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Ghana signs new Power Purchase Agreement

The Electricity Company of Ghana (ECG) has signed a Power Purchase Agreement (PPA) with AKSA Energy Company Limited for a 205MW (ISO) Thermal Power Plant. The 240-month agreement was signed on Thursday, 6th April 2023, as part of the strategy to stabilize and enhance power reliability in the middle belt of Ghana, as well as encourage power exports.

The following are the details of the agreement:
1. The plant will be located at Anwomaso in Kumasi.
2. The capacity of the Plant will be 205MW (ISO) with a guaranteed capacity of 175MW.
3. The Plant will run on natural gas, and the responsibility of the fuel supply shall lie with AKSA.
4. The project is expected to reach commercial operations in the 4th quarter of 2024.
5. The PPA structure is take-and-pay with a 40% guaranteed dispatch.
6. There will be no buyer guarantee and no government guarantee.

Key among the many benefits of this AKSA agreement are;
1. Enhanced power generation capacity and voltage stability for customers in the middle belt of Ghana and for exports.

2. Highly competitive commercial terms and price which will reduce the indebtedness of the energy sector, because ECG is relieved of bank guarantees and fuel purchase.

The Minister of Energy, Dr. Matthew Opoku Prempeh, who was present to witness the signing, charged ECG to ensure the full operationalisation of the agreement in the interest of Ghanaians.

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