How is the power sector in Ghana set up?
Volta River Authority (VRA) generates power, including from the Akosombo dam. GRIDCo runs the transmission grid. ECG distributes power in the south, and NEDCo in the north.
The Energy Commission licenses power producers. The Public Utilities Regulatory Commission (PURC) sets tariffs.
Key projects and programmes
These are public, well-documented examples from the sources below. They show how the market works.
- Akosombo and Kpong hydro dams on the Volta River.
- Gas-fired IPPs near Tema and Takoradi, using gas from Ghana's offshore fields.
- Solar projects connected to the grid and solar for industrial users.
How are projects financed?
IPPs in Ghana have been financed with DFI and bank loans backed by PPAs with ECG and, in some cases, World Bank guarantees.
Ghana defaulted on most of its external debt in December 2022 and has since restructured it with IMF support. Payment arrears to IPPs have been a long-running issue.
What should investors, lenders, and off-takers check?
Common checks include:
- ECG's payment record and any escrow or guarantee arrangements.
- Take-or-pay terms in the PPA and how they have been renegotiated in the past.
- Cedi currency risk and gas supply contracts.
Where does Vektron Merchants fit?
This guide is public information about Ghana. Vektron Merchants does not look for deals there. Vektron Merchants is a marketing agency for energy, commodities, infrastructure financing and industrial firms. We find buyers, offtakers, lenders and partners for companies in these four industries, and we secure meetings with the people who sign.
Frequently asked questions
Who regulates electricity tariffs in Ghana?
The Public Utilities Regulatory Commission (PURC). The Energy Commission licenses power producers.
Who buys power from IPPs in Ghana?
Mainly the Electricity Company of Ghana (ECG), under PPAs.
Sources
Related
General information, not investment, legal or tax advice. Facts are from the public sources listed and may change.