The Government is to implement swift interventions to address financing shortfalls in the energy sector.
Delivering the 2025 Budget in Parliament on Tuesday, Dr Cassiel Ato Forson, Minister of Finance, said the energy sector financing shortfall had increased to about GH¢35 billion for 2025.
He warned that the shortfall in the energy sector posed significant fiscal risks to the country’s finances.
To reverse the shortfall, the Government will implement a Private Sector Participation strategy to improve collection efficiency of the Electricity Company of Ghana and the Northern Electricity Distribution Company.
The Government also intends to increase gas supply from the N-Gas Limited through the implementation of a deal that would swap liquid fuel with gas.
The move, Dr Forson said, would target an increment in N-Gas supply from the 60 million standard cubic feet per day to 100 million standard cubic feet per day to guarantee cheaper gas prices.
The Finance Minister said the Government would complete negotiations with Independent Power Producers and push for lower fixed capacity charges to generate savings for the country.
In 2024, the MoF supported the energy sector with payments of about GH¢20.8 billion, with the shortfall for the period 2023-2026 estimated to hit about GH¢140 billion.
“These resources could have been used for job creation and other development programmes like roads, schools, and hospitals if the sector inefficiencies were resolved.” Dr Forson said.
GNA
