Sunon Asogli Power Resumes Operations Following Government Intervention
Sunon Asogli Power (Ghana) Limited has restarted its 560 MW power plant after a critical intervention by Finance Minister Mohammed Amin Adam and Energy Minister Herbert Krapa.
The ministers secured emergency funding to address the company’s financial difficulties, allowing the plant to resume operations after being shuttered since October 2024. The shutdown had been caused by the Electricity Company of Ghana’s (ECG) inability to settle overdue payments.
As of September 2024, Sunon Asogli reported net receivables of $259 million owed by ECG, excluding fuel costs. The debt had increased by 23% between January and September 2024, with only 22.6% of invoices paid via the Cash Waterfall Mechanism.
In a statement on Monday, Sunon Asogli disclosed that it had submitted a finalized Restructuring Terms Sheet to the Ministry of Finance and ECG in August for approval. The company expressed optimism for a “win-win solution” to sustain Ghana’s energy sector.
“We hope that the ECG can adhere to the spirit of the contract and diligently honour their financial obligations in the PPA,” the statement added.
Sunon Asogli commended Vice President Dr. Mahamudu Bawumia for his efforts in ensuring payments were made to resolve the crisis.
The resumption of the plant’s operations is expected to improve power stability and address financial sustainability concerns in the energy sector.
