- Karpowership threatens shutdown over $379m debt
- Ghana faces potential power crisis, severe shortages
- IMF warns of sector collapse without urgent reforms
Ghana is facing the threat of a power crisis as Karpowership, the operator of a floating power plant at Aboadze in the Western Region, has warned it may suspend operations due to a $379 million debt owed by the Electricity Company of Ghana (ECG).
This alarming development was revealed during a meeting on Monday between the Minister of Energy and Green Transition, John Abdulai Jinapor, and Karpowership officials at the Ministry of Energy.
In response to the looming shutdown, Minister Jinapor urged Karpowership to show restraint while the new administration seeks solutions to address the outstanding debt.
“We acknowledge the severity of the situation and are committed to finding a sustainable solution to address the financial obligations. We appeal to our partners to bear with us as we navigate these challenges,” Minister Jinapor said.
Industry analysts have warned that if Karpowership follows through with its threat, Ghana could experience significant power shortages, which would severely disrupt businesses, industries, and households across the country.
The energy sector in Ghana has been struggling with a growing financial crisis, with total debts exceeding $3 billion as of January 12, 2025.
The International Monetary Fund (IMF) has repeatedly cautioned that without immediate reforms, the sector is at risk of collapse. The IMF has recommended that the government implement cost-cutting measures, enhance revenue collection, and restructure power agreements to ensure the long-term financial stability of the sector.
