By Kizito CUDJOE
A coalition of civil society organisations (CSOs) focused on the petroleum, power and renewable energy sectors has backed government’s push for power sector reforms, mainly changes to Electricity Company of Ghana (ECG) operations.
However, the coalition of CSOs has called for strong local content provisions and worker safeguards in any restructuring efforts.
During a recent meeting in Accra with Minister of Energy and Green Transition, John Abu Jinapor, CSO representatives acknowledged government’s concerns over ECG’s financial struggles; particularly its difficulty in collecting sufficient tariff revenue to pay Independent Power Producers (IPPs).
The minister noted that this challenge is threatening power supply reliability, making reform a pressing necessity.
He said it is to address these issues that government is exploring a Public-Private Partnership (PPP) model aimed at boosting revenue collection efficiency and enhancing customer experience.
At a press conference to share a summary of key issues discussed and feedback offered by the minister, a member of the coalition, Benjamin Nsiah, indicated that while CSOs are largely supportive of the need for reforms, they also urged the minister to prioritise local participation in any partnership agreement.
The CSOs, he said, also pressed for assurances that the livelihoods of ECG employees would be safeguarded under any new arrangement.
This push for reform comes amid growing pressure to stabilise the country’s power sector, which has been plagued by financial constraints and supply disruptions.
The group noted that the minister on his part agreed to these demands.
On energy sector governance, the CSOs urged the ministry to insulate power policies from political interference and develop a long-term strategy to meet rising electricity demand while integrating technological advancements.
The group further recommended that IPPs be allowed to procure their own fuel for power generation, arguing that this would reduce dependence on intermediaries, lower costs and ensure a more stable supply chain.
They recognised that Ghana has not pursued green energy investment opportunities aggressively enough. Given this, they urged government to accelerate efforts at integrating renewables into the national energy portfolio through an articulated incentive regime to promote energy diversification and alignment with global climate goals.
They also emphasised incentivising private companies, especially those with substantial carbon footprints, to channel a considerable portion of their corporate social investment budget into off-grid solutions and nature-based carbon sequestration projects.
Furthermore, the CSOs challenged the ministry to find ways of insulating energy policies and rural electrification initiatives from undue political influence so as to enhance the sector’s efficiency.
Meanwhile, they supported the minister’s proposal to adopt a comprehensive and forward-looking strategy that ensures Ghana’s power generation keeps pace with rising energy demands and technological advancements.
Beyond the power sector, the CSOs proposed revisions to Ghana’s taxation policies for ancillary services in oil and gas, including infrastructure, storage and transportation. They argued that reducing tax burdens on these areas would encourage private-sector investment and improve efficiency.
“With the ministry’s dual mandate covering both energy and green transition, there must be proper synergy between Ghana’s fossil fuel resources and its renewable energy ambitions,” the coalition stated.
“We must avoid prematurely stranding oil and gas assets while ensuring responsible integration into the transition process.”
To attract more Foreign Direct Investment (FDI), the CSOs called for greater transparency in licencing bid rounds, recommending improvements in seismic data collection and block size assessments.
They also suggested a temporary halt of promotional roadshows by the Ghana National Petroleum Corporation (GNPC) until regulatory and investment barriers are addressed.
The 19-member coalition includes the Growth Curve Initiative, Civil Society Platform on Oil and Gas (CSPOG), Centre for Extractives and Development Africa (CEDA), Natural Resource Governance Institute (NRGI) and Chamber of Petroleum Consumers (COPEC), among others.
