The election of John Dramani Mahama as President and the return of the National Democratic Congress (NDC) to power has ushered in a new chapter for Ghana’s energy sector. With his previous experience in managing energy crises and spearheading infrastructure development, Mahama’s leadership is expected to influence the direction and priorities of the sector. Here is an exploration of what to expect under his administration.
A Renewed Focus on Resolving Systemic Challenges
John Mahama’s tenure as president from 2012 to 2017 was defined in part by his administration’s efforts to address Ghana’s power crisis (dumsor). While emergency solutions such as the Karpowership and AMERI Power Plant provided temporary relief, these measures also highlighted systemic issues in the sector, including inefficiencies in power generation, distribution, and financial management.
As he assumes office once again, Mahama’s administration is likely to prioritise resolving long-standing challenges such as:
• Utility Debt Management: Stabilising the financial health of key entities like the Electricity Company of Ghana (ECG) and GRIDCo through debt restructuring and improved revenue collection.
• Infrastructure Modernization: Upgrading the power transmission and distribution infrastructure to reduce technical losses and ensure reliable energy delivery.
• Policy Reforms: Strengthening regulatory frameworks to enhance transparency, attract private investment, and improve governance within the energy sector.
Expansion of Energy Infrastructure
During his previous presidency, Mahama’s government completed significant projects such as the Atuabo Gas Processing Plant, which bolstered the supply of gas for power generation. His return is expected to bring a renewed focus on infrastructure expansion, with potential emphasis on:
• Natural Gas Development: Enhancing the capacity of processing plants and improving the infrastructure for gas transportation and storage.
• Thermal Power Generation: Increasing the efficiency of existing thermal plants and exploring opportunities for additional capacity to meet growing demand.
• Renewable Energy Projects: Scaling up solar, wind, and hydro projects to diversify Ghana’s energy mix and reduce dependence on fossil fuels.
Accelerating the Renewable Energy Transition
Mahama has previously expressed commitment to renewable energy development. With global energy trends shifting toward sustainability, his administration is expected to align with these changes by:
• Promoting Solar Energy: Supporting large-scale solar farms and off-grid solar solutions to expand access to electricity in rural areas.
• Investing in Wind Energy: Exploring Ghana’s potential for wind energy, particularly in coastal regions.
• Encouraging Private Sector Participation: Offering incentives for private investments in renewable energy projects and fostering public-private partnerships.
Strengthening Local Content and Job Creation
The NDC has consistently emphasized local content policies aimed at ensuring Ghanaian participation in the energy sector. Under Mahama, this focus is likely to intensify, with efforts directed toward:
• Capacity Building: Training programs to equip Ghanaians with skills needed for roles in both conventional and renewable energy industries.
• Local Manufacturing: Encouraging the production of renewable energy components such as solar panels and wind turbine parts domestically.
• Job Creation: Generating employment opportunities across the energy value chain, from exploration to distribution.
Revitalising the Petroleum Sector
Ghana’s upstream oil and gas sector experienced significant growth during Mahama’s earlier administration, with the development of key oil fields such as TEN and Sankofa-Gye Nyame. His presidency is expected to reinvigorate the sector by:
• Maximizing Production: Ensuring efficient operations at existing oil fields to maximise revenue generation.
• Exploration and Licensing: Encouraging exploration of new oil and gas reserves while enforcing transparency in licensing agreements.
• Downstream Development: Enhancing the operations of institutions like the Bulk Oil Storage and Transportation (BOST) company to improve fuel storage and distribution.
Balancing Affordability with Cost Recovery
High electricity tariffs and public dissatisfaction with pricing mechanisms have been persistent issues. Mahama’s administration will need to strike a delicate balance between maintaining affordability for consumers and ensuring cost recovery for energy producers. Key strategies may include:
• Tariff Rationalisation: Implementing measures to make tariffs more equitable while addressing the cost of production.
• Subsidy Reforms: Targeting subsidies to benefit low-income households without distorting the energy market.
• Operational Efficiency: Streamlining processes within energy companies to reduce costs and improve service delivery.
Building Regional Energy Partnerships
Ghana’s strategic position within West Africa presents opportunities for regional energy collaboration. Mahama’s administration could foster stronger partnerships through initiatives such as:
• Exporting Power: Leveraging surplus electricity generation capacity to supply neighboring countries.
• Cross-Border Gas Projects: Strengthening partnerships for the development of cross-border gas pipelines and trade agreements.
• Shared Renewable Energy Goals: Collaborating with ECOWAS members to achieve regional renewable energy targets.
A New Opportunity for Growth and Transformation
The return of President John Mahama and the NDC signals a critical juncture for Ghana’s energy sector. With a blend of experience and an understanding of the sector’s challenges, his administration has the potential to implement transformative policies that will ensure energy reliability, affordability, and sustainability.
However, success will depend on the government’s ability to navigate fiscal constraints, foster innovation, and build trust among stakeholders. As Ghana’s energy sector remains a cornerstone of its economic development, the coming years under Mahama’s leadership could define the nation’s progress toward a more secure and sustainable energy future.
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