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Energy Ministry seeks GH₵1.1 billion for power generation

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Energy Ministry seeks GH₵1.1 billion for power generation

Energy Ministry seeks GH₵1.1 billion for power generation

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The Ministry of Energy and Green Transition has issued an urgent warning that Ghana’s fuel reserves for power generation will run out in just 2.6 days, unless immediate funding of GH₵1.1 billion is secured.

The crisis comes amid a GH₵2 billion monthly deficit in the energy sector, largely due to revenue collection challenges faced by the Electricity Company of Ghana (ECG).

Speaking before the Parliamentary Energy Committee, Energy Minister John Jinapor stressed the need for swift action.

“The fuel we have will last just 2.6 days. Orders have been placed for more, but these must be paid for. Some fuel has been procured on credit, and we are coordinating with the Ministry of Finance for payment, though they also face financial constraints”.

He added that discussions will take place at the Cabinet level to explore long-term solutions, including private sector involvement in ECG operations to improve efficiency and revenue collection.

Beyond the fuel crisis, the Minister revealed troubling payment lapses by government agencies, specifically Ghana Water Limited, which has failed to pay its electricity bills for the past seven months while continuing to consume power.

“The non-payment by major institutions worsens the strain on ECG. If this continues, the financial stability of the energy sector will collapse”.

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