ACEP Comments On The Power Purchase Agreement Between Early Power Limited And The Electricity Company Of Ghana
The project was originally designed as an emergency project but has since been changed to a regular long-term IPP. Also, the original project consisted of a 20 year Power Purchase Agreement (PPA) with the Electricity Company of Ghana (ECG) covering 344MW plant with 142.5MW being a simple cycle plant. The new project consist of a 400MW plant, involving a conversion of the 142.5MW simple cycle to combined cycle that will add 50MW steam turbine. After 25 years of the operation of the facility, ownership will be transferred to the Government of Ghana or its nominated agency at a price of US$1. Parliament is considering the request by Government to approve a Put-Call Option Agreement (PCOA), intended to provide a risk guarantee against default termination of the contract. Ghana needs to find critical solution to perennial power challenges, the longest of which was suffered between 2012 and 2015. The problem with generation shortage is multifaceted but plants addition is also a crucial part of the puzzle. Therefore, government and the utility agencies have been making the effort to augment generation. While it is important to add on generation, planning and value for money is equally important. This analysis is therefore intended to contribute to public and parliamentary debate on the project.