Ghana could be heading towards a major power crisis as Karpowership, one of the country’s main electricity suppliers, has issued a stern warning to shut down its operations on May 18 due to unpaid debts.
The Minister for Energy and Green Transition, John Jinapor, disclosed this troubling development when he appeared before the Parliamentary Committee on Energy. He revealed that the country urgently needs over $1.1 billion to procure the liquid fuel needed to keep power plants running.
According to the Minister, Ghana owes Independent Power Producers (IPPs) a staggering $1.7 billion. Out of this, Karpower alone is owed over $400 million. The company has formally notified the government that it will shut down its plant if the outstanding amount is not paid by May 18.
Speaking before the Parliamentary Committee on Energy, Mr. Jinapor stated that the financial strain is so severe that the country’s energy supply is at risk of collapsing if immediate funding is not secured.
“Karpower has just sent us a letter stating that by the 18th, they will shut down the plant because we owe them more than $400 million. IPPs alone, we owe $1.7 billion. It’s a serious situation,” he stressed.
He added that while the government is engaging with the private sector and the Electricity Company of Ghana (ECG) to find a solution, these efforts are not enough to resolve the full extent of the crisis. He also noted that there are limits to how much support they can expect from the Finance Ministry at this point.
The Energy Minister’s revelations have raised alarm over Ghana’s energy stability, as the country faces a race against time to avoid widespread power outages.
