Sunon Asogli Power (Ghana) Limited has restarted its 560MW power plant after being offline since October 2024, thanks to emergency funding facilitated by Finance Minister Mohammed Amin Adam and Energy Minister Herbert Krapa.
Why it matters
The shutdown highlighted Ghana’s ongoing challenges with financial sustainability in its energy sector, particularly overdue payments by the Electricity Company of Ghana (ECG).
Catch up
- Sunon Asogli halted operations after ECG’s unpaid debt reached $259 million (excluding fuel) as of September 2024.
- Between January and September 2024, only 22.6% of invoices were settled via the Cash Waterfall Mechanism, while the debt ballooned by 23%.
What they’re saying
- Sunon Asogli expressed optimism about a “win-win solution,” noting that restructuring terms submitted in August 2024 are nearing finalization.
- The company urged ECG to “diligently honour their financial obligations” under the Power Purchase Agreement (PPA).
- Vice President Dr. Mahamudu Bawumia was also commended for his role in securing payment.
What’s next
The plant’s resumption is expected to stabilize Ghana’s power supply and ease financial pressures within the energy sector.
Source: Citinews
