Nigeria: Gombe State Signs MoU With Chinese Firm For Solar Energy Project
The Gombe State in the Federal Republic of Nigeria has signed a Memorandum of Understanding (MoU) with China18th Engineering, an international engineering firm renowned for large-scale infrastructure and energy projects, for the provision of a 100—megawatt solar energy plant, as part of measures to enhance energy self-sufficiency in the state.
The MoU was signed during a recent engagements between Governor Muhammadu Yahaya and top executives of China Railway 18th Bureau Group in China.
The Commissioner for Energy and Mineral Resources, Sanusi Ahmad, signed on behalf of the Gombe State Government, while the Group Managing Director, Wan Lian Yu, signed for his company.
Muhammadu Yahaya spoke on the importance of local power generation in driving economic growth and addressing frequent power outages.
“I am happy that today, we are hosting the management of the China 18th Bureau here in Gombe as a direct follow-up to our initial discussions in China. The MoU signifies the beginning of a transformative project that will boost electricity supply and bring prosperity to our people,” Yahaya said as reported by The Punch.
Source: https://energynewsafrica.com
Nigeria: We’re Not Responsible For Your Difficulties—Dangote Refinery Replies IPMAN
Africa’s largest crude oil processing refinery, Dangote Refinery in the Federal Republic of Nigeria, has denied receiving any payments for the purchase of refined petroleum products from the Independent Petroleum Marketers Association of Nigeria (IPMAN).
The company’s Group Chief Branding and Communications Officer, Anthony Chiejina, said this in a statement in response to a claim by the marketers that they were unable to load petrol from the refinery for days.
In an interview with Nigeria-based Channel Television’s Arise Daily Programme, IPMAN’s President, Abubakar Garima, said its members are unable to load petrol from the refinery despite payment of N40 billion to the Nigerian National Company (NNPC) Limited.
However, Dangote Refinery clarified that IPMAN’s claim was misleading because the refinery has no direct business dealings with them.
Mr Chiejina emphasised that the payment has been made through the NNPC Ltd and not the refinery, adding that the NNPC Ltd has neither approved nor authorised them to release petrol to IPMAN.
“The Dangote Petroleum Refinery wishes to clarify that it has not received any payments from the IPMAN to purchase refined petroleum products. Although discussions are ongoing with IPMAN, it is misleading to suggest that they (IPMAN Members) are experiencing difficulties loading refined products from our Petroleum Refinery, as we currently have no direct business dealings with them.
“Consequently, we cannot be held responsible for any payments made to other entities. The payment in mention has been made through the NNPC Ltd, and not us. In the same vein, NNPC Ltd has neither approved, nor authorised us to release our Premium Motor Spirit (PMS) to IPMAN,” he said.
“We would like to emphasise that we can meet the nation’s demand for all petroleum products, including petrol, diesel, and aviation fuel.”
At present, he said the refinery can load 2,900 trucks per day and have also been evacuating petroleum products by sea.
“We advise IPMAN to register with us and make direct payment as we have more than enough petroleum products to satisfy the needs of their members.”
The refinery urged all stakeholders to refrain from making unfounded statements in the media, as that could undermine the economic re-engineering efforts of President Bola Tinubu.
He explained that conducting business through public speculation is counter-productive and unpatriotic.
“In the interest of our country, we encourage all stakeholders to collaborate and heed the advice of President Tinubu, while promoting a unified approach, rather than engaging in media conflicts and needless propaganda,” he said.
On Tuesday, Aliko Dangote, founder and President/Chief Executive of the Dangote Group, said his refinery has more than 500 million litres of petrol in stock, but marketers have not been picking up the product.
Mr Dangote did not, however, say for how long the 500 million litres of petrol had been refined and stored by his 650,000 barrels per day refinery.
Source: https://energynewsafrica.com
Ghana: NPA Boss Named Public Sector Personality Of The Year At Ghana Business Awards
Ghana’s downstream petroleum regulator, National Petroleum Authority (NPA) and its Chief Executive Officer, Dr. Mustapha Abdul-Hamid, received recognition at the 7th Ghana Business Awards held at the Kempinski Hotel in Accra, last week.
Dr. Mustapha Abdul-Hamid was named as the Public Sector Personality of the Year while NPA received the Excellence in Corporate Social Responsibility (CSR) Award.
The recognition of Dr. Abdul-Hamid as Public Sector Personality of the Year not only highlights his visionary leadership but also underscores his commitment to transformative changes within the NPA.
Known for his strategic approach and drive for innovation, Dr. Abdul-Hamid has steered significant reforms that have positioned the NPA as a benchmark in public sector management and corporate integrity within Ghana’s petroleum dowstream industry.
Under Dr. Abdul-Hamid’s direction that focus on uplifting local communities and promoting sustainable business practices the Authority has implemented numerous CSR programmes that address critical needs in education, health, and water access, making a measurable difference across the country.
The CSR programmes reflect the NPA’s ongoing commitment to creating lasting change in health, education, and infrastructure, improving lives for many Ghanaians.
A Deputy Chief Executive, Mrs. Linda Asante, accompanied by Director of Quality Assurance Setsoafia Komla Abgenoto, Head of Expenditure Prince Amoako Nuamah, and other members of the Corporate Affairs team received the awards on behalf of Dr. Abdul-Hamid.
The Ghana Business Awards, renowned for celebrating excellence across industries, shortlisted 126 individuals and organizations this year.
Themed “Business Unity for Climate Impact: Innovating for a Sustainable Future,” the event highlighted the importance of sustainable practices in today’s business environment.
In a speech delivered on behalf of the Minister of Tourism, Arts, and Culture, Chief Director Robert Patrick Ankobea commended the business community’s dedication to growth, noting that Ghana’s tourism sector ranks among the highest contributors to GDP.
He urged businesses to prioritize transparency, responsibility, and value creation for Ghanaians.
Source: https://energynewsafrica.com
Source: https://energynewsafrica.com Liberia: Liberia Electricity Corporation Seeks Review Of Current Electricity Tariff
The Liberia Electricity Regulatory Commission (LERC) has received a proposal from Liberia Electricity Corporation (LEC) seeking for a review of the current electricity tariffs.
The proposed tariff review is for January 1, 2025, to December 31, 2027.
The move is in accordance with Section 8.1(2) of the 2015 Electricity Law of Liberia which states that “a licensee may not charge a customer any other tariff other than that determined or approved by the Regulator,” according to a report by Observer.
This submission comes as the current tariff regime which came into effect on January 1, 2022, is set to expire on December 31, 2024.
Meanwhile, the Commission has requested LEC to submit all supporting documents used to derive its proposed tariff structure.
When this is done, the Commission would acknowledge a complete application and issue a notice of pendency for the review and approval of LEC’s proposed tariff in accordance with the 2015 Electricity Law of Liberia, as well as the Commission’s 2021 Electricity Tariff Regulation, Multi Year Tariff Methodology and Cost Reflective Electricity Price Determination Model.
To ensure transparency and public involvement, the Commission would conduct a series of public hearings, stakeholder engagements and outreach initiatives.
These forums would aim to solicit input from electricity customers, consumers, policymakers, civil society organization and other interested parties before finalising the tariff decision.
Source: https://energynewsafrica.com
Ghana: ECG District Installs 35,000 Prepaid Meters
The Electricity Company of Ghana (ECG) District Office at Krobo under the jurisdiction of Tema Regional ECG has installed almost 35,000 prepaid meters in the district since the beginning of the prepaid meter installation project in 2022.
This was disclosed by the District Manager, Ing. Christopher Apawu, during a discussion on Somanya-based Rite FM as part of general education on ECG operations and services in the area.
Ing. Apawu indicated that, as with all projects, the prepaid meter installation is done in phases, area after area and it is an ongoing ECG operational activity.
The aim of the organisation is to eventually provide prepaid meters to all customers in all its operational areas.
During the radio education, questions were asked as to whether the ECG is installing the prepaid meters on the orders of some individuals or not.
To this, the Manager responded that “installation of prepaid meters is not on the orders of any individual and that it is a national project that was started in the year 2000.
The goal is to eventually get all ECG customers throughout its operational areas on prepaid meters and that goal is an ongoing one.”
He added that the utility distributor also relies on other organisations and services to do aspects of their work.
“So, for instance, for a prepaid meter to be installed and to have it working well, internet service must be good in that locality. Hence, we move behind the telecom companies where our prepaid meter installations are concerned.”
Ing. Apawu and his team on the programme also spoke generally about steps in meter acquisition, customers being alert to avoid fraud situations as well as emphasising that ECG has gone cashless, hence all payments are digital.
They mentioned that ECG does not have any mobile money number to which customers are to make payments, so anyone who contacts them and asks them to make any payment to any number is a fraud.
He indicated that “by cashless, payments are made through the ECG mobile app or the use of shortcode *226#“.
Ing. Apawu and his team also educated the public on the use of Energy Commission certified electricians and to avoid using substandard cables for their wiring works. They indicated that “the ECG, per law, cannot supply power to any structure that does not have a certified wiring certificate; therefore, customers should please take note and do right by the law.”
The Manager was accompanied on this educational drive by the Krobo District Customer Management Officer, Mr. Maxwel Narh, and the ECG Tema Regional PRO, Ms. Sakyiwaa Mensah.
Source: https://energynewsafrica.com
Nigeria: We’re Confident NUPRC Will Resolve Issues Surrounding Sale Of Shell’s Onshore Assets—Olu Verheijen
Nigeria’s Presidential Special Advisor on Energy, Olu Verheijen, has expressed confidence in the ability and commitment of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to resolve outstanding issues surrounding Shell’s proposed sale of its onshore assets to the Renaissance consortium.
Verheijen noted that President Bola Ahmed Tinubu’s administration is dedicated to accelerating the strategic shift of international oil companies (IOCs) from onshore operations to a focus on deep offshore and gas businesses.
At the recent launch of the ‘1mmbopd’ project to mark NUPRC’s third anniversary, Commission Chief Executive Engr. Gbenga Komolafe disclosed the government’s approval of four divestment deals, including the ExxonMobil sale of Mobil Producing Nigeria Unlimited to Seplat Energy.
In a virtual interview with journalists and analysts from 54 African nations, under the auspices of the African Association of Energy Journalists and Publishers (AJERAP), Verheijen stated, “Many divestment deals have been closed. There has been an accelerated rate of approvals for some of these deals.
“There is an improvement from what it used to be in the past. If you look at the level of approvals that have occurred and the speed at which they transpired, you will see that there is an improvement.”
She added, “There is one outstanding issue, and we remain confident in NUPRC’s regulatory process. Our objective is to accelerate exits for IOCs who wish to refocus on other areas, particularly the deep offshore and gas businesses.”
According to Verheijen, IOCs possess significant capital and technical expertise that can help unlock value in the complex deep offshore and gas sectors.
For onshore players, she emphasided the need for independents to align with the goal of rapidly increasing production, ensuring they have the technical and financial capacity to do so.
She highlighted that President Tinubu has made substantial efforts to attract and retain investors in the energy sector through sound policies and appealing incentives.
Verheijen remarked, “When we took office, we noted a decline in investment, partly due to security challenges. The low investment was also influenced by fiscal incentives. We needed to reassess these aspects, including the revenue or profit share between the government and investors.”
She explained, “We aimed to rebalance and become more competitive compared to other investment destinations. We considered all operators, including international businesses, still interested in investing in Nigeria and advocated ways to enhance our competitiveness.”
Source: https://energynewsafrica.com
Gambia: Petroleum Minister Woos PetroChina To Participate In Oil & Gas Exploration
The Gambian Minister for Petroleum and Energy has extended an invitation to PetroChina to come to the West African nation and participate in the exploration of oil and gas for mutual interest.
Minister Nani Juwara extended the invitation to PetroChina when he met Chairman of PetroChina, Mr Dai Houliang, during the 3rd Belt and Road Energy Minister’s meeting in China.
At the meeting, both discussed areas of interest with the minister Juwara, making a strong case for the development of The Gambia’s oil and gas resources.
The Hon. Minister of Petroleum and Energy, Nani Juwara, has met with the Chairman of PetroChina, Mr Dai Houliang, during the recently concluded 3rd Belt and Road Energy Minister’s Meeting held in The People’s Republic of China.
In a post on Facebook sighted by this portal, the Gambian Ministry of Petroleum and Energy wrote: “Both parties have expressed interest in further collaboration and partnership that will aid in the realisation of the potential of our petroleum resources.”
The Gambia has over ten thousand square kilometres of offshore acreage and preliminary resource estimates over three billion barrels of oil.
Source: https://energynewsafrica.com
South Africa: Three Persons Arrested For Stealing 16 Cable Drums Worth Over R1 Million
South African police in Pretoria have arrested three persons for their involvement in the stealing of drums of cable belonging to South Africa’s power utility company, Eskom.
The arrests followed an armed robbery incident that occurred at the Wolmaransstad Customer Network Centre (CNC) in Klerksdorp on Monday, 7th October 2024, at approximately 00:57, Eskom said in a statement on Thursday.
During the incident, unknown armed suspects entered the CNC and loaded 16 drums of Eskom cable valued at R1,051,530.00($56,651.29) onto the trucks and fled the scene.
The three suspects were put before Wolmaransstad Magistrate Court on Wednesday, October 30, 2024.
Eskom said the two trucks involved in the crime had been impounded from their unscrupulous owner and would be presented as evidence.
Eskom commended the tireless and exceptional investigative work by the SAPS Head Office Detective team, which led to the arrests of the suspects.
“We hope the suspects face the full might of the law and believe that the three suspects may be linked to several other similar armed robbery incidents committed recently at other Eskom CNCs.
“We are committed to safeguarding the security and integrity of our critical infrastructure,” Eskom said.
According to Eskom, the ongoing collaboration between its internal security investigations team and law enforcement agencies, co-ordinated by the National Energy Crisis Committee’s (NECOM) Safety and Security Priority Committee, continue to yield significant positive results in our efforts to combat crime and corruption.
Eskom said it remained steadfast in its stance against criminal activities and urged members of the public to report any information related to unlawful activities, including armed robberies, illegal electricity sales, fraud, theft of coal, fuel oil, diesel, and critical and essential infrastructure crimes.
Source: https://energynewsafrica.com
Nigeria: TCN Restores Power Supply In Seven Northern States After Over A Week Of Blackout
Nigeria’s power transmission company, TCN, has announced the successful restoration of bulk power supply through its 330kV Ugwuaji-Apir transmission line 1,
following the completion of repairs on the vandalized section of the line.
TCN’s Public Affairs Manager Ndidi Mbah, who disclosed this in a statement on Wednesday, said power supply was restored at about 4:56 pm.
“With the restoration of this line, the Apir-Lafia 330kV transmission line 2 is now operational, also, bulk power transmission has been restored to Lafia, Makurdi, Jos, Kaduna, Kano, Bauchi, and Gombe States.
“As restoration efforts continue, with the TCN engineering team preparing to commence work on the second 330kV transmission line. All necessary materials for the repairs are on hand, and work will begin as soon as the site is secured for the safety of our personnel to the affected sections of the vandalized 330kV transmission line two,” she stated.
She noted that in the meantime, teams of linesmen will re-patrol the 330kV line 2 to ensure that no other sections are impacted as the repair works progress.
“We appreciate your patience and understanding as our engineers work diligently to restore the 330kV transmission line 2. TCN recognizes the importance of electricity in our daily lives and is committed to ensuring that this line is repaired swiftly, thereby increasing the bulk power to the affected area by the incident,” she added.
The Northern Region has been without electricity for over a week. The outage was said to have been triggered after the tripping off of the 330kV circuit transmission line between Benue and Enugu.
The transmission line between Shiroro and Kaduna was also affected, affecting Kano, Gombe, Kebbi, Jos, Kaduna, Benue, Bauchi, Adamawa, Taraba, Borno, Kwara, Nasarawa and Yobe.
TCN reported that the Shiroro-Kaduna line had been vandalised, leading to reduced bulk electricity supply to Kaduna, Kano, and other major cities in the north.
A few days later, TCN stated that a snapped 330kv transmission line in the swampy forest of Igumale, Benue State, further contributed to the blackout.
On Monday, TCN explained that insecurity had delayed repairs but assured it was working tirelessly to restore the bulk power supply.
Source: https://energynewsafrica.com
Chinese Oil Major To Explore Iraqi Field
China’s CNOOC has inked a deal for exploration at an oil field in central Iraq, the company in a statement on Wednesday.
The deposit, Block 7, will be managed by a fully owned subsidiary of the Chinese company, CNOOC Africa Holding, with the first phase of the work planned to take three years, Reuters reported.
The deal follows CNOOC’s winning bid for Block 7 following a tender that the Iraqi government carried out earlier this year, where Chinese energy majors were the big winners, winning a total of four bids for nine oil and gas deposits.
Chinese companies’ entry into Iraq’s oil and gas sector is a result of an agreement inked back in 2019 and dubbed “Oil for Reconstruction and Investment”, under which Chinese companies are granted entry into Iraq’s energy infrastructure sector as investors in return for oil supplies.
In addition to this agreement, Iraq’s government sought to stimulate more foreign investment in its oil and gas resources by changing the mechanism used to share profits from exploration and production activities.
Previously, Iraq offered foreign energy investors a technical service contract, which paid a flat fixed rate to the producing companies for every barrel they extracted.
This was considered sub-optimal by the producers since it meant that they could not make more money when oil prices went higher and at the same time had to shoulder any upward changes in production costs.
Since this led to a pullout by some supermajors, Iraq decided to offer those still in the country and potential new entrants a profit-sharing agreement mechanism that did not feature the above problems with costs and market price advantages.
It was this change in contract terms that convinced TotalEnergies to sign a massive $27-billion deal with the Iraqi authorities for the development of the country’s natural gas reserves, as well as solar power capacity.
Source: https://energynewsafrica.com
Ghana: Energy News Africa Ltd. Celebrates Fifth Anniversary
My name is Michael Creg Afful, the Editor and Executive Director of Energy News Africa Ltd based in the Republic of Ghana, West Africa.
On behalf of the Energy News Africa team, I extend warm greetings to our esteemed media colleagues across Ghana, Africa and beyond and all our loyal readers.
Exactly five years ago today, 30th October 2019, we gathered at the British Hall in Accra to officially launch https://energynewsafrica.com to publish credible, accurate and relevant information in the energy industry in Ghana, Africa and beyond, and disseminate it to promote the growth of the energy sector across Africa.
Over the past five years, Energy News Africa has established itself as a leading online platform, providing unparalleled coverage of the dynamic energy landscape in Africa.
Our website has become the go-to source for industry professionals, policymakers and enthusiasts seeking timely, informative and insightful news and analysis.
We have worked tirelessly to provide comprehensive coverage of the continent’s energy sector, from renewable energy advancements to fossil fuel developments, and from policy reforms to innovative technologies.
We have achieved a significant milestone and the website attracts readers from over 100 countries across the world.
As we celebrate these five years of great achievements, we want to use this opportunity to thank all our readers across the world.
Per data provided by Google Analytics, Ghana ranked number one when it comes to readership.
This is followed by Russia, the USA, Nigeria, the UK, Norway, The Netherlands, South Africa, Hong Kong and Ireland in the 10th position.
We use this opportunity to urge our readers to continue visiting Energy News Africa platforms to get accurate and credible energy News and encourage those who are yet to visit our platforms.
I would like to take this opportunity to express my heartfelt appreciation to our dedicated team of journalists, proofreaders and contributors who have worked tirelessly to deliver high-quality content. Your passion, expertise and dedication have been the driving force behind our success.
To our partners and supporters, Energy Ministry, BPA, Ghana Gas, ECG, GRIDCo, IPPs, NEDCo, VRA, NPA, BOST, CBOD, AOMC, GOIL PLC, Petroleum Commission, GNPC, WAPCO, PURC, ACEP, IES, Tullow, ENI, KOSMOS, COPEC and Energy Media Group, I extend my sincerest gratitude to you.
Your engagement, feedback and encouragement have fueled our growth and motivated us to strive for excellence. We are honoured to have served as a platform for knowledge sharing, dialogue and collaboration.
As we celebrate this milestone, we recognise the immense progress made in Africa’s energy sector. From the growth of renewable energy capacity to the increasing investment in energy infrastructure, there are many reasons to be optimistic about the continent’s energy future.
However, we also acknowledge the significant challenges that remain. Energy access remains a pressing issue for millions of Africans, and the transition to a low-carbon economy requires sustained commitment and collective action.
As we look to the next five years, we recommit ourselves to:
- Expanding our coverage to include a more nuanced analysis of energy policy, regulation and governance;
- Showcasing innovative solutions, technologies and entrepreneurship driving Africa’s energy transformation;
- Enhancing our digital presence through interactive features, podcasts and social media engagement;
- . Fostering strategic partnerships to promote energy access, sustainability and industry development;
- Continuing to amplify the voices of African energy stakeholders, experts and communities;
- . Early next year, there will be a series of activities to mark the fifth anniversary, including public lectures.
Ghana: Making LPG Affordable Will Boost Domestic Use – Abola Chief Urges
The Paramount Chief of the Abola Traditional Area, Nii Ahene Nunoo, has called on the government to significantly reduce Liquefied Petroleum Gas (LPG) prices to make it more accessible for households across Ghana.
Speaking at the Greater Accra Cylinder Recirculation Module (CRM) Regional Sensitization and Awareness Creation Durbar on October 24, 2024, in James Town, Nii Ahene Nunoo urged the government to take swift action to further lower LPG prices to increase household adoption and reduce reliance on harmful traditional fuels like wood and charcoal.
Representing the Ga Mantse, Nii Tackie Teiko Tsuru, as the special guest of honor, Nii Ahene Nunoo highlighted the adverse health effects of wood and charcoal usage, which disproportionately impact women and children in his community. “Many families cannot afford LPG due to its high price,” he stated, explaining that LPG costs often consume a large portion of household income, forcing families to depend on unsafe alternatives that contribute to health risks and environmental degradation.
The chief acknowledged the government’s efforts in absorbing cylinder costs under the CRM initiative but appealed for further price reductions to alleviate household expenses, reduce health risks from smoke inhalation, and support environmental conservation.
Dr. Mustapha Abdul-Hamid, Chief Executive of the National Petroleum Authority (NPA), addressed the gathering through Dr. Joseph Wilson, NPA’s Director of Research, Monitoring, and Evaluation. He underscored the urgency for Ghanaians to adopt cleaner energy sources.
According to Dr. Wilson, 54.3% of Ghanaian households still rely on wood or charcoal, which poses severe health and environmental hazards. He referenced World Health Organization (WHO) statistics indicating that over 14,000 premature deaths in Ghana each year result from household air pollution due to biomass burning.
While LPG usage has grown, with 37.7% of households now using it, Dr. Wilson noted that adoption has lagged behind expectations. He cited a 2% compound annual growth rate in the LPG market from 2015 to 2023, largely attributed to improved storage infrastructure, but emphasized that household uptake remains low.
“NPA has consistently worked to educate and sensitize consumers on safe LPG use and the need for CRM,” he said, stressing that ongoing stakeholder collaboration is essential to promote CRM benefits, develop infrastructure, and support policies that shift Ghana away from biomass fuels.
Director of Corporate Affairs at NPA, Mrs.Maria Oquaye, welcomed attendees to the durbar and reaffirmed the Authority’s commitment to making clean, affordable energy accessible to all Ghanaians. She emphasized James Town’s significance as a vibrant fishing community heavily reliant on wood and charcoal for fish processing, making it critical to the CRM’s success.
“We at NPA are committed to ensuring that this transition is smooth, with all necessary infrastructure and support systems in place,” she noted.
Mr. Obed Kraine Boachie, Head of Gas ,Commercial Regulation at NPA presented an overview of the Cylinder Recirculation Model (CRM), outlining its key principles, operational strategy, and the health and environmental advantages of adopting cleaner energy sources.
Mr. Boachie highlighted the harmful effects of smoke from wood and charcoal on respiratory and cardiovascular health, particularly for women and children.
He encouraged fishmongers and other small-scale food processors in fishing communities like James Town to switch to LPG for processing, which would significantly reduce their exposure to hazardous smoke.
He also called on community leaders, health advocates, and local authorities to support this shift, stressing that widespread adoption of LPG under the CRM would improve public health, reduce environmental harm, and create a safer, healthier environment.
Mr. Boachie reaffirmed NPA’s commitment to ensuring accessible LPG infrastructure and educational resources to facilitate a smooth transition across communities, ultimately enhancing citizens’ quality of life and supporting environmental sustainability.
The Greater Accra Regional Cylinder Recirculation Module (CRM) Sensitization and Awareness Creation Durbar was chaired by Nii Ayikai III, the Paramount Chief of Akanmajen Area.
Source: https://energynewsafrica.com
Ukraine And Russia Discuss Halting Attacks On Energy Sites
Russia and Ukraine are in the very early stages of Qatar-mediated talks about halting attacks on each other’s energy facilities and infrastructure, the Financial Times reports, citing sources with knowledge of the matter.
Over the past year, Russia has attacked Ukrainian energy facilities, targeting power plants. Ukraine, for its part, has been targeting oil depots, terminals, and refineries.
Previous talks on a potential halt to these attacks from both sides were close to reaching an agreement in August this year.
But the negotiations were derailed by the surprise Ukrainian ground incursion into the Kursk region in Russia in early August, according to FT’s sources.
Very early-stage talks have reportedly resumed now, and “There’s now talks on the energy facilities,” a diplomat told FT.
Last week, Ukrainian President Volodymyr Zelenskyy said that the two sides need to agree to halt attacks on crucial civilian energy and food infrastructure, as a step toward potential de-escalation of the most aggressive phase of the war so far.
Attacks on energy infrastructure have been dialed down from both sides in recent weeks, as part of an understanding between the Ukrainian and Russian intelligence agencies, a senior Ukrainian official told FT.
Refineries and oil depots in Russia, especially those in the southwest, have seen extensive maintenance and halts due to attacks from Ukrainian drones this year.
Scheduled maintenance is also boosting the idle refining capacity in Russia this month. Russia has raised the refining capacity volumes it expects to be idle this month by 67% compared to an earlier plan, due to scheduled maintenance at major refineries, Reuters estimates showed earlier this month.
Ukrainian attacks on Russian oil refineries and other energy infrastructure have become a fixture this year, with drones the weapon of choice for conducting the strikes.
Russia, for its part, has been targeting power plants, which has crippled Ukrainian electricity supply.
Source: Oilprice.com
Ghana Faces Renewed Threat Of Power Crisis As 560MW Sunon Asogli Power Plant Shuts Down Amid Debt Dispute
“In case you are experiencing a “low-key dumsor” be prepared to see an extended version of same, due to government’s reluctance to act decisively on the root cause.”
A new wave of potential extended intermittent power outages reminiscent of the infamous “dumsor” looms over the country following the recent shutdown of the 560 megawatt (MW) Sunon Asogli Power Plant which reliably supplies about 12-15% of the nation’s electricity. The absence the plant from the national grid is already evident.
Sunon Asogli, one of Ghana’s largest power producers, suspended operations two weeks ago, citing prolonged delays in payment of US$259 million, for electricity supplied. According to owners of the plant a significant capital injection is required to service its operational debts and resume normal production. Reports indicate that despite calls from the Ghana Grid Company Limited (GRIDCo) to restore operations and alleviate the growing pressure on the national grid, Sunon Asogli has remained steadfast, pointing at its lack of operational fund.
Why this shutdown matters?
In recent years, Ghana has sought to stabilize its power sector, balancing supply with demand to avoid the protracted outages that characterized the infamous “dumsor” era. However, the current situation with Sunon Asogli threatens this balance, as the power generated from this plant forms a substantial part of the nation’s overall capacity. The sudden removal of 560MW from the system has created a vacuum that other power producers are unlikely to fill promptly, given the constraints of limited generation and ongoing financial stress in the sector.
Data from the Ghana Grid Company (GRIDCo) shows that since Sunon Asogli Power Plant was shut down, daily power generation at peak hours has been below 3,165MW. Over the past seven (7) days average power generation has fallen below 3,000MW, showing a supply deficit of over 500MW at peak hours. The supply gap exist even though other idle plants like BridgePower and CenPower have been brought online since Asogli was shut down.
This gap in supply threatens to widen if alternative power sources are not found or if the Electricity Company of Ghana (ECG) cannot make any payment to Sunon Asogli. Even if other plants attempt to compensate for this deficit, their generation costs may be higher, potentially driving up tariffs for end-users, an additional burden on citizens and the business sector.
Financial constraints and unresolved debt issues
The shutdown of Sunon Asogli underscores a longstanding issue in Ghana’s power sector— the inability of utility companies and the government to meet payment obligations. The stance by Sunon Asogli demanding an immediate payment of at least US$60 million to meet its debt obligations, reflects broader concerns in the power industry about financial sustainability.
Power producers in Ghana often face delayed payments due to complex debt cycles, poor revenue collection, and cash flow issues within the sector. The sector’s struggles are compounded by high fuel prices, currency depreciation, and rising operational costs; creating an environment where suppliers are unable to absorb financial shortfalls without compromising their ability to produce power.
The report of financial strain on Sunon Asogli highlights the broader structural weaknesses of the energy sector, where systemic debt has become a near-permanent feature. This cycle places additional pressure on government entities, power producers, and ultimately, the end-users who shoulder the brunt of increased tariffs and unreliable service.
Potential impact on power supply and the economy
With the national power grid stretched thin with generation reserves almost non-existent, GRIDCo’s reported call for Sunon Asogli to return online reflects the urgency of the situation. However, without a meaningful resolution, there is little indication that the company will be able to resume operations. The country risks a scenario where load shedding becomes a necessary measure, particularly if demand continues to exceed supply.
If “dumsor” returns, Ghana’s economy may face significant setbacks, especially as power shortages disrupt productivity, increase operational costs, and dissuade investment. Prolonged outages could also negatively impact sectors like healthcare, education, and small and medium enterprises, which are heavily reliant on consistent power to function effectively.
For Ghana to avert an impending power crisis, it is imperative to find both short-term and long-term solutions. In the short term, government intervention may be required to help alleviate Sunon Asogli’s financial challenges, possibly through bridging loans to facilitate the plant’s return to operation.
Recommendations
- Government must consider providing a short-term bridging loan or financial relief package to enable Sunon Asogli to resume operations. This urgent intervention would help mitigate power supply disruptions and stabilize the grid.
- Government must initiate an effective debt restructuring program to address longstanding financial issues in the power sector. A scheduled debt payment plan with prioritized payments could address recurring financial issues in the sector.
- Government must strengthen revenue collection mechanisms with the Electricity Company of Ghana (ECG) to reduce payment delays and increase cash flow. An enhanced revenue collection would alleviate pressure on the power producers and improve sector-wide financial health.
- Government must implement a comprehensive reforms aimed at ensuring the power sector’s financial sustainability, including addressing systemic debt cycles, enforcing transparency in financial transactions, and fostering private sector investment in power infrastructure.