GRIDCo advised on alternative source of revenue as power sector risk payment default

A former Deputy CEO of Volta River Authority (VRA), Ing. Emmanuel Osafo has urged Ghana Grid Company (GRIDCo) to tap into power supply opportunities in the sub-region to generate foreign exchange to sustain its operations.

According to him, the current economic crises in the country is already having negative impact on the energy sector citing depreciation of the cedi, high cost of crude oil, high policy rate, inflation, a decline of international reserve, and skyrocketing prices of equipment among others all affecting operating cost.

Ing. Emmanuel Osafo explained that there is high possibility of default payment of the energy sector debt of 1 billion dollars owed by government to Independent Power Producers(IPPs) as of 2020.

This compounded by the fact that approximately 90% of the total revenue and grants in the 2023 budget projected at GH¢143,936 million would be used for payment of compensation and interest presents dire situation for the energy sector.

He, therefore, recommended to GRIDCo to have a single buyer model to facilitate balancing between supply and demand, have corresponding energy transition or sustainable policy to attract financing, and also find an alternate source of funding.

According to him, demand for electricity in the sub-region is projected to grow as population and industrialization expand.

The former deputy CEO of VRA stressed that West Africa Power Pool(WAPP) which Ghana is among 14 membership could be capitalized in this regard by GRIDCo to increase power export for foreign exchange.

Ing. Emmanuel Osafo said this when Speaking at the 6th National Biennial Delegates Congress of the Senior Staff Association.

The Chief Executive Officer of GRIDCO, Engineer Ebenezer Kofi Essienyi said next year is going to be more difficult however GRIDCo will continue to build more and robust power stations to be able to penetrate the energy market in the sub-region.

The National Chairman of the GRIDCO Senior Staff Association, Raphael Teye Kofi Kornor pointed out that, the financial clean-up exercise by the government few years ago has led to the lost of investment by some of their members.

He, therefore, expressed concern about the recent haircut announced by the Finance Minister as part of the debt restructuring measures.

The 6th Biennial Congress held at Koforidua saw the election of five new leaders for GRIDCo Senior Staff Association (SSA) for renewable two-year tenure.

Wisdom Kojo Adenyo, a Chief Technician Engineer with the Tamale Area, was elected National Chairman, Mr. Guggisberg Kwadwo Asante (National Vice Chairman), General Secretary position went to Mr. Daniel Anim Danso, National Assistant Vice General Secretary, Madam Vida Aheto Abakwam, and National Treasurer position was won by Mr. Saani Sulemana.