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Policy & Regulation

Ghana looks to renegotiate IPP contracts

Ghana’s government is stepping in to renegotiate take-or-pay arrangements with independent gas-to-power producers, a move that faces strong opposition but could help speed up gasification of the economy Ghana’s government is stepping in to renegotiate take-or-pay arrangements with independent gas-to-power producers, a move that faces strong opposition but could help speed up gasification of the economy.
By Felix Janvrin 26 September 2019 Middle East & Africa / Pipelines, Storage & Power 0 34622
Officials visit a power station in Ghana. (GridCo)

The key issue: Ghana’s Finance Ministry temporarily suspended payments to all IPPs and has since announced it will renegotiate power-purchase agreements signed under a previous administration.

Interfax analysis: Ghana’s decision to temporarily suspend payments to all independent power producers (IPPs) is a blow to investor confidence in the short term, but over time it could galvanise the country’s crippled electricity sector and facilitate the implementation of Ghana’s gas utilisation master plan.

According to the Finance Ministry, a special committee – the Energy Sector Recovery Task Force –...