Govt saves US$1.4 billion after deferring three PPAs – Energy Minister
The Minister of Energy, Dr Matthew Opoku Prempeh, says the Akufo-Addo-led Government has saved the nation in excess of US$1.4b having deferred three emergency Power Purchase Agreements (PPAs) since 2019.
The Minister said, the amount saved for deferring Early Power Plant, Jacobsen Power Plant and Rotan Power Plant, could construct 62 sports stadia like that of Tamale Sports Stadium.
He explained that the decision to defer the three power purchase agreements was under Government’s rationalisation of the 40 PPAs signed by the erstwhile National Democratic Congress (NDC) administration between 2012 and 2016 when the country was facing energy crisis, otherwise known as ‘Dumsor’.
Additionally, the ruling government saves the nation US$445 million annually in the power sector because of prudent management of the energy sector, he added.
Dr Opoku Prempeh, also Member of Parliament (MP) for Manhyia South, made the disclosure at the Minister’s briefing, organised by the Ministry of information, in Accra on Sunday.
The media briefing aimed is at updating the public on key government interventions and ongoing works on power transmission infrastructure upgrades to ensure reliable and sustainable power supply.
The media encounter held on the topic: “Ensuring Reliable and Affordable Power within the Energy Sector” afforded the Minister the opportunity to provide details of ongoing works at the Pokuase Bulk Supply Point (BSP), Kasoa BSP, plans to ensure payment of affordable electricity tariffs, status of load shedding in eastern parts of Accra and key government policies and programmes on the energy sector.
Dr Opoku Prempeh said government had approved the Energy Sector Recovery Programme (ESRP), which was being implemented to ensure long-term financial sustainability of the energy sector.
That, he said, culminated in the relocation of the Karpower Plant to the Ashanti Region for supply of power to the middle and northern belts, payment of GH₵2.63 billion electricity bills owed ECG, and plans to ensure that the Public Utility and Regulatory Commission (PURC) adjust electricity tariffs.
He said government’s decision to implement ‘Take and Pay’ policy in the supply of power by the Independent Power Producers(IPPs),restored the price of Ghana’s gas from Jubilee to zero, Karpowership fuel switch, no sovereign guarantees, no local tax exemptions and re-negotiation of gas prices.
Dr Opoku Prempeh reiterated government’s earlier stance that, the current power outages was not due to financial constraints, but transmission upgrade and maintenance works to ensure a lasting solution to the frequent power flickering adding that the roll-out of the Energy Sector Levy Act(ESLA), Cash Waterfall Mechanism, Gas Clearing House and Delta Fund, would go a long way to ensure reliable, affordable and sustainable power supply in the near future.
The Minister noted that the Loadshedding timetable released by the ECG and GRIDCo to enable engineers working on the Pokuase BSP to perform transmission tie-in works, would end on Monday, May 17, but could not state whether there would be any extension.
The Minister believed that all the major transmission infrastructure upgrade would be completed by the end of this year, in order to end the intermittent power interruptions.