Reliable electricity supply is fundamental to Ghana’s economic development – Vice President

Vice President Professor Jane Naana Opoku-Agyemang has underscored the importance of reliable electricity supply to Ghana’s economic development, describing it as fundamental to sustaining businesses, supporting industrial growth and ensuring the effective functioning of households and public institutions.

She said a dependable electricity supply remained critical to the country’s economic growth, productivity and national development, stressing that the success of businesses and industries depended largely on access to stable and reliable power.

The Vice President made the remarks at a ceremony in Tema to commemorate 10 years since the sod-cutting for the Kpone Independent Power Plant (KIPP) and the commencement of construction works by CenPower Generation Limited.

The event brought together government representatives, energy sector stakeholders, industry players and other dignitaries to mark the milestone and recognise CenPower’s contribution to Ghana’s electricity generation capacity.

Speaking at the ceremony, Professor Opoku-Agyemang said the establishment of the independent power plant had demonstrated the importance of securing the necessary financing, technical expertise and strategic partnerships required to undertake major infrastructure projects.

She noted that CenPower had become an important contributor to Ghana’s electricity supply and operated one of the country’s largest independent power plants, with a facility that combines fuel efficiency with the flexibility to operate on three different fuels.

According to her, the company’s operations demonstrated not only the importance of electricity generation but also what Ghanaian enterprise could achieve through strategic partnerships and the mobilisation of both local and international investment.

She explained that major infrastructure projects required substantial capital, specialised expertise, technical competence and the ability to maintain partnerships over several years.

“CenPower’s founders brought together African and international institutions to deliver a project of significant scale. The experience demonstrated that Ghanaian entrepreneurs can play a leading role in developing critical infrastructure. It also shows the importance of building African capacity to mobilise investment, manage complex projects and develop technical expertise,” she said.

Vice President stressed that reliable electricity supply remained one of the most important foundations of Ghana’s economic development, as it sustained businesses, supported industrial activities and allowed households and public institutions to function effectively.

Touching on the challenges confronting the energy sector, Professor Opoku-Agyemang said the government inherited serious difficulties, including insecurity in electricity supply and a considerable debt burden.

She said one of the government’s major priorities had been addressing the financial difficulties that threatened the sustainability of the energy sector.

According to her, government had settled significant arrears owed to Independent Power Producers (IPPs) and gas suppliers, although she acknowledged that more remained to be done.

She further disclosed that government had restored the World Bank guarantee for the Sankofa gas project and strengthened the Cash Waterfall Mechanism to improve payment discipline within the sector.

The Vice President also said government had renegotiated Power Purchase Agreements with independent power producers, securing more favourable terms and restructuring legacy debts.

She explained that the measures were intended to ease the financial burden on the sector, protect public finances and restore investor confidence, which she described as essential to securing Ghana’s energy future.

“These measures are important for public finances and investor confidence, which are vital to Ghana’s energy security,” she stated.

Another major priority, she said, was reducing the cost of electricity generation through increased reliance on natural gas instead of more expensive liquid fuels.

She explained that government’s gas-to-power strategy was aimed at increasing the utilisation of natural gas to reduce generation costs and improve the efficiency of the country’s power supply system.

Professor Opoku-Agyemang further stressed that improving the financial position of the energy sector and increasing generation capacity alone would not be sufficient if electricity failed to reach communities, businesses and public institutions.

She said government was therefore expanding electricity infrastructure to underserved communities under its Big Push programme as part of efforts to improve access to power across the country.

As an example, she mentioned an electrification project launched in the Volta Region to connect 206 communities to the national electricity grid.

She added that government was also investing in distribution infrastructure and other interventions aimed at improving the reliability of electricity supply.

According to the Vice President, these initiatives formed part of the government’s broader economic development agenda, particularly its ambition to establish a 24-hour economy.

She explained that the 24-hour economy required more than the willingness of businesses to operate for longer hours, emphasising that dependable electricity, efficient distribution networks and an energy sector capable of supporting increased production were equally necessary.

“The 24-hour economy requires more than the willingness of businesses to operate longer hours. Dependable electricity, efficient distribution networks and an energy sector capable of supporting increased production are all necessary,” she emphasised.

The Vice President also acknowledged the company’s contribution beyond electricity generation, particularly its interventions in communities surrounding its operations.

She also expressed appreciation for the company’s educational programme on waste management and biodiversity conservation for students of Kpone Methodist School.

Professor Opoku-Agyemang said the initiatives demonstrated the importance of private sector participation in addressing environmental challenges and promoting awareness among young people.

She urged the company to sustain its relationship with communities around the plant and continue paying attention to the environmental and social consequences of its operations.

“These are all worthwhile initiatives. I encourage you to maintain your relationship with the surrounding communities and continue to pay attention to the environmental and social consequences of your operations,” she said.

As the company marked the 10-year anniversary, the Vice President urged its leadership, management and employees to build on the achievements recorded over the past decade.

Meanwhile, the Board Chairman of CenPower Generation Limited, Samuel Nana Brew-Butler, commended the government, the Electricity Company of Ghana (ECG), the Public Utilities Regulatory Commission (PURC), Cabinet and Parliament for their respective contributions towards the development and operations of the independent power project.

He reaffirmed CenPower’s commitment to supporting Ghana’s electricity supply and contributing to the growth of the country’s energy sector.

Additionally, the Chief Executive Officer of CenPower Generation Limited Theophilus Sackey expressed appreciation to the individuals and institutions that have supported the company over the years.

As part of the company’s contribution to the host community, CenPower also donated 100 solar panels to the local Assembly to support community development.