ING. Justice Ohene-Akoto, Founder & Executive Director – ASEC
The Africa Sustainable Energy Centre (ASEC) has lauded Minister of Energy John Abu Jinapor for his bold initiatives, particularly his decision to privatise the Electricity Company of Ghana’s (ECG) commercial arm within six months.
ASEC also applauded the government’s emphasis on local content and consensus-building in the privatisation process.
This move, according to ASEC’s Executive Director Justice Ohene-Akoto, aligns with his outfit’s previous recommendations outlined in press statements during August 2024, September 2024, and January 2025.
ASEC advised that the privatisation be limited to ECG’s commercial aspects, focusing on revenue mobilisation, debt collection, and plugging financial loopholes. The technical operations of ECG, which Ghana has the expertise to manage efficiently, should remain untouched.
The energy and sustainability think-tank also praised the minister’s decision not to privatise the Volta River Authority (VRA) and Bui Power Authority, both of which are profit-making entities.
“These institutions should instead be supported to maximise their profitability for national development,” ASEC said.
Concerns over ECG privatisation committee
ASEC has, however, expressed reservations about the composition of a seven-member committee tasked with overseeing ECG’s privatisation.
“The absence of subject matter experts with in-depth knowledge of ECG operations calls for restructuring the committee to ensure strategic and effective decision-making,” the think-tank stated.
Notwithstanding, the framework, local content, and consensus-building approach in the privatisation process is a step in the right direction that the group supports keenly.
Warning of potential power crisis
Highlighting Ghana’s rising energy demand, ASEC warned of a potential return to dumsor (prolonged power outages) by 2026 if proactive steps are not taken to expand the country’s power generation capacity.
Peak demand has risen from about 3,000 MW in 2022 to approximately 4,100 MW currently, against an installed capacity of 5,260 MW and a dependable capacity of 4,800 MW. In view of this, ASEC is urging the government to invest in increasing capacity to keep pace with demand driven by urbanisation and population growth – stressing that failure to act could result in severe power rationing.
Advancing energy access and transition
ASEC commended the government’s decision to rename the Ministry of Energy as the Ministry of Energy and Energy Transition and also create a Ministry of Climate Change and Sustainability. These measures, it said, underscore Ghana’s commitment to achieving its energy transition targets under the Paris Agreement.
ASEC urged the government to prioritise universal energy access by building on Ghana’s current 90 percent access rate. It proposed a framework to help the country achieve 100 percent energy access within four years, citing successful examples from Egypt and Morocco.
Caution against VRA-Bui Power merger
Responding to the proposed merger of the Volta River Authority and Bui Power Authority, ASEC advised against tampering with two profit-making organisations. Instead, the organisation suggests revitalising both institutions to double their profit margins, which would better serve the energy sector.
The statement concluded by reaffirming ASEC’s commitment to supporting the country’s sustainable energy goals and called for bold but calculated actions for a secured energy future.