Minister for Energy and Green Transition, John Jinapor, has announced that the government is actively engaging Independent Power Producers (IPPs) in negotiations aimed at restructuring power agreements to achieve more balanced and sustainable outcomes for both the state and private sector players.
The ongoing renegotiation process is being led by Benjamin Boakye, Executive Director of the Africa Centre for Energy Policy (ACEP), and forms part of broader reforms to stabilize Ghana’s energy sector.
Speaking at a high-level energy forum jointly organized by ACEP and the Open Society Foundations on Friday, July 18, 2025, Jinapor acknowledged the financial and operational challenges he inherited upon assuming office, including mounting debts and threats of shutdowns by IPPs due to unpaid arrears.
“When I asked how much we owe the IPPs, I was told $1.7 billion. The total debt across the power generation sector stood at $3 billion,” Jinapor revealed. “Just to clear the pipeline, we needed GH¢81 million. Compared to what the entire national budget allocates to some key ministries, the energy sector’s burden far surpasses them.”
He admitted the gravity of the situation initially left him demoralized.
“I thought, how do we solve this? Even if we doubled tariffs, we’d still face serious challenges. The early days were extremely tough,” he said.
Despite the rocky start, the Minister expressed optimism about the trajectory of the sector, pointing to improvements driven by policy interventions and strategic partnerships.
“Looking at where we were and where we are now, we’ve made significant progress. If we maintain this path, I’m confident we can turn the sector around,” Jinapor noted.
He emphasized that energy is central to Ghana’s broader goal of economic transformation.
“My understanding of economic transformation is anchoring the economy on a solid foundation—ensuring long-term sustainability and resilience,” he stated.
On the ongoing discussions with IPPs, Jinapor said the government is committed to achieving mutually beneficial outcomes.
“We are renegotiating with some of the IPPs, and under the leadership of Ben Boakye and his team, we are hopeful of arriving at favourable terms that benefit both the country and the producers. The goal is a win-win situation,” he concluded.
