A coalition of civil society organizations focused on the petroleum, power, and renewable energy sectors has expressed support for the government’s push to reform the power sector, particularly with changes in the operations of the Electricity Company of Ghana (ECG).
However, the CSOs have emphasized the need for robust local content provisions and worker protections as part of any restructuring efforts.
During a recent meeting in Accra with the Minister of Energy and Green Transition, John Abu Jinapor, CSO representatives acknowledged the government’s concerns about ECG’s financial difficulties, especially its inability to collect enough tariff revenue to pay Independent Power Producers (IPPs).
The minister highlighted that this challenge is jeopardizing the reliability of the power supply, underscoring the urgent need for reform.
The minister highlighted that the current challenges threaten the reliability of power supply, making reform an urgent necessity.
He explained that the government is exploring a Public-Private Partnership (PPP) model to address these issues, aiming to enhance revenue collection efficiency and improve the customer experience.
At a press conference where the minister shared a summary of key discussions and feedback, Benjamin Nsiah, a member of the coalition, stated that while Civil Society Organizations (CSOs) largely support the need for reforms, they also urged the minister to prioritize local involvement in any partnership agreements.
The CSOs also called for assurances that the livelihoods of ECG employees would be protected under any new arrangements.
This push for reform comes amid mounting pressure to stabilize the country’s power sector, which has been plagued by financial challenges and frequent supply disruptions.
The group noted that the minister agreed to these demands.
On governance within the energy sector, the CSOs urged the ministry to protect power policies from political interference and to develop a long-term strategy to meet rising electricity demand while incorporating technological advancements.
The group also recommended that independent power producers (IPPs) be allowed to procure their own fuel for power generation. They argued that this would reduce reliance on intermediaries, lower costs, and stabilize the supply chain.
The CSOs pointed out that Ghana has not aggressively pursued green energy investment opportunities. They urged the government to accelerate efforts to integrate renewables into the national energy mix by implementing an incentive program that promotes energy diversification and aligns with global climate goals.
Additionally, they emphasized the need to incentivize private companies—particularly those with significant carbon footprints—to allocate a portion of their corporate social investment budgets to off-grid solutions and nature-based carbon sequestration projects.
The CSOs also called on the ministry to find ways to shield energy policies and rural electrification initiatives from undue political influence to improve the sector’s efficiency.
Meanwhile, they expressed support for the minister’s proposal to adopt a comprehensive and forward-thinking strategy that ensures Ghana’s power generation keeps up with growing energy demands and technological innovations.
Beyond the power sector, the CSOs suggested revising Ghana’s taxation policies related to ancillary services in the oil and gas sectors, including infrastructure, storage, and transportation. They argued that lowering tax burdens in these areas would encourage private-sector investment and boost efficiency.
The coalition also emphasized the need for synergy between Ghana’s fossil fuel resources and its renewable energy ambitions, given the ministry’s dual mandate covering both energy and the green transition.
“We must avoid prematurely stranding oil and gas assets while ensuring their responsible integration into the transition process,” the coalition stated.
To attract more Foreign Direct Investment (FDI), the CSOs recommended greater transparency in licensing bid rounds, improved seismic data collection, and more accurate block size assessments.
They also suggested a temporary pause on promotional roadshows by the Ghana National Petroleum Corporation (GNPC) until regulatory and investment barriers are addressed.
The 19-member coalition includes the Growth Curve Initiative, the Civil Society Platform on Oil and Gas (CSPOG), the Centre for Extractives and Development Africa (CEDA), the Natural Resource Governance Institute (NRGI), and the Chamber of Petroleum Consumers (COPEC), among others.
