Finance Minister announces agreement reached with Sunon Asogli

Ghana’s power supply is anticipated to stabilise following a recently renegotiated agreement between the government and Independent Power Producer, Sunon Asogli.

The new deal, announced by Finance Minister Dr. Mohammed Amin Adam, seeks to resolve power disruptions that arose from a financial impasse between Sunon Asogli and the Electricity Company of Ghana (ECG).

Sunon Asogli’s 560-megawatt power plant had been shut down since October 16 due to ECG’s substantial outstanding debt, estimated at $259 million as of September 2024.

The power producer cited this unpaid amount, which excluded fuel costs, as the primary reason for halting its operations, causing financial strain and significantly affecting its ability to supply power.

The plant’s closure led to widespread power outages across various regions in Ghana, impacting numerous communities that experienced inconsistent electricity supply.

Government’s swift action to negotiate a new agreement with Sunon Asogli is aimed at alleviating these disruptions and restoring reliability to the national grid.

Speaking at a media briefing on Monday, October 28, Dr Amin Adam confirmed that an agreement had been reached, assuring the public of improved power stability.

He emphasised that this renegotiated deal with Sunon Asogli represents a critical step in the government’s efforts to address energy challenges and ensure consistent electricity supply.

Dr Amin Adam further explained that the agreement with Sunon Asogli is part of a larger restructuring initiative involving other Independent Power Producers (IPPs).

This milestone, he noted, underscores the government’s commitment to achieving long-term stability within Ghana’s energy sector and securing sustainable power solutions for the nation.

“We have continued to produce power. I was informed [Sunday] that they [Sunon Asogli] are ready to sign the settlement agreement. And so we have instructed ECG to go ahead and sign.”

“That should help in normalising our relationship so we can move on. And so signing that agreement will also mean that the third IPP is also done as far as the restructuring is concerned.”

Source:www.myjoyonline.com