Ghana plans stronger regional power trade with Nigeria

Ghana is seeking to bolster its position as a regional electricity hub by deepening ties with Nigeria, Deputy Minister of Energy and Green Transition Richard Gyan-Mensah announced at this year's Ghana Industrial Summit and Exhibition in Accra. The minister revealed that Ghana is actively working to enhance regional power trade, despite already exporting electricity to neighboring nations.

During the summit, Gyan-Mensah mentioned ongoing discussions to include Nigeria in Ghana's planned regional electricity transmission arrangements. The proposed arrangement could involve Nigeria supplying natural gas to Ghana for electricity generation, with Ghana subsequently exporting electricity back to Nigeria. While currently meeting domestic electricity needs, Ghana anticipates an increase in demand and has identified electricity exports to Togo, Benin, and Burkina Faso as part of its regional power activities.

However, the government will ensure that these exports do not compromise Ghana's domestic electricity requirements.

Ghana has allocated $10 billion to electricity generation and transmission infrastructure to meet the projected rise in power demand by 2040, as outlined in the Generation and Transmission Master Plan. The Volta River Authority, led by CEO Edward Ekow Obeng-Kenzo, expressed its commitment to collaborating with the government to provide reliable and affordable electricity to support industrial growth, citing expertise in reducing system losses, improving safety, optimizing resources, and enhancing service delivery.

Association of Ghana Industries President Kofi Nsiah-Poku urged the government to review electricity pricing arrangements for industries, stressing that rising power costs are adversely affecting production and competitiveness. He highlighted a near 40% increase in electricity bills due to the withdrawal of discounts previously enjoyed by certain companies.