Expert says the current power outages in Ghana are due to financial crisis in the energy sector

Ghana’s former Energy Minister, Dr Kwabena Donkor has disclosed that the current power outage that has hit the country is due to some financial crisis in the energy sector.

Dr Kwabena Donkor

According to the minister, the power crisis will only halt when more money is pushed into the energy sector.

The Volta River Authority (VRA) according to Mr Donkor owes Ghana Gas over $500 million.

He said all the energy agencies in the country made losses in 2018 due to some government policies.

Ghanaians have currently been experiencing constant power outages.


At the recent town hall meeting, the Minister of Energy, Peter Amewu said that the current blackout in the country was due to some technical problems from GRIDCo.

He then assured that the outages will end on April 12.

However, Dr Kwabena Donkor in an interview stated that aside from the financial crisis that has bedevilled the energy sector, Ghanaians have gotten used to cheap hydro-electric power in the past, and are finding it difficult to adjust to more costly means of power generation.

“Hydro is the cheapest form of generation. Akosombo can generate at about 3 to 3.5 cents per kilowatt-hour whilst the thermal plant's average generation is 12 to 13 cents per kilowatt-hour. At the time Akosombo was built, Akosombo was more than enough to meet our demand, and so we had the cheapest cost of generation,” adding that, “Getting Ghanaians to the point where they are prepared to pay more for the power, they consume has been a challenge.

The power generation mix in the country has changed within the period. The peak period records 40 to 45 per cent generation of hydro and at other times it records 60 to 40 per cent of generation. This means that the average cost increases every time.


“Though average generation cost is increasing, the reluctance of Ghanaians to pay more for power has made it very difficult to charge commercial tariffs hence the crisis,” he explained.


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