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The Institute for Energy Security (IES) has called on the government to take immediate steps to avert a potential power crisis as three major power plants face imminent shutdown due to unresolved debts. This pressing concern stems from a $259 million debt owed by the Electricity Company of Ghana (ECG) to Independent Power Producers (IPPs).

The Executive Director of the IES, Nana Amoasi VII, highlighted the urgency of the situation during an interview on Citi FM’s Eyewitness News on Wednesday, November 20, 2024. According to him, if action is not taken promptly, the nation could experience significant power outages by early next week.

IPPs’ Warnings and Financial Strains

The warning was initially raised by Dr. Elikplim Apetorgbor, CEO of the Chamber of Independent Power Producers, who disclosed in an earlier interview with Citi Business News that three critical power plants are on the verge of shutting down.

“I can confirm that all is not well. If there is no intervention before Friday, I can tell you that by Monday, three key power plants will be off the grids. It is a serious matter; it is not fun. We have received these assurances severally, so this can’t sway us. We are resolute,” Dr. Apetorgbor stated.

The IPPs, which account for over 60% of Ghana’s power supply, have expressed frustration over repeated unfulfilled assurances from the government regarding payment. The current financial strain has heightened fears of a national power blackout, or dumsor, a term familiar to Ghanaians from past power crises.

IES Advocates Swift Intervention

Nana Amoasi VII emphasized that the government must prioritize resolving the issue to avoid further complications. He warned that failing to address the matter now could result in the IPPs losing leverage to negotiate with any future government.

“There is a fear that if they don’t act now, they won’t have the leverage or audacity to convince the next government to pay them, and so they are venting out their frustration,” he noted.

He cited the case of the Asogli Power Plant, which previously shut down in October due to similar issues. “Asogli has already demonstrated that IPPs are willing to act decisively, and we should take these warnings seriously,” he added.

Bridge Power Project Inauguration

The crisis looms despite President Akufo-Addo recently inaugurating the Bridge Power Project, which aims to bolster Ghana’s energy sector by addressing energy shortfalls. However, the immediate risk of power plant closures highlights the ongoing financial instability in the energy sector.

The Way Forward

The IES has urged the government to treat the situation as a national emergency and allocate resources to settle the outstanding debts. Meanwhile, power producers have warned that their patience is running thin, and only swift, decisive action can prevent a nationwide crisis.

As the situation develops, Ghanaians brace for potential disruptions while stakeholders call for accountability and sustainable solutions to the recurring financial challenges in the energy sector.

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