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Showing posts with the label ECG
  Ghana's energy sector is currently facing significant challenges, with major power producers threatening to cease operations due to substantial unpaid debts. This situation has raised concerns about potential power outages and the overall stability of the country's electricity supply. Mounting Debts and Shutdown Threats Karpowership, a key supplier providing approximately 450 megawatts to Ghana's national grid, has issued a warning that it may shut down operations within seven days if outstanding debts are not settled. The company is reportedly owed $371 million by the Electricity Company of Ghana (ECG). Other independent power producers, including Cenpower and Sunon Asogli Power, are also owed significant amounts—$423 million and $297 million, respectively.  Read about power purchasing agreements Government's Response and Financial Strain In response to the crisis, the government has initiated emergency talks with the Ministry of Finance to secure funds for debt ...

Ghana's Bold Step: Private Sector Participation in ECG Revenue Collection

Ghana is making a significant move to reform its energy sector by introducing private sector participation in the Electricity Company of Ghana’s (ECG) revenue collection. This policy aims to reduce inefficiencies and financial losses in the system, while improving service delivery to consumers.  Background: Why This Move? The ECG has long struggled with inefficiencies—most notably, recovering only about 62% of the electricity it purchases from power producers. This has contributed to rising debts in the energy sector, currently estimated at $2.5 billion  (read about Ghana's energy sector debt) , which the government aims to reduce by the end of 2025 . What the Policy Entails This initiative is not a full privatization of ECG but a targeted partnership with private companies to manage billing and revenue collection . A recent pilot with Enclave Power Limited showed a 99% collection rate , which has inspired a wider rollout of this model. The government has stated t...

PRICING, LAND ACQUISITION FOR LARGE SCALE SOLAR PROJECTS: A BRIEF FORAY INTO THE CHALLENGES, METHODS, COSTS AND PRACTICES

  As Ghana transitions to renewable energy, large-scale solar photovoltaic (PV) projects are gaining momentum. However, one of the biggest challenges investors face is land acquisition . The complexity of Ghana's land tenure system, community concerns, and bureaucratic hurdles make acquiring land a critical but challenging step in solar project development. This article breaks down the land acquisition process for solar projects in Ghana, highlighting the methods used, challenges faced, and best practices to ensure a smooth transition to renewable energy. Understanding Land Acquisition Methods There are two primary ways through which land is acquired for solar projects in Ghana: 1. Private Treaty Acquisition Private treaty acquisition occurs when an investor negotiates directly with a landowner (or a group of landowners) to lease or purchase land . This is the most common approach for solar projects. Advantages : Faster and more flexible than government-mandated acquisitions. Allo...