Power supply across Ghana is expected to stabilize following a newly renegotiated agreement between the government and Independent Power Producer Sunon Asogli.
The deal, announced by Finance Minister Dr. Mohammed Amin Adam, aims to resolve recent power disruptions stemming from a financial deadlock between Sunon Asogli and the Electricity Company of Ghana (ECG).
On October 16, Sunon Asogli issued a statement announcing the shutdown of its 560-megawatt power plant, citing ECG’s substantial outstanding debt as the reason for halting operations. As of the end of September 2024, ECG owed Sunon Asogli a net amount of $259 million, excluding fuel costs, which placed significant financial strain on the power producer and disrupted its operations.
The shutdown caused widespread power outages across various regions in Ghana, with many communities facing inconsistent electricity supply.
In response, the government moved swiftly to renegotiate terms with Sunon Asogli to restore stability to the national grid. Speaking at a media briefing on Monday, October 28, Dr. Amin Adam confirmed that an agreement had been reached with Sunon Asogli.
Dr. Amin Adam further noted that the deal is part of a broader restructuring effort involving other Independent Power Producers (IPPs). He added that the accord with Sunon Asogli marks significant progress towards stabilizing Ghana’s energy sector and concludes one of the country’s major power agreements.
“We have continued to produce power. I was informed [Sunday] that they [Sunon Asogli] are ready to sign the settlement agreement. And so we have instructed ECG to go ahead and sign.
“That should help in normalising our relationship so we can move on. And so signing that agreement will also mean that the third IPP is also done as far as the restructuring is concerned.”
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