Ghana’s Energy Minister, John Jinapor, has sounded an urgent alarm over an impending nationwide power crisis, revealing that the country’s liquid fuel reserves—critical for powering electricity-generating plants—will only last for 2.6 more days.
The announcement was made during an emergency briefing with Parliament’s Energy Committee earlier today, where the minister outlined the fragile state of Ghana’s energy supply chain and the government’s struggle to secure timely funding for new fuel supplies.
Grid at Risk as Fuel Runs Low
“As I sit here this morning, my headache is how to get the next parcel of liquid fuel,” Jinapor stated. “The fuel we have will last us just 2.6 days.”
Despite placing orders for more fuel, the government currently lacks the funds to complete the transactions. Some fuel has been procured on credit, and the Energy Ministry is now working closely with the Ministry of Finance to secure payments. However, financial limitations persist, prompting a push for Cabinet-level intervention.
Jinapor also advocated for increased private sector participation in the operations of the Electricity Company of Ghana (ECG) to help improve revenue collection and reduce financial losses.
Mounting Debt and Urgent Funding Needs
The energy sector’s debt burden is mounting, with key figures like:
- $1.1 billion needed for immediate procurement of liquid fuel
- $400 million owed to Karpower, which has threatened to shut down operations by June 18
- $1.7 billion in arrears owed to Independent Power Producers (IPPs)
- GH₵30 billion projected in subsidies and shortfalls for 2024—up from GH₵24 billion in 2023
Jinapor emphasized that fuel procurement is not included in the current tariff structure, placing the financial responsibility solely on the central government.
Government Implements New Austerity Measures
In response to the growing crisis, Cabinet has approved a series of strict measures aimed at conserving energy and reducing public sector waste:
- Electricity rationing for government institutions
- Mandatory budgeting and payment for electricity by all Ministries, Departments, and Agencies (MDAs)
- Exemptions limited to critical areas such as hospital theatres, laboratories, essential educational facilities, and security institutions
- Revenue recovery reforms, including plans to increase ECG’s collection rate from 40% to 95% through partial privatization
The broader challenges extend beyond just fuel. The minister highlighted the absence of a reserve margin for plant maintenance and unexpected outages, further exposing the vulnerability of the national grid. ECG is also facing a monthly collection deficit of GH₵2 billion, deepening the funding gap.
“The situation is serious,” Jinapor stressed, warning that if the financial constraints are not addressed urgently, Ghana risks facing widespread blackouts that could impact businesses, healthcare services, education, and everyday life.
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