Sustaining energy sector reforms gains
Energy and Green Transition Minister John Abdulai Jinapor has announced that reforms in the energy sector yielded as much as US$15 billion last year, which enabled the full settlement of invoices owed to some Independent Power Producers (IPPs) [See front page].
Beyond the impressive figures given by the minister, the declaration signals good news for a sector that has for years weighed heavily on the economy and the psyche of the nation.
For close to a decade, Ghana’s energy sector was synonymous with debt, inefficiencies and, most painfully, persistent power outages.
The dreaded era of dumsor left deep scars.
Many factories shut down or relocated, small and medium-sized enterprises collapsed under the cost of alternative power, and thousands of workers lost their jobs.
Breadwinners were rendered jobless, dependants were plunged into hardship, and the wider economy suffered reduced productivity, declining investor confidence and slowing growth.
Against this backdrop, the Daily Graphic considers 10 consecutive months without load shedding as a major economic and social relief.
The reported growth in proceeds under the Cash Waterfall Mechanism, from US$6 billion in 2024 to US$15 billion in 2025, points to improved discipline, transparency and accountability in revenue collection and disbursement.
Ensuring that power producers now receive up to 100 per cent of their invoices, compared to just 38 per cent previously, removes a major source of instability in the sector.
It restores confidence among IPPs and fuel suppliers, reduces the risk of supply disruptions and strengthens Ghana’s credibility as a reliable energy market.
To maintain and improve this situation, however, we urge that the reforms must be treated as a continuous process, not a one-off success.
The country must therefore adhere strictly to the Cash Waterfall Mechanism regardless of political cycles.
All revenues within the sector must continue to flow through the central account, and leakages, whether through inefficiencies, political interference or poor governance, must be firmly resisted.
We call for transparency in reporting collections, payments and arrears as key to sustaining trust among stakeholders.
The Ministry of Energy must also deepen contract management and value-for-money audits.
The cancellation and renegotiation of unfavourable contracts, which reportedly yielded substantial savings, demonstrate the importance of periodic reviews.
Such exercises should become institutionalised, ensuring that future agreements reflect realistic demand projections, fair pricing and shared risk between the state and private investors.
Independent Power Producers, for their part, also carry a responsibility.
With improved payment discipline by the government comes the obligation on IPPs to deliver reliable power efficiently, maintain their plants properly and avoid exploitative practices.
Stable power supply is a shared outcome; it cannot rest solely on government reforms without corresponding commitment from producers.
The economic benefits of sustained power stability cannot be overstated.
Reliable electricity lowers the cost of doing business, boosts industrial output and enhances competitiveness.
It supports job creation, particularly in manufacturing, agro-processing and services, while encouraging both local and foreign investment.
Reduced reliance on expensive liquid fuels and increased use of gas and renewables also ease pressure on foreign exchange reserves and contribute to macroeconomic stability.
Furthermore, households benefit directly from a predictable power supply and falling fuel prices, improving living standards and disposable incomes.
Social services—health facilities, schools and water systems—also function more effectively when energy supply is stable.
Yet, caution is warranted.
The minister’s warning of future supply deficits reinforces the need for planning. Investments in new generation capacity, gas infrastructure and renewable energy must keep pace with rising demand.
In that connection, competitive procurement, diversification of energy sources and regional cooperation on gas supply will be critical.
As we commend the ministry and other stakeholders for the dividends of the recent energy sector reforms, we equally call the attention of duty bearers to the memories of dumsor, and ask that it serves as a constant reminder of what is at stake.
Sustaining the gains will require discipline, cooperation and vigilance from all stakeholders, government, IPPs, regulators and consumers alike.
The country cannot afford a relapse, calling to mind that stable power is the backbone of economic resilience, social well-being and national progress.
