Ghana saved an estimated $500 million last year by replacing liquid fuels with natural gas for thermal power generation, Energy and Green Transition Minister, Hon. Dr. John Abdulai Jinapor has said.
Speaking at the Future of Energy Conference, Hon. Dr. Jinapor said the shift was part of efforts to reduce the cost of electricity generation and improve the financial position of the energy sector.
He explained that the savings came from reducing the use of costly imported liquid fuels and increasing the use of natural gas to power thermal plants.
“Last year, when we did the analysis, we saved $500 million from liquid fuel to gas import substitution,” Hon. Dr. Jinapor said, adding that the government would continue to pursue the strategy.
The minister said the savings demonstrated how structural reforms could help lower energy costs and strengthen the sustainability of Ghana’s power sector.
However, he noted that financial reforms alone would not be enough. He said improvements in technology and greater diversification of the country’s energy mix were also necessary to build a more efficient and competitive electricity sector.
Hon. Dr. Jinapor said the government would continue implementing measures to make power supply more reliable and affordable, particularly to support industrial growth and improve the competitiveness of local businesses.
He added that Ghana would continue to develop a balanced energy mix comprising thermal and renewable power while investing in electricity infrastructure to meet rising demand and strengthen the country’s power supply system.