Deputy Energy Minister Richard Gyan-Mensah Highlights Significant Gains from Power Sector Reforms and ECG Financial Recovery

The Ministry of Energy and Green Transition has reported a significant turnaround in Ghana’s energy sector, driven by a series of strategic reforms aimed at lowering costs and stabilizing the nation’s power utilities. Speaking at high-level industry gatherings, Deputy Minister Richard Gyan-Mensah revealed that ongoing initiatives have successfully reduced electricity generation costs and improved the financial standing of the Electricity Company of Ghana (ECG). These developments are seen as critical milestones in President John Mahama’s administration's efforts to ensure a resilient energy future that supports industrial growth and economic stability.

A primary highlight of the reforms is the dramatic reduction in electricity generation tariffs. According to the Deputy Minister, renewable energy costs have plummeted from 18 cents to approximately 6.5 cents per kilowatt-hour, while thermal generation costs are now effectively capped at 10 cents. These figures were shared during the 60th Annual General Meeting of the Association of Power Utilities of Africa (APUA) in Accra, where nearly 200 power sector executives gathered to discuss the integration of regional electricity markets. The Ministry emphasized that these cost-saving measures are vital for making Ghanaian industry more competitive and reducing the burden on domestic consumers.

Parallel to these generation gains, the Electricity Company of Ghana (ECG) has demonstrated marked improvement in its financial discipline. Recent data indicates that ECG significantly narrowed its loss after tax from GHC 8,255 million in 2024 to GHC 2,521 million in 2025. While the company was unable to distribute dividends due to lingering historical liabilities, the reduction in losses by over GHC 5.7 billion underscores the effectiveness of new accountability measures. The government is currently implementing a four-channel strategy focused on debt reduction, revenue growth, and enhanced operational efficiency to further solidify ECG’s balance sheet.

Looking ahead, the Ministry of Energy and Green Transition remains committed to a diversified energy mix that includes the integration of nuclear and renewable energy sources. This transition is expected to foster long-term energy security and drive the digitalization of utility governance across the country. By sharing these reform experiences with regional partners and adopting international best practices, Ghana aims to position itself as a hub for energy excellence in Africa, ensuring that the power sector remains a robust engine for national development and regional connectivity.