Want to ensure constant flow of power to support economic growth and development? Develop and maintain a legal and regulatory framework for the power sector encourages investor confidence from licensing to tariffing, assessment of counterparty risks, standard agreements and templates, etc.
You need clear organisation and structure: a clear and defined set of rules on how you pay the independent power generators (IPPs) and state ones like VRA without having to resort to subsidies and/or sovereign guarantees because your key offtaker at the distribution end, in our case ECG, is almost financially bankrupt, reeling under 22% technical and commercial losses for power produced.
Yes it’s that simple! After 25 years of topsy-turvy power reform programmes, Ghana has a lot to learn from Cote D’Ivoire in this respect. Ivory Coast is “very good at structuring bankable power purchase agreements”. That makes it easier for IPPs to raise project finance.”