Ghana’s Energy sector has been dealt a significant blow as Sunon Asogli Power (Ghana) Limited announced the shutdown of its 560MW power plant due to unpaid debts.
The company, one of Ghana’s largest independent power producers, ceased operations on October 8, 2024.
According to a press statement, the shutdown resulted from the Electricity Company of Ghana’s (ECG) failure to honor its payment obligations, amounting to $259 million as of September 2024.
This debt has grown by 23% since January 2024, with only 22.6% of invoices paid through the Cash Waterfall Mechanism.
Sunon Asogli Power has been patient, refraining from invoicing ECG for accrued idle capacity charges, unlike other independent power producers.
However, the company can no longer sustain operations without payment.
Chairman Qin Yang expressed regret over the shutdown’s impact on national power supply and urged the Ministry of Finance to intervene.
This development raises concerns about Ghana’s energy security and the government’s ability to manage its debt obligations.
Background on Ghana’s Energy Sector
Ghana’s energy sector has faced challenges in recent years, including power supply deficits and debt accumulation.
The country’s reliance on independent power producers like Sunon Asogli has increased, but payment delays have hindered their operations.
In 2020, Ghana’s energy ministry announced plans to restructure the sector, addressing debt and inefficiencies.
However, progress has been slow, and the Sunon Asogli shutdown highlights the urgent need for reform.
Source:dailyguidenetwork.com