Ghana is missing an opportunity to fix its power crisis.

More than twenty Independent Power Producers (IPPs) that have so far shown interest in investing in the West African country have decided to hold on with their investment at least for now until they get government guarantee.

Between 2015 to 2018, the country could have added about 6,000 MW to its generating mix if the government had shown more commitment by guaranteeing the investors return on their investment.

The investors, according to a VRA source, are laying back with their investment because of happenings in the power sector.

“The investors don’t believe when they generate the power, they will be paid to recoup their investment. So, they are demanding for government guarantees,” a source familiar with the situation told Kasapafmonline.com.

Two Independent Power Producers (IPP), Cenit and Sunon Asogli Power Plant, our source said are owing the VRA millions of US Dollars in fuel suppliers.

The IPPs, Kasapafmonline.com learnt generates power from the fuel suppliers and sell it to the Electricity Company of Ghana (ECG) for distribution.

However, the power distribution company has always defaulted in paying for power generated by the IPPs, thereby, making it very difficult for them to also settle their indebtedness with the VRA.

The VRA is now heavily challenged. To recover cost of thermal generation, the VRA needs US$2.989million to purchase light crude oil and natural gas.

ECG’s debt portfolio currently stands at US$500million. Out of this amount, US$450million when recovered from its clientele would used to defray its debt to the Cenit and Sunong Asogli Power Plant.

The government, this website understands, is indebted to the ECG in excess of US$1billion.

With the challenges being experienced in the system, experts fear there is danger ahead as demand is expected to outweigh supply in the coming years.

President has outlay plans of bring in 5000 megawatts of emergency power to augment the current electricity supply. This, it hopes to achieve, by introducing power barges and some other initiatives between now and 2020.

But industry experts believe the country’s energy situation could have been better by now if the government had shown more commitment by assuring investors in the power sector returns over their investment.

By: Kasapafmonline.com/Ghana