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GeneralHeadlines

Power crisis: Government’s handling of debts owed IPPs worrying – Kwabena Donkor

Isaac Dzidzoamenu
By
Isaac Dzidzoamenu
Published: November 25, 2024
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Former Power Minister Kwabena Donkor has emphasized the role of power in driving the economy and warned that the current government administration’s handling of the power sector’s debt could create significant challenges for the next government.

Two Independent Power Producers (IPPs), which aid the electricity supply in the country, have ceased operations due to the government’s inability to pay them for the power they have supplied.

In early October, the Sunon Asogli power plant ceased operations attributing its shutdown to the electricity company of Ghana’s failure to settle outstanding debts, while the government claims Amandi Energy is undergoing maintenance.

Speaking on the Morning Starr with Naa Dedei Tettey, the former minister of power expressed surprise and worry over the government’s handling of the situation, emphasizing the critical role of power in driving the economy.

“I am surprised because power or energy is what powers the economy, and if the government can treat the indebtedness to the IPP with such no seriousness, then it becomes very worrying. It becomes extremely worrying,” the expert stated.

Kwabena Donkor highlighted the energy sector’s debt, warning that the current administration is creating significant challenges for the next government.

 “The current NPP administration is basically digging a big hole for the next administration. The cumulative effect of the huge non-payment is that the next government will be put under severe pressure,” he explained.

He revealed that the Bui Dam which was designed to operate only during the peak of demand, has been running as a base load plant for 24 hours a day over the past month. This unsustainable practice could lead to critically low water levels next year, potentially rendering the hydro side of the dam inoperative.

“The net effect is that the water level come next year can get extremely low, the Bui power, the hydro side will run dry, and so we’ll have no power for the hydro side. And that will compound the existing problem,” the expert warned.

He criticized the short-sightedness of running the peaking plant continuously, comparing it to “eating your seeds before the planting season.” He warned that such practices could lead to severe power outages and further worsen the country’s energy crisis.

Source: Ghana/Starrfm.com.gh/103.5FM/Jasmine Adjei Anyetei

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TAGGED:debtIPPsKwabena Donkorpower crisis
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