Energy expert and chairman of the energy subcommittee for the NPP 2024 Campaign, Kwadwo Nsafoah Poku, has announced that the cabinet has given its approval for the merger of significant entities within the power sector in Ghana. This move is aimed at enhancing supply efficiency and potentially facilitating private-sector participation.
The entities slated for merger include the Ghana Grid Company Limited (GRIDCo), Bui Power, the Northern Electricity Distribution Company (NEDCO), and the Electricity Company of Ghana (ECG).
However, Nsafoah Poku emphasized that the privatization of GRIDCo and the Volta River Authority (VRA) will not entail a wholesale sale due to their critical technical functions and monopoly roles.
Speaking on The Key Points on Saturday, April 20, Nsafoah Poku outlined the approved mergers: “NEDCo and ECG have received cabinet approval for consolidation, while VRA hydro and BUI Power Authority are set to merge into a single entity.”
He further elaborated on the restructuring process, stating that the government has integrated VRA Thermal into a unified entity, and after completing parliamentary procedures, there will be a single representation for Bui Power Authority and Volta River Authority.
Nsafoah Poku stressed the need to rationalize the roles of entities like GRIDCo to pave the way for partial privatization: “GRIDCo fulfils a dual function as both a transmission company and a market administrator. Streamlining these functions could enable partial privatization, allowing for private sector involvement while maintaining state control.”
He emphasized that the goal is not necessarily to divest these entities entirely but to introduce private sector participation as minority stakeholders, thus enhancing efficiency and innovation while retaining state oversight.
The cabinet's approval of these restructuring measures marks a significant step towards modernizing Ghana's power sector and fostering a conducive environment for sustainable energy provision and economic growth.