Sunon Asogli Power (Ghana) Limited has resumed operations of 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 company’s financial challenges.
The power plant had been offline since October 2024 due to the Electricity Company of Ghana’s (ECG) inability to settle overdue payments. As of September 2024, Sunon Asogli reported a net receivable of $259 million (excluding fuel costs) owed by ECG, leaving the company unable to sustain its operations.
The debt issue had worsened over the year, with Sunon Asogli stating that its receivables grew by 23% between January and September 2024. Despite refraining from invoicing ECG for idle capacity, only 22.6% of invoices during this period were settled through the Cash Waterfall Mechanism.
In a statement on Monday, Sunon Asogli confirmed progress towards resolving the financial impasse:
“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 that will ensure the stability and reliability of Ghana’s energy will be achieved.
“We hope that ECG can adhere to the spirit of the contract and diligently honour their financial obligations under the PPA.”
The company also expressed gratitude to Vice President Dr. Mahamudu Bawumia for his intervention, which was pivotal in securing the necessary payments.
The resumption of Sunon Asogli’s operations is expected to stabilize Ghana’s power supply and address broader concerns about financial sustainability in the energy sector.
