Sunon Asogli to Resume Operations as ECG Intensifies Debt Payments
Sunon Asogli Power Ltd., one of Ghana’s independent power producers (IPPs), is set to resume operations in the coming weeks following efforts by the Electricity Company of Ghana (ECG) to resolve financial challenges that led to the plant’s shutdown.
The acting Managing Director of ECG, Ing. David Asamoah, disclosed this development during an appearance on JoyNews’ Newsfile on Saturday, November 23, 2024.
According to him, the utility company has adopted a weekly payment structure to clear its debts to Sunon Asogli and other IPPs.
Steps Toward Resolution
Sunon Asogli ceased operations earlier this year due to ECG’s inability to settle an outstanding debt of $259 million. However, Mr. Asamoah confirmed that ECG began weekly payments on October 8, 2024, as a sign of goodwill and commitment to resolving the financial impasse.
“Sunon Asogli has gone off because of debts. But the good news is that they are going to be back in the coming weeks because we have almost resolved the issue,” he said.
Although Sunon Asogli initially delayed resuming operations due to insufficient payments, the ongoing financial arrangements signal progress toward restoring normalcy.
Government Intervention
The Finance Minister, Dr. Mohammed Amin Adam, recently announced a renegotiated agreement between the government and Sunon Asogli aimed at addressing the financial disagreements that caused the shutdown.
He assured that the deal would stabilise Ghana’s power supply.
Broader Sector Challenges
Meanwhile, the Chief Executive Officer of the Independent Power Producers, Dr. Elikplim Kwabla Apetorgbor, has raised concerns about mounting debts in the energy sector.
Speaking in an interview, he warned that three additional power plants might shut down if their outstanding payments are not addressed.
“If nothing is done by the end of this week, next week, three key power plants will shut down,” Dr. Apetorgbor cautioned.
However, ECG has expressed confidence that these shutdowns will be averted, citing ongoing measures to clear debts and ensure continuous power supply.
ECG’s Commitment
Mr. Asamoah speaking further during the interview, reiterated ECG’s dedication to resolving the challenges, stating, “We have started paying to show that we are not just talking but are acting on what we agreed.”
The efforts to address the debt crisis come at a critical time as Ghana’s energy sector grapples with financial constraints, highlighting the importance of collaborative solutions to maintain stable power generation.
