Ghana is on the verge of a major power crisis as Karpowership, the operator of the Aboadze floating power plant, has warned it may shut down operations over an outstanding $379 million debt owed by the Electricity Company of Ghana (ECG).
The warning was issued during a February 10, 2025, meeting between Energy and Green Transition Minister John Abdulai Jinapor and Karpowership officials.
The ballooning energy sector debt, which has now surpassed $3 billion, continues to threaten the country’s power supply and economic stability.
Acknowledging the urgency of the situation, Minister Jinapor urged Karpowership to delay any drastic action while the new administration seeks payment solutions.
“We acknowledge the severity of the situation and are committed to finding a sustainable solution to address the financial obligations. We appeal to our partners to bear with us as we navigate these challenges,” Jinapor stated.
However, analysts warn that if Karpowership follows through with its shutdown threat, Ghana could experience prolonged power outages—disrupting industries, businesses, and households nationwide.
Meanwhile, the International Monetary Fund (IMF) has repeatedly flagged Ghana’s energy sector debt as a critical risk to economic stability. The organization has urged the government to implement urgent reforms, including:
- Cost-cutting measures to reduce operational inefficiencies.
- Improved revenue collection to ensure financial sustainability.
- Restructuring power agreements to prevent further debt accumulation.
Without these interventions, the IMF warns that Ghana’s energy sector could collapse under financial strain, leading to widespread power shortages.
If Karpowership suspends electricity supply, Ghana could return to an era of “dumsor”—the persistent power outages that previously crippled businesses and households.