On April 6, 2023, the Minister of Energy, Dr. Matthew Opoku Prempeh, disclosed that the Electricity Company of Ghana had signed a power purchase agreement (PPA) with a company called the AKSA Energy Company Limited (AECL).
In a Facebook post, the Minister said the agreement forms part of efforts to ensure power grid stability and reliability, especially in the middle belts of Ghana.
As part of the agreement, the PPA will entail a 205MW (ISO) thermal power plant as part of the strategy to stabilize and increase power reliability in the middle belt of Ghana, as well as encourage power exports.
Below are details of the Power Purchase Agreement between the ECG and AKSA Energy:
1. The plant will be located at Anwomaso in Kumasi
2. The capacity of the plant will be 205MW (ISO) with a guaranteed capacity of 175MW.
3. The plant will run on natural gas and the responsibility of the fuel supply shall lie with AKSA
4. The project is expected to reach commercial operations in the 4th quarter of 2024
5. PPA structure is take-and-pay with a 40% guaranteed dispatch
6. The term of the PPA is 240 months
8. There will be no buyer guarantee and no government guarantee
On the part of AKSA, the agreement has the following benefits:
1. Provides voltage stability and enhanced power generation capacity for customers in the middle belt of Ghana and for exports
2. Offers a highly competitive price and commercial terms that frees ECG of inconveniences such as bank guarantees and the responsibility of providing fuel – the components that intensifies the indebtedness of the energy sector.
Meanwhile, the Minister of Energy, Dr. Matthew Opoku Prempeh, who was present at the signing ceremony, tasked the ECG and AKSA Energy to ensure the full operationalization of the agreement in the interest of Ghanaians.
