Ghana has taken a significant step towards transforming its electricity distribution sector with the launch of the Guiding Framework for Private Sector Participation (PSP).

The framework aims to improve electricity distribution, reduce losses, and enhance service quality.

Speaking at the launch, Mr Solomon Nii Adjetey Sowah, on behalf of the Energy Minister, John Abdulai Jinapor, emphasised that the framework is designed to attract technical expertise, operational efficiency, and capital investment, while safeguarding national interests and ensuring value for money.

The PSP model will involve private operators leasing and running distribution zones, with core electricity assets remaining public.

The framework outlines a Multiple-Lease model, with concession zones combining ECG and NEDCo areas.

Consumer tariffs will remain uniform nationwide, while wholesale tariffs will vary by zone to ensure fair profitability.

Operators will be paid using a performance-based model, with rewards and penalties tied to efficiency, service quality, and loss reduction.

The launch is expected to boost Ghana's economic growth, industrial modernisation, and energy transition agenda, which depend heavily on a reliable, affordable, and efficiently managed distribution system.