The Africa Sustainable Energy Centre (ASEC) has praised Energy Minister John Abu Jinapor for his decisive reforms, particularly the plan to privatise the commercial arm of the Electricity Company of Ghana (ECG) within six months.
The move, ASEC noted, aligns with its prior recommendations and demonstrates a bold commitment to addressing Ghana’s energy challenges.
ASEC clarified that privatisation should be limited to the commercial aspects of ECG, including revenue mobilisation, debt collection, and reducing financial inefficiencies while retaining the technical operations under local management.
“Ghana has the expertise to manage the technical side of ECG efficiently,” the think tank emphasised.
ASEC also lauded the minister’s decision to exclude the Volta River Authority (VRA) and Bui Power Authority from privatization plans. The organization described these entities as vital, profit-generating assets that should be supported to maximize their contributions to national development.
“These institutions should be revitalized to enhance profitability and strengthen Ghana’s energy sector,” ASEC stated.
While supporting the framework for ECG’s privatization, ASEC raised concerns about the composition of the seven-member committee overseeing the process. The absence of subject matter experts with specialized knowledge of ECG operations, they warned, could hinder effective decision-making. ASEC called for the inclusion of qualified experts to ensure strategic and efficient oversight.
Despite this reservation, ASEC commended the government’s emphasis on local content and consensus-building throughout the privatization process.
The think tank issued a stark warning about a potential energy crisis by 2026, cautioning that rising energy demand could outpace supply if immediate steps are not taken to expand power generation.
Ghana’s peak energy demand has surged from approximately 3,000 MW in 2022 to 4,100 MW, nearing the dependable capacity of 4,800 MW. ASEC urged the government to invest in expanding generation capacity to prevent a return to “dumsor,” the power outages that plagued the nation in previous years.
ASEC welcomed the government’s decision to rename the Ministry of Energy to the Ministry of Energy and Energy Transition and establish a Ministry of Climate Change and Sustainability. These actions, they noted, reflect Ghana’s commitment to achieving energy transition targets under the Paris Agreement.
The organization called for accelerated efforts to achieve universal energy access, building on Ghana’s 90% coverage. ASEC offered a framework to help the country achieve 100% energy access within four years, citing successful models in Egypt and Morocco.
Responding to proposals for a merger between the VRA and Bui Power Authority, ASEC strongly advised against the move, arguing that it could disrupt two profitable organizations. Instead, they suggested revitalizing the entities to double their profit margins, further bolstering Ghana’s energy sector.
ASEC reaffirmed its commitment to supporting Ghana’s sustainable energy goals and urged the Energy Minister to address key concerns, including the composition of the ECG privatization committee and the need for increased generation capacity.
“These bold reforms signal a positive direction for Ghana’s energy sector, but calculated steps are needed to secure the country’s energy future,” ASEC concluded.