The African Center for Energy Policy(ACEP) has urged government to review existing Power Purchase Agreement with companies holding Power Purchase contracts with the Electricity Company of Ghana
According ACEP, it is imperative for government to pull out of some of the agreements since most of the companies have not yet secured funds for the projects even though they have expressed interest.
“All emergency power contracts that have failed to deliver on time will have to be canceled or renegotiated into a regular IPP to save on cost. The high tariffs associated with the emergency plants are not appropriate for long term economic planning and protection of industries,” it said.
“The conversion of the Early Power Project from an emergency to a regular IPP project is a clear example of how government can reduce high cost of procurement of new capacity,” it added.
The statement was contained in a report titled “Beyond the Election 2016”
Even though the statement was released before the elections, ACEP was of the firm stance that any government that governs in 2017 must cancel such contracts.
Already, the outgoing Mahama government had announced that it has halt new licenses to companies that have expressed interest to set up Independent Power Plants.
Citi Business News checks is yet to confirm if the directive is being adhered to.
Meanwhile checks from the website of the Energy Commission revealed that the last license for an IPP to operate was granted on 16th August 2016.
Source: citibusinessnews