Ghana’s Energy Crisis Intensified by Gas Shortage

Ghana is currently experiencing another wave of widespread power outages, with the government attributing the disruptions to a shortage of gas supply from Nigeria.

However, energy experts argue that the ongoing energy crisis, known locally as “dumsor,” predates the recent gas supply issues.

The West Africa Gas Pipeline Company (WAPCo) announced last week that reduced gas supply, due to maintenance work by a gas supplier, is expected to last for three weeks.

This maintenance has impacted Ghana’s overall power generation capacity, leading to load management measures implemented by the Ghana Grid Company (GRIDCo) and the Electricity Company of Ghana (ECG).

In Parliament, Energy Minister Dr. Matthew Opoku Prempeh refuted claims of load shedding (dumsor) by ECG. He attributed the outages to overloaded transmission lines and transformers, citing increased electricity demand in regions where residential areas have transformed into business hubs.

The Institute for Energy Security (IES) in Ghana expressed concerns about the coordination among power sector utilities and the leadership required to restore stability to the power supply.

IES Research and Policy Analyst Xatse Derick Emmanuel asserted that Ghana’s power crisis is not new but has persisted since the beginning of the year, with a power generation deficit of approximately 600 MW.

Credible data on peak period power generation (10 pm) indicates that Ghana has been grappling with power generation deficits throughout the year, even before WAPCo’s announcement of gas supply challenges.

The Energy Commission’s 2024 report projects a peak demand of 3,788 MW in Ghana, meaning any power generation below this level will inevitably result in load shedding.

In February, IES Executive Director Nana Amoasi IV cautioned that the ongoing power cuts could persist without immediate and deliberate action to address underlying issues related to installed capacity and fuel supply reliability, which is contingent on financial capacity.

He highlighted that while capacity issues were addressed by the previous government before 2016, fuel supply challenges remain a significant concern. Furthermore, it has been widely reported that ECG owes over $1.7 billion to electricity suppliers, exacerbating the financial strain on the sector.

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