Karpowership in Advanced Talks with Government to Extend PPA Beyond 2027
Karpowership Ghana has disclosed that it is in advanced talks with the Government of Ghana to extend its Power Purchase Agreement (PPA) beyond September 2027, expressing optimism that the negotiations will be successfully concluded.
The disclosure was made by Corporate Communications Manager, Sandra Amartikar Amarquaye, at the end of a media tour of the company’s floating power facility at the Sekondi Naval Base.
“We are currently engaging on an extension of the agreement. Discussions are ongoing and the outlook remains positive. Beyond the existing contract period, we are confident about sustaining our operations in Ghana,” she stated.
Debt overhang remains
The potential extension comes amid a protracted financial impasse with the Electricity Company of Ghana, with outstanding payments said to exceed $370 million.
Notwithstanding the arrears, the company noted that the payment situation has seen some improvement in recent months, indicating gradual progress.
Demand growth drives outlook
Ms Amarquaye attributed the push for an extension to continued expansion in electricity demand.
“Electricity consumption in Ghana has been increasing at an average rate of between 8 and 10 percent annually, providing sustained opportunities for private sector involvement alongside public investment,” she explained.
Karpowership, which has been operating in Ghana since 2015 and repositioned its Sekondi plant in 2019 to take advantage of gas resources in the Western Region, also stressed the need for strong upstream partnerships.
“Working closely with upstream suppliers remains critical to ensuring stable power generation,” she added, referencing Eni as a key gas supplier.
Social investment and strategic direction
On corporate social responsibility, the company highlighted initiatives aimed at promoting inclusion and building local capacity.
“We are currently implementing a Women on Board internship programme designed to increase female participation in the energy sector,” Ms Amarquaye said, adding that Karpowership continues to invest in scholarships and school infrastructure within its host communities.
Technical Manager for Europe and Africa, Semih Sehin, described Africa as a strategic growth market for the company.
“Africa remains a key growth region for us, and Ghana continues to serve as a benchmark for our operations across the continent,” he noted.
The media tour forms part of the company’s ongoing transparency initiatives, offering journalists first-hand access to its operations, including the vessel’s control room.
