The Africa Sustainable Energy Centre has warned that Ghana could suffer economic losses of up to $2 billion annually if ongoing power outages are not urgently addressed.
According to the Centre, the current disruptions are already impacting households, businesses and critical services, with far-reaching consequences for productivity, investment, and national development.
Executive Director of ASEC, Justice Ohene-Akoto, described the situation as a looming economic crisis, stressing that electricity remains central to the functioning of a modern economy.
“Electricity is the lifeblood of any modern economy… this is not just an energy issue, it is a national economic emergency,” he stated.
ASEC noted that key sectors such as manufacturing, healthcare, services, and small and medium-sized enterprises are already feeling the strain, as frequent outages increase operational costs, damage equipment, and force reliance on expensive backup power sources.
The Centre identified multiple challenges within Ghana’s energy sector, including generation constraints, inconsistent fuel supply, transmission bottlenecks, and inefficiencies in distribution systems.
It warned that beyond immediate financial losses, prolonged instability in power supply could lead to reduced foreign direct investment, slowed industrial growth, job losses, and declining living standards.
To address the crisis, ASEC is calling for urgent and coordinated reforms across the sector. These include deploying artificial intelligence and advanced analytics for predictive maintenance, improving revenue mobilisation and metering systems, and strengthening governance and regulatory oversight.
The Centre also urged government to diversify the country’s energy mix through increased investment in renewable sources such as solar, wind, and hydro, while ensuring reliable fuel supply for existing thermal plants.
Additionally, ASEC recommended modernising aging transmission and distribution infrastructure, alongside promoting energy efficiency and demand-side management to reduce pressure on the grid.
Mr. Ohene-Akoto emphasised that Ghana has the capacity to build a resilient and sustainable energy system but requires decisive action and strategic investment.
“The cost of inaction far outweighs the cost of reform,” he said, urging government, private sector players, and development partners to collaborate in addressing the crisis.
To mitigate these risks and safeguard the economy, ASEC calls for urgent and coordinated action across the energy sector:
1. Leveraging Artificial Intelligence for Predictive Maintenance and Grid Resilience
ASEC strongly advocates for the deployment of Artificial Intelligence (AI) and advanced analytics to enable predictive maintenance across generation plants, gas infrastructure, and grid systems. AI-driven solutions can detect anomalies, forecast equipment failures—particularly in critical systems.
2. Strengthening Revenue Mobilization and Metering Systems
ASEC emphasizes the urgent need to improve revenue collection within the power sector, particularly through strategic privatization efforts within the Electricity Company of Ghana (ECG). Enhancing operational efficiency, reducing losses, and increasing accountability must be prioritized. Additionally, large-scale investment in smart metering infrastructure is critical to improving billing accuracy, reducing energy theft, and ensuring cost recovery across the value chain.
3. Strengthening Generation Capacity and Fuel Security
Diversification of Ghana’s energy mix through accelerated investment in renewable energy sources such as solar, wind, and hydro, alongside improved fuel supply reliability for existing thermal generation assets.
4. Modernizing Transmission and Distribution Infrastructure
Strategic upgrades to aging infrastructure, creating a more robust system, and deployment of advanced grid monitoring and automation technologies.
5. Promoting Energy Efficiency and Demand-Side Management
Strengthening public awareness and policy incentives to encourage energy conservation and reduce peak demand pressures. This will be most useful as an interim measure while we navigate a more sustainable solution.
6. Strengthening Governance and Regulatory Oversight
Enhancing transparency in procurement processes and improving coordination among sector stakeholders to restore confidence and ensure long-term sustainability.
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