Dumsor Looms In Ghana: Independent Power Producers Told To Suspend Electricity Supply From July 1

Dumsor Looms In Ghana: Independent Power Producers Told To Suspend Electricity Supply From July 1

  • Ghanaian homes and businesses could be hit by load-shedding or Dumsor for at least one week if IPPs carry out a plan to suspend power supply from July 1
  • The government has been indebted to the independent power producers to the tune of about $1.73 billion since 2021
  • The power producers have been pushing for the payment of at least 30% of the debt owed them but the government is yet to agree to their demand

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Ghanaian homes could be plunged into darkness (or Dumsor) soon if Independent Power Producers (IPPs) heed a directive from their chamber.

The Chamber of IPPs wants its members to suspend supply to the national grid from July 1, 2023, over the government's inability to pay up piled-up debts.

“Further to our planned industrial action on July 1, 2023, we would like each IPP to nominate nothing (zero nominations) and not declare an availability to the System Operator, beginning July 1 to July 8, 2023," the email the Chamber has sent its members read in part.

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Dumsor looms over government's indebtedness to IPPs
A young school girl is learning homework by candlelight during load shedding power outage (L) and electrical power lines captured at sunrise. Source: Getty Images.
Source: Getty Images

The Chamber of IPPs includes Sunon Asogli, Cenpower, Karpowership, AKSA, Twin City Energy and CENIT.

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Government's indebtedness to IPPs run in billions of dollars

As of May 2021, the state owes all six IPPs approximately $1.73 billion since January 2021.

A meeting this week between the government and the IPPs to agree on their demands for a 30% interim payment of the debt has not come on yet.

The IPPs are arguing that the debt is making it difficult for them to access enough working capital to finance crucial inputs such as chemicals for water treatment in thermal generators and other supplies.

The move by the IPPs would significantly affect electricity supply

According to the Oxford Business Group, IPPs play critical in Ghana's energy generation capacity. Since 2017, IPPs and non-state-run power plants in Ghana have been producing some 1,925 MW of power to the power grid.

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The total installed capacity of the key state-owned primary electricity generation utility, Volta River Authority (VRA) stands at compared to 2456 MW.

Ghana has a total of nine IPPs supplying electricity to the national grid as follows:

  • 400-MW Bui Dam,
  • Seven thermal plants with an installed capacity of 1,505 MW and,
  • 20-MW solar plant completed by BXC Ghana, a subsidiary of China-based industrial conglomerate Beijing Fuxing Xiao-Cheng Electronic.

With the IPPs playing a larger role in Ghana's energy generation capacity, the July 1, 2023 strike, if carried out, could hit homes and businesses hard.

Lady narrates how she met her husband during Dumsor

On a lighter note, YEN.com.gh reported in a separate story that the beautiful love story between a gorgeous bride and her handsome husband-to-be was very inspiring.

The bride, who is a style influencer and generous philanthropist, called on the groom to support her donation exercise.

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The adorable couple spent more time together, and after seven years of dating, they walked down in a lovely ceremony.

Fears about the return of Dumsor started in May last year

Last year, the rampant unannounced power cuts in large areas of the country prompted concerns about the return of dumsor or intermittent power cuts.

Experts were worried about what they say is the country's inability to meet the growing demand for electricity consumption.

But answers from the Energy Ministry and available data dispelled fears that dumsor was back.

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Source: YEN.com.gh

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