X
Home Business ASEC Urges Swift Action to Resolve Ghana’s Deepening Energy Crisis

ASEC Urges Swift Action to Resolve Ghana’s Deepening Energy Crisis

0
Ghana’s Energy Sector
Energy Sector

The Africa Sustainable Energy Centre (ASEC) has called on the Ghanaian government to implement immediate reforms to address the critical challenges plaguing the nation’s energy sector.

From escalating debts to persistent gas shortages, the sector is facing a series of challenges that, if left unaddressed, could further destabilize the country’s energy supply. In a statement released on January 19, Dr. Elvis Twumasi, ASEC’s Director of Research and Innovation, outlined several urgent measures that he believes can guide the country out of its energy crisis.

ASEC’s first priority is the completion of key infrastructure projects aimed at stabilizing Ghana’s gas supply. Specifically, the Centre has called for the fast-tracking of Train Two at the Atuabo Gas Plant, which would increase the country’s gas capacity to 450 million standard cubic feet per day. ASEC also highlighted the need for the completion of the Liquefied Natural Gas (LNG) facility in Tema and the construction of the Takoradi-to-Tema (TT) gas pipeline. These measures, ASEC asserts, would ensure that Ghana’s energy grid remains resilient, even in the event of disruptions in the West African Gas Pipeline. However, transparency and accountability in their execution are crucial, the Centre warns.

In addition to gas supply issues, ASEC has continued to press for the privatization of the commercial segment of the Electricity Company of Ghana (ECG). The Centre argues that privatization could boost the utility’s revenue generation and operational efficiency, both of which are essential to the health of the country’s energy sector. The recommended approach calls for a transparent framework, citing lessons learned from previous government initiatives such as the Millennium Development Authority (MiDA), which could help avoid past mistakes in the privatization process.

Another significant concern raised by ASEC is the Energy Sector Recovery Levy (ESLA). The Centre insists that the $650 million generated annually by this levy must be properly allocated and fully transparent. ASEC believes that by making detailed reports on the fund’s usage publicly available, the government can help foster trust among the Ghanaian public and attract international investments—such as the $316 million Ghana Power Compact from the Millennium Challenge Corporation (MCC)—which are critical for the country’s energy development.

Equally important, according to ASEC, is the need for cost-reflective electricity tariffs. The Centre urges the government to align electricity prices with actual consumption patterns and operational costs to ensure the financial stability of the energy sector. With the sector facing multiple financial challenges, ASEC also advocates for the deregulation of the electricity market and renegotiation of agreements with Independent Power Producers (IPPs) in order to strike a balance between national economic interests and the stability of the sector.

In line with global trends towards cleaner energy, ASEC also pushed for increased investment in renewable energy technologies, particularly solar and wind power. Ghana, ASEC suggests, should incentivize private sector participation in renewable energy projects and focus on expanding infrastructure to integrate these sources into the national grid. Additionally, the Centre emphasized the potential of nuclear power as a viable long-term solution for Ghana, given its high efficiency and reliability. Small modular reactors (SMRs), in particular, are cited as a promising option that would not only meet the country’s energy needs but also help reduce its reliance on volatile fossil fuel markets.

Finally, ASEC called for the replacement of outdated electricity meters across the country. Despite advances with prepaid and smart meters, tampering, inadequate rural coverage, and aging infrastructure remain significant issues, leading to revenue shortfalls and commercial losses that have further strained the sector.

The Centre concluded by urging the government to take immediate, decisive action, emphasizing that the country’s energy future depends on the government’s ability to implement these reforms without further delay. If the government acts on these recommendations, ASEC believes Ghana’s energy sector can be put on a path toward sustainability, economic growth, and greater energy security.

Ghana’s energy crisis has been decades in the making, and ASEC’s proposals are timely and necessary. The country’s ability to meet its energy demands while managing costs, environmental impact, and sector inefficiencies will determine its economic trajectory. While the challenges are significant, the opportunities for reform are equally great. The question now is whether the government will take the necessary steps to safeguard the future of Ghana’s energy sector.

Send your news stories to newsghana101@gmail.com Follow News Ghana on Google News

error: Content is protected !!
WP Radio
WP Radio
OFFLINE LIVE
Exit mobile version