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Business News of Thursday, 19 May 2022


There were no intermittent power outages in Akufo-Addo's first term – Energy Ministry spokesperson

Kwasi Obeng-Fosu, Spokesperson for the Ministry of Energy Kwasi Obeng-Fosu, Spokesperson for the Ministry of Energy

Energy Ministry rejects ‘Dumsor’ claims

Government adds 421MW generational capacity

Gas flow no longer uni-directional – Energy Ministry

Spokesperson for the Ministry of Energy, Kwasi Obeng-Fosu, has reiterated that Ghana is not on the verge of a looming power crisis.

According to him, the assertion by some experts that the country will face an imminent power crisis due to concerns of insufficient power generation capacity to meet demand is entirely not true.

Speaking in an interview on Accra-based Kingdom FM, Kwasi Obeng-Fosu argued that Ghana has been experiencing stable electricity, supply and power generation in the last four years.

“In the first term of the Nana Addo Dankwa Akufo-Addo government, we have not experienced any form of sustained power outages. The erstwhile John Dramani Mahama administration signed numerous Independent Power Purchase agreements which did not even provide us with enough stable power,” Obeng Fosu said.

“Even at the time that the IPPs agreements were signed, Ghana’s peak demand and installed capacity for power was still enough for consumption because it was already being managed before they [National Democratic Congress] took office,” he added.

He however admitted there have been some slight power outages in the second term of the Akufo-Addo administration which are a result of technical challenges rather than insufficient generation capacity.

Meanwhile, the Ministry of Energy has recently assured Ghanaians that the country will not return to the days of ‘dumsor’.

In an earlier statement issued last week, the Ministry provided some updates on Ghana’s power generation capacity.

“In line with the prudent addition to Ghana’s generation capacity, the total generation capacity added by this government is 421MW which brings Ghana’s total installed capacity to 5358.50MW, against the backdrop of the current peak demand of 3,469MW which was recorded on March 18, 2022,” the statement read.

“In addressing the issue of poor hydrology, there is currently the prudent management of hydro resources which include the hybridization of our hydro dams. The 250MW Bui Solar project of which 50MW has been commissioned and operationalized, with the next phases on-going, is to curb the challenge of over drafting of the Bui Dam,” it added.

The ministry further stated that gas flow is no longer uni-directional as the Takoradi-Tema Interconnection Project (TTIP) is ensuring the reverse flow of indigenous natural gas from the West to the East to power our turbines.

“What this means is that we no longer have the phenomenon of stranded gas in the west of the country. Again, the Tema LNG project when completed soon, will allow the importation of LNG to support generation” it added.

In terms of finance, the Ministry of Energy said the Cash Water Fall mechanism currently allows for equitable distribution of funds realized from power sale, hence actors in the value chain are able to access funds to run, reducing inter-utility indebtedness.

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