In recent years, Ghana's energy sector has undergone significant changes, driven by policy shifts and the need to address challenges such as cost-recovery shortfalls and inefficient operations. Here’s a closer look at the key developments and their implications for the sector's future.

1. Moratorium on PPAs and Gas Supply Arrangements:
• In 2019, the Ghanaian government imposed a moratorium on signing new power purchase agreements (PPAs) and gas supply arrangements, leading to suspended negotiations and the rejection of unsolicited proposals.
2. PPA Renegotiations and Arbitration Awards:
• Despite the moratorium, the government successfully renegotiated terms with six independent power producers (IPPs). However, challenges persisted, as evidenced by Ghana Power Generation Company Ltd's arbitration award against the government for early termination of its PPA.
3. Renewable Energy Market Expansion:
• In April 2023, the Energy Commission lifted the moratorium on issuing new wholesale electricity supply licenses in the renewable energy sector, signaling a positive shift towards renewable energy adoption.
4. ESRP Review and June 2023 Addendum:
• As part of an agreement with the IMF, the government conducted a thorough review of the Energy Sector Recovery Program (ESRP). This review resulted in the June 2023 Addendum, extending the ESRP and introducing key action items to address cost-recovery shortfalls and enhance sector performance.
5. Key Action Items:
• The June 2023 Addendum outlined several amended action items, including addressing excess generation capacity costs, redesigning the cash waterfall mechanism, and introducing private sector participation in electricity distribution.

As Ghana continues its path towards energy sector reform, stakeholders must remain vigilant and proactive in navigating the evolving regulatory landscape. For more insights on the Ghanaian Energy Sector, check out our chapter in the GLI Energy 2024 Guide here