The domestic energy sector in Ghana is currently facing significant challenges, including rising debts, gas shortages, and operational inefficiencies that threaten national stability.
According to the Africa Sustainable Energy Centre (ASEC), strategic interventions are urgently required to prevent further deterioration and secure a sustainable energy future.
Despite initiatives like the Cash Waterfall Mechanism (CWM), the energy think tank stated that systemic mismanagement has exacerbated financial burdens and strained relations with independent power producers (IPPs), leading to persistent power rationing.
ASEC emphasises that addressing these challenges is essential for fostering economic growth, sustaining industrial production, and creating jobs.
In a statement signed by Dr. Elvis Twumasi, Director of Research and Innovation at ASEC, the organisation highlighted the urgent need to address gas supply issues.
ASEC recommended “completing Train Two of the Atuabo Gas Plant to boost capacity to 450 MMscfd, finalizing the Liquefied Natural Gas (LNG) facility in Tema, and constructing the Takoradi-to-Tema (TT) gas pipeline.”
These projects, it noted, must be executed with transparency and accountability to ensure energy reliability during disruptions.
ASEC also proposed privatizing the commercial operations of the Electricity Company of Ghana (ECG). The think tank argued that privatization could enhance revenue collection and operational efficiency.
However, it emphasized the importance of implementing a transparent framework, informed by the Millennium Development Authority (MiDA), to avoid repeating mistakes from previous attempts.
Furthermore, ASEC called for transparent utilization of levies. The organization explained that proper management of the US$650 million generated annually through the Energy Sector Recovery Levy (ESLA)—including publishing detailed reports on fund usage—could foster public trust and attract critical investments, such as the US$316 million Ghana Power Compact from the Millennium Challenge Corporation (MCC).
The think tank also recommended aligning electricity tariffs with consumption patterns and operational costs to ensure financial sustainability. It advocated for deregulating the electricity market and renegotiating agreements with IPPs to promote competitiveness and transparency.
To meet renewable energy targets and reduce dependency on fossil fuels, ASEC advised investing in low-carbon energy solutions, including solar, wind, and nuclear energy.
Additionally, it recommended upgrading ECG’s metering system by replacing outdated meters nationwide to address tampering, expand rural coverage, and minimize revenue losses.
ASEC urged the government to prioritize these recommendations and move beyond political rhetoric to take decisive action.
Implementing these measures, the statement concluded, would stabilize the energy sector, support economic resilience, and position the government as a transformative force in Ghana’s development.
