Ghana Needs $190 Million to Secure Fuel for Thermal Plant

  • Ghana faces a potential crisis with power grid, with $190 million urgently needed to secure fuel for thermal plants and avoid power outages.
  • Delayed gas pipeline maintenance and a generation capacity deficit have exacerbated the risk of power shortages, prompting calls for immediate government action.

Ghana’s power grid is facing a severe crisis, with the government urgently needing nearly $190 million to secure fuel for thermal power plants, according to a report by the Ghana Grid Company (GRIDCo).

The report warns of potential power outages, commonly called “dumsor,” if immediate measures are not taken. The situation is exacerbated by a generation capacity deficit resulting from a maintenance exercise by the West African Gas Pipeline Company (WAPCO), temporarily disrupting natural gas supplies to thermal plants.

GRIDCo’s report highlights the immediate need for funding to procure liquid fuel, such as light crude oil, to keep thermal plants in Tema operational and meet rising electricity demand. Without sufficient fuel, thermal plants will struggle to maintain stable power generation, putting the grid at risk of failure.

GRIDCo has outlined a series of measures to mitigate the crisis, including rescheduling planned maintenance shutdowns to prevent overlaps with the WAPCO maintenance period. Additionally, the company is working to secure alternative fuels to replace the disrupted natural gas supply and considering load management strategies, such as load-shedding, as a last resort to stabilise the grid.

The delayed maintenance of gas pipelines that supply natural gas from Nigeria to Ghana has worsened the situation. Originally scheduled for October 2024, the previous government postponed the maintenance to January 2025.

This delay left the power system vulnerable during maintenance, further exacerbating the generation capacity shortfall. GRIDCo estimates that $189.90 million is required to purchase the fuel to keep thermal plants operational and avoid prolonged outages.

The report stresses that if the situation is not addressed swiftly, Ghana could face significant economic and public service disruptions. Industries, businesses, and households would all be severely affected by frequent power cuts, potentially returning the country to the past’s unpredictable and damaging power shortages.

The situation’s urgency has prompted calls from stakeholders for immediate government intervention. They urge the government to raise the required funds and implement GRIDCo’s recommendations to avoid a full-scale power crisis.

As the pressure mounts, the government must act quickly to prevent the country from slipping into a major energy crisis that could have lasting economic consequences.

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