Sunon Asogli Power Limited has sent out a notice that it has suspended operations of its 560MW Power Plant due to the inability of the Electricity Company of Ghana (ECG) to honor its payment obligations
Details
The company stated that it suspended operations at its plant on Tuesday, October 8th, 2024 due to ECG’s non-payment to help facilitate its operations. The company states that ECG owes Sunon Asogli a net (excluding fuel) receivable amount of $259 million as of the end of September 2024.
Zoom In
The company stated that its debt has grown by 23% on the net balance, between January 2024 and September 2024 and only 22.6% of the invoices for the period have been paid by ECG from the Cash Waterfall Mechanism.
Zoom Out
Ghana had an installed capacity of 5,639 megawatts at the end of 2023, but it’s struggling to generate enough to meet peak demand of 3,618 megawatts.
What Happens Next
Sunon Asogli Power Limited expects the Ministry of Finance to intervene to help with financing to enable the company to return to operations as soon as possible.
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