Ghana’s energy sector is facing a critical juncture, with mounting debt, inefficiencies in power distribution, foreign exchange losses, and a growing reliance on expensive imported fuels creating a crisis that demands urgent intervention. With energy security being a cornerstone of economic stability, Hon. Dr. John Abdulai Jinapor, the Minister for Energy and Green Transition, has unveiled a comprehensive strategy to address these challenges head-on.
Speaking during his vetting before Parliament’s Appointment Committee, Dr. Jinapor outlined a multi-pronged approach aimed at financial restructuring, infrastructure modernisation, energy diversification, and regulatory reform. But can his ambitious plan turn around Ghana’s struggling energy sector? We examine the key pillars of his strategy.
Tackling Ghana’s Energy Debt Crisis
One of the most pressing challenges confronting the energy sector is debt accumulation, which has reached a staggering $3 billion as of January 2025. This crisis has been driven by inefficiencies in power distribution, poor revenue collection and legacy debts from Power Purchase Agreements (PPAs).
Despite the introduction of the Energy Sector Levies Act (ESLA)—which has generated GHS 45 billion in revenue—debt accumulation remains a major concern. To combat this, Dr. Jinapor has proposed a multi-faceted approach: enhanced revenue collection mechanisms by addressing Aggregate Technical and Commercial (AT&C) losses, restructuring debt through financial reforms, and boosting efficiency in power sales. He highlighted that only GHS 60 is recovered from every GHS 100 worth of electricity sold, stressing the need for better collection efficiency.
During his vetting session, Dr. Jinapor announced plans to establish a seven-member expert committee to assess private sector participation in electricity distribution. This commitment has now been fulfilled with the committee’s inauguration.
The committee will evaluate whether a concession model or full privatisation is the most viable approach, ensuring alignment with global best practices and local content laws. The initiative is part of the government’s efforts to revitalise the Electricity Company of Ghana (ECG), which has long struggled with inefficiencies, financial losses, and mounting debt, hindering its ability to provide reliable electricity.
The committee is chaired by energy consultant Mr. Jabesh Amissah-Arthur, with Dr. Shafic Suleman serving as Secretary. Other members include Mr. Benjamin Boakye, Dr. Simon Akorli, Mr. Ebenezer Baiden, Ms. Emma Akua Bulley, and Mr. Edward Abrokwah.
Reforming ECG and Reducing Revenue Losses
The Electricity Company of Ghana (ECG) has been a major source of inefficiencies within the sector. Dr. Jinapor highlighted the need to replace 2.9 million faulty meters with smart meters integrated with mobile money payment systems. This reform is expected to improve billing accuracy, facilitate seamless payments and reduce commercial
To ensure full transparency, Dr. Jinapor ruled out sole-sourcing in private sector partnerships, stating that a competitive bidding process with strict Key Performance Indicators (KPIs) and local content policies would be the preferred approach.
Addressing Power Supply and Gas Shortages
Despite having a robust installed power capacity of 5,260MW and a dependable capacity of 4,800MW, Ghana still faces challenges in fuel supply. Dr. Jinapor revealed that a gas supply deficit of 40-60mmscfd has forced the country to rely on expensive alternative fuels, including Light Crude Oil (LCO), Heavy Fuel Oil (HFO) and Distillate Fuel Oil (DFO).
To mitigate this issue, the Ministry of Energy will increase local gas production and establish liquid fuel reserves for backup power generation. This plan involves collaboration with key industry players, including Jubilee Field partners, Tullow Oil, and Ghana Gas, to optimise production and ensure a stable fuel supply.
Dr. Jinapor also stressed that currency fluctuations play a significant role in driving up energy costs, citing that ECG alone faces a forex loss of about GHS 1.5 billion. To tackle this, he emphasised the need for currency stability, urging the Ministry of Finance and Bank of Ghana to implement measures that will reduce forex-related pressures on energy pricing.
Revamping Ghana’s Petroleum Sector
Ghana’s reliance on imported refined petroleum products continues to expose the country to global fuel price volatility. To enhance energy security and stabilise fuel prices, Dr. Jinapor is prioritising the revitalisation of the Tema Oil Refinery (TOR).
TOR, which has a daily refining capacity of 45,000 barrels, has struggled with operational inefficiencies and financial mismanagement. The refinery currently employs about 700 staff, yet operational demands require only 250 employees—a significant mismatch that has contributed to financial strain.
To turn TOR around, Dr. Jinapor proposed a Public-Private Partnership (PPP) model that will inject fresh capital, optimise operations, and streamline staffing levels. “Revitalising TOR is crucial for stabilising fuel prices and strengthening our energy security,” he stated.
Nuclear Energy: The Next Frontier for Ghana
Looking beyond traditional power sources, Dr. Jinapor is positioning nuclear energy as a long-term solution to Ghana’s power challenges. He confirmed that two potential sites for nuclear power plants have been identified, with partnerships being explored with China and the United States.
He revealed that the government is considering both large-scale nuclear plants (1,200MW–1,400MW) and modular reactors (100MW). To accelerate implementation, efforts are underway to develop a regulatory framework, with a projected timeline of at least six years.
The integration of nuclear power into Ghana’s energy mix is expected to reduce dependence on fossil fuels, ensure long-term energy stability and lower overall electricity costs
Dr. Jinapor also addressed the proposed merger of the Volta River Authority (VRA) and the Bui Power Authority (BPA), revealing that a revised framework is under review. Under this new structure, a holding company will oversee three subsidiaries: hydro, thermal, and renewable energy divisions—a move aimed at improving operational efficiency and ensuring state control over strategic energy assets.
Can Ghana’s Energy Sector Be Transformed?
Dr. John Abdulai Jinapor is no stranger to Ghana’s energy sector. As the Member of Parliament for Yapei-Kusawgu since 2017, and having served as Deputy Minister for Energy (2013-2017) during President Mahama’s administration, he brings a deep understanding of the sector’s challenges and opportunities.
His academic credentials—including degrees in Energy Economics, Development Finance, and Economic Policy Management—further underscore his ability to drive transformative change.
With strong technical expertise and a bold policy agenda, Dr. Jinapor’s leadership could mark a turning point for Ghana’s energy future. Dr. Jinapor’s vision for Ghana’s energy sector is ambitious and multi-dimensional. However, the success of his reforms will depend on effective execution, stakeholder collaboration, and the political will to drive systemic change.
The answers to these questions will define Ghana’s energy future—and whether Dr. Jinapor’s bold strategy can truly deliver a sustainable, efficient, and resilient energy sector for generations to come.