April 13, 2023

ECG Signs A 2-Decade Agreement With AKSA Energy

The Electricity Company of Ghana (ECG) has signed a 240-month Power Purchase Agreement (PPA) with AKSA Energy Company Limited.

The deal was signed on April 6, 2023, by the Managing Director of the Electricity Company of Ghana, Samuel Dubik Masubir Mahama on behalf of the ECG.

The ECG says the private company will, by the agreement, supply the country with a 205MW (ISO) Thermal Power Plant to stabilise and enhance power reliability in the middle belt and encourage power exports.

The plant will “enhance power generation capacity and voltage stability for customers in the middle belt of Ghana and for exports” and “reduce the indebtedness of the energy sector because ECG is relieved of bank guarantees and fuel purchase.”

As part of the Agreement, the plant will be located at Anwomaso in Kumasi; the capacity of the Plant will be 205MW (ISO) with a guaranteed capacity of 175MW; the Plant will run on natural gas, and the responsibility of the fuel supply shall lie with AKSA.

Also, the project is expected to reach commercial operations in the 4th quarter of 2024; The PPA structure is take-and-pay with a 40% guaranteed dispatch; and there will be no buyer guarantee and no government guarantee.

Present during the agreement was the Minister for Energy, Dr Matthew Opoku Prempeh.

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