Minister of Finance, Cassiel Ato Forson, has said that Ghana’s energy sector was struggling with a massive debt of US$1.4 billion owed to Independent Power Producers (IPPs) when the National Democratic Congress (NDC) administration took over.
Presenting the 2026 Budget in Parliament, he noted that the government has renegotiated all power purchase agreements with IPPs, led by Ghanaian experts at no cost to the state, saving over US$250 million and restructuring US$1.1 billion over a four-year period.
According to Ato Forson, government is now fully current on payment obligations to IPPs in accordance with the renegotiated agreements.
“Government have cleared US300 million in 2025 and allocating US$345 million for 2026,” he stated on Thursday, November 13, 2025.
He also explained that solar tariff projects like BXC and Meinergy have declined from 18 to 6.5 cents per kilowatt-hour, cutting costs and expanding access.
“For the first time we are not accumulating new arrears in the energy sector. Mr. Speaker, this was achieved as part of the renegotiation,” he mentioned.
He emphasized that revenues of the Electricity Company of Ghana (ECG) have increased monthly from 900 million Ghana cedis in 2024 to 1.7 billion Ghana cedis in 2025.
“ The ECG revenue has risen almost 90%, thanks better enforcement of Cash Waterfall Mechanism (CWM),” Ato Forson reiterated.
Contributor; Salamatu Adama
