Power crisis to deepen as IPPs cut supply over mounting debt

Ghana’s energy sector will from today, Monday, November 25, 2024 face escalating challenges as major energy producers—Karpowership Energy, AKSA Energy, and Cenit Energy Limited—scale down their electricity supply.

The development heightens fears of potential blackouts for businesses and households as the festive season approaches.

Already, Citi Business News has learnt that Amandi Energy and Karpowership are now completely off the national grid, while AKSA Energy has drastically reduced its load from 370MW to just 58MW.

This alarming development, according to market watchers, could result in a shortfall of approximately 450MW on the grid.

This development also compounds an already dire situation, with Sunon Asogli and Amandi Energy, two Independent Power Producers (IPPs), halting operations.

Sunon Asogli attributes its shutdown to the Electricity Company of Ghana’s (ECG) failure to settle outstanding debts, while the government claims Amandi Energy is undergoing maintenance without an end in view.

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Last week, Dr. Elikplim Kwabla Apetorgbor, CEO of the Chamber of Independent Power Producers, warned of an imminent shutdown of three additional power plants if nothing is done to pay the IPPs.

This financial impasse has exacerbated the nation’s power crisis, triggering frequent outages, widely known as dumsor, and disrupting economic activities.

However, Citi Business News has learned that ECG is ramping up efforts to address the debt crisis.

Sources indicate the company has transitioned from a monthly to a weekly payment schedule in a bid to settle arrears with Sunon Asogli and other power producers.

As the festive season approaches, stakeholders are closely monitoring whether these measures will stabilize power supply and avert a full-blown energy crisis.

Source: CNR