The Executive Director of the Centre for Environmental and Sustainable Energy, Benjamin Nsiah, has expressed significant worries regarding the inefficiencies plaguing Ghana’s energy sector, disclosing that the nation incurred an estimated loss of GHC9 billion in 2024 due to system inefficiencies.
In discussing sustainability and cost-saving measures within the power sector, Nsiah contended that prioritizing the resolution of technical and commercial losses is essential if the government is genuinely committed to mitigating energy sector deficits and ensuring a stable supply.
“In 2024, Ghana’s system losses were approximately 32%. At that rate, a kilowatt hour costs about 10 cents. Therefore, with the 32% loss, which equates to roughly 6,119 gigawatt-hours of generated power, we essentially let that energy go to waste.”
Nsiah pointed out that when this wastage is converted into financial terms using the current tariff rate—estimated at GHC15 per litre—the losses total around GHC9 billion.
He emphasized that these inefficiencies highlight a crucial area for reform, particularly as the government is implementing new levies and seeking extra funds to bolster the energy sector.
“To tackle any financial challenges sustainably, the focus must be on addressing system losses as quickly as possible,” he stressed.
“By wasting GHC9 billion, with some savings, we could even cover some of the sector’s shortfalls.”
Nsiah’s remarks arise amidst increasing public scrutiny regarding government expenditures and energy policies, including the contentious GHC1 fuel levy and a proposed GHC1.2 billion allocation for emergency fuel purchases.
Source: HotFmOnline.com
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