South Africa: Eskom Takes Bold Step Towards Green Hydrogen Future
South Africa’s power utility company, Eskom, is considering adding green hydrogen production to its energy portfolio and is inviting tenders from interested companies for the construction of a pilot renewable green hydrogen facility (RHF) at its Research, Testing, and Development (RT&D) unit in Johannesburg. Renewable green hydrogen production is a key priority to achieve net-zero carbon emissions by 2050 in South Africa.
This pilot will directly contribute to informing Eskom’s decarbonization strategy and potentially enable renewable energy deployment as it presents an excellent medium to long-term energy storage solution.
Eskom believes developing a pilot Renewable Hydrogen Facility (RHF) will provide an informed pathway to plan for the potential adoption of green hydrogen, as well as an opportunity to understand legislative requirements and regulations related to renewable hydrogen and provide internal skills development.
“Eskom is following a differentiated approach and multiple pathways to move from a high-carbon to a low-carbon economy, and we are aggressively seeking creative, technology-led solutions to achieve this,” said Eskom Group Chief Executive Dan Marokane.
“This is about harnessing clean energy for inclusive economic growth. The pilot facility will help our research teams understand hydrogen’s full value chain, from production to use, and ensure we’re ready to play a leading role in the transition responsibly and inclusively.”
The pilot serves as an extension of RT&D’s decarbonization research at its existing 400kW solar photovoltaic (PV) research pilot facility, which includes battery test plants that have provided valuable research across the Eskom value chain.
Last month, Eskom signed a Memorandum of Understanding (MoU) with Exxaro Resources that focuses on collaboration on strategic initiatives, research, and projects in the areas of carbon emissions reduction, air quality, and just transition.
Eskom is also accelerating the establishment of a separate Renewable Energy Business, having recently issued an Invitation to Tender (ITT) for firms with a proven track record in establishing renewable energy businesses to assist Eskom in accelerating the deployment of renewable energy solutions.
Source: https://energynewsafrica.com
Angola: New Hope For Angola’s Oil Sector As Brazil’s Petrobras Signals Return
The Brazilian oil company Petrobras and Angolan national oil company Sonangol have signed a Memorandum of Understanding for oil and gas research and development, training, and research on relevant projects for the just energy transition.
The MoU, signed on Friday, May 24, in Brasilia, was witnessed by Angolan President H.E. João Lourenço and Brazilian President Lula da Silva.
In March this year, an MoU was signed between ANPG and Petrobras for the joint study and possible direct negotiation of block concession contracts offshore in Angola.
According to Brazilian President Lula da Silva, “the signing of the two memorandums signifies the return of Petrobras to Angola.”
Other major companies, such as Shell, Petronas, and Qatar Oil, are also returning to Angola.
The policies set by the Angolan Executive have allowed the retention of major international oil companies operating in the country and attracted medium and small-scale companies.
This dynamic in Angola’s hydrocarbon industry demonstrates the success of the reforms carried out in the sector.
Source:https://energynewsafrica.com
South Africa Launches Oil Giant To Revive Energy Sector
South Africa has officially launched the South African National Petroleum Company (SANPC), a new state-owned oil enterprise designed to consolidate and energize the country’s long-stalled hydrocarbons sector.
Formed from the merger of PetroSA, iGas, and the Strategic Fuel Fund, SANPC will operate under the Central Energy Fund and is already integrating staff and assets to streamline operations. The aim Reducing oil imports, bolstering energy security, and tapping into over R95 billion in potential investment.
The move comes just months after South Africa quietly allowed several of its coal-fired plants to exceed emissions limits in a desperate bid to avoid more blackouts.
With the country still generating 85% of its electricity from coal and facing a chronic energy shortfall, SANPC represents a dual play: secure domestic energy while positioning itself as a more formidable player on the global stage.
Foreign oil majors are already sniffing around. Shell is offloading downstream assets in South Africa, and traders like Trafigura and NOCs like Aramco and ADNOC are circling.
Meanwhile, TotalEnergies and QatarEnergy are pushing ahead with high-risk exploration offshore South Africa, betting that the Orange Basin’s oil riches don’t stop at Namibia’s border. Activist lawsuits and bureaucratic messes haven’t stopped them.
South Africa is trying to thread an impossible needle—keeping the lights on, appeasing climate financiers, and luring foreign capital to a regulatory minefield.
SANPC might just be the bureaucratic bazooka it needs to start hitting those targets. Or, like the Luiperd gas project before it, it could get tangled in its own red tape.
But as Energy Minister Gwede Mantashe bluntly put it, “We have oil, we have gas, so we must exploit it.” The era of passive potential is over. Now comes the messy business of execution.
Source: oilprice.com
Angolan President João Lourenço Selected As ‘Energy Person Of The Year’
Angola’s President João Lourenço has been selected as the ‘Energy Person of the Year’ by the African Energy Chamber (AEC), in recognition of his drive for good governance, commitment to reform and work to address corruption in Africa.
The award recognizes President Lourenço’s instrumental role in transforming Angola into one of Africa’s biggest oil and gas producers and how his forward-looking vision is expected to consolidate the country’s position as a regional petroleum hub in Africa.
Since his election in 2017, President Lourenço has turned Angola’s economy – and broader oil and gas industry – around. With ageing oilfields and reduced upstream investment, the country was witnessing rapid production decline.
However, President Lourenço’s long-term strategy to revitalize the industry saw a series of milestones achieved, and in 2025, the country continues to witness a positive growth trajectory across its oil and gas sector.
By introducing flexible investment structures, President Lourenço spurred interest back into the industry, leading to greater investment across the entire energy value chain. These include risk service contracts, a permanent offer scheme, marginal fields opportunities and an incremental production initiative.
The privatization of Sonangol, the establishment of the upstream and downstream regulators and revised tax codes have further catalyzed spending and transparency in Angola.
President Lourenço has also set clear targets for the country. These include plans to sustain oil output above one million barrels per day (bpd) beyond 2027, scaling-up capacity in the natural gas sector while accelerating green energy development.
In the oil sector, President Lourenço has spearheaded new development opportunities across the upstream and downstream sectors. With a six-year licensing round introduced in 2019, the country witnessed a surge in investments as major operators sought out new discoveries in both the on- and offshore markets.
Now, the country anticipates a $60 billion five-year investment drive, as major players expand their portfolios. Upcoming projects include the Agogo Integrated West Hub Development by Azule Energy and the TotalEnergies-led Kaminho development.
To further bolster production, Angola is also opening doors to new block opportunities. A licensing round launching in 2025 will further entice spending, offering 10 blocks for exploration in the Kwanza and Benguela Basins.
The country also offers 11 blocks for investment via direct negotiation in conjunction with five marginal fields opportunities. Angola’s flexible investment structures – spearheaded by President Lourenço and aimed at supporting a variety of investments – continue to play a major part in facilitating spending across Angola’s upstream market.
President Lourenço has also positioned the natural gas sector as a catalyst for development in Angola. Already an LNG producer, the country strives to enhance production capacity through associated and non-associated projects. The country’s first non-associated project – led by the New Gas Consortium – will come online in late-2025 or early-2026.
However, President Lourenço’s drive in Angola goes beyond the upstream sector. To address domestic fuel demand, the country targets a refining capacity of upwards of 400,000 bpd.
The first phase of the Cabinda oil refinery will begin operations in 2025, introducing 60,000 bpd to the market. Additional investment opportunities in the downstream sector include the planned 200,000 bpd Lobito refinery and the 100,000 Soyo refinery.
Under President Lourenço’s leadership, the country has engaged investors on these projects, while promoting new downstream developments that promise greater fuel security in both Angola and the broader region.
President Lourenço’s achievements go beyond oil and gas development. Recognizing the vital need to address climate change concerns, President Lourenço has also been a strong advocate for diversified investments in Africa.
Angola is spearheading renewable energy projects as well as green hydrogen. With a commitment to improving peace in Africa, President Lourenço continues to work closely with regional counterparts to foster stability.
As Angola celebrates 50 years of independence in 2025, President Lourenço’s drive to facilitate inclusive development in Africa will serve as a source of inspiration.
“President Lourenço has not only been an instrumental leader in Angola but has played a major part in facilitating investment and development across the broader African oil and gas landscape. By committing to industry reform, working closely with international partners and implementing clear and actionable objectives, President Lourenço has shaped Angola’s oil and gas market into what it is today,” states NJ Ayuk, Executive Chairman of the AEC.
The ’Energy Person of the Year’ celebrates the achievements of President Lourenço, highlighting how his ambitious and inclusive approach to development has unlocked a wealth of opportunities for Angola and the broader region.
Previous award winners include Frank Fannon, Former United States Assistant Secretary of State for Energy Resources, Mohammed S. Barkindo, former OPEC Secretary General, former Namibian President Hage Geingob, Meg O’Neill, CEO and Managing Director, Woodside Energy and Dr. Benedict Oramah, President & Chairman of the Board of Directors, African Export-Import Bank.
Source: Energy Chamber
Ghana: PURC Convenes Emergency Meeting With GRIDCo, ECG And NEDCo Over Recent Power Supply Challenges
The Public Utilities Regulatory Commission (PURC) convened an emergency stakeholder meeting on May 23, 2025 with the Ghana Grid Company Limited (GRIDCo), Electricity Company of Ghana (ECG), and Northern Electricity Distribution Company (NEDCo), to address the ongoing electricity supply challenges and unplanned outages affecting parts of the country.
The meeting, initiated by the Commission after monitoring and receiving consumer complaints, aimed to understand the root causes of the recent power disruptions, assess the operational challenges facing utility service providers, and ensure the implementation of coordinated measures to restore and stabilize the electricity supply.
The Executive Secretary of PURC, Dr. Shafic Suleman, reiterated the Commission’s mandate to protect consumer interests and uphold utility service standards.
“The Commission is seriously concerned about the frequent power outages being experienced in some regions. This meeting is a crucial step in ensuring that the causes are identified and urgent corrective actions are taken by all parties involved,” he said.
During the engagement, GRIDCo, ECG, and NEDCo provided detailed briefings on the technical and operational difficulties contributing to the supply instability, including long and widespread feeders, inadequate Bulk Supply Points (BSPs), tampering of the Electricity Network, Overload on System Components, overgrown vegetation, and effects of weather.
Following the briefings, the Commission directed the utilities to submit comprehensive reports on the current challenges, immediate mitigation measures, and long-term plans to prevent recurrence.
The Commission also emphasized the need for improved communication with the public during such disruptions to enhance transparency and public confidence.
PURC will ensure strict compliance with performance standards to safeguard the reliability of electricity supply nationwide and urges consumers to report any challenges affecting utility service delivery in their localities.
The Commission remains committed to protecting the interests of consumers and utility service providers and will continue to monitor the current power situation to ensure quality of service delivery.
Nigeria: NNPC Ltd Shuts Down Port Harcourt Refinery For Maintenance
The Nigerian National Petroleum Company Limited (NNPC Ltd.) has announced the shutdown of the Port Harcourt Refining Company (PHRC) starting May 24 for maintenance.
A statement issued by Olufemi Soneye, Chief Corporate Communications Officer of NNPC Ltd, confirmed the shutdown, though no completion date was mentioned.
The maintenance aims to ensure sustainability and efficiency.
NNPC Ltd. is working closely with relevant stakeholders, including the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), to ensure transparent and efficient execution.
NNPC Ltd. remains committed to delivering sustainable energy security for Nigeria and will provide regular updates through official channels, including its website, media platforms, and public statements.
Source:https://energynewsafrica.com
Ghana: Vivo Energy Pledges Commitment To Safety Across Its Operations
The Managing Director of Vivo Energy Ghana, Mr. Christian Li, has pledged the company’s commitment to upholding the highest standard of safety in its operations, having achieved 5,249 (about 14 years) Goal Zero days without any significant safety or environmental incident, a reflection of the organisation’s strong safety culture.
Mr Christian Li made this remark at the launch of this year’s Vivo Energy Ghana’s Safety Day and Awards ceremony at its Tema depot.
The event, which brought together employees, partners, and stakeholders of the company marked the beginning of a year-long drive to strengthen workplace safety across all levels of operations.
Highlighting this year’s theme, ‘Growth Mindset – Competent and Committed’, Mr. Li stated that building a strong safety culture requires more than just compliance. It requires commitment, interest, and continuous learning. He added that the company’s focus for 2025 is to empower every individual to take ownership of safety, reinforcing competence at all levels, and creating a work environment where proactive behaviour and generative culture becomes second nature.
He stated: “At Vivo Energy, we have made significant investments in safety technologies including In-Vehicle Monitoring Systems (IVMS), in-cab cameras, anti-rollover systems, Vehicle Health Assessments (VHA), and engineering controls, all aimed at making road transport and workplace environments safer.”
However, people make the real difference l. Safety requires people who are competent and committed to protect themselves and those around them.
Representing Vivo Energy Group at the launch, Rob Foyle, Group Head of Communications, commended the Ghana team’s commitment to safety, and highlighted the importance of personal accountability and shared responsibility.
“As we launch this year’s safety campaign and present awards to employees and contractors who have demonstrated an outstanding safety culture, let us remember that while systems and procedures can guide us, it is our mindset that makes us safe. Let us speak up, look out for one another, and build a safety culture where every action counts,” he said.
He further stressed that safety at Vivo Energy is a foundational value, embedded across its operations on the continent.
“At Vivo Energy, safety isn’t just a box to tick; it is our absolute priority, and a core value. Achieving and maintaining world-class health, safety, security, environment, and quality standards differentiates us in every market – from Tema to Takoradi, and from Tunisia to Tanzania,” he added.
The emphasis on mindset and safe behaviour was brought to life through a powerful skit performed by staff during the launch, vividly demonstrating how individual choices can either prevent or lead to workplace incidents. The performance served as a visual and impactful reminder of the critical role behaviour plays in maintaining a safe work environment.
The event also recognised individuals and teams who have demonstrated exceptional dedication to safety.
Awards were presented to outstanding employees, contractors, and transporters, with the Best Haulier going out to J. K Hogle Transport & Co. Ltd, Best Bulk Vehicle Operator, Ernest Ofoe, Most Potential Incidents Reporter, Michael Oppong and the Best Quality Potential Incidents Reporter, Raphael Oduro.
As the year-long campaign progresses, Vivo Energy Ghana remains focused on building a workforce that is both competent in its duties and committed to living out safety values in every task, every day.
Source: https://energynewsafrica.com
He stated: “At Vivo Energy, we have made significant investments in safety technologies including In-Vehicle Monitoring Systems (IVMS), in-cab cameras, anti-rollover systems, Vehicle Health Assessments (VHA), and engineering controls, all aimed at making road transport and workplace environments safer.”
However, people make the real difference l. Safety requires people who are competent and committed to protect themselves and those around them.
Representing Vivo Energy Group at the launch, Rob Foyle, Group Head of Communications, commended the Ghana team’s commitment to safety, and highlighted the importance of personal accountability and shared responsibility.
“As we launch this year’s safety campaign and present awards to employees and contractors who have demonstrated an outstanding safety culture, let us remember that while systems and procedures can guide us, it is our mindset that makes us safe. Let us speak up, look out for one another, and build a safety culture where every action counts,” he said.
He further stressed that safety at Vivo Energy is a foundational value, embedded across its operations on the continent.
“At Vivo Energy, safety isn’t just a box to tick; it is our absolute priority, and a core value. Achieving and maintaining world-class health, safety, security, environment, and quality standards differentiates us in every market – from Tema to Takoradi, and from Tunisia to Tanzania,” he added.
The emphasis on mindset and safe behaviour was brought to life through a powerful skit performed by staff during the launch, vividly demonstrating how individual choices can either prevent or lead to workplace incidents. The performance served as a visual and impactful reminder of the critical role behaviour plays in maintaining a safe work environment.
The event also recognised individuals and teams who have demonstrated exceptional dedication to safety.
Awards were presented to outstanding employees, contractors, and transporters, with the Best Haulier going out to J. K Hogle Transport & Co. Ltd, Best Bulk Vehicle Operator, Ernest Ofoe, Most Potential Incidents Reporter, Michael Oppong and the Best Quality Potential Incidents Reporter, Raphael Oduro.
As the year-long campaign progresses, Vivo Energy Ghana remains focused on building a workforce that is both competent in its duties and committed to living out safety values in every task, every day.
Source: https://energynewsafrica.com Global Nuclear Industry Gathers In Poland To Mobilize £2tn Supply Chain Opportunity
World Nuclear Association held the inaugural World Nuclear Supply Chain Conference, at the Crowne Plaza Warsaw – The Hub, Poland, on May 20-21, 2025.
Marzena Czarnecka, Minister of Industry of the Republic of Poland opened the conference, which aims to unite industry leaders, policymakers, and stakeholders to strengthen and scale the global nuclear supply chain, capitalizing on the growing momentum for nuclear energy expansion worldwide.
Recent events in Europe have highlighted the nuclear energy’s vital contribution to resilient energy grids and the need to invest in expanding nuclear capacity.
The latest World Nuclear Supply Chain Report, based on collaborative analysis conducted by the industry expert working group, estimated a $2 trillion investment opportunity to grow the global supply chain over the next 15 years.
Sama Bilbao y León, Director General of World Nuclear Association, said ahead of the event: “The unprecedented support for nuclear energy as an essential technology to achieve decarbonization, energy security and socio-economic growth in a timely, cost-effective and equitable manner has sent a clear signal to industry to scale up the deployment of nuclear projects. World Nuclear Association research shows a $2tn investment opportunity, our Supply Chain conference aims to mobilize the nuclear industry to build the successful delivery teams that will realize the opportunity and turn vision into reality.”
Rafał Kasprów, CEO of Orlen Synthos Green Energy and Strategic Sponsor for the conference, said: “A programmatic approach to delivering nuclear power offers the best route to deployment – WNSC is a platform to connect with other business – we need all stakeholders to play their part and come together as an industry. Now, it is clear that neither tripling nuclear power in the world nor achieving net zero by 2050 is possible without nuclear, including SMRs. These projects can drive both global and local sustainable socio-economic development and wide range of applications to help Poland transition.”
World Nuclear Supply Chain conference provides a platform to facilitate business-to-business (B2B) engagement by connecting project developers, vendors, construction companies and suppliers to provide opportunity for long-term business relationships and strategic partnerships. There are many international delegations and more than 300 B2B meetings scheduled as part of an actively participating audience.
The event, also sponsored by EDF, GE Vernova Hitachi Nuclear Energy, and Baker McKenzie, will highlight the key business drivers needed for nuclear project success, and enable the international supply chain to flourish and to seize the opportunities ahead.
Exploring local and global perspectives through Poland’s nuclear plans, recognizing nuclear as critical large infrastructure deployment, and recommending the transition from a ‘projects to programmes’ approach, all stakeholders can realize the socio-economic benefits of nuclear.
Source: https://energynewsafrica.com
Mozambique: African Development Fund Approves $43.6M For 120 MW Transmission Line Project
The African Development Bank Group has approved $43.6 million in financing for the construction of the Namaacha–Boane Transmission Line and related electricity infrastructure in Mozambique.
The new infrastructure will transmit up to 332 gigawatt-hours of clean wind energy from the future 120 MW Namaacha Wind Farm to homes and businesses across Mozambique and the Southern Africa region.
The financing comprises $33.2 million from the African Development Fund and $10.4 million from its Climate Action Window, a dedicated fund supporting 37 low-income African countries with climate-resilient infrastructure. The Government of Mozambique is also contributing to the project.
“This project is a major step forward in Mozambique’s transition to a low-carbon energy future,” said Kevin Kariuki, the Bank Group’s Vice President for Power, Energy, Climate, and Green Growth. “It will deliver affordable electricity, support local industry, and improve livelihoods.”
Mozambique’s national power utility, Electricidade de Moçambique, will implement the project in partnership with Central Eléctrica da Namaacha (CEN), a private sector-led development involving Globeleq Africa Limited and Source Energia.
The project includes constructing two new 43-kilometer, single-circuit, 66-kilovolt transmission lines, network upgrades, and equipment for stable power delivery.
Upon completion, it will support thousands of new electricity connections in rural and underserved communities, cut carbon dioxide emissions by over 71,000 tons annually, and bolster regional energy trade within the Southern African Power Pool.
“This investment strengthens Mozambique’s power system while accelerating access to clean energy for those who need it most,” said Wale Shonibare, Director of the Bank’s Energy Financial Solutions, Policy, and Regulations Department.
The project aligns with the African Development Bank’s “Light Up and Power Africa” strategic priority and Mozambique’s goal to achieve universal electrification by 2030, in line with the Mission 300 initiative.
Source:https://energynewsafrica.com
Spain: TotalEnergies Launches Its Largest Solar Field In Europe
French multinational TotalEnergies has commissioned its largest solar power plant cluster near Seville, Spain.
The cluster comprises five solar projects with a total installed capacity of 263 MW, generating 515 GWh of renewable electricity annually.
This will power over 150,000 Spanish households and avoid 245,000 tons of CO2 emissions per year.
The electricity will be sold through long-term power purchase agreements (PPAs) and on the wholesale market.
Declared a strategic interest by the Junta de Andalucía, the project involved 14 companies, mostly from Seville, creating 800 direct and indirect jobs.
“We thank the Spanish authorities for supporting this solar project, contributing to Spain’s ambition of 80% renewables by 2030,” stated Olivier Jouny, Senior Vice President Renewables at TotalEnergies.
“With 1,700 employees in Spain, we’re building a competitive Integrated Power portfolio, delivering clean firm power to our customers.”
Source:https://energynewsafrica.com
Portugal Explores Energy Partnership With Morocco Amid EU Grid Delays
Portugal is considering a new electricity interconnection with Morocco due to delays in planned energy projects with France, which have isolated the Iberian Peninsula from the European power grid.
Minister of Environment and Energy Maria da Graça Carvalho stated that Portugal is growing frustrated with stalled infrastructure projects connecting Portugal and Spain to central Europe via France.
“We’re asking for these projects to be sped up,” Carvalho said.
“If this doesn’t happen, we’re keeping the Morocco option open, despite the higher costs due to undersea cables.”
Portugal and Spain jointly warned the European Commission that the Iberian Peninsula is an “energy island,” requesting a meeting with French officials to establish a timeline for completing delayed electricity interconnections.
The urgency follows a widespread blackout in April affecting millions in Portugal and Spain, exposing the region’s energy fragility.
The lack of integration restricts renewable energy deployment and inflates electricity prices, undermining energy security and Europe’s resilience.
Portugal’s consideration of a Moroccan connection highlights North Africa’s growing energy potential and the EU’s willingness to explore alternative partnerships for energy diversification and grid resilience.
Source:https://energynewsafrica.com
Spain, Portugal Ask EU To Push For Power Links With France After Outage
Spain and Portugal have asked the European Union to step in to push for more power interconnectors with France, after a massive power outage hit the Iberian Peninsula last month, a letter seen by Reuters showed.
Spain and Portugal have limited power linkages to the rest of Europe and have said France has held up new interconnection projects that they say could help prevent disruptions like the unprecedented power outage that hit most of the Iberian Peninsula.
Works to strengthen an existing interconnector between France and Spain are expected to wrap up this year, while a new underwater power line spanning the Bay of Biscay is set to be completed by 2028.
In the letter to EU energy commissioner Dan Jorgensen, sent on Wednesday and seen by Reuters, Spain and Portugal’s governments urged Brussels to step in to ensure new interconnection projects move ahead.
“A firm political and financial commitment is needed, at all levels, in order to ensure the swift and effective integration of the Iberian Peninsula into the EU energy system,” said the letter, signed by Spanish energy minister Sara Aagesen and Portuguese energy minister Maria da Graca Carvalho.
“Spain and Portugal propose a ministerial meeting during this year in which, together with France and the Commission, we can agree on a roadmap with specific milestones and steps to be taken,” the letter said.
A European Commission spokesperson confirmed it had received the letter and was in touch with the governments.
A spokesperson for France’s energy minister did not immediately respond to a request for comment on the letter.
French grid operator RTE has studied the feasibility of building two additional interconnections with Spain over the Pyrenees in its multi-annual planning document published earlier this year.
RTE’s planning report said it would expect the EU to contribute financing to any such upgrades, given the goal would be increased interconnection to Spain, “with the beneficiaries being located outside France.”
France produces most of its power from nuclear plants, while Iberia uses a bigger share of renewable sources, whose fluctuating generation increases the need for flexibility in the power grid.
Iberia lags below the EU’s target for countries to connect 15% of their electricity capacity to neighbouring countries by 2030 – with Iberia’s share stuck at just 3%.
Spain and Portugal have argued this is driving up prices, and hampering their power grids’ ability to respond to disruptions. Interconnectors can help stabilise energy grids by allowing power to flow between countries to respond quickly to supply and demand fluctuations.
“Accelerating the completion of electricity interconnections with the Iberian Peninsula must be placed among the highest priorities,” the letter said.
Power outages of the magnitude seen in Spain and Portugal last month are rare in Europe.
The blackout caused massive disruptions, grounding planes and forcing hospitals to suspend routine operations.
The EU is investigating its cause.
A spokesperson for Spain’s energy ministry and a spokesperson for Portugal’s energy ministry each confirmed their ministers signed the letter.
Source: Reuters.com
When The Cedi Gains Ground: Implications For Ghana’s Energy Sector
By Albert Neenyi Ayirebi-Acquah, FCCA, Energy Analyst
Introduction
An Overview of the Cedi’s Performance Since January 2, 2025
In recent weeks, the Ghanaian cedi has not only stabilized but begun to appreciate against the US dollar -a welcome trend not seen in a long time by market participants, analysts, and the public. The response has largely been positive, though questions remain about the durability of the trend, particularly given that some of the underlying drivers – such as external inflows – are beyond Ghana’s direct control.
That said, the broader macroeconomic outlook has improved, with growing consensus that this momentum can be sustained if economic managers remain disciplined. Key contributing factors include the prompt servicing of domestic debt (especially post-Domestic Debt Exchange Program (DDEP) bonds), strong reserve buffers, and a renewed focus on fiscal prudence.
While the appreciation has brought welcome relief across many sectors, it’s worth noting some quiet discontent among exporters, who are beginning to feel the squeeze of a stronger local currency on their margins.
Why the Exchange Rate Matters for the Energy Sector
This article focuses specifically on Ghana’s power sector, where the exchange rate plays an outsized role for several reasons:
3. Reduced Pressure on PURC to Increase Tariffs
With a weighted average GHS/USD rate of 15.6974 during PURC’s Q2 tariff-setting window, the current appreciation of the cedi currently at a spot rate of 12.89 at the time of writing this article significantly reduces the pressure to increase tariffs in the next quarterly review, while creating room to recover forex losses still sitting on ECG’s books.
4. Greater Fiscal Space for Government
Government obligations to settle dollar-denominated energy sector arrears become more affordable in cedi terms, freeing up fiscal resources for other priorities.
5. Reduced Translation Losses for State-Owned Enterprises (SOEs)
A stronger cedi reduces the impact of forex losses on the financial statements of SOEs like ECG, VRA, and GNPC—improving their bottom lines and audit profiles.
6. Improved Disposable Income for Consumers
Lower prices on imported goods and services—which account for an estimated 30–50%2 of Ghana’s CPI—improve consumers’ disposable income, making it easier for households to pay electricity bills on time and sustain consistent usage.
Cautionary Notes
Why the Exchange Rate Matters for the Energy Sector
This article focuses specifically on Ghana’s power sector, where the exchange rate plays an outsized role for several reasons:
- The sector relies heavily on capital-intensive investments, most of which are denominated in US dollars.
- These investments are structured to be recouped over medium- to long-term horizons.
- Project financing is predominantly sourced externally, with implications for foreign exchange exposure and profit repatriation.
- Critically, electricity tariffs are set in Ghana cedis, while a large share of sector expenses—such as fuel, equipment, and power purchase agreements (PPAs)—are USD-denominated.
- Lower Cost of Power Purchased by ECG
3. Reduced Pressure on PURC to Increase Tariffs
With a weighted average GHS/USD rate of 15.6974 during PURC’s Q2 tariff-setting window, the current appreciation of the cedi currently at a spot rate of 12.89 at the time of writing this article significantly reduces the pressure to increase tariffs in the next quarterly review, while creating room to recover forex losses still sitting on ECG’s books.
4. Greater Fiscal Space for Government
Government obligations to settle dollar-denominated energy sector arrears become more affordable in cedi terms, freeing up fiscal resources for other priorities.
5. Reduced Translation Losses for State-Owned Enterprises (SOEs)
A stronger cedi reduces the impact of forex losses on the financial statements of SOEs like ECG, VRA, and GNPC—improving their bottom lines and audit profiles.
6. Improved Disposable Income for Consumers
Lower prices on imported goods and services—which account for an estimated 30–50%2 of Ghana’s CPI—improve consumers’ disposable income, making it easier for households to pay electricity bills on time and sustain consistent usage.
Cautionary Notes
- Risk of Complacency
- Priorities Prompt Payment of Liabilities
Nigeria: KEDCO Advises Unions To Shun Attempt To Disrupt Services
Nigeria-based Kano Electricity Distribution Company (KEDCO) has announced the resolution of the recent industrial action initiated by the National Union of Electricity Employees (NUEE) and the Senior Staff Association of Electricity and Allied Companies (SSAEAC).
As a result, normal services have been fully restored in KEDCO’s operational areas.
In a statement, KEDCO expressed concerns about the unions’ move to disrupt services as a means of pressing their demands, describing it as “unfortunate” despite ongoing efforts by management to engage in dialogue and address outstanding labor-related concerns.
The company acknowledged the existence of unremitted pension deductions that have accrued over the past 11 years.
Upon takeover in December 2023, KEDCO’s current core investor was outraged about how the pension liabilities were allowed to accrue to the tune of over ₦3 billion.
The current core investor took over a distressed DisCo that had previously been struggling financially and operationally, losing almost ₦3 billion monthly and only able to settle 59% of its market obligations.
This resulted in a slight increase in pension liabilities as the business was being stabilized. Kano DisCo is now remitting 100% of its market obligations and is the most improved DisCo in the NESI under the stable leadership of the current core investor, board, and management.
KEDCO commended the Kano State Government for its proactive and constructive intervention in resolving the recent strike. The Kano State Government, led by the Hon.
Commissioner for Power and Renewable Energy, Engr. Gaddafi Sani Shehu, demonstrated laudable leadership by engaging with unions and KEDCO management to address all concerns toward an amicable resolution.
The company reiterates its commitment to fostering a stable, fair, and productive work environment.
KEDCO is actively engaging with all relevant stakeholders to implement long-term and sustainable solutions to address lingering labor-related issues and deliver value to staff and customers.
Source:https://energynewsafrica.com