Pakistani National Electric Power Regulatory Authority (NEPRA) has reduced electricity prices under the monthly Fuel Price Adjustment (FCA), making electricity cheaper for consumers.
According to a report by arynews.tv, a reduction of 75 paisas per unit has been announced for consumers of government-owned DISCOs under the November FCA.
Additionally, a price reduction of 49 paisas per unit has been approved for K-Electric consumers under the October FCA.
Back in December 2024, Prime Minister of Pakistan Shehbaz Sharif directed a reduction in electricity prices for consumers and the immediate closure of outdated and inefficient power plants.
During a review meeting on future electricity generation projects and the transmission system, the prime minister emphasised prioritizing low-cost energy projects using local resources in Pakistan.
The premier was briefed on ongoing hydropower projects across Pakistan, to which he stated that hydropower provides low-cost, environmentally friendly energy. He also stressed the need to shift existing energy capacity to solar power, leveraging Pakistan’s abundant solar energy potential.
PM Shehbaz ordered the immediate shutdown of power plants that consume excessive fuel but generate minimal electricity, stating that this would save valuable foreign exchange and reduce costs for consumers in Pakistan.
Shehbaz Sharif instructed officials to expedite reforms in the electricity transmission system and ensure compliance with international standards using modern technology. He also called for strict action against officers deliberately hindering these reforms.
The PM of Pakistan further directed the completion of all power sector reform measures within the stipulated timeframe.
The National Electric Power Regulatory Authority (NEPRA) concluded the hearing of K-Electric’s bid evaluation report for 150 MW renewable energy projects on December 11.
“K-Electric (KE) has made remarkable progress in its journey toward renewable energy with the submission of the Bid Evaluation Report for its 150 MW solar projects at Winder and Bela, Balochistan, to NEPRA”, the statement added.
KE underscored that after getting a nod of approval from NEPRA earlier this year, KE initiated the industry’s first competitive bidding process to launch renewable energy projects.
KE said that “the 150 MW Winder and Bela projects are a part of a cumulative 640 MW renewables ambition reflecting the first trench of the company’s long-term goal to add 1300 MW of sustainable energy into the generation mix”.
This milestone is part of KE’s broader renewable energy roadmap, which aims to integrate 30% renewables into its generation portfolio by 2030.
Source: https://energynewsafrica.com
Ghana’s new administration headed by H.E John Dramani Mahama has appointed Hon. John Abdulai Jinapor as the Minister Designate for Energy.
Jinapor brings a wealth of experience to the role, having served as a former deputy minister for Power during Mahama’s previous administration.
With his impressive educational background, including multiple advanced degrees such as an MSc in Energy Economics from GIMPA and a postgraduate diploma from the University of London, Jinapor is expected to drive dynamic transformations in Ghana’s energy sector.
His qualifications also include an MA in Economic Policy Management, an MBA in Marketing, and an MSc in Development Finance from the University of Ghana.
Jinapor’s appointment is part of Mahama’s first set of ministerial appointments, announced on January 9, 2025.
Source: https://energynewsafrica.com
Ghana’s electricity demand reached an all-time high in 2024, with a system peak load of 3,952 megawatts (MW) recorded on December 29, a report by the Energy Commission has revealed.
This represented a significant 9.2% increase in electricity demand from the 2023 peak demand of 3,618 MW.
The surge in demand was driven by the country’s growing economy and increasing loads across the Electricity Company of Ghana (ECG) and Northern Electricity Distribution Company (NEDCo) distribution zones.
As the country looks ahead to 2025, electricity planners have projected that the system peak load will continue to rise, reaching 4,125 MW.
This will represent a further 4.4% increase from the 2024 figure.
Ghana’s installed electricity generation capacity stood at 5,260 MW as of November 2024, with a total dependable capacity of 4,856 MW.
In 2025, the available capacity is expected to be 5,260 MW, with a dependable capacity of 4,855 MW.
This will provide a reserve margin of 18% to meet the projected peak demand.
However, the availability of fuel supply and scheduled maintenance for generation units could impact the actual available capacity.
Ghana’s electricity generation mix is a combination of hydro, thermal, and renewable energy sources.
With the exception of the hydropower plants, most of the thermal power plants rely on natural gas, with an estimated 151.4 trillion British thermal units (TBtu) required for electricity generation in 2025.
The report also estimates that 344,387 barrels of Heavy Fuel Oil (HFO) will be required by the AKSA to fuel some of its units.
The total fuel expenditure for the year, according to the report, is estimated at US$1,248.23 million.
As Ghana continues to grow and develop, its electricity sector would play a critical role in supporting economic expansion and improving the quality of life of its citizens.
Source: https://energynewsafrica.com
Angolan National Police arrested at least eight truck drivers who were transporting several tanks of fuel intended for smuggling into the Democratic Republic of Congo (DRC).
The drivers were caught at the Loge river checkpoint, between the provinces of Zaire and Bengo.
According to Intendant Luís Bernardo, spokesman for the Provincial Command of the National Police, the arrest was part of a broader effort to tighten the siege on truck drivers illegally transporting diesel and petrol to the DRC.
The police seized around 9,800 liters of fuel from the trucks, which had adulterated tanks designed to evade detection.
This is the second time in less than a month that the National Police in Zaire have seized lorries bound for the DRC with deposits of petrol and diesel.
The detainees and seized equipment will be presented to the Public Prosecutor’s Office for legal proceedings.
The incident highlights the ongoing challenge of fuel smuggling in the region, with significant quantities of fuel being smuggled across borders, often using altered tanks and other tactics to evade detection.
Source: https://energynewsafrica.com
The Millennium Challenge Corporation (MCC), an independent US agency and the Mauritanian government have signed a $27 million threshold grant agreement.
This landmark deal aims to modernize the country’s energy sector and enhance its resilience.
The agreement was signed by the Millennium Challenge Corporation (MCC) Chief Executive Officer (CEO) Alice Albright and Mauritania Minister of Economy and Finance Sid’ Ahmed Ould Bouh.
The grant program comprises two projects: the Energy Project and the Resilience Project.
The Energy Project will support Mauritania’s ambition to achieve universal access to electricity by 2030.
This will be achieved by improving the capacity of energy sector actors, developing inclusive plans for new energy generation and transmission, and strengthening regulation.
On the other hand, the Resilience Project will enhance Mauritania’s capacity to plan, coordinate, fund, and implement environmental resilience.
This will involve fostering long-term sustainability through practical capacity building and institutional strengthening.
MCC’s CEO, Alice Albright, emphasized the United States’ commitment to supporting Mauritania’s development, citing the country’s progress in strengthening civil liberties and combating hereditary slavery and trafficking in persons.
“From enhancing Mauritania’s security, to supporting democratic development, to increasing energy and economic prosperity, the United States has remained steadfast in its support of Mauritania,” said MCC CEO Alice Albright.
“By investing and pursuing reforms in two critical areas – energy and environmental resilience – the MCC threshold program is poised to improve the lives of all Mauritanians and create a strong and lasting foundation on which the Government of Mauritania can build.”
The grant is a testament to Mauritania’s positive trajectory of reform and its commitment to good governance, fighting corruption, and respecting democratic rights.
With this support, Mauritania is poised to make significant strides in reducing poverty and promoting inclusive economic growth.
Source: https://energynewsafrica.com
Ghana’s new administration headed by Mr John Dramani Mahama has constituted a technical committee made up of representatives from the energy sector agencies to present a roadmap aimed at averting a possible load-shedding in the West African country.
The committee has up to the close of today to present the roadmap to the newly appointed Chief of Staff, Julius Debrah, for consideration by the government.
The committee held a meeting at the private office of President Mahama in the morning of Wednesday. The meeting was chaired by the Chief of Staff.
It would be recalled that in November 2024, the West African Gas Pipeline Company Limited (WAPCo) announced a planned maintenance exercise of its pipeline infrastructure that traverses Itoki, Ogun State in Nigeria through Benin, Togo and Ghana.
The phase 1 which involves the cleaning and inspection of the onshore section of the pipeline which is located within Nigeria had already been completed.
The phase 2 of the project scheduled to begin in January 2025 involves the cleaning and inspection of the main section of the pipeline, which is offshore, stretching from Badagry in the Lagos State, Nigeria, to Takoradi in the Western Region of Ghana.
This will necessitate the shutdown of key facilities in Tema, Ghana; Lomé, Togo; and Cotonou, Benin.
This exercise will reduce the amount of gas supply to power plants in the east and western power enclaves.
Speaking to journalists after the meeting in Accra, the Spokesperson for President Mahama, Mr Felix Ofosu Kwakye, said the roadmap from the technical committee would help government weigh its options in addressing the impending challenge.
“As I indicated there is a committee, a technical committee with representation from all the key players in the energy valuation that will be meeting. They have up to the close of today to present a roadmap,” he said.
“So all options that can be explored to first of all avert any difficulty and address the situation at hand will be put on a table and government will make a decision based on what we receive,” Mr Kwakye added.
Source: https://energynewsafrica.com
Over a hundred youth stormed the Tema Oil Refinery (TOR) today, Wednesday, to demand the exit of appointees of the previous government in less than 24 hours after the swearing-in of the new President of Ghana.
Sources within the refinery told this portal that the group said they did not want any appointee of the previous administration to remain in office.
According to the sources, some of the group also said they were there to seek jobs since a new administration had taken over the affairs of the country.
Sources said it took the effort of security officers of the refinery to control the angry youth who later agreed to leave the refinery.
The 45,000 barrel per stream day premier refinery had been idle for several months during the immediate past administration.
Efforts to seek a private partner to revamp the refinery failed.
The refinery has a workforce of about 515 people.
Source: https://energynewsafrica.com
Think about a time when your electricity went out. As you sat in the dark, maybe you wondered how long it would be before you could power up your computer again. Or perhaps you considered what you could make for dinner that didn’t require cooking.
Many people in Africa don’t need to imagine such a scenario — they live it. Every day.
A large portion of the continent, primarily in sub-Saharan Africa, lacks access to reliable and affordable electricity. This energy poverty represents a major barrier to improving the quality of life for nearly 600 million people and achieving sustainable development goals across the continent.
In fact, Africa is the most energy-deficient continent in the world, with 75% of the world’s population lacking electricity. And although urban dwellers aren’t completely shielded from power outages, the extent of energy poverty is much more intense for rural populations.
Without reliable electricity, daily life can be challenging. Basic tasks like studying, working, and cooking become more difficult and time-consuming — if not downright hazardous. Relying on kerosene lamps or candles for illumination can be dangerous, both as a biohazard and a fire risk.
These fuels are often inefficient and can lead to health problems like respiratory diseases and eye infections. The use of traditional fuels such as wood and animal dung for cooking and heating indoors releases harmful pollutants, leading to indoor air pollution. This is a major cause of respiratory illnesses and premature deaths, especially among women and children.
On a macroeconomic scale, energy poverty hinders economic development and limits access to basic human services like health care and education. Without power, essentials like refrigeration and medical equipment cannot be used.
Businesses and industries that lack reliable power cannot operate efficiently, resulting in economic stagnation and stunted job creation. Energy poverty exacerbates social inequalities, as those with access to electricity have better opportunities for education, health care, and employment.
The State of African Energy 2025 Outlook, recently published by the African Energy Chamber (AEC) and available at https://energychamber.org, names three main challenges that African countries face in achieving universal access to electricity:
Expanding electricity access
Ensuring that energy remains affordable
Reducing dependence on fossil fuels, such as firewood and diesel generators used for lighting and cooking.
To combat these challenges, African countries are exploring a variety of solutions, including expanding access to electricity grids, promoting renewable energy sources like solar and wind power, and improving energy efficiency. However, significant challenges remain, including the high cost of infrastructure, limited financial resources, and a lack of technical expertise.
The Key? Decentralizing Power
In a sense, Africa is lucky: It’s sitting on a veritable goldmine of solar and wind potential.
With its vast expanse of deserts and coastlines, Africa is blessed with abundant sunlight and strong winds. This makes it an ideal location for harnessing solar and wind energy. Many regions receive intense sunlight year-round, creating the ideal conditions for large-scale solar power plants. Meanwhile, the continent also boasts long coastlines and elevated areas that experience strong and consistent winds, making them suitable for wind power generation.
While there are challenges with renewables, such as the need for significant investment and infrastructure development, today’s technology is advancing so rapidly that costs for renewables are becoming sustainable. This offers a unique opportunity to electrify Africa, in both urban and rural regions.
Until recently, efforts to electrify Africa have mostly relied on extending traditional grid connections and centralized power distribution. And investments to modernize and expand power grids are great — for people in urban centers. Unfortunately, these traditional grid situations do little for people in more isolated rural areas.
As we point out in our 2025 Outlook report, decentralized power generation — typically based on solar home systems and mini-grids — is the best bet to eradicate energy poverty among people in more isolated rural areas. As we see it, decentralized systems will be key for universal electrification. By decentralizing power generation, Africa can secure a sustainable energy future and improve the lives of millions of people.
Standalone power systems or localized power networks (otherwise known as “mini-grids”) have become efficient means of power that utilize solar in combination with battery storage and backup generators. These solar home systems are proving their worth in electrifying individual households in rural areas. As our report notes, we anticipate that options like these will be an increasing feature of the African power landscape as renewables penetrate the generation mix.
We are also seeing a dramatic uptick in off-grid systems to fill in the gaps left by the centralized grids. Our report found that Africa accounts for over 16% of the global decentralized renewable capacity, and off-grid solar solutions have as a result provided power to millions across sub-Saharan Africa.
Solar accounts for nearly 80% of Africa’s decentralized renewable capacity. Solar home systems generally include a small solar panel and a rechargeable battery that powers lights, radios, and phone chargers, while on a greater scale, mini-grids and smaller, more localized microgrids are used to supply power to entire communities.
Solar home systems and solar mini-grids have become increasingly successful in Africa, with installations being ramped up 12 times and 45 times respectively over the last decade.
By 2022, over 77 million people and nearly three million people on the continent gained access to electricity through solar home systems and solar mini-grids respectively.
Where Is the Money Coming From?
Because of the high upfront costs associated with installing solar panels, many decentralized connections in rural Africa have been financed through innovative pay-as-you-go (PAYG) programs. PAYG models enable people with limited income to access solar power by breaking down the cost into smaller, manageable payments.
To make sure that we maintain efforts toward universal electrification across the continent, it will be critical to continue securing public funding. The AEC encourages collaborative efforts from governments, the private sector, and development banks to lower costs for developers and ensure the success of these large-scale decentralization projects.
Our report highlights African Development Bank’s Desert-to-Power initiative, which is combining its own funds with those from international sources such as the Green Climate Fund and several European governments to install 10 GW of solar power across 11 countries by 2030. If all goes as planned, some 250 million people will finally have access to reliable electricity.
At the same time, we urge leaders and policymakers to ensure the financial sustainability of national subsidies that will help make these decentralized technologies more affordable for even more households, in both urban and rural settings.
Source: NJ Ayuk, Executive Chairman, African Energy Chamber
The Zambian Energy Regulation Board (ERB) has dismissed reports of a fuel crisis in Zambia, stating that the country has sufficient stocks of petroleum products.
While there have been sporadic stockouts at some filling stations, particularly for petrol, the ERB attributed this to logistical challenges.
“As of 3rd January 2025, out of 616 filling stations monitored countrywide, 503 were selling both diesel and petrol while only 14 filling stations were completely dry on both products,” the ERB said in a press statement.
The ERB explained further that only 101 retail sites were not selling petrol out of the 616 filling stations monitored countrywide.
According to ERB, the introduction of refundable transit taxes in Zimbabwe of about US$25,000 per truck has resulted in transporters opting to use alternative routes through Chanida
and Nakonde border points, leading to extended transit times.
Additionally, some OMCs have cited delays in bringing in petroleum product via the ports of Beira and Dar-es-Salaam due to increased congestion at the loading ports.
In order to mitigate the effects of the challenges associated with the importation of petrol, the ERB said it is actively engaging the OMCs and other government agencies such as the Zambia Revenue Authority (ZRA) and the Road Transport and Safety Agency (RTSA) to ensure implementation of measures aimed at timely delivery of petroleum products.
These measures include, among others, OMCs pre-clearing their imported products to avoid delays at the border and easing on requirements for hiring local tankers for transportation of petroleum products.
Further, the extension of movement of petroleum tankers beyond 18:00 is still in effect from last year to ensure the country is adequately stocked with petroleum products.
To this end, the ERB reiterated that there is no fuel supply crisis in the country and calls on consumers not to engage in panic buying as the country has sufficient stocks to meet daily requirements.
Source:https://energynewsafrica.com
AMEA Power, a leading renewable energy company, has been awarded two 300MWh Battery Energy Storage Projects (BESS) in South Africa’s North West Province.
The Gainfar and Boitekong projects, located in the North West Province, each with capacity of over 300MWh will play a vital role in strengthening Eskom’s grid stability.
The Gainfar Project will be connected to the Ngwedi substation, while the Boitekong Project will be connected to the Marang substation.
The power company secured the contract through competitive bidding selection process.
The projects will provide essential power and ancillary services to Eskom through 15-year Power Purchase Agreements (PPAs).
Hussain Al Nowais, Chairman of AMEA Power, said: “This achievement marks a major milestone for AMEA Power, as we continue to expand our footprint in South Africa, a key market for us.
These projects represent our first successful awards of BESS projects, through a competitive bidding process and underscore our commitment to providing sustainable, resilient and cost-effective energy solutions.
We are proud to support South Africa’s energy transition, enhance Eskom’s grid reliability, and drive economic growth in the region. With our expanding portfolio, including the 120MW Doornhoek Solar PV project, and our regional office in Johannesburg, we are dedicated to contributing to cleaner, more sustainable energy future for South Africa.”
Both projects will deliver essential power, energy, and ancillary services to Eskom through 15-year Power Purchase Agreements (PPAs), further solidifying AMEA Power’s role in the country’s energy landscape.
Once operational, these energy storage systems will provide robust, reliable backup power, enabling a stable grid and supporting South Africa’s renewable energy journey.
Source: https://energynewsafrica.com
Exxon has filed a suit against California Attorney General Rob Bonta and a group of environmental organizations alleging defamation and disparagement of the company’s recycling work.
“With apparently no appreciation for the irony of their claim, Mr. Bonta and his cohorts are now engaging in reverse greenwashing,” the company said in the suit, filed in Texas, as quoted by Bloomberg. “While posing under the banner of environmentalism, they do damage to genuine recycling programs and to meaningful innovation.”
The supermajor also alleged business interests were at play, noting in its lawsuit that one of the entities named as the guilty party, a law firm called Cotchett, Pitre & McCarthy, had ties to an Australian non-governmental organization funded by mining millionaire Andrew Forrest, who is a competitor of Exxon in low-carbon tech, Reuters reported.
Exxon’s move comes in response to a lawsuit filed by California’s Bonta against the company last year, alleging that the company misled the public into believing recycling was a workable solution to plastic waste while in fact the approach had limitations.
“Exxon Mobil knew that 95% of the plastic in the blue bin was going to be incinerated, go into the environment or go into a landfill,” the California Attorney General told NBC at the time. “They knew and they lied,” he said, adding that the rate of plastics recycling in the United States had peaked at 9%.
Exxon was quick to respond to the accusations, saying “For decades, California officials have known their recycling system isn’t effective. They failed to act, and now they seek to blame others. Instead of suing us, they could have worked with us to fix the problem.”
The latest lawsuit adds to a growing body of evidence that Big Oil is ready to fight back after years of pressure from anti-oil authorities and scores of lawsuits originating with climate change activist groups
Source: Oilprice.com
The Electricity Company of Ghana (ECG) is urging farmers to exercise caution when burning bushes to clear their farmlands for the next planting season.
Ing. Christopher Apawu, the District Manager for the Krobo District, made this plea after noting that bush burning during the Harmattan season in 2023-2024 resulted in the loss of some electricity poles.
To prevent such incidents, Apawu emphasized the importance of responsible bush burning practices.
Apawu also warned against unauthorized access to the ECG distribution network, stressing that those actions can be fatal and will lead to prosecution if caught.
Ing. Christopher Apawu, Krobo Distirct Manager for the Electricity Company of Ghana Limited.
By taking these precautions, farmers can help prevent accidents and ensure a stable power supply.
Some farmers will definitely be preparing to burn their farms for the new planting season, hence his call for all to be responsible with such bush burning.
During the discussion, he added that all of us need to be each other’s keeper.
“If one happens to chance on another person preparing to burn their farm but they have not created boundaries which will prevent the fire from spreading to other farms, as well as boundaries around electricity poles and transformers, we should get close and offer that education to them to help protect properties and to prevent possible uncontrolled fires,’’ he said.
Responsible bush burning can be achieved by farmers, ensuring that they have cleared out their boundaries of bushes to prevent the fire from spreading.
Additionally, one should stay close to the burning bushes with materials to quench fire, so in case it travels to unintended places, it can be put off. Additionally, one should know and have the contact of the Fire Service on standby.
People who cook on their farms, smokers who drop little pieces of lighted cigarettes stubs and those who hunt for animals with fires and smokes should all ensure that they have put off their fire completely when they are done to prevent possible fires.
Source: https://energynewsafrica.com
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The Biden Administration is set to slap more sanctions on Russia’s oil exports by targeting tankers hauling Russian crude and products, sources familiar with the outgoing administration’s plans have told Reuters.
“It is going to be a big package,” one of Reuters’s sources said.
The current Administration plans to target vessels that carry Russian oil above the $60 per barrel price cap that Western allies have imposed on Russian crude and petroleum products. The scope of the upcoming sanctions is expected to include persons involved in networks that trade Russia’s oil above the G7 price cap, according to the sources.
The price cap mechanism set by the G7 and the EU says that Russian crude shipments to third countries can use Western insurance and financing if cargoes are sold at or below the $60-a-barrel ceiling. The measure took effect at the end of 2022 when the EU imposed an embargo on imports of Russian crude oil.
The Biden Administration is looking to stifle Russia’s oil revenues and support Ukraine more ahead of the inauguration of U.S. President-elect Donald Trump, who has said that the U.S. cost of supporting Ukraine is too high.
The new U.S. sanctions would add to the already tightened measures against Russian oil exports that the UK and the European Union have recently announced.
European countries have been ramping up sanctions pressure on Russia as they look to reduce Vladimir Putin’s oil revenues that fund the war in Ukraine.
The UK and the European Union announced in the middle of December a raft of new sanctions that target Russia’s shadow fleet of tankers enabling oil trade.
The UK went further, sanctioning two trading firms, which it described as “key lynchpins in enabling the trading of Putin’s precious oil.”
The UK’s latest sanctions came a day after the EU adopted the 15th package of sanctions against Russia, which targets 52 new vessels from Russia’s shadow fleet, increasing the total number of such listings to 79. These non-EU vessels are subject to a port access ban and a ban on the provision of services.
Source: Oilprice.com
The Executive Director for Africa Centre for Energy Policy (ACEP), Benjamin Boakye, has challenged the outgoing President of Ghana, Nana Addo Dankwa Akufo-Addo’s claim of handing over an energy sector that is stabilised and the same level of debt inherited from his predecessor.
While addressing the nation on Friday during his last State of the Nation in Parliament, President Akufo-Addo said: “I am pleased to report that we have kept the energy sector legacy debt at $2.5 billion, the same level we inherited, and have averted the US$12.5 billion debt scenario, despite the rising cost of energy production and the global economic challenges that have unfolded during my tenure.”
He continued: “The energy sector has truly been transformed, and I am leaving office confident that the foundations we have laid will serve this nation well for generations to come.”
However, in an opinion piece, Mr Boakye objected to President Akufo-Addo’s claim.
Benjamin Boakye, who accused the outgoing government of mismanaging the energy sector, said consolidation of judgment debts, Independent Power Producers (IPP) debt, gas supply debt and interest payments on debt to foreign banks would reveal a far greater outstanding debt in the sector than what President Akufo-Addo disclosed to Ghanaians.
According to him, the public’s expectation was not to inherit a $2.5 billion debt and pass it on unchanged after injecting several billions into the inefficiencies.
He said the failure to resolve the energy sector’s issues has been a major contributing factor to the economic collapse, as borrowed funds were squandered on mismanaging the energy sector.
“Billions of dollars were extracted from the people, both directly and indirectly, to cover the inefficiencies that led to the rise of political millionaires,” he claimed.
Below is Mr Benjamin Boakye’s full write upWe are leaving things exactly as we found them? No. Here is why:
It’s true that the energy sector’s debt stood at $2.5 billion in 2017. This includes debt from the downstream petroleum sector, TOR’s debt, and the power sector.
ESLA was established to address this legacy energy sector debt, with a five-year sunset. This meant the sector’s debt was expected to be amortized by 2020.
However, the ESLA plan was derailed with the creation of ESLA PLC, which shifted the negotiated debt from the original owners to the bond market. This made it impossible for ESLA proceeds to cover coupon payments and principal servicing. ESLA PLC also took on payments for recurring debt rather than tackling legacy debt.
In 2019, the World Bank and the government projected that energy sector underrecoveries could reach $12.5 billion—up from $2.7 billion—if the sector continued to be managed the same way, particularly due to power sector underrecoveries (the downstream sector had already been deregulated, so no underrecoveries were expected there).
The primary objective of the Energy Sector Recovery Programme (ESRP) was to bring the sector into balance by 2023, where revenue would match payment requirements, without accumulating further debt.
It’s striking when the President claims his government averted the projected $12.5 billion in underrecoveries by 2023. The reality is that, by 2023, the projection had been revised to $14.5 billion, despite some claims of success by the World Bank to feel good about its failed Programme.
The situation could have been worse were it not for the Russia-Ukraine war, which provided a reprieve on LNG supplies that could have added nearly $1 billion annually to the debt burden. So, perhaps we didn’t need to worry so much about wheat prices after all.
When the Russia-Ukraine war began, GNPC was scheduled to receive LNG under a take-or-pay contract, which would have exceeded local demand. At the time, the contract price for LNG was around $17 per MMBtu, significantly lower than the price in Europe, which was over $30. Shell PLC, which had a contract with GNPC, deferred delivery to sell at a premium in Europe. GNPC could have taken the LNG at the contracted price and resold it for a profit, but that’s a discussion for another day.
The key report expected from the President as his term ends should focus on whether the energy sector has reached a state of balance and whether the legacy debt has been cleared.
Unfortunately, the opposite is true. The sector’s underrecoveries have worsened year after year. The underrecoveries for 2024 are higher than those for 2023, and cumulative debt has exceeded the projected $12.5 billion, not including interest on some debts and judgment debts in the sector.
ECG can only pay half of its bills but continues to waste funds on sole-sourced procurements, undermining a key component of the ESRP, which advocates for competitive procurement in the sector. Fuel supply contracts were sole-sourced throughout the President’s entire eight-year term, with no option for least-cost procurement as prescribed by the ESRP.
The major initiative to bring in the private sector to manage ECG’s operations failed to materialize over the past eight years. PDS is now in court with ECG and the government over wrongful termination.
The public has been taxed in various ways to cover the mismanagement of the energy sector, including through the ESLA’s 49 Pesewas Energy Debt Recovery Levy and 20 Pesewas the Energy Sector Recovery Levy; 69 Pesewas per liter of fuel consumed- more than GHS 3 billion a year.
Yet, the President talks about $2.5 billion debt. In reality, the debt should be much higher. A consolidation of judgment debts, IPP debt, gas supply debt and interest payments on debt to foreign Banks would reveal a far greater outstanding debt in the sector.
The $2 billion Genser pipeline contract has yet to be factored into electricity tariffs, yet GNPC continues to rack up debt for securitizing the project.
The public’s expectation was not to inherit a $2.5 billion debt and pass it on unchanged after injecting several billions into the inefficiencies. The failure to resolve the energy sector’s issues was a major contributing factor to the economic collapse, as borrowed funds were squandered on mismanaging the energy sector. Billions of dollars were extracted from the people, both directly and indirectly, to cover the inefficiencies that led to the rise of political millionaires.
MCC’s CEO, Alice Albright, emphasized the United States’ commitment to supporting Mauritania’s development, citing the country’s progress in strengthening civil liberties and combating hereditary slavery and trafficking in persons.
“From enhancing Mauritania’s security, to supporting democratic development, to increasing energy and economic prosperity, the United States has remained steadfast in its support of Mauritania,” said MCC CEO Alice Albright.
“By investing and pursuing reforms in two critical areas – energy and environmental resilience – the MCC threshold program is poised to improve the lives of all Mauritanians and create a strong and lasting foundation on which the Government of Mauritania can build.”
The grant is a testament to Mauritania’s positive trajectory of reform and its commitment to good governance, fighting corruption, and respecting democratic rights.
With this support, Mauritania is poised to make significant strides in reducing poverty and promoting inclusive economic growth.
Source: https://energynewsafrica.com 
This will necessitate the shutdown of key facilities in Tema, Ghana; Lomé, Togo; and Cotonou, Benin.
This exercise will reduce the amount of gas supply to power plants in the east and western power enclaves.
Speaking to journalists after the meeting in Accra, the Spokesperson for President Mahama, Mr Felix Ofosu Kwakye, said the roadmap from the technical committee would help government weigh its options in addressing the impending challenge.
“As I indicated there is a committee, a technical committee with representation from all the key players in the energy valuation that will be meeting. They have up to the close of today to present a roadmap,” he said.
“So all options that can be explored to first of all avert any difficulty and address the situation at hand will be put on a table and government will make a decision based on what we receive,” Mr Kwakye added.
Source: https://energynewsafrica.com 
