Ghana’s power supply is set to stabilize following a newly renegotiated agreement between the government and independent power producer Sunon Asogli Power Limited.
Finance Minister Dr. Mohammed Amin Adam announced this significant deal to address power disruptions caused by a financial dispute between Sunon Asogli and the Electricity Company of Ghana (ECG).
The closure of Sunon Asogli’s 560-megawatt power plant on October 16, due to ECG’s substantial outstanding debt of approximately $259 million, has severely impacted the electricity supply across the country.
The unpaid debt, which does not include fuel costs, was the main reason for the plant’s shutdown, leading to widespread outages that affected many communities and their access to reliable electricity.
The government’s prompt action in negotiating a new agreement with Sunon Asogli seeks to resolve these issues and restore consistency to the national grid.
During a media briefing on October 28, Dr. Amin Adam confirmed that the agreement had taken effect, reassuring the public of improved power reliability.
He emphasized that this deal is a crucial step in the government’s strategy to tackle energy challenges and ensure a dependable electricity supply.
Additionally, Dr. Amin Adam noted that this agreement is part of a broader restructuring initiative that involves other Independent Power Producers (IPPs), highlighting the government’s commitment to achieving long-term stability and sustainable power solutions for Ghana.
“We have continued to produce power. I was informed [Sunday] that they [Sunon Asogli] are ready to sign the settlement agreement. And so we have instructed ECG to go ahead and sign.”
“That should help in normalising our relationship so we can move on. And so signing that agreement will also mean that the third IPP is also done as far as the restructuring is concerned.”