SUNON Asogli, a prominent independent power producer (IPP) in Ghana, has taken the unprecedented step of indefinitely suspending operations at its 560 MW gas-fired power plant. The decision, announced on Monday, is attributed to the company’s claims of unpaid government debt and what it deems as unproductive engagements to resolve the financial challenges.
In a statement released by Sunon Asogli, the company expressed its frustration, stating, ‘This is our last resort. The accumulating unpaid bills have significantly impacted our operational capacities, making it unsustainable to continue without addressing these financial challenges.’ The state-run Electricity Company of Ghana, responsible for the country’s power distribution, has yet to respond to the development.
Ghana’s government has been grappling with its worst economic crisis in a generation, marked by double-digit inflation and a soaring public debt. In July, an interim deal was reached between the government and IPPs, including Sunon Asogli, regarding overdue payments. However, the IPPs had previously warned that if the debt issue persisted, they would be forced to shut down operations without prior notice.
The sudden suspension of operations by Sunon Asogli raises concerns about the potential impact on the national power supply to households and businesses. With the country already facing economic challenges, the shutdown adds further uncertainty to Ghana’s energy landscape.