Uganda: Minister For Energy Urges Ugandans To Bear With Power Outages Until April 2025
Ugandan Minister for Energy and Mineral Development, Ruth Nankabirwa Ssentamu, has asked Ugandans to bear with the ongoing power outages, attributing them to the transition period following Umeme’s impending exit.
According to her, the disruptions may continue until April 2025, as the government seeks funding to strengthen the Uganda Electricity Distribution Company Limited (UEDCL) ahead of its takeover from Umeme Limited.
Minister Ssentamu’s remarks came in response to concerns raised by Brenda Nabukenya, the Woman MP for Luwero District on Tuesday during plenary sitting, who decried the severe power shortages in her area.
According to Nabukenya, Luwero has been receiving electricity for only 2 to 6 hours a day over the past two months, significantly affecting businesses and health facilities.
“Luwero has gone nearly one and a half months with unreliable power supply. It comes for just a few hours between 2 and 6 and then goes off again. This is unsustainable.
Businesses cannot rely on generators, and health facilities need steady electricity for storing vaccines and essential medicines. Electricity is not free we pay for it so why should we keep demanding a service we are entitled to? Umeme has failed to deliver, and they must ensure we have electricity,” Nabukenya stated.
Minister Nankabirwa acknowledged the challenges, explaining that the government’s decision not to invest further in Umeme before the concession’s expiry on February 28, 2025, had led to reduced investment by the company itself.
As a result, response times to power failures whether due to transformer breakdowns, fallen trees, or other faults have slowed.
“We are in the final stages of Umeme’s concession, which officially ended on February 28, 2025. We are currently in the transition period. Since the government chose not to invest more in Umeme, the company also reduced its investments, limiting our ability to respond swiftly to power outages,” Nankabirwa explained.
However, she reassured Parliament that efforts are underway to address the issue, citing a loan proposal currently before Parliament.
If approved, the funding will help UEDCL prepare for the transition and improve its ability to respond to outages efficiently.
“I promise that by April 1, 2025, this situation will improve significantly if Parliament approves the loan, which includes funds for UEDCL. This will allow the company to respond promptly to power issues without lengthy bureaucratic delays.
I ask MPs and the public to bear with us during this temporary inconvenience. In the meantime, I will verify if there are any additional causes of the outages and work towards a resolution,” Nankabirwa assured.
Source: https://energynewsafrica.com
U.S. Natural Gas Demand Set To Stay At Record High In 2025 And 2026
Data centers and liquefied natural gas exports are set to keep natural gas demand in the United States at a record high this year and next, energy executives said at CERAweek. Infrastructure shortages, however, could make growth problematic.
“We have the gas, we just don’t have the pipelines to get it to places, so now you see a situation where it doesn’t matter how much we produce,” EQT’s Toby Rice told Reuters on the sidelines of the event in Houston.
According to Rice, project cancellations and obstacles put in the way of new natural gas pipelines have led to higher electricity bills for Americans, at a rate of 35% over the last eight years.
The two main driving forces of greater natural gas demand this year and next would be artificial intelligence, which requires a lot of electricity, and LNG exports as the U.S. remains the top player in this field, with more production capacity set to come on stream in the next few years.
According to federal government projections, LNG production this year could average 105.2 billion cu ft daily—if the pipelines are there to carry the gas from the field to the liquefaction trains.
Yet LNG producers are not having it all easy. Earlier this week, Reuters reported that some U.S. LNG exporters were looking to raise their delivery prices in renegotiations of contracts with buyers as rising costs have reduced the profitability of LNG projects in recent years.
One of these is Energy Transfer, which is already in talks with buyers. “We don’t like those prices. So, yes, we are renegotiating those,” the company’s co-CEO Marshal McCrea told analysts during Energy Transfer’s latest earnings call.
Other LNG developers and exporters have also been trying to renegotiate contract prices with buyers amid a rise in construction, liquefaction, and labor costs in recent years. These costs have made the new projects more expensive than they were when initial plans were laid out.
Source: Oilprice.com
Kenya: KenGen Joins Forces With WRC Safari Rally 2025 In Historic Green Energy Partnership
The Kenya Electricity Generating Company PLC (KenGen) has announced a transformative partnership with the World Rally Championship (WRC) Safari Rally 2025, positioning Kenya as a global leader in sustainable energy integration within high- performance sports.
Speaking at the unveiling of the partnership, KenGen’s Managing Director and CEO, Eng. Peter Njenga, underscored the significance of the alliance, describing it as a bold step toward a cleaner, more energy-efficient future.
“Our partnership with WRC Safari Rally 2025 is more than a collaboration; it is a powerful statement of intent,” Njenga said.
“It exemplifies how global sports and energy innovation can converge to redefine sustainability in high-performance environments.”
The NSE-listed firm’s CEO went on to say: “This partnership represents a perfect alignment of innovation, sustainability, and national pride, as we celebrate our renewable energy leadership through the KenGen Geothermal Stage.”
At the heart of the partnership is the introduction of the KenGen Geothermal Stage, set against the backdrop of Olkaria, Africa’s largest geothermal power hub.
The stage will serve as a live demonstration of how cutting-edge renewable energy solutions can seamlessly integrate with the adrenaline-fueled world of rally racing.
“This is perhaps the only place in the world where large-scale energy investments operate
alongside nature without altering the environment but rather enhancing it,” Njenga noted.
KenGen, the leading electricity producer in Eastern Africa, is leveraging its expertise in geothermal, wind, and hydropower to revolutionize energy access while reducing carbon emissions.
The company has committed to several groundbreaking sustainability initiatives at the 2025 rally, including electric vehicle (EV) charging stations powered by geothermal energy to reduce the event’s carbon footprint, solar-powered infrastructure to minimize reliance on fossil fuels, and an energy-efficient rally village demonstrating scalable clean energy solutions.
Beyond sustainability, the partnership is driving inclusivity within motorsport. KenGen announced a Ksh. 500,000 sponsorships for Kenya’s top lady rally driver, Pauline Sheghu, reinforcing its commitment to breaking gender barriers in a traditionally male-dominated sport.
“Pauline, as you take to the track, you carry with you not just the KenGen brand but also the hopes of young girls and future motorsport champions across Africa. We are behind you all the way,” Njenga said.
KenGen also introduced gender-focused initiatives such as Pink Energy and Blue Energy, aimed at empowering women and young professionals in clean energy and sports.
KenGen is also enhancing the rally fan experience through innovation-driven engagements, including interactive clean energy hubs where fans can experience geothermal and other green energy technologies firsthand, real-time renewable energy demonstrations showcasing Kenya’s clean energy leadership and to highlight the impact of sustainable power solutions.
“We are also partnering with Enashipai Resort and Spa to offer the best of hospitality to our guests while showcasing world-class sustainability in the hotels industry,” said Eng. Njenga.
KenGen’s investment in the WRC Safari Rally 2025 extends beyond motorsport.
The initiative aligns with Kenya’s broader ambition to be a global benchmark for clean energy adoption.
“The energy transition is no longer an aspiration; it is a global imperative,” Njenga emphasized.
“This partnership allows us to engage international investors, policymakers, and industry leaders while showcasing Kenya’s renewable energy advancements on a world stage.”
As the countdown to the WRC Safari Rally 2025 begins, KenGen’s commitment to sustainability, innovation, and inclusivity sets a new precedent for global motorsport events.
“This is more than just a rally; it is a moment where Kenya’s sporting heritage meets its renewable energy future,” Njenga concluded.
“Let us drive the future together.”
Source: https://energynewsafrica.com
Nigeria: KEDCO Secures Major Victory In Fight Against Vandalism
Kano Electricity Distribution Plc. (KEDCO) has announced a significant milestone in its fight against vandalism, securing multiple convictions in recent cases.
This achievement demonstrates the company’s commitment to collaborating with law enforcement agencies and the judiciary to protect its power infrastructure.
In January 2025, four individuals – Abdullahi Isa, Usman Abdullahi, Mustapha Ya’u, and Nazifi Ali – were convicted for vandalism and receiving stolen property.
They received sentences ranging from 6 to 22 months imprisonment, with fines and compensation payments totaling N900,000.
Another notable conviction was secured on February 20, 2025, when Ukashatu Auwal was found guilty of vandalizing aluminum conductors in Jigawa State.
Auwal was sentenced to 1 year imprisonment or a fine of N100,000, along with a compensation payment of N300,000 to KEDCO.
Abubakar Yusuf, Managing Director/CEO of KEDCO, commended the judiciary and expressed strong support for the judgments.
“We welcome these judgments as crucial steps toward protecting our power infrastructure. The persistent problem of vandalism has been a major challenge for KEDCO, causing power outages and huge financial losses.”
According to Abubakar Yusuf, KEDCO remains committed to serving the people of Kano, Katsina, and Jigawa States, and with the support of the judiciary and security forces.
He was confident in overcoming the challenges and delivering efficient services to its valued customers.
The company has also called for swift and stringent judgments on other pending vandalism cases and encouraged the public to report any suspicious activities related to electricity infrastructure to the authorities.
Source:https://energynewsafrica.com
Gabon: BW Energy Makes Major Oil Discovery In Bourdon Prospect
BW Energy, a Norwegian oil firm has made a significant oil discovery in the Bourdon prospect, located offshore Gabon in the Dussafu Licence.
According to the company, the discovery features approximately 34 metres of pay in a 45-metre hydrocarbon column in the Gamba formation, making it the largest hydrocarbon column discovered to date in the licence.
The well was drilled by the Norve jack-up rig to a total depth of 4,135 metres. BW Energy plans to book additional reserves not included in its 2024 Statement of Reserves.
“The Bourdon appraisal well again confirms the significant resource potential of the Dussafu licence, which holds multiple additional prospects,” said Carl K. Arnet, CEO of BW Energy.
“We will now carefully review the drilling results, but initial data indicates the potential for establishing a new development cluster with a production facility following the MaBoMo blueprint. We are evaluating a second sidetrack to further appraise the discovery.”
The Bourdon discovery is strategically located approximately 15 kilometres west of the BW Adolo FPSO and 7.5 kilometres southeast of the MaBoMo facility.
Source:https://energynewsafrica.com
Israel Cuts Electricity To Last Facility In Gaza Receiving Israeli Power
Israel says it has cut the flow of electricity to the last facility in Gaza that was still receiving power from the Israel Electric Corporation.
“I just signed an order for the immediate halt of electricity to the Gaza Strip,” Israeli Energy Minister Eli Cohen said in a statement, adding that the country would “operate all of the tools that are at our disposal, to ensure the return of all the hostages.”
Israel cut off electricity supplies to Gaza following the Hamas’ attacks of October 7, 2023, in which more than 1,200 people were killed and 251 taken hostage, but the Israel Electric Corporation (IEC) had since reconnected power to a wastewater treatment facility following a government directive.
A spokesperson for the IEC confirmed to CNN that, “Today, a directive was received to disconnect the (electricity) to the facility, and this was done.”
Israel’s decision will intensify the enclave’s existing water crisis, with the cutoff severely impacting desalination efforts, local officials said.
“There is already water scarcity, and the position of the Israeli government will intensify this crisis in Gaza Strip,” the mayor of Gaza municipality Asem Al Nabih told CNN Monday. “Cutting off the electricity (to) Gaza will increase the need for water, especially drinking water.”
The last working desalination plant in Gaza had already been relying mostly on diesel generators or solar panels for power before Israel announced it was cutting the remaining power supply to Gaza, but the decision will still have a severe impact on desalination efforts in the enclave, according to the mayor of the central Gaza city of Deir al-Balah, Nizar Ayyash.
“In addition to our severed supply line, there will be a 70% reduction in the amount of desalinated water suitable for drinking in the central region and the south,” Ayyash explained.
But Hamas’ spokesperson Hazem Qassem suggested the move would have little practical effect given the earlier cutoffs. However, he criticized it as “behavior that confirms the occupation’s intent to continue its genocidal war against Gaza, through the use of starvation policies, in clear disregard for all international laws and norms.”
Since Israel launched its war on Hamas in Gaza in response to the October 7 attacks, Gazans have relied largely on generators and solar power for electricity.
Far-right Israeli politician Itamar Ben Gvir welcomed the energy ministry’s latest move, and urged the government to go even further, by targeting the fuel that had entered the enclave following the ceasefire and hostages deal agreed between Israel and Hamas.
“The Gaza Strip must be completely and immediately blacked out as long as even one Israeli hostage is being held there,” he said. “Israel must bomb the huge fuel depots that entered the Strip as part of the unfortunate deal, as well as the generators operated by Hamas.”
The news comes even as talks over the fragile ceasefire and hostage deal between Israel and Hamas take place.
Last week, Israel announced it would stop the entry of all humanitarian aid into the enclave to pressure Hamas into accepting new terms for an extension of the ceasefire agreement after the initial phase of the truce expired.
Israel wants to extend the first phase of the deal to continue the exchange of hostages, alive and deceased, in return for the continued release of Palestinian prisoners and the flow of higher volumes of aid into Gaza – but without any commitment to permanently ending the war. Hamas has insisted on moving forward with the second phase of the ceasefire deal, which involves negotiations for a permanent end to the war in Gaza.
A Hamas delegation arrived in Cairo on Friday to discuss the ceasefire deal and to push for a potential second phase of the agreement, while Israel said Saturday it had “accepted an invitation” from US-backed mediators to send an Israeli delegation to Doha on Monday, “in an effort to advance the negotiations.”An Israeli source told CNN that Israel was “giving negotiations a chance” before it returns to fighting in Gaza.
US President Donald Trump’s special envoy for hostages Adam Boehler expressed optimism Sunday about a potential truce between Israel and Hamas following direct talks with the militant group this week.
“I think something could come together within weeks. I will say that I believe there is enough there to make a deal between what Hamas wants and what they’ve accepted and what Israel wants and it’s accepted. And I think there is a deal where they can get all of the prisoners out, not just the Americans,” Boehler told CNN’s Jake Tapper on “State of the Union.”
Fifty-nine hostages are thought to remain in Gaza, more than half of whom are thought to be dead, according to the Israeli Prime Minister’s Office. Five of the 59 are American Israelis, only one of whom – Edan Alexander – is still alive.
On Sunday, senior Hamas official Taher Al Nunu was quoted by Al Aqsa TV – a channel affiliated to the militant group – as saying that it did not oppose releasing Alexander as part of negotiations to end the war.
Hamas had related that message to US officials during recent talks focused on implementing an interim agreement aimed at ending the war, Al Nunu said.
Source: CNNKenya: KenGen Posts Impressive Dividend Payout Of Ksh.4.3 Billion For 2024, Promises Robust Expansion In 2025
Kenya Electricity Generating Company PLC (KenGen), East Africa’s leading electricity generator, announced a record dividend payout totaling Ksh.4.3 billion to its shareholders on Wednesday, March 12, 2025.
The payout included a disbursement of Ksh.3 billion to the Government of Kenya, the company’s majority shareholder.
This marked a 117% per-share increase over the previous year, following a profit after tax of Ksh.6.8 billion for the year ended June 30, 2024.
KenGen disclosed this in a statement issued on Wednesday, March 12, 2025.
Earlier, on February 13, 2025, KenGen paid out 30% of the dividend, amounting to approximately Ksh.1.3 billion, to private and institutional shareholders.
Cabinet Secretary for National Treasury and Economic Planning, John Mbadi, praised KenGen, saying, “We are immensely proud of KenGen as a model of excellence for the National Treasury. Their stability, cost efficiency, and reliability in energy supply are key indicators of our nation’s economic performance.”
State Department for Energy Permanent Secretary Alex Wachira noted, “KenGen is well-run, consistently delivering profit year after year. Moving forward, our focus will be on supporting new projects in geothermal, hydro, solar, and wind through backing from the National Treasury to help access funds from development partners.”
KenGen Chairman Agoi attributed the achievement to sustained efforts to boost electricity generation, enhance operational efficiencies, and execute prudent financial management. “Our dividend payout is not merely a financial milestone but a clear reflection of effective policy collaborations and our commitment to Kenya’s growth.”
CEO, Eng. Njenga, echoed these sentiments, adding, “Our performance demonstrates our ability to balance immediate shareholder returns with long-term investments in Kenya’s energy future. This dividend is a tangible affirmation of our strategic focus, which has optimized our operations and reinforced our leadership in the power generation sector.”
During the formal cheque handover ceremony, Hon. Mbadi commended the Ministry of Energy and Petroleum and KenGen for a rare occasion where the government receives money from local agencies.
The substantial increase in dividend payout is expected to boost investor confidence in KenGen shares, reaffirming the company’s position as one of the top dividend-paying stocks on the Nairobi Securities Exchange. The Government of Kenya owns a 70% stake in the NSE-listed company, while private investors own 30%.
Source: https://energynewsafrica.com
Uganda: Umeme Employees Face Job Losses As UEDCL Takes Over End Of March 2025
Employees of Umeme, the main electricity distribution company in Uganda, are likely to lose their jobs as Uganda Electricity Distribution Company Limited (UEDCL) is set to take over the electricity distribution role in April 2025.
UMEME Limited was formed in 2004 by a consortium of Globeleq, a subsidiary of the Commonwealth Development Corporation of the United Kingdom, and Eskom of South Africa to take over electricity distribution in Uganda.
The company has operated for the past 20 years under concession and it expires next month.
Speaking on the transition recently during the orientation retreat for new members of the Parliamentary Committee on Environment and Natural Resources at Speke Resort Munyonyo, Minister for Energy and Mineral Development, Ruth Nankabirwa, said government could not absorb all Umeme staff due to concerns over redundancy.
“Unfortunately, we cannot simply absorb all the staff, especially since UEDCL already has personnel from the successor company,” the minister said.
“Doing so would result in redundancy in some offices, leaving employees without work while increasing operational costs, which would ultimately impact electricity supply,” she added.
The Minister reassured affected employees that they would be prioritised for re-employment in other roles within the electricity sector.
“There are 191 of them, and we will retain them as specialists so that when the need arises, we can call on them. We can also recommend them to contractors working within the network to give them first priority,” she added.
The transition comes after the government announced three years ago that UMEME’s 20-year concession would not be renewed.
“Those who have been working with Umeme should not be surprised. The roadmap was shown, and we have done our best to retain as many as possible. We have recruited 90% of former staff into the new system, but some positions have become redundant due to the need to eliminate duplication,” Nankabirwa said.
The government aims to improve efficiency, reduce power losses, and lower operational costs to ensure affordable electricity tariffs for consumers.
Officials are also working to upgrade the power distribution infrastructure, tackle vandalism, and expand rural electrification under the new public-led model.
While the transition is seen as a necessary step towards greater government control of electricity supply, stakeholders have raised concerns about its impact on service delivery, particularly as UEDCL restructures its workforce.
There are calls for a smooth handover process to avoid disruptions in power distribution.
As the transition progresses, the Ministry of Energy has pledged to closely monitor the process and provide the necessary support to both affected employees and consumers, ensuring a seamless shift from Umeme to UEDCL.
Source: https://energynewsafrica.com
UK Arrests Container Ship Captain After Tanker Collision
The UK police have arrested the captain of a container ship that collided with a tanker carrying jet fuel in the North Sea earlier this week, “on suspicion of gross negligence manslaughter in connection with the collision,” according to an AP report.
Unnamed sources told Reuters earlier in the week that no malicious activity was suspected in the accident, which set both vessels on fire.
The owner of the container ship, Ernst Russ, said that both the captain “and our entire team are actively assisting with the investigations,” the AP reported. The collision is currently under investigation, to be led by the U.S. and Portugal because of the vessel ownership.
The UK authorities are also monitoring the situation for environmental damage but for now there were no signs of pollution or other damage to the environment from the vessels.
The container ship collided with the tanker earlier this week, off the coast of East Yorkshire. The full crew of the Stena Immaculate tanker was accounted for but one of the 14 members of the container ship’s crew was still missing as of Tuesday.
The UK coast guard rescued a total of 36 people after the accident, Sky News reported. The search for the missing crew member of the container ship, Portuguese-flagged Solong, was called off.
The tanker, per Reuters, was operated by a U.S. logistics company, Crowley, carrying jet fuel for the U.S. Navy but was anchored off the coast of Hull when the Solong struck it.
“Both vessels have sustained significant damage in the impact of the collision and the subsequent fire,” the owner of the container ship, Ernst Russ, said in a statement.
“13 of the 14 Solong crew members have been brought safely shore. Efforts to locate the missing crew member are ongoing,” the statement, from Monday, also said.
Source: Oilprice.com
Ghana: Turkish Firm, Synergy, Plans To Produce Solar Panels, Smart Meters In Ghana
A Turkish firm, Synergy Co. Ltd., which specialises in designing solar and smart meters, has announced plans to invest in Ghana, West Africa, to produce solar and smart meter technologies.
The representatives of the firm disclosed this on Tuesday, March 11, 2025, during a meeting with John Abdulai Jinapor, Minister for Energy and Green Transition, at his office.
The company, which has been in the energy business for 48 years, reaffirmed its commitment to supporting Ghana’s renewable energy sector.
As part of its investment, Synergy plans to establish a manufacturing plant in Ghana to produce all its products locally.
The company estimates that it will be able to produce up to 12 million electrical meters annually, which will include safeguards against tampering to help reduce energy losses.
The introduction of these advanced meters is expected to enhance efficiency and transparency in Ghana’s energy sector.
This will address key concerns in electricity distribution.
During the meeting, Synergy also proposed the establishment of a training school to equip Ghanaians with the necessary skills in solar panel and meter production.
The initiative aims to build local capacity in renewable energy manufacturing and provide employment opportunities.
Additionally, the company requested government support in off-taking their products and services to ensure their successful integration into the Ghanaian market.
Minister Jinapor applauded the company’s decision to invest in Ghana, particularly its commitment to local manufacturing and skills development.
He emphasised the government’s support for initiatives that align with Ghana’s green transition and energy sustainability goals.
He further assured Synergy of the ministry’s willingness to collaborate in ensuring the successful implementation of their plans, noting that local content and job creation remain key priorities for the government.
Source: https://energynewsafrica.com
Nigeria: Three Men Charged For Vandalism Of TCN Transmission Line
Nigerian police have charged three men with vandalism of the Ikot Ekpene-Ugwuaji 330kV Double Circuit Line of Transmission Company of Nigeria in Enugu State.
The three men were arrested at about 11:00 am on February 21, 2025, by community security operatives and local hunters.
They had removed the nuts, bolts, and angle iron used for tower bracing.
In a statement, TCN expressed gratitude to the community for their vigilance and continued support in combating vandalism of transmission infrastructure.
Source: https://energynewsafrica.com
Nigeria: Dangote Refinery Crude Supply Deal With NNPCL To Expire End-March 2025
The Nigerian National Petroleum Company Limited (NNPC Ltd.) has clarified that its contract with Dangote Refinery for the sale of crude oil in Naira was for just six months and will expire at the end of March 2025.
According to Olufemi Soneye, Chief Corporate Communications Officer of NNPC Ltd., the contract was subject to availability and is currently being renegotiated.
NNPC Ltd. has supplied over 48 million barrels of crude oil to Dangote Refinery since October 2024, and a total of 84 million barrels since the refinery began operations in 2023.
The clarification comes amidst recent social media reports alleging that NNPC Ltd. had unilaterally terminated the crude oil sales agreement with Dangote Refinery.
However, Soneye assured that discussions are ongoing to establish a new contract.
“NNPC Limited remains committed to supplying crude oil for local refining based on mutually agreed terms and conditions,” he said.
Source: https://energynewsafrica.com
Ghana To Boost Nigerian Gas Imports To 100mmscf Per Day
Ghana has announced plans to increase gas imports from Nigeria for power generation in the West African nation.
Currently, Ghana imports 60 million standard cubic feet (mmscf) of gas per day from Nigeria to augment domestic gas from the Atuabo Gas Processing Plant for power generation.
Finance Minister Dr. Cassiel Ato Baah Forson says the current gas import will be increased to 100 mmscf per day.
Presenting the 2025 Budget and Economic Policy of the Government, Finance Minister Dr. Cassiel Ato Baah Forson explained that the government wants to increase gas imports because they are cheaper than other fuels. Besides natural gas, the country also relies on High Fuel Oil (HFO) and Light Crude Oil (LCO) for electricity generation.
These fuels cost the country much more compared to natural gas.
Recently, the country’s Minister for Energy and Green Transition, John Abdulai Jinapor, disclosed that the country spent $100 million to procure alternative fuels to keep the power plants running when the West African Gas Pipeline Company (WAPCo) shut down its facilities for an inspection and maintenance exercise known as pigging.
Source: https://energynewsafrica.com
Ghana: Energy Sector Received ¢20.8 Billion Bailout In 2024 Amidst Mounting Debt Concerns
Ghana’s energy sector received a whopping ¢20.8 billion in support from the central government in 2024, according to Finance Minister Dr. Cassiel Ato Baah Forson.
He revealed this while presenting the 2025 Budget and Economic Policy in Parliament on Tuesday, March 11,2025.
Minister Ato Baah Forson said, this significant allocation could have been channeled towards other vital sectors, such as building hospitals, roads, and other infrastructure, had the energy sector been managed more efficiently.
“These resources could have been used for job creation and other development programmes like roads, schools, and hospitals if the sector inefficiencies were resolved,” he said.
The energy sector’s debt woes continue to worsen, with Independent Power Generators Ghana owed a staggering $1.73 billion as of December 2024.
To tackle this debt, the Mahama administration plans to introduce private sector participation in the Electricity Company of Ghana (ECG) to boost revenue collection.
The Finance Minister minister noted that a recent exercise conducted by the energy sector financing modelling team under the Energy Sector Recovery Programme (ESRP) revealed that the Business as Usual (BAU) energy sector financing shortfall has increased significantly to about GH¢35 billion for 2025, even after the rather large spending for the sector’s shortfall in 2024.
“Mr. Speaker, more importantly, the shortfall for the period 2023-2026 has been estimated at about GH¢140 billion,” he stated.
“This is over 20 times more than the allocation for Goods and Services for all MDAs for 2025.”
Source: https://energynewsafrica.com