Mahama meets IPPs amidst looming power crisis

President John Dramani Mahama has convened an urgent meeting with the Independent Power Producers (IPPs) to discuss ways of averting a potential power crisis.

This critical dialogue, held on Monday, January 13, 2025 was aimed at addressing the ongoing challenges in Ghana’s power sector came against the backdrop of significant financial disputes, particularly the government’s outstanding debt to the IPPs, which had reached a staggering $1.2 billion as of October 2024.

With the government’s debt obligations remaining unresolved, concerns about a potential energy crisis were rapidly escalating, especially after repeated threats from the IPPs to halt power production.

The discussion between President Mahama and the IPPs was seen as a critical step towards finding a solution to the financial challenges that have plagued Ghana’s energy sector.

The outstanding debt, accumulated over several months, has placed a heavy strain on the IPPs, many of whom have repeatedly warned that they may be forced to cease production if the government fails to address the arrears.

The IPPs play a vital role in providing electricity to the national grid and have repeatedly raised alarms about the mounting debt and its impact on their ability to continue operations.

In the past, some of the companies had issued public threats to shut down their plants due to the government’s inability to settle the outstanding payments.

Adding to the growing anxiety was a recent announcement from the West African Gas Pipeline Company (WAPCo), which operates the pipeline that supplies gas to Ghana’s power plants.

WAPCo had informed the government that it would be shutting down operations for scheduled maintenance, further increasing the risk of power shortages in the country.

The announcement was met with concern by both the government and the public, as the maintenance shutdown would have removed a critical supply of gas that powers many of Ghana’s electricity plants.

However, in a brief reprieve, the scheduled shutdown by WAPCo was postponed for two weeks, alleviating some immediate fears of a widespread power crisis.