Sunon Asogli Power (Ghana) Limited has resumed operations at its 560MW power plant following decisive intervention by Finance Minister Mohammed Amin Adam and Energy Minister Herbert Krapa.
The ministers facilitated the release of emergency funds to alleviate the financial challenges that led to the plant’s shutdown in October 2024. Operations ceased after the Electricity Company of Ghana (ECG) failed to settle outstanding debts, rendering Sunon Asogli unable to sustain its activities.
As of September 2024, Sunon Asogli reported a staggering $259 million in net receivables (excluding fuel costs) owed by ECG. The company refrained from invoicing for idle capacity but disclosed that ECG’s debt had surged by 23% between January and September 2024. During this period, only 22.6% of invoices were cleared under the Cash Waterfall Mechanism.
In a statement released on Monday, Sunon Asogli expressed optimism about resolving the crisis. “We have submitted our final version of the Restructuring Terms Sheet to the Ministry of Finance and ECG in August for finalization and signing soon. We are confident that a win-win solution ensuring the stability and reliability of Ghana’s energy will be achieved.”
The company further called on ECG to uphold its contractual obligations under the Power Purchase Agreement (PPA).
Sunon Asogli also acknowledged the efforts of Vice President Dr. Mahamudu Bawumia, whose intervention expedited payment processes.
The plant’s return to full operation is expected to stabilize electricity supply and ease concerns about the financial sustainability of Ghana’s energy sector.
