Sunon Asogli Power (Ghana) Limited has resumed operations at its 560MW power plant following a financial intervention by Ghana’s Finance Minister, Mohammed Amin Adam, and Energy Minister, Herbert Krapa.

The power plant, which shut down in October 2024, was forced to cease operations due to the Electricity Company of Ghana’s (ECG) failure to clear outstanding debts. Sunon Asogli reported that as of September 2024, ECG owed the company $259 million, excluding fuel costs.

The government’s intervention saw emergency funds released to address Sunon Asogli’s financial difficulties, allowing the plant to restart. In a statement issued on Monday, the company said it had submitted a final restructuring proposal to the Ministry of Finance and ECG in August, aimed at reaching a sustainable agreement.

“We are confident that a win-win solution that will ensure the stability and reliability of Ghana’s energy will be achieved,” the statement read.

The company also urged ECG to honour its contractual obligations, noting that despite refraining from invoicing for idle capacity, the utility’s debt had grown by 23% between January and September 2024.

Sunon Asogli commended Vice President Mahamudu Bawumia for his efforts in facilitating the payment and supporting the recovery of Ghana’s energy sector.

The Cash Waterfall Mechanism, introduced to ensure the equitable distribution of revenue in the energy sector, has reportedly settled only 22.6% of invoices owed to the company during the first nine months of 2024.

Sunon Asogli’s resumption is seen as a critical step toward stabilising Ghana’s electricity supply, though the company has reiterated the need for sustained efforts to resolve its financial challenges.

Source:TheDotNews