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Energy Minister outlines Sector Gains at Accountability Series

Edzorna Francis Mensah by Edzorna Francis Mensah
July 17, 2025
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The Minister for Energy and Green Transition, John Abdulai Jinapor, today presented an overview of the government’s achievements in the energy sector at the Jubilee House, as part of the Government Accountability Series instituted by the Minister for Government Communications at the Office of the President.

The high-level forum, which convened media professionals and senior government officials, is designed to provide a transparent platform for ministries to account for their stewardship and outline measurable progress since the current administration assumed office on January 7, 2025.

In his presentation, Jinapor emphasized the Ministry’s swift and strategic interventions aimed at stabilizing the energy sector, enhancing efficiency, and positioning Ghana for a green and sustainable energy future.

“We have acted decisively to restore investor confidence, deepened local participation in the energy value chain, and ensured reliable power delivery to industries and households,” the Minister noted. “Our focus has been to ensure energy security”.

Key Achievements Presented:

  • Renewable Energy and Green Transition Programme- launching of the Ghana Scaling-up Renewable Energy Programme (SREP) on 30th May, 2025 at Lala to commence the deployment of 12,000 net-metered solar PV systems across homes, businesses, and public facilities, construction of 35 mini-grids to supply electricity to over 70,000 people in 47 islands and lakeside communities and supply 1,450 solar home systems for remote off-grid households and public facilities.
  • Establishment of the Renewable Energy and Green Transition Fund to accelerate both public and private sector investments in renewable energy and green transition.
  • Commissioning of three (3) brand new mini grids electricity infrastructure in Azizakpe, Aflive, and Alorkpem in the Ada Municipality providing uninterrupted green electricity to over 3,700 people.
  • Accelerated all-in-one smart solar street lighting programme across the district and municipal capitals and major cities in the country. The programme has commenced with a total 23,500 units of all-in-one solar street light supplied for installation to cover over 700km of road length.
  • Under the Government Goes Solar project for Public Facilities including the Universities, Ministries, Departments and Agencies, the government will deploy a total of 22MW solar installed capacity across these beneficiary agencies to save the government a projected amount of GHS 52 million annually over the next 20 years.
  • Deploy EV vehicles with charging stations across the country. Initiative to commence with government agencies and extend to the private sector. Already, a solar charging facility has been commissioned at the Energy commission.

Power Stability

  • Strengthening the Transmission Network

Ghana’s energy sector is showing signs of stabilization and improvement, driven by ongoing reforms aimed at addressing financial challenges and modernizing infrastructure.

The persistent and erratic power outages that had plagued the country, particularly at the beginning of the year, have seen a remarkable improvement with reliable supply of power well into the fourth month.

  • Distribution Network Improvement Policy

A comprehensive programme to reduce the incidence of unplanned outages was initiated. The programme involves patrolling and mapping overhead line feeders, identifying construction defects and interference from structures such as buildings and billboards, and vegetation. Identified defects are then packaged and assigned to contractors, working to augment maintenance teams in ECG’s regions and districts. The programme started with the most frequently faulting feeders and is continuing to all other feeders. The current stability of the distribution networks is due in part to an outcome of this initiative.

  • Rationalization of Supply Contracts

ECG Board has approved the outright termination of two hundred and two (202) of these contracts. The total value of these contracts is $227.6 million, £1.17 million, €4.08 million.

  • Implementation of New Billing System in Record 3 Months

ECG has successfully transitioned to a new billing system (Zeus) and all other commercial operations have been restored.

  • Compliance with the Cash Waterfall Mechanism (CWM)

Since February 2025, ECG has fully complied with the CWM under a Single Holding Account opened at GCB Bank, thus ensuring the constant flow of cash to electricity generators, fuel suppliers, and GRIDCo, and significantly reducing the threat of generator shutdowns or load shedding due to non-payment.

  • Increased Revenue Mobilization Efforts by ECG

In June 2025, ECG recorded its highest-ever monthly revenue, a total of GHS1.678 billion. This performance represents a 47.3% increase compared to the June 2024 collection of GHS1.139 billion.

  • Expanding Rural Electrification

Under the NDC Government’s accelerated Rural Electrification Programme, a total of 63 new communities have been connected to the national electricity grid between January and June 2025.

  • Private Sector Participation (PSP) in Distribution

The Cabinet has approved a new Private Sector Participation model in the electricity distribution sector. The Multiple Lease Option was adopted based on robust consultations and technical analysis. A Steering Committee has been constituted to oversee the transparent and expeditious rollout of this reform.

  • Securing Additional Gas for Power Generation

To stabilize fuel supply for power plants and ensure affordable electricity.

We successfully increased gas supply from N-Gas from 80 to 100 million standard cubic feet per day (mmscfd). We also increased ENI’s supply from 245 to 270 mmscfd. In the next few weeks, Gas supply from Jubilee is expected to increase by about 30 mmscfd. These strategic gains are helping to reduce reliance on expensive liquid fuels and enhance generation efficiency.

  • Competitive Procurement of Power

To drive down power generation costs and reduce end-user tariffs, we have advanced processes for the competitive procurement of power. A Legislative Instrument (LI) to regulate this new framework will be laid before Parliament for consideration and approval. This marks a significant shift from sole-sourced PPAs to a cost-efficient, transparent procurement model

  • Power Purchase Agreement (PPA) Rationalization

Conducting a comprehensive review and rationalization of legacy PPAs in collaboration with Independent Power Producers (IPPs). A committee with the mandate of reviewing the PPAs with IPPs has been constituted to ensure long-term sector sustainability and reduce excess capacity payments.

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  • Street Lightening for the 24-Hour Economy

As part of the enabling infrastructure for the 24-Hour Economy Policy, rehabilitation of grid-connected streetlights across the country have commenced.

Petroleum Sector

Following years of consistent decline, there’s a renewed interest in Ghana’s upstream petroleum sector, with both domestic and international companies showing increased activity and investment. This resurgence is driven by a combination of factors, including government initiatives to create a business-friendly environment, underpinned by policy and regulatory consistency aimed at assuring industry players, attracting investors and promising new discoveries.

Exploration

  • Block Promotion | Renewed Interest in Ghana’s Basins

The government is actively engaging major international oil companies (IOCs) to promote Ghana’s sedimentary basins for exploration.

  • Offshore Drilling

GNPC has worked collaboratively with operator partners to progress their obligatory exploration drilling programs. Our engagements facilitated the granting of necessary regulatory extensions and advanced negotiations with service providers for rig contracting.

  • Declaration of Commerciality for New Discoveries

The appraisals of Afina discovery in the WCTP block 2, and Eban-Akoma discoveries in the CTP block 4, have all been completed successfully resulting in the declaration of commerciality. This means that these fields merit development and production and will be brought on-stream for production in due course. The ultimate effect will be an increase in Ghana’s hydrocarbon production and revenue shortly. Eban-Akoma is scheduled for a fast-track development via tie-back to the existing OCTP infrastructure. Appraisal of Aprokuma is currently ongoing.

  • Secured Investment Commitment of US$2 Billion for Jubilee and TEN fields

The Government as part of efforts to attract investment from existing E&P companies in Ghana’s upstream petroleum industry, has created the enabling environment to unlock investment to the tune of US$2billion from the Jubilee and TEN Partners. This investment is expected to be committed to the drilling of 20 new wells and associated infrastructure over the license period. In addition, the Government has approved the extension of the West Cape Three Points and Deep Water Tano Petroleum Agreements to 2040 to support sustainable hydrocarbon exploitation and ensure recovery of new investments by the contractor parties’ whiles delivering a fair share of revenue to Ghana.

  • Petroleum Cost Audit

The Petroleum Commission has conducted a comprehensive petroleum cost audit for DWT/CTP contract area. The audit is expected to save Ghana approximately US$228 million in infractions identified and recoverable petroleum costs.

  • Local Content Development

Petroleum Commission has developed strategies on how to develop the oil and gas industry with optimal local content and participation; enhance national development; create jobs; and manage the potential revenue from oil and gas production and processing.

  • Local Content Fund Contribution

Due to the gradual increase in activities and in-country spend, the contribution to the Local Content Fund is also experiencing a remarkable improvement. The Cedi account increased by 11.22% from its December figure of GHS26,878,276.74 to a new balance of GHS29,894,214.12 as of June 2025. Again, the Dollar account increased by 27.08% from its December 2024 balance of USD1,962,551.74 to a new balance of USD2,494,009.18 as of June 2025. The Petroleum Commission intends to roll out the disbursement of the Fund to support capacity building of Ghanaian SMEs in the petroleum sector and training institutions later this year.

  • Tema Oil Refinery

The Turn Around Maintenance Team has been commissioned and is currently undertaking critical maintenance works to restart the refinery. As at December, 2024, the refinery’s debt stood at $517million. Auditors have been engaged to audit the books of TOR to be presented to SIGA and the government and parliament. The New Management is relying on TOR own IGF for the Refinery Start Up in October- supported by government through TOR’s Portion of ESLA Receivables. A feasibility study has commenced to increase TOR Capacity by additional 100,000 barrels per stream day.

  • Ghana National Gas Company Ltd.

The Implementation Committee for the Second Gas Processing Plant (GPP II) has presented its final report. This submission represents a significant milestone in Ghana’s initiative to enhance domestic gas processing capabilities and strengthen energy security for industrial and power sector development. This project will save Ghana up to $1 billion annually by reducing reliance on liquid fuel imports for power generation.

  • Ghana Cylinder Manufacturing Company

The Ministry, through the Investment Planning Committee and in collaboration with key stakeholders, has arranged funding options aimed at retooling GCMC. The company’s production machinery, dating back to 1998, has become obsolete and significantly limited production output and efficiency. The retooling process is expected to enhance capacity, reduce waste, and align GCMC with international production standards. This initiative is timely, especially as GCMC assumes a pivotal role in the implementation of the government’s Cylinder Recirculation Model (CRM).

The Minister reiterated the Government’s unwavering commitment to a just energy transition. he added, “We are not only working to meet present demands but also laying the foundation for a resilient and sustainable energy future.”

 

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