The Government of Ghana has spent nearly $1.5 billion on Independent Power Producers (IPPs) and energy sector supplies as of the end of September 2025, according to Richmond Rockson, Spokesperson and Head of Communications at the Ministry of Energy and Green Transition.
Speaking on the government’s ongoing efforts to stabilise the power sector, Mr. Rockson highlighted that this year’s spending significantly exceeds the total expenditure for 2024, underscoring the government’s commitment to meeting its financial obligations to IPPs.
“This year alone, if you look at how much we’ve spent on IPPs and energy sector supplies, the government has spent close to $1.5 billion by the end of September. That is well above what was spent last year, and it shows our commitment,” Rockson stated.
“This is why you don’t see IPPs threatening or raising concerns as they did in the past — the Cash Waterfall Mechanism is now being strictly adhered to. Last year, the formula was constantly breached, but that has not been the case this year.”
The Cash Waterfall Mechanism (CWM), a payment structure designed to ensure transparent and timely disbursement of funds within the energy sector, had previously been undermined by irregular payments, leading to tensions between the government and power producers. Rockson’s comments suggest that improved fiscal discipline in 2025 has helped restore confidence among IPPs.
This update comes on the back of an earlier announcement by the Minister for Energy and Green Transition, John Abdulai Jinapor, who revealed that the government has saved approximately $300 million through successful renegotiations with IPPs.
Speaking during a working visit to the Volta River Authority (VRA) on Friday, October 17, Jinapor emphasised that the renegotiation efforts are part of broader reforms aimed at ensuring long-term financial sustainability in the energy sector.
“The IPPs, based on the numbers I’m seeing, are helping us save a lot of money. So far, we’ve saved about $300 million through renegotiations,” the Minister said.
He added: “This is not about politics. The previous administration did its bit, and we are building on that to put Ghana first.”
He reaffirmed his administration’s commitment to ensuring a stable and reliable energy sector and called for continued cooperation among all stakeholders.
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