Accra: Dr Yussif Sulemana, Technical Advisor to the Minister of Energy and Green Transition, has announced that the Government is making significant investments in power infrastructure to bolster the reliability of the national grid. The investments are aimed at improving the generation, transmission, and distribution infrastructure to address existing electricity supply challenges, settle legacy debts, and provide reserve capacity to meet the increasing industrial demand in the country.
According to Ghana News Agency, Dr Sulemana shared these insights during a stakeholders' workshop on energy held in Accra, themed 'Unreliable Electricity: Measurement and Coping Strategies.' The event was organized by GIMPA-PURC's Centre of Excellence in Public Utility Regulation, in collaboration with the International Growth Centre (IGC) Ghana, to foster sustainable growth in the utilities sector. Key stakeholders, including the Electricity Company of Ghana (ECG) and the Volta River Authority (VRA), participated in the workshop to discuss the challenges affecting electricity reliability.
Dr Sulemana revealed that the Government plans to build a second gas processing plant at Atuabo in the Western Region, with an estimated cost of US$700 million. This expansion aims to increase gas processing capacity from 120 million to 300 million standard cubic feet per day, process indigenous natural gas into liquefied petroleum gas and natural gas liquids, reduce reliance on imported fuels, save around US$500 million every two years, and create over 2,500 direct and indirect jobs.
Furthermore, the Government has injected approximately GHS15.2 billion to address financing shortfalls in the power sector and over GHS1.4 billion to clear legacy debts owed to Independent Power Producers. This move is expected to support fuel supplies for thermal plants. The ECG is also implementing a US$278 million emergency investment program to deploy 2,500 distribution transformers, replace damaged poles, and alleviate pressure on electricity networks in densely populated commercial areas.
On the renewable energy front, Dr Sulemana highlighted that the Government is executing a US$3.4 billion Renewable Energy Action and Investment Plan over the next five years. This plan aims to develop utility-scale solar plants, battery energy storage systems, and wind projects in parts of northern Ghana and the Ada West District. He noted that electricity access had reached approximately 89 percent, with installed generation capacity surpassing 5,300 megawatts and dependable capacity above 4,700 megawatts.
Dr Sulemana also mentioned the strict enforcement of the country's cash waterfall mechanism, which has improved transparency in the distribution of electricity revenues. This mechanism has required the ECG to distribute power revenues systematically and transparently through a single holding account.
Professor David Lagakos, Lead Academic at IGC Ghana, emphasized that access to the national grid does not necessarily guarantee reliable electricity for consumers. Preliminary findings from a pilot survey indicated that power fluctuations impose significant costs on the economy, including damage to electrical equipment. He urged authorities to address these challenges. Stakeholders welcomed the survey recommendations and committed to supporting efforts to enhance electricity reliability in the country.