By Juliet ETEFE
Rising electricity demand is expected to drive the next phase of expansion in the power sector, with industry players pointing to increased private sector investment and public-private partnerships as critical to sustaining supply and supporting economic growth.
Demand for power is estimated to be growing by about 8 to 10 percent annually, intensifying the need for new investment across the electricity value chain.
Sector experts say meeting this growing demand will require sustained private sector participation in what remains a highly capital-intensive industry.
Project Manager at Karpowership Ghana, Michelle Hazel, said the scale of investment required in power generation and supply means government alone cannot meet the country’s energy needs.
“As economies grow and populations expand, demand increases. Ghana is no exception, and we are seeing that reflected in the power sector, with demand growing at about 8 to 10 percent annually,” she said.
She noted that the energy sector’s capital-intensive nature means private sector involvement is not only necessary but inevitable.
“It is a space in which the private sector can come in – and must come in – to support government, because of the level of investment required,” she added.
According to her, the country has already made progress, with increased participation of independent power producers (IPPs) over the past decade, reflecting improvements in policy and regulatory frameworks.
“In the last 10 to 12 years, we have seen the introduction of several IPPs compared to about two decades ago,” she said.
She further stressed that expanding private sector participation beyond generation into transmission and distribution could enhance efficiency across the entire electricity supply chain.
“If we replicate private sector efficiency across transmission and distribution, as has been done in generation, we will see improvements across the board,” she noted.
Ms. Hazel also pointed to ongoing shifts in the sector’s fuel mix – particularly the transition from more expensive liquid fuels to natural gas – as a key factor in shaping the cost and sustainability of electricity supply.
“If we are able to develop more indigenous gas, we can achieve cheaper power in the long term,” she said, adding that affordable and reliable electricity will be critical for industrial growth and productivity.
Corporate Communications Manager at Karpowership Ghana, Sandra Amartikar Amarquaye, highlighted the role independent power producers in supporting national electricity supply, noting that the company has operated in Ghana since 2015 and relocated from Tema to Sekondi in 2019 to leverage natural gas resources.
“We have been consistent and reliable in producing power to the national grid,” she said.
Ms. Amarquaye added that discussions are currently underway with government on a possible extension of its 10-year power purchase agreement with the Electricity Company of Ghana.
“We are in conversation with government. Negotiations are ongoing and it is looking positive. Beyond the 10 years that we have signed, we are hopeful of an extension,” she said.
The company hosted members of the media aboard its floating power plant, the Karadeniz Powership Osman Khan, at the Sekondi Naval Base, offering first-hand insight into its operations as part of efforts to strengthen stakeholder engagement and transparency in the power sector.
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