In a bid to reduce the cost of power generation and subsequently, the cost of electricity in the country, Deputy Finance Minister, Charles Adu-Boahen, says government is currently in negotiations with Independent Power Producers (IPP’s) to review the cost of electricity.
According to him, the move will entail the renegotiating of existing Power Purchase Agreements (PPA’s) from take-or-pay to take-and-pay contract modules.
Speaking at the launch of the Results Fair organized under auspices of the Ministry of Monitoring and Evaluation in Accra the deputy minister said; “We believe this will help eliminate the idle excess capacity that government pays for. Currently, these negotiations are ongoing and we’re looking to conclude them within the year”.
In September 2019, the Karpowership was successfully relocated to Takoradi and its turbines have been converted to gas turbines, enabling the powership to utilise gas to produce power.
According to the Ministry of Energy, the switch of the Karpowership to natural gas would save electricity consumers an amount of US$170.5 million per year, and a projected amount of US$1.2 billion over the remaining term of the contract, by way of reducing electricity charges to consumers.
Currently, the Karpowership produces between 350 and 400 MW, depending on the dispatch instructions of GridCo.
Further on energy, Mr Adu-Boahen said the sector has seen the most improvements over the last three years.
“Dumsor is over and the power sector is now reliable and stable, ready to support industry and businesses for job creation and growth,” he remarked.