Energy Analyst Benjamin Nsiah Criticizes Government for Failing to Address Power Crisis

Energy analyst Benjamin Nsiah has raised serious concerns about the government’s handling of the energy sector crisis, emphasizing the failure to address key issues such as electricity consumption and sector funding.

Speaking in an interview on Yen Nsempa with Nana Yaa Brefo on Onua FM, Nsiah revealed that the government is a major contributor to the mounting debt of the Electricity Company of Ghana (ECG), consuming around 80% of the annual debt.

“In a year, government consumes about 80% of the debt, and one would think that the government would find a way to balance these shortfalls in the energy sector budget, but it has failed to do so,” Nsiah stated, criticizing the government’s inability to meet its financial obligations to ECG in recent years.

He pointed out that the government made no contributions to ECG in 2023 and 2024, questioning how the energy sector can function without these essential payments. According to Nsiah, this lack of prioritization and planning for the energy sector is the root cause of the current crisis. “We are in this crisis because we did not prioritize the energy sector and failed to plan,” he emphasized.

The gravity of the situation is further highlighted by a report from the Ghana Grid Company (GRIDCo), which revealed that nearly $90 million is urgently needed to avoid a looming power crisis. These funds are essential to purchase light crude oil to power thermal plants in Tema and meet the country’s increasing electricity demand.

The crisis has been compounded by a generation capacity deficit, following a pigging exercise conducted by the West African Gas Pipeline Company (WAPCO), which temporarily disrupted the supply of natural gas. This has placed additional strain on the already fragile energy sector.

GRIDCo’s report underscores the need for immediate action to secure fuel supplies and ensure a stable electricity supply. Without this intervention, Ghana faces the risk of widespread power outages, which could have severe economic and social consequences.

As the situation grows more dire, energy experts and industry stakeholders have called on the new government to act quickly. They urge the government to prioritize funding for the energy sector and develop a sustainable long-term plan to prevent future crises.

With the new NDC government now in power, all eyes are on them to take swift and decisive action to stabilize the energy sector and ensure its long-term sustainability.