The Minister for Energy and Green Transition, John Abdulai Jinapor, has assured that steps are being taken to improve power delivery across the country.
Ghana has faced power shortages in recent months, leading to outages, which have been partly attributed to the shutdown of the West African Gas Pipeline for retrofitting work.
The country has also struggled to honour its payment obligations, which are crucial to guaranteeing a stable power supply.
However, speaking at the ongoing West African Energy Ministers’ Conference in Accra, Mr Jinapor reassured stakeholders that these challenges will be addressed.
“The government is committed to resolving the issues and will work towards improving the payment of arrears,” he stated.
One of Ghana’s flagship programmes, the 24-hour economy, which aims to empower local businesses and industries to operate round the clock, can only be successful if there is a reliable and affordable energy supply.
“The 24-hour economy can only be successful when a reliable and affordable energy supply is secured,” Mr Jinapor emphasised.
He reiterated Ghana’s unwavering commitment to the West African Gas Pipeline, stating, “I would like to reaffirm Ghana’s continued commitment to working with all stakeholders of the West African Gas Pipeline to create the right environment for its expansion and smooth operation, ensuring the security of our fuel supply.”
While Ghana is working to tap into its own gas resources, Mr Jinapor highlighted that the country will continue to rely on the West African Gas Pipeline for the foreseeable future.
“Based on the trajectory I see and current consumption levels, I am very confident that we will continue to depend on the West African Gas Pipeline for the foreseeable future,” he said.
He further assured that Ghana will continue to collaborate with partners to fully utilise the pipeline to meet the country’s energy needs and support national development.
“We will continue to collaborate with you to ensure we maximise the benefits of the pipeline for our energy demand and for the growth of the nation,” he added.
One of the major challenges facing the energy sector in Ghana and across the region, according to Mr Jinapor, is insufficient revenue mobilisation to sustain sector activities.
“One of the main challenges confronting the energy sector in Ghana and the region is insufficient revenue mobilisation to sustain the sector’s activities,” he explained, attributing this issue to “aggregate technical, commercial, and collection losses, as well as non-reflective tariffs.”
As Ghana transitions from relying on hydroelectric power to more thermal energy sources, Mr Jinapor explained the impact this shift has on costs.
“We used to rely on Akosombo, a water-based energy source, but as we bring on more thermal plants and consume more fuel, the cost of consumption inevitably increases,” he said.
Amid debates about energy tariffs in the country, Mr Jinapor addressed concerns about the financial stability of the sector. “Recently, there has been considerable debate around tariffs in Ghana.
The energy sector today faces a debt of approximately 80 billion cedis, and something must be done to resolve this,” he stated.
He appealed to Ghanaians and the wider public for patience as the government takes difficult but necessary decisions to ensure a stable, reliable, and sustainable energy supply.
“I ask for the understanding of Ghanaians and the general public as we make these difficult and unavoidable decisions. They are essential to securing stable, reliable, and uninterrupted energy sources for our economic development,” he said.
Assuring the public of progress, Mr Jinapor stated, “Under the leadership of President John Dramani Mahama, steps will being taken to improve power delivery and reduce sector shortfalls.”
Also addressing the issue of payments to stakeholders along the pipeline, Mr Jinapor said, “We recognise the issues concerning payments, but we are actively working to increase these payments. Over the past month and this month, we have been making efforts to improve payment flows, and I assure you that we will continue to make strides to improve the sector and ensure a reliable supply of gas.”
He reiterated the importance of the West African Gas Pipeline for the energy security of Ghana, saying, “The West African Gas Pipeline will continue to play a critical role in the energy security of Ghana.”
Despite efforts to boost domestic oil and gas production, he announced a significant development, saying, “I am pleased to announce that the President and his cabinet have approved the construction of a second gas processing plant. We have already established a committee, and the Cabinet has approved the roadmap. In the coming weeks, we will begin the process of building a second gas processing plant, which will be state-owned for the benefit of the Republic of Ghana.”
These efforts, he said, are vital to delivering on the President’s vision for Ghana’s development.
“These initiatives are necessary to ensure we fulfil the President’s commitment to reshaping Ghana’s developmental trajectory and transforming our economy,” Mr Jinapor affirmed.
He urged continued collaboration and a shared sense of responsibility to drive progress.
“Let us learn from the past, reflect on our achievements, and work together to build a brighter future for the people of West Africa,” he said.
“Through innovation and strategic investment, we can ensure that the West African Gas Pipeline continues to be a key enabler of growth and development for generations to come. Together, we have the power to overcome the challenges we face and shape a better future,” he concluded.
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