Karpower Ghana Limited, the second largest independent power producer in the Republic of Ghana, has threatened to suspend power generation if the Electricity Company of Ghana (ECG) fails to settle a debt of $379 million as soon as possible.
The company operates a powership with a capacity of 470 MW located at Aboadze in the Western Region.
Last Monday, officials of Karpower Ghana Limited met with the new Minister for Energy and Green Transition, John Abdulai Jinapor, at the Ministry during which they notified government about the rising indebtedness to them by ECG.
The company’s official told the Minister that they would not be able to continue to operate if the debt was not settled immediately.
In response, Minister John Jinapor appealed to the barge’s operators to exercise restraint while the new administration explored alternatives to settle the bills.
Ghanaian authorities should not underestimate the ability of Karpower Ghana to shut down its operations over the huge debt.
In January 2024, the Turkish company which operates powership in Sierra Leone and supplies power to Freetown, capital of Sierra Leone, suspended power supply over $30 million debt.
The power situation in the West African nation forced Energy Minister Alhaji Kanja Sesay to resign from post.
Should Karpower Ghana shut down its operations, it will likely lead to load-shedding management.
Ghana’s energy sector is facing a critical challenge with its debt burden escalating to over $3 billion as of January 12, 2025.
The IMF has raised several red flags cautions, urging the Government to undertake far-reaching reforms to save the energy sector from imminent collapse.
Source: https://energynewsafrica.com
Discover more from Energy News Africa
Subscribe to get the latest posts sent to your email.