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POWER PURCHASE AGREEMENTS (PPAs): WHAT THEY MEAN FOR GHANA

 Ghana's energy sector has evolved significantly over the decades, transitioning from hydro-dominated power generation to a mix of thermal, hydro, and renewable sources* (initiative around 2013). Central to this evolution is the concept of Power Purchase Agreements (PPAs ), which are contracts between electricity producers and  buyers  (Ghanaian goverment). PPAs play a pivotal role in ensuring a reliable energy supply but have also been a source of financial strain for Ghana due to their structure and execution.   This article explores what PPAs are, the agreements Ghana has used, their advantages, disadvantages, and their impact on the country’s energy landscape . What Are Power Purchase Agreements (PPAs)? Fig 1. Energy production, distribution and consumption diagram PPAs are legally binding contracts between electricity generators and buyers that specify the terms for electricity generation, pricing, and supply. These agreements are vital for: Securing Investmen...