Energy Expert backs IPG Debt settlement, calls for power infrastructure upgrade

Energy expert and Executive Director of the Centre for Environmental Management and Sustainable Energy, Benjamin Nsiah, has commended the government for taking decisive steps to clear outstanding debts owed to Independent Power Generators (IPGs), describing the move as a significant boost to Ghana’s energy sector.

Speaking on Accra 100.5 FM on Monday, January 12, Mr Nsiah said the energy sector has for years grappled with serious liquidity challenges, which have undermined growth and weakened performance across the entire energy value chain.

He explained that persistent debt and cash flow constraints prevented sustained investment in infrastructure modernisation and limited the expansion of electricity generation and distribution.

“For many years, the energy sector has suffered from liquidity challenges. As a result, we were unable to modernise infrastructure or expand generation and distribution as required,” he noted.

Mr Nsiah praised Finance Minister Cassiel Ato Forson and the Minister for Energy and Green Transition, Dr John Abdulai Jinapor, for adopting what he described as a well-structured strategy to address the sector’s debt burden.

He said the decision to settle arrears owed to IPGs is a positive development that strengthens both the immediate stability and long-term prospects of the energy sector.

“If the Finance Minister and the Minister for Energy and Green Transition have found an effective way to clear these debts, it is good news for the sector. The future now looks brighter,” he stated.

According to Mr Nsiah, easing the sector’s debt burden will free up government resources for critical investments, including infrastructure upgrades, rural electrification, and improvements in system efficiency.

“Now that the sector is no longer weighed down by heavy debt, funds can be channelled into modernising infrastructure rather than servicing old obligations. It also creates room to extend electricity to underserved communities,” he said.

He added that investment in modern infrastructure would help stabilise power supply and significantly reduce power fluctuations that often lead to outages, popularly referred to as dumsor.

“With improved infrastructure, power fluctuations will reduce, leading to a more efficient and reliable electricity supply,” he said.

Mr Nsiah concluded by calling on stakeholders to support the government’s initiative, stressing that the move deserves commendation as it lays a stronger foundation for a resilient and sustainable energy sector in Ghana.