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Akufo-Addo suspended licensing of new IPPs
- IES says the decision prevents investments in the sector
- The suspension includes renewable investors
The Institute of Energy Securities (IES) has asked Ghanaian President, Nana Akufo-Addo to reconsider its decision to put a freeze on issuing licenses to new Independent Power Producers (IPPs). The IES was reacting to Akufo-Addo’s promise to ensure 100% access to electricity in his second term in office.
In a statement released by the Institute, IES says, “Though the IES is pleased with government’s renewed resolve to act on this mandate, it remains cautious in hope as recent history does not instill confidence. The IES as a result entreats the appropriate authorities to make the necessary investments and regulatory mechanisms to ensure fulfilment of the promise”. The IES says the decision to suspend licensing not only affects the IPPs but also renewable energy investors.
Ghana’s electricity sector suffered some setbacks in growth rates when it recorded about 0.6% growth rate between 2016 – 2020 bringing the country to 85% access to electricity. The Ghanaian electricity sector in 2010 – 2016 recorded a sector growth rate of 2.7% with 83% access to electricity.