Independent Power Producers caution shutdown of thermal plants

Independent Power Producers (IPPs) in the country have cautioned of a shutdown of their thermal plants by the end of September 2020.

According to them, many of its members face a real danger of insolvency if government fails to pay a US$1.4 billion debt owed with the shutdown likely to lead to a power rationing.

This was contained in a notice to the Energy Minister, John Peter Amewu, sighted by Joy Business.

Per the notice, the IPPs are also urging for the debt to be paid to allow it honour an August 2020 gas bill.

Additionally, they state that government’s failure to pay the debt will subsequently also lead to a shutdown of fuel supply while the next installment of loan repayment of US$51 million for the Phase II project to China Development Bank are also due in September and October this year.

IPPs primarily contribute about 45 percent of the over 2,800 peak demand for electricity across Ghana.