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Ted News Ghana Blog of Thursday, 6 March 2025
Source: TEDDY VAVA GAWUGA
The Energy and Green Transition Minister, John Abdulai Jinapor, has taken action to address Ghana’s growing power sector financial crisis by elevating Early Power Limited (EPL) to TIER 1 status. This move is expected to facilitate urgent payments to the company, which is owed $47 million in arrears by the Electricity Company of Ghana (ECG).
Key Developments
EPL recently shut down operations due to seven months of unpaid invoices, prompting an emergency meeting with the minister on March 4.
The company warned ECG in a February 28 letter that failure to settle its debts would force EPL to invoke contractual provisions that could halt power supply.
By recognizing EPL as a TIER 1 power producer, the government aims to prioritize payments and prevent further disruptions.
N-Gas Threatens to Cut Off Ghana’s Gas Supply
Meanwhile, Ghana’s energy crisis is worsening as N-Gas Limited has formally notified the Volta River Authority (VRA) of its intent to cease gas supply by March 6, 2025, due to unpaid arrears exceeding $75 million.
N-Gas cited continuous payment delays as a major issue, stating that it has been unable to pay its own suppliers since November 2024.
The company stressed that previous government assurances had not materialized, leaving its operations financially strained.
Implications for Ghana’s Energy Sector
The ongoing debt crisis within the power sector poses a serious threat to Ghana’s electricity supply. If these issues are not addressed:
EPL may suspend operations, exacerbating power shortages.
N-Gas halting supply could cripple power generation at key plants relying on natural gas.
The financial strain on independent power producers (IPPs) could erode investor confidence, impacting future energy investments.
With EPL’s upgrade to TIER 1 status, the government’s intervention is expected to accelerate payments and stabilize power supply. However, the looming gas supply suspension by N-Gas remains a critical challenge that requires urgent financial resolution.