Minister of Information, Fatimatu Abubakar, has stated that the government is committed to addressing the energy challenges of the country.
Speaking in an interview with Nana Yaw Fianko (The Speaker) on Bullet TV on Wednesday, the Minister explained that while Ghana’s energy issues are not due to a lack of generation capacity, they are largely financial in nature.
According to her, the country has consistently maintained adequate energy generation capacity through partnerships with independent power producers (IPPs) and state entities like the Volta River Authority (VRA). However, she noted that inefficiencies in the collection of electricity payments by the Electricity Company of Ghana (ECG) create a financing gap, making it difficult to sustain operations.
“If ECG distributes energy but cannot collect payments, a financing gap is inevitable,” she said, adding that the government often steps in through the Ministry of Finance to fill this shortfall.
Hon. Abubakar revealed that the government recently reached agreements with five out of seven IPPs to restructure outstanding debts and establish sustainable payment plans.
These agreements, she said, are part of broader efforts to stabilize the sector and prevent disruptions, such as those experienced earlier this year when the West Africa Gas Pipeline threatened to cut supply over a $90 million debt.
The Minister highlighted the government’s achievements in diversifying Ghana’s energy mix.
Over the past eight years, the renewable energy component has increased from 1% to 4%. This includes projects like floating solar installations and solar power plants in the Upper West Region, which now provide 13 megawatts of power to over 35,000 households.
“Renewable energy is a key focus for this government. Hydro is affordable, thermal is expensive, but renewable and nuclear energy offers long-term sustainability,” she emphasized.
Hon. Abubakar praised the government’s commitment to keeping the lights on despite financial challenges. She acknowledged that a consistent power supply has been maintained over the years, thanks to significant interventions by the government and its agencies.
While acknowledging that more work is needed to resolve the underlying financing issues, the Minister reaffirmed the government’s dedication to achieving energy stability and expanding access to affordable power for all Ghanaians.
Ghana | Atinkaonline.com| Ebenezer Madugu