The Volta River Authority (VRA) has appealed to the government to curb electricity exports and increase support for domestic power generation, warning that ongoing exports to neighbouring countries are threatening the Authority’s financial stability and Ghana’s long-term energy security.
The call was made during a working visit by the Minister of Energy and Green Transition, Mr John Abdulai Jinapor, to the VRA’s operational headquarters on Friday in Accra.
The Acting Chief Executive of VRA, Mr Edward Ekow Obeng-Kenzo, said the Authority was finding it increasingly difficult to reinvest in critical infrastructure due to revenue losses from power exports to Burkina Faso, Togo, and Benin.
“These exports, though important for regional diplomacy, have come at a significant financial cost. With hydro generation constrained by system challenges, we are forced to meet bilateral obligations at the expense of the domestic grid. This has affected our ability to accumulate the necessary funds to expand our generation portfolio,” Mr Obeng-Kenzo stated.
Mr Obeng-Kenzo added that VRA required urgent government backing to scale up its installed generation capacity to between 75 and 85 per cent of Ghana’s total, in order to meet rising domestic demand and support sustainable economic growth.
He assured the Minister of VRA’s continued commitment to its mandate.
“Our teams are working round the clock through robust maintenance programmes and planned capacity expansions to ensure we deliver reliable and affordable power to all Ghanaians. But we need strategic investment and policy support to continue doing so.”
In response, Mr Jinapor acknowledged the challenges and reiterated government’s commitment to prioritising VRA in Ghana’s energy transition strategy.
He criticised the country’s overreliance on Independent Power Producers (IPPs), describing it as an unsustainable financial model.
“If we had directed the billions of dollars paid annually to IPPs into expanding VRA’s thermal generation capacity, we would have achieved more affordable and secure power under national control,” he said.
Mr Jinapor proposed that VRA should lead future generation projects, including through Public-Private Partnerships (PPPs), with the state maintaining majority ownership.
He disclosed that government had already saved $300 million through IPP renegotiations.
He further warned that energy sector shortfalls, which currently consume GH¢28 billion from the national budget, could rise to GH¢35 billion next year if structural reforms are not expedited.
“We cannot allow the energy sector to swallow the entire national budget. This trajectory is not sustainable,” he warned.
The Minister also emphasised the importance of improving staff welfare within the VRA, referencing Ghana’s post-independence ethos of “work and happiness.”
BY RAYMOND APPIAH-AMPONSAH
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