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THE RISE OF GHANA's ENERGY SECTOR DEBT: A TIMELINE OF CRISIS AND SOLUTIONS

  Ghana’s energy sector has been plagued by financial instability for decades, after shifting from a hydro-dominant system to a thermal-heavy structure with high operational costs. This transition coupled with inefficient contracts, and electricity tariffs set below cost-recovery levels , has led to an unsustainable debt burden. Ghana's energy sector is financially unsustainable ( Energy Commission, 2019) . Tariffs are pricing structures which determines how much you pay for your electricity usage. Origins of the Energy Debt Crisis Before 1997 : A Stable Hydro-Based System Ghana relied primarily on hydropower from the Akosombo  and Kpong Dams , which provided cheap and reliable electricity .  Read about the history of the Ghanaian energy sector Electricity tariffs were low, yet the Volta River Authority (VRA) operated profitably because hydroelectricity had minimal costs. 1997–2011 : Growing Demand and the Shift to Thermal Power As Ghana’s economy expanded, electricity...