VRA records net profit of GHS 156m in 2020 fiscal year
The Volta River Authority (VRA) has recorded a net profit of GH¢156 million in the 2020 fiscal year, up from a loss of GH¢127 million the previous year.
The Chief Executive Officer, Emmanuel Antwi-Darkwa in an interview attributed the profit to the reduction of cost, leveraging technology and an aggressive export strategy which has ended the nine years of recorded losses.
Adding that, a recovery plan introduced in 2017, played a pivotal role in guiding the state-owned power generator and supplier back to the path of profitability.
“The most important thing, I think, for all state institution, is to control your cost and do some work on your revenues. If you get these two right, that is it. We cut down our discretional cost significantly, we expanded our revenue base by exporting more power to Burkina Faso, Benin and Togo,” he said.
“The fiscal year 2020, in spite of the prevailing COVID-19 pandemic, ended with an excellent financial performance. Indeed, in the year under review, the VRA recorded an impressive improvement in all its major performance metrics,” added the Board Chairman of VRA, Kofi Tutu Agyare.
Meanwhile, Mr. Antwi-Darkwa said the Authority is looking to differ its operations and generation sources, as well as see clean cost-efficient, diversified sources of energy like solar, wind and biomass as the future in the energy space in the quest for new growth opportunities.
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All these diversification and expansion efforts are to be achieved through technology Mr. Antwi-Darkwa said.
With this directive, VRA is planning to convert the Akosombo township into a smart city and also make it the technology hub of the country as well as plans to introduce electric buses in the town next year. Also harnessing the full potential of the 60MW Pwalugu Multi purpose dam, which comes with an additional 50MW solar component.
Other upcoming projects include conversion of Kpone Thermal Power Plant to Combined Cycle conversion of Tema Thermal Power Plant to Combined Cycle and repowering of Takoradi 3 (T3) Thermal Plant as well as construction of the phase II of Kaleo solar plant in the Upper West Region, Bongo I & II Solar project and 75MW Wind Project.
Ultimately, he said, it is the Authority’s goal to be a leader in clean energy, move beyond aid from government and become financially sufficient.
Minister for Energy, Dr. Matthew Opoku Prempeh, on the other hand, urged the Authority to play a leading role in the country’s transition to cleaner energy sources as well as efforts to digitise the economy.
“Globally, utilities are transitioning speedily towards clean technologies and digitising their operations; and I have no doubt that VRA will provide leadership in these efforts in Ghana and in our sub-region,” he said in a speech read on his behalf.
Dr. Opoku Prempeh, who described the Authority as unique and strategic, stated that despite liberalisation of the power sector, government still relies on it for ancillary services, emergency power supply, technical expertise and benchmarking.
“The remarkable performance posted in 2020, represents the first year of profitability after six continuous years of reducing your losses,” he said.
