By Kingsley Webora TANKEH
Parliament has gazetted a legislative instrument (LI 2508) mandating all power purchase agreements (PPA) to go through competitive bidding to promote transparency, cut costs and streamline the power procurement processes to keep the lights on.
The new law – the Energy Commission (Planning and Competitive Procurement of Additional Electricity Generation Capacity) Regulations, 2025 (L.I. 2508) – was gazetted last week. It aims to enhance transparency, reduce electricity costs and attract private sector investment.
Power generation accounts for about 65 percent of total cost in the electricity value chain. Introducting competitive procurement is intended to address the imbalance by cutting costs, improving efficiency and delivering better value for consumers.
The Minister of Energy and Green Transition, John Abdulai Jinapor stated: “This reform marks a new era for Ghana’s power sector. Competitive bidding will not only ensure value for money but also unlock innovation and greater private sector participation”.
This comes on the backdrop of a ballooning energy sector debt of about US$3.1billion.
According to the minister, the L.I. falls in line with President John Dramani Mahama’s vision to deliver affordable and reliable electricity that can spur industrial growth and economic transformation.
He indicated that the capacity of regulatory institutions is being strengthened to ensure effective implementation of the L.I.
This includes improving licence applications vetting and maintaining a comprehensive, up-to-date power purchase agreement (PPA) register and enhancing transparency and oversight.
The ministry is also working with international partners – including the World Bank, African Development Bank and Energy for Growth Hub – to standardise power purchase agreements (PPAs), build local capacity in PPA design and negotiation, ensure fair and balanced returns for investors and deliver high-quality electricity at competitive prices.
