The Institute of Statistical, Social and Economic Research (ISSER) has warned that temporary savings alone cannot stabilize Ghana’s energy sector.
The government’s renegotiated power deals provide short-term relief but do not address structural weaknesses.
In the 2026 Budget, the government announced renegotiations of all power purchase agreements (PPAs) with IPPs.
These negotiations unlocked over US$250 million in savings and restructured GH¢1.1 billion in debt over four years.
ISSER stressed that these measures alone will not fix the sector’s long-standing problems.
Speaking at ISSER’s Post-Budget Discussion on November 19, 2025, Director Prof. Robert Darko Osei highlighted major distribution losses.
“Your transmission and distribution losses are huge. Our transmission losses are around 27% or so. That is significant,” he said.
He acknowledged improvements in commercial losses and ECG revenue performance but said gains remain insufficient.
“That is not to say that you can get away with such high transmission costs. So the ECG discussions will have to go on,” he noted.
Prof. Darko Osei warned that without restructuring distribution, Ghana risks returning to the same debt cycle.
“If we don’t get our distribution right… We’ll still negotiate with the IPPs and pay, spreading our debts over a longer period. But we’ll still have debt to pay because it will not translate to making the IPPs profitable,” he cautioned.
ISSER concluded that the PPA savings should be used to strengthen power-sector governance and reduce technical losses.
It also recommended building a sustainable pricing and planning framework to support industrial growth and long-term stability.
