Rebuilding the Foundations of Ghana's Energy Sector: Use Natural Mineral Resources for Debt Swaps to Address Ghana's Energy Sector Arrears and Idle Capacity Charge Payments to IPGsGhana's energy sector has faced critical financial challenges in recent years, resulting in substantial and unprecedented arrears made up of due and overdue monthly bills,idle capacity charge payments and PPA related claims to the Independent Power Generators (IPGs).
These issues stem from inefficiencies in the energy value chain, compounded by mounting public debt and foreign exchange pressures.
To address these perennial financial bottlenecks, Ghana could adopt a forward-looking, innovative strategy of leveraging its abundant natural mineral resources for debt swaps.
This solution holds the potential to alleviate energy sector arrears, stabilize the financial health of IPGs, and reduce the government's financial obligations, thereby supporting the overall sustainability of the energy sector. Current Challenges in Ghana's Energy SectorGhana's energy sector operates under a hybrid market model that involves both public and private actors.