Large sections of Ghana are grappling with extensive power interruptions, further deepening the nation’s severe economic crisis. The Ghana Grid Company (GRIDCo) reported a “limited gas supply” at a major power facility in Tema, resulting in a shortfall of 550MW during peak consumption periods.
Ghana, which relies in part on natural gas for its electricity generation, has been dealing with recurrent power shortages, known locally as “dumsor,” for an extended period. The situation has recently deteriorated, with no official schedules or communication regarding these electricity cuts.
GRIDCo has refrained from providing a specific timeline for the restoration of power to the affected regions. Recent studies, including one conducted by the Centre for Socioeconomic Studies (CSS), suggest that Ghana’s energy crisis will intensify in the coming years. The CSS report emphasizes that Ghana’s energy supply demands urgent and substantial investments to rectify the current precarious situation and avert an impending energy crisis.
Despite these challenges, Ghanaians continue to face surging energy costs. Electricity tariffs surged by more than 18% in May, following an earlier increase of almost 30% earlier in the year. Just last month, energy bills rose by an additional 4%, further exacerbating the financial strain on residents.
Ghana’s economic woes have been amplified by factors including soaring inflation, a depreciating local currency, mounting debts, and a federal budget strained by the high costs of the energy sector combined with reduced public revenues, as highlighted by the World Bank. The rising cost of living has fueled anti-government demonstrations and amplified calls for the removal of the central bank’s chairperson, citing alleged economic mismanagement. The central bank reported a staggering annual loss of 60.8 billion cedi (equivalent to over $5 billion) last year.
Ghana finds itself at a critical crossroads as electricity shortages and economic hardships place enormous pressure on both its citizens and leadership. The nation’s capacity to address these issues will serve as a pivotal test of its resilience and future prosperity.
Source:cnn.com