Energy analyst, Benjamin Nsiah has raised concerns over the past Akufo-Addo government’s role in the energy sector crisis, pointing out significant shortcomings in addressing electricity consumption and sector funding. Mr. Nsiah highlighted that the government is a major consumer of electricity, accounting for approximately 80% of the debt owed to the Electricity Company of Ghana (ECG) annually.
“In a year, government consumes about 80% of the debt and one would think that the government would find a way to balance these shortfalls in the energy sector budget, but it has failed to do so,” he said.
He further criticized the government’s failure to meet its financial obligations to ECG in recent years, stating that “the contributions that the government needed to make to ECG in 2023 and 2024 were zero. How does the government expect the sector to function without these payments?” he asked.
Mr. Nsiah attributed the current crisis to a lack of prioritization and planning for the energy sector.
“We are in this crisis because we did not prioritize the energy sector and failed to plan,” he emphasized.
The urgency of the situation is underscored by a report from the Ghana Grid Company (GRIDCo), which revealed that nearly US$90 million is urgently needed to avert a looming power crisis. The funds are required to purchase liquid fuel, such as light crude oil, to power thermal plants in Tema and meet the country’s increasing electricity demand.
The crisis has been exacerbated by a generation capacity deficit caused by a recent pigging exercise conducted by the West African Gas Pipeline Company (WAPCO). The exercise temporarily disrupted the supply of natural gas, placing additional strain on the energy sector.
The GRIDCo report highlights the critical need for immediate action to secure sufficient fuel supplies for thermal plants and ensure a stable electricity supply. Without this intervention, the country risks widespread power outages, which could have severe economic and social consequences.
Energy experts and industry stakeholders have called on the government to address the sector’s challenges urgently. They stress the importance of prioritizing energy sector funding and developing a sustainable plan to prevent future crises.
As Ghana faces this growing energy crisis, all eyes are on the new NDC government to take swift and decisive action to restore stability and ensure the sector’s long-term sustainability.
