Power Crisis Looms Again: IPPs Contemplate Shutting Down Plants As Government Fails To Settle $2 Billion Debt

Power Crisis Looms Again: IPPs Contemplate Shutting Down Plants As Government Fails To Settle $2 Billion Debt

  • A power crisis is looming in Ghana as independent power producers contemplate shutting down their plants after a meeting on Thursday
  • The IPPs say the government's long-standing indebtedness to them, which is over $2 billion is affecting their operation
  • The IPPs announced to shut down last month but changed their minds after appeals and a meeting with the power distributor, ECG

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Independent Power Producers (IPPs) are once again contemplating shutting down the plants as the government fails to settle over $2 billion in debt to them.

The IPPs had rescinded an earlier plan to shut down last month after discussions with the Electricity Company of Ghana (ECG) and appeals by statesmen and well-meaning members of the public.

However, after assurances made by the ECG failed to manifest the IPPs have brought the plan to shut down their plants back on the table.

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Power crisis looms in Ghana as power producers plan to shut down over government indebtedness.
Electrical power lines and a young African school girl is learning homework by candlelight. Source: Getty Images.
Source: Getty Images

According to a Citi News report, the IPPs held a meeting on Thursday, July 27, 2023, and have decided to continue operation in the interim.

The IPPs said, however, that they may not be able to keep producing power because the government's indebtedness is draining their operations.

"A source at the meeting disclosed to Citi News that the severity of the situation has reached a critical point, with the Ghana National Petroleum Corporation (GNPC) unable to pay for gas transportation services due to outstanding payments from ECG," the report said.

IPPs and non-state-run power plants play a key role in electricity in Ghana.

IPPs contribute about 66% of the country's installed capacity. This means that should the IPPs shut down their plants, Ghana's power sector will take a hit.

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Fears about the return of Dumsor started in May last year

Meanwhile, YEN.com.gh reported that 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.

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.

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

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Source: YEN.com.gh

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