Gov't pays US$70 million every month to IPPs-Jinapor

Energy Minister calls for paradigm shift to strengthen VRA and ensure affordable power for Ghanaians
The Minister of Energy and Green Transition, Mr John Abdulai Jinapor, has called for a fundamental transformation in Ghana’s energy strategy, emphasising the need to prioritise the Volta River Authority (VRA) as the cornerstone of national energy security and affordability.
Speaking during a stakeholder engagement, the Minister underscored that Ghana must regain control of its energy future by empowering the VRA to play a more central role in power generation and supply.
“We must invest in the Volta River Authority and make it the anchor of our energy system,” Mr. Jinapor stated.
“VRA has consistently provided affordable and reliable base load power, which is critical for our industrial and economic growth.”
The Minister expressed concern over the country’s heavy financial burden from Independent Power Producers (IPPs), revealing that Ghana currently pays around US$70 million every month to IPPs.
He questioned why similar investments could not be channelled to the VRA, which operates without imposing such high tariff costs.
Mr. Jinapor proposed that VRA be supported to procure additional thermal plants with government backing, ensuring that Ghana’s growing energy demand is met sustainably and at a lower cost.
With national power demand projected to reach 8,000 megawatts by 2040, the Minister stressed the urgency of expanding VRA’s generation capacity to meet future needs while reducing dependency on private producers.
He further announced that the government’s renegotiations with IPPs have yielded significant savings, amounting to approximately US$300 million, a move he said reflects the government’s commitment to protecting the national interest and restoring balance to the energy sector.
“We are putting Ghana first,” he affirmed. “Our focus is on efficiency, transparency, and sustainability — not short-term gains.”
The Minister also commended workers in the energy sector for their dedication, urging them to continue giving their best while assuring that their welfare remains a top government priority.
He expressed confidence that with collective effort, innovation, and prudent management, Ghana can achieve energy security, stabilise prices, and build a sustainable energy future that supports the country’s industrial transformation agenda.
Source: Classfmonline.com/Edem Afanou
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