Moving ahead with its plans, Ghana has identified fossil fuel-burning plants that are capable of producing a combined 501 megawatts, one-third of the country’s total thermal power-generating capacity, that it will partly privatize, stated the head of revenue monitoring at the Energy Ministry, James Demitrus on Tuesday.
With the stakes sale, the West African country looks at its thermal power plants because it is capable of burning oil or gas to generate electricity, although the country’s hydro-power can also produce 1,180 megawatts.
Demitrus stated that “ the plants are not very efficient, they have been lying idle for close to one year and after those debts are cleared the government does not want the cycle to be repeated.”
The plants being offered for part-privatization include a 125-megawatt thermal plant in the port city of Tema belonging to the state pension fund, and Volta River Authority plants (VRA), the state power produce in Kpone and Tema that have installed capacities of 250 megawatts and 125 megawatts respectively, Demitrus added.
Other VRA plants are not up for investment because some are relatively efficient while others already have private partners, However, investors are expected to boost the plants up for investment by a third, said Demitrus.
Economic growth of the West African country under former President John Mahama administration, was slow for about three years due to planned power outages that could last up to 24 hours.
In 2016, the government started selling bonds in part to pay off state accumulated loans of a combined 10 billion cedis ($2.3 billion).
Ghana’s economy is projected to expand by 8.3 percent this year which may likely boost demand for electricity, the World Bank said.