The Sunon Asogli Power Plant resumed operations on Monday, November 26, 2024, following weeks of shutdown due to financial challenges.
The 560 MW facility, located at Kpone, had ceased operations on October 8 after the Electricity Company of Ghana (ECG) failed to settle an overdue payment of $259 million in net receivables.
In a statement signed by the company’s Chairman, Qun Yang, Sunon Asogli confirmed that operations restarted at 3 p.m. on Monday, expressing gratitude to key government officials for their role in resolving the impasse.
Govt intervention
The statement acknowledged the efforts of Dr. Mohammed Amin Adam, Minister of Finance, and Mr. Herbert Krapa, Minister for Energy, for facilitating the release of emergency funding to address the company’s financial crisis.
The company also commended Vice President Dr. Mahamudu Bawumia for his decisive intervention in ensuring payment was made to facilitate the plant’s return to operations.
Path to resolution
Sunon Asogli highlighted the submission of its final version of a Restructuring Terms Sheet to the Ministry of Finance and the ECG in August 2024.
The company remains optimistic that this document will soon be finalized and signed to ensure a sustainable solution.
“We are confident that a win-win solution that ensures the stability and reliability of Ghana’s energy sector will be achieved,” the statement noted.
Call for contract adherence
The power company emphasized the importance of ECG adhering to the terms of their Power Purchase Agreement (PPA).
It urged ECG to honor its financial obligations promptly to prevent future disruptions and to maintain the reliability of power supply in the country.
Looking ahead
The resumption of the Sunon Asogli Power Plant is expected to bolster Ghana’s energy supply and ease concerns about potential power shortages.
As discussions on restructuring and financial sustainability continue, stakeholders remain hopeful that measures will be put in place to avoid a recurrence of such challenges.
