Energy expert and Executive Director of the Centre for Environmental Management and Sustainable Energy, Benjamin Nsiah, has commended the government for taking decisive steps to settle outstanding debts owed to Independent Power Generators (IPGs), describing the initiative as a major boost for Ghana’s energy sector.

Speaking on Accra 100.5 FM on Monday, January 12, Mr. Nsiah noted that the energy sector has, for years, struggled with severe liquidity challenges, which have constrained growth and weakened performance across the entire energy value chain. According to him, persistent debt and cash flow problems prevented meaningful investment in infrastructure modernisation and limited the expansion of electricity generation and distribution.

“For many years, the energy sector has suffered from liquidity and money problems.

Because of these challenges, we were not able to modernise infrastructure, and we also couldn’t expand generation and distribution the way we should have,” he explained.

Mr. Nsiah praised Finance Minister Cassiel Ato Forson and Minister for Energy and Green Transition, Dr. John Abdulai Jinapor, for what he described as a carefully planned strategy to address the sector’s debt burden.

He said the move to clear arrears owed to IPGs is a positive development that enhances both the immediate stability and long-term outlook of the sector.

“If the Finance Minister and the Minister for Energy and Green Transition have found a good way to defray these debts, it is a sweet and good thing for the sector.

The future looks brighter for the energy sector,” he stated.

The energy expert explained that freeing the sector from debt obligations will allow government resources to be redirected toward critical priorities such as infrastructure upgrades, rural electrification, and improvements in system efficiency.

“Now that there is no heavy debt, any money the government gets can be used to modernise the sector instead of servicing old debts.

It can also be used to extend electricity to small villages across Ghana,” he said.

Mr. Nsiah added that investments in modern infrastructure would help stabilise power supply and significantly reduce fluctuations that often lead to power outages, popularly known as dumsor.

“With better infrastructure, power fluctuations will reduce, and we will have a more efficient and reliable electricity supply,” he noted.

He concluded by urging stakeholders to support the government’s efforts, stressing that the initiative deserves commendation as it lays a stronger foundation for a resilient and sustainable energy sector in Ghana