State-owned power plants lag in efficiency - IPPs CEO calls for sector reform

The Chief Executive Officer of the Independent Power Producers (IPPs), Dr Elikplim Apetorgbor, has challenged the perception that state-owned power plants are more cost-effective than independent facilities.

He argued that inefficiencies in public power plants are draining resources and slowing Ghana’s energy progress.

Speaking at the 14th Ghana Economic Forum in Accra on Wednesday, October 29, 2025, Dr Apetorgbor noted that many state-owned plants are approaching the end of their operational lifespan.

He explained that while such plants may have recovered their capital costs, they now operate at significantly lower efficiency levels compared to newer, privately-run facilities.

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“If you give one million cubic feet of gas to a state-owned plant, it may generate about one megawatt of power. The same volume of gas to an IPP could produce up to 6.5 megawatts,” he said.

“That means state-owned plants could be operating at only about 25 percent of the efficiency levels of IPPs.”

Dr Apetorgbor also dismissed claims that state-owned plants are cheaper, calling such assertions misleading and disconnected from operational realities and investment recovery.

To ease financial pressures on the sector, he proposed that the government monetize its thermal assets to raise funds for the Electricity Company of Ghana (ECG) and help settle longstanding debts.

He further urged a shift in how unused generation capacity is viewed.

“We don’t have overcapacity; we have idle capacity. If we have contracted 200 megawatts and consume only 100, the remaining 100 can be sold to neighbouring countries that are hungry for power,” Dr Apetorgbor said.

On renewable energy, he stressed that investments in clean power should be treated as a strategic pillar of national energy security, not merely as development goals.

SA/MA

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