ASEC commends Energy Minister’s bold decisions, calls for strategic enhancements
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| Ing. Justice Ohene-Akoto, Executive Director |
According to ASEC, this move aligns with the recommendations outlined in its press releases in August 2024, September 2024, and January 2025.
ASEC emphasised that the privatization should be limited to the commercial leg of ECG, focusing on revenue mobilization, debt collection, and plugging financial loopholes. The technical operations of ECG, which Ghana has the expertise to manage efficiently, should remain untouched. The energy and sustainability think tank also praised the minister’s decision not to privatize the Volta River Authority (VRA) and Bui Power Authority, two profit-making entities.
“These institutions should instead be supported to maximize their profitability for national development,” ASEC said.
Concerns Over ECG Privatization Committee
ASEC has, however, expressed reservations about the composition of the seven-member committee tasked with overseeing the ECG's privatisation.
“The absence of subject matter experts with in-depth knowledge of the ECG operations call for restructuring of the committee to ensure strategic and effective decision-making,” the think tank stated.
Notwithstanding, the framework, local content, and consensus-building approach in the privatisation process is a step in the right direction that the group supports keenly.
Warning of Potential Power Crisis
Highlighting Ghana’s rising energy demand, ASEC warned of a potential return to "dumsor" (prolonged power outages) by 2026 if proactive steps are not taken to expand the country’s power generation capacity.
Ghana’s peak demand has risen from about 3,000 MW in 2022 to approximately 4,100 MW currently, against an installed capacity of 5,260 MW and a dependable capacity of 4,800 MW. In view of this, ASEC is urging the government to invest in increasing capacity to keep pace with demand driven by urbanization and population growth, stressing that failure to act could result in severe power rationing.
Advancing Energy Access and Transition
ASEC commended the government’s decision to rename the Ministry of Energy to the Ministry of Energy and Energy Transition, as well as the creation of a Ministry of Climate Change and Sustainability. These measures, they said, underscore Ghana’s commitment to achieving its energy transition targets under the Paris Agreement.
They are also petitioning the government to prioritize universal energy access, building on Ghana’s current 90% access rate. The organization offered its framework to help the country achieve 100% energy access within the next four years, citing successful models from Egypt and Morocco.
Caution Against VRA-Bui Power Merger
Responding to the proposed merger of the Volta River Authority and Bui Power Authority, ASEC advised against tampering with two profit-making organizations. Instead, the organisation suggests revitalising both institutions to double their profit margins, which would better serve Ghana’s energy sector.
Looking Ahead
ASEC applauded the government’s emphasis on local content and consensus-building in the privatization of ECG but urged the Energy Minister to address the outlined concerns to ensure the success of these initiatives.
The organization reaffirmed its commitment to supporting Ghana’s sustainable energy goals and called for bold but calculated actions to secure the country’s energy future.