The Africa Sustainable Energy Centre has cautioned that Ghana risks losing up to $2 billion annually if ongoing power outages persist, warning that the situation poses a serious threat to economic stability and investor confidence.

According to the centre, the continuous electricity disruptions are already affecting households, businesses, essential services, and overall productivity, with far-reaching consequences for national development.

ASEC noted that key sectors such as manufacturing, services, healthcare, and small and medium-sized enterprises (SMEs) are among the hardest hit. The outages, it said, are driving up operational costs and forcing many businesses to depend on costly alternative power sources.

“Electricity is the lifeblood of any modern economy, and if Ghana continues on this trajectory, the cumulative impact could erode up to $2 billion annually. This is not just an energy issue; it is a national economic emergency,” said Justice Ohene-Akoto, Executive Director of ASEC.

The centre attributed Ghana’s power challenges to a combination of factors, including generation constraints, inconsistent fuel supply, transmission bottlenecks, and inefficiencies in power distribution.

Beyond the immediate financial impact, ASEC warned that prolonged instability could discourage foreign direct investment, slow industrial growth, lead to job losses, and lower living standards, while also affecting critical sectors such as healthcare and education.

To address the crisis, ASEC is calling for urgent and coordinated reforms across the energy sector. These include adopting artificial intelligence for predictive maintenance and improving grid resilience.

The centre also recommended strengthening revenue mobilisation and metering systems, particularly reforms at the Electricity Company of Ghana, as well as expanding smart metering to reduce losses and enhance accountability.

In addition, ASEC urged the diversification of Ghana’s energy mix through increased investment in renewable sources such as solar, wind, and hydro power, alongside measures to improve fuel security for thermal plants.

Other proposals include modernising transmission and distribution infrastructure, promoting energy efficiency, and reinforcing governance and regulatory oversight within the sector.

“The cost of inaction far outweighs the cost of reform. Ghana has the expertise and potential to build a resilient and sustainable energy future. What is needed now is decisive action, strategic investment, and unwavering commitment,” Ing. Ohene-Akoto emphasised.

ASEC further called on the government, private sector players, and development partners to work together on long-term solutions to secure the country’s energy future.