Early Power, the company behind the recently inaugurated 515-megawatt Combined Cycle Plant, is set to expand its operations with an additional 315-megawatt phase two. This ambitious project, however, depends on the government’s ability to fulfill its financial obligations to Early Power and other Independent Power Producers (IPPs) in the country.
The IPPs have been raising concerns about the potential shutdown of some power plants due to the Electricity Company of Ghana’s (ECG) inability to meet its financial commitments. This is a pressing issue, as timely payments to IPPs are crucial for ensuring a stable and reliable power supply.
In fact, the Chamber of Independent Power Producers of Ghana (IPPG) had previously directed its members to shut down their plants due to unpaid debts, but later suspended the plan after fruitful engagements with ECG.
The ECG has faced fines and penalties for breaches and failure to disclose account information, which may have contributed to the current financial struggles. Moreover, the company has been ordered to pay millions of Ghana cedis to Category B beneficiaries under the Cash Waterfall Mechanism (CWM), including the Volta River Authority (VRA) and Early Power.
The successful expansion of Early Power’s operations and the broader concerns of the IPP sector highlight the importance of a strong partnership between the government and private power producers in building a more secure energy future for Ghana.
A stable energy sector is critical for Ghana’s economic stability, and addressing the financial challenges faced by IPPs is essential to achieving this goal. With the government’s support, Early Power’s expansion plans can become a reality, providing a reliable power supply to meet the country’s growing energy demands.
Ruth Abla ADJORLOLO
