dr Kwabena Nyarko Otoo attributes part of Ghana's energy-sector challenges to contractual arrangements with Independent Power Producers, and questions why government commissioned an IMF assessment of ECG without consulting workers and organised labour, given the IMF's advocacy for privatisation.
TUC Deputy Secretary General Dr Kwabena Nyarko Otoo attributes part of Ghana's energy-sector challenges to contractual arrangements with Independent Power Producers, and questions why government commissioned an IMF assessment of ECG without consulting workers and organised labour, given the IMF's advocacy for privatisation.
A senior analyst at the Institute for Energy Security says electricity tariff increments alone may not resolve operational challenges at the Electricity Company of Ghana, arguing that the focus should instead be on addressing commercial and technical losses—which stood at about 26% in 2025—and upgrading obsolete infrastructure within the distribution network.
Energy analyst Kwadwo Poku has contested the government's assertion that it has cleared all outstanding debts in Ghana's energy sector, stating that figures published by the Public Utilities Regulatory Commission do not support the claim. While acknowledging progress in settling obligations to Independent Power Producers through a four-year payment plan for about $1.1 billion in existing debts, Poku argues that other sector debts remain unresolved.
Ghana is investing in generation, transmission and distribution infrastructure to improve grid reliability and address electricity supply challenges. The government also plans to construct a second gas processing plant at Atuabo in the Western Region at an estimated cost of US$700 million to increase gas processing capacity and create over 2,500 jobs.
The Deputy Minister of Energy and Green Transition assured investors of reliable power supply, noting that GH¢1.4 billion has been spent to clear legacy debts to Independent Power Producers, electricity access has reached about 89 per cent, and installed generation capacity has exceeded 5,300 megawatts.
The Africa Sustainable Energy Centre has urged the government not to hand over Ghana National Gas Company's planned second Gas Processing Plant to a private entity, warning that privatisation would weaken energy security, increase power production costs, and undermine national interests.
The PURC Executive Secretary says Ghana spends an average of $92 million every month beyond electricity tariffs to keep power flowing, with the Ministry of Finance making substantial monthly interventions. About ¢8 billion from a ¢1 petroleum levy has been used to settle arrears owed to Independent Power Producers, restore risk guarantees on the Sankofa Gye Nyame gas project, and clear debts affecting Ghana's credit rating.
The Finance Ministry reports that revenue from Ghana's consolidated Energy Sector Shortfall and Debt Repayment Levy totalled GH¢8.66 billion in 2025, falling short of GH¢22.67 billion in total energy sector obligations and requiring GH¢12.9 billion in government support despite an increase in the levy from 95 pesewas to GH¢1.95 per litre in June.
Ghana's government is preparing to scale renewable energy beyond pilot projects from 2027, focusing on utility-scale solar, wind, battery storage, mini-grids and electric mobility to reduce reliance on thermal generation. The transition comes as the power sector grapples with mounting debt, transmission bottlenecks and grid stability concerns.
Minority Chief Whip Frank Annoh-Dompreh has called for urgent presidential intervention to address governance failures in the energy sector, cocoa industry, food distribution, and the Environmental Protection Agency, describing persistent power outages as crippling businesses and a policy failure rather than a technical one.
The Minority in Parliament has called for scrutiny of the Energy Minister and President over the ongoing power crisis, arguing that the problem predates the April 23, 2026 fire at Akosombo and stems from prolonged policy failures and mismanagement rather than that single incident.
Ghana's parliamentary Minority is calling for Energy Minister John Jinapor to appear before the full House to account for the power sector's challenges, including generation capacity, transmission constraints, debts to Independent Power Producers, and the Energy Sector Recovery Programme implementation. The Minority argues that press briefings and executive engagements do not fulfil Parliament's constitutional oversight mandate.
A fire at the Akosombo substation cut more than 1,000 megawatts of power and disrupted the national grid in one of the most serious disruptions in recent years. The Minister of Energy and Green Transition said two generating units have been restored through emergency interventions, with efforts to bring remaining capacity back online within a week.
The Minister for Energy and Green Transition outlined government interventions in the power sector over the past 15 months, attributing recent electricity disruptions to technical challenges at Akosombo Substation while assuring restoration efforts. He noted that when the current administration took office in December 2024, the sector faced a generation deficit of over 700 megawatts, which coordinated reforms across generation, transmission, and distribution—including improved payments to Independent Power Producers and stabilised fuel supply—have since helped address.