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Karpowership, the operator of a floating power plant at Aboadze in the Western Region, has threatened to stop operations, putting Ghana in danger of a power outage.
Their decision was prompted by the Electricity Company of Ghana’s (ECG) enormous $379 million debt.
Karpowership representatives in the ministry met with John Abdulai Jinapor, the minister of energy and green transition, on Monday to discuss this concerning trend.
Mr. Jinapor asked Karpowership to use caution in light of the impending shutdown while the incoming administration looks into methods to pay off the remaining debt.
“We acknowledge the severity of the situation and are committed to finding a sustainable solution to address the financial obligations. We appeal to our partners to bear with us as we navigate these challenges,” the minister stated.
Industry analysts caution that Ghana may face significant power shortages that might impact households, businesses, and industries if Karpowership follows through on its threat.
As of January 12, 2025, the energy sector’s overall debt had surpassed $3 billion, indicating a mounting financial burden.
The International Monetary Fund (IMF) has issued many warnings that the industry is on the verge of collapsing if immediate reforms are not implemented.
To maintain financial sustainability, the IMF has recommended that the government renegotiate electricity agreements, increase revenue collection, and pursue cost-cutting measures.
Source: Ghanatodayonline.com
