ASEC BLOG

The Africa Sustainable Energy Centre (ASEC) has strongly opposed any plans by the Public Utilities Regulatory Commission (PURC) to increase electricity tariffs.  The think tank argues that inefficiencies, illegalities, and a lack of consumer value in the sector must be addressed before any price adjustments are considered. ASEC insists that a rigorous national debate and a thorough examination of the electricity distribution system must precede any tariff hikes. The organisation contends that the Public Utility Act prioritises consumer interests in setting electricity rates, but this mandate has been overlooked for years. While reflective tariffs are essential for operational sustainability, ASEC maintains that the sector must resolve its deep-seated inefficiencies before shifting additional financial burdens onto consumers. “ASEC demands a regulatory framework that requires electricity distribution companies to show proof of at least a 95% collection rate before any tariff increa...

The 2025 Budget, presented by Dr. Cassiel Ato Forson, MP, Minister for Finance, outlined significant concerns and proposed reforms in Ghana’s energy sector. The budget emphasized the need to address the sector’s financial shortfalls, inefficiencies, and mounting debt while implementing strategies to enhance sustainability and efficiency. The energy sector remains a crucial pillar of Ghana’s economic growth, and addressing its challenges is essential for ensuring long-term stability, industrialisation, and social well-being. Key Issues in the Energy Sector The energy sector has been grappling with substantial financing shortfalls, which have escalated over the years. • The government spent GH¢20.8 billion in 2024 to support the energy sector, diverting funds that could have been used for social services and infrastructure development. • The financing gap for the 2025 fiscal year is projected at GH¢35 billion, despite previous interventions. • The total financing shortfall for the 2...

 The Africa Sustainable Energy Centre commends the new government for setting up a committee to oversee the privatization of the commercial aspect of the Electricity Company of Ghana (ECG). However, recent comments and suggestions seem to recommend just the need for private sector participation in ECG revenue mobilisation. The truth is that Ghana does not just need the participation of the private sector for revenue mobilisation. The current state of the ECG requires more than assistance in collecting money owed by customers. We need private sector capital and expertise in critical terms to recoup all revenues and achieve operational excellence before transitioning the ECG. This commercial sector privatisation is stringent because of the following areas: 1. Private sector capital and expertise are needed in the installation of smart meters to ensure accurate and real-time billing, reducing revenue losses due to faulty, inaccurate, or bypassed meters. Also, this is needed to up...

  Effective governance in Ghana’s energy sector depends on transparency, accountability, and efficiency.  A critical step toward achieving these objectives is ensuring that the boards of key entities within the energy value chain include representatives from other major stakeholders.  This cross-representation fosters collaboration, enhances decision-making, and aligns the interdependent roles of various entities, ultimately strengthening sector operations. Such governance reforms are particularly important for improving financial mechanisms like the cash waterfall system and ensuring the long-term sustainability of the energy sector. They also provide valuable insights for ongoing discussions about the privatisation of the Electricity Company of Ghana. Diversity in Board Composition Strengthening Decision-Making Ghana’s energy value chain is made up of key institutions, including the Ministry of Energy, the Public Utilities Regulatory Commission, the Electricity Compa...

  Image Source: The Borgen Project Through research and development, it is established that the lack of energy is as unsustainable as the overuse of energy. In our energy-yearning ordeal, energy harness and its security plays a vital role in sustainable development. This, thus manifests so intricately such that, the more we become developed, the more energy we use, and vice versa. One of the most fundamental issues that challenge the very being of us, poverty—widely conceptualised in a number of ways; economic and social. But the dimensions of research that conjuncts poverty and energy in rural regions of Africa is, however minimally explored. Along this breath, the tail of a complex problem which remains an ongoing dent on sustainability waggles—Energy Poverty. Widely defined, energy poverty is the lack of access to sustainable and affordable, clean energy services. Economically, the lack of energy and poverty often go hand in hand, both at national and rural levels, in African r...

In many homes across the globe particularly in Africa, the simple act of preparing a meal comes at a heavy price. Traditional cooking methods, which often rely on open fires and inefficient stoves fueled by firewood or charcoal, emit harmful smoke that endangers the health, depletes natural resources, and contributes negatively to climate change.  These practices disproportionately affect women and girls, who bear the brunt of household cooking duties, sacrificing their time, health, and economic opportunities just to put a meal on the table for the family. Clean cooking technologies offer a promising solution not only to a healthier environment but also a path to gender equality, economic empowerment, and sustainable development. With over 2.4 billion people globally still lacking access to clean cooking solutions, achieving universal adoption is both a challenge and an opportunity to address interconnected global goals, including health, climate resilience, and poverty reduction...

  Ing. Justice Ohene-Akoto, Executive Director The Africa Sustainable Energy Centre (ASEC) has lauded the Energy Minister, John Abu Jinapor for his bold initiatives, particularly the decision to privatize the commercial arm of the Electricity Company of Ghana (ECG) within six months. According to ASEC, this move aligns with the recommendations outlined in its press releases in August 2024, September 2024, and January 2025. ASEC emphasised that the privatization should be limited to the commercial leg of ECG, focusing on revenue mobilization, debt collection, and plugging financial loopholes. The technical operations of ECG, which Ghana has the expertise to manage efficiently, should remain untouched. The energy and sustainability think tank also praised the minister’s decision not to privatize the Volta River Authority (VRA) and Bui Power Authority, two profit-making entities. “These institutions should instead be supported to maximize their profitability for national devel...