How many power purchase agreements are there in Ghana?
Ghana currently has 32 identifiable contracts, or Power Purchase Agreements (PPAs), in force for the provision of electricity generation. Both Volta River Authority (VRA) and the Electricity Company of Ghana (ECG) have PPAs in place with private Independent Power Projects (IPPs).
How many PPAs are in force for electricity generation in Ghana?
This case study, written in collaboration with the Institute of Economic Affairs (IEA Ghana), identified 32 PPAs currently in force for the provision of electricity generation. We have summarized the implications of these contracts, and compiled all available public information into a downloadable Annex.
Does Ghana have a PPA?
Both Volta River Authority (VRA) and the Electricity Company of Ghana (ECG) have PPAs in place with private Independent Power Projects (IPPs). The Ministry of Energy has also contracted PPAs with Emergency Power Producers (EPPs).
Why does Ghana need a more transparent electricity contracting system?
Ghana’s electricity sector faces an urgent crisis of immense financial strain that calls for a new, more transparent approach for contracting power in the future. Public information on current contracts is highly limited, which has contributed to overcapacity, weakened sector planning, mounting debt, and rising concerns over public accountability.
Does Ghana pay for electricity if no electricity is consumed?
In addition, most of these contracts were agreed on a take-or-pay basis, which means that the government of Ghana must pay for the generation capacity even if no electricity is consumed. The only publicly-disclosed aspects of these PPAs are the names of the project, contract type, technology/fuel, location, and total project cost.
Why does Ghana have a high electricity price in West Africa?
Ghana has some of the highest electricity prices across West Africa, 6 which makes regional economic competitiveness extremely challenging and limits Ghana’s ability to export electricity to neighboring countries.
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