The Government of Ghana has secured a US$66 million reduction in outstanding arrears owed to Cenpower Generation Limited under an amended Power Purchase Agreement (PPA), as part of efforts to ease financial pressures in the energy sector.
The agreement, which includes a 10-year extension of Cenpower’s existing power purchase contract and a reduction in the tariff charged by the company, was signed at a ceremony marking the 10th anniversary of operations of the 375-megawatt Kpone Thermal Power Plant at Kpone, near Tema.
Mr Samuel Nana Brew-Butler, Board Chairman of Cenpower, announced the US$66 million concession, explaining that the company had agreed to the reduction as a contribution towards addressing the country’s energy sector challenges.
He said the outstanding arrears had reached approximately US$400 million at one point, adding that Cenpower considered the concession necessary in the interest of the country.
The revised agreement provides for a 10-year extension of the company’s Power Purchase Agreement, alongside a reduction in its electricity tariff.
Approximately US$59 million had earlier been paid to Cenpower in 2025 as part of government’s efforts to settle legacy debts owed to Independent Power Producers (IPPs).
Vice President Professor Naana Jane Opoku-Agyemang, who attended the ceremony as the Special Guest of Honour, said government had undertaken significant measures to address financial challenges in the energy sector.
She said these included settling outstanding obligations owed to power producers and gas suppliers, restoring the World Bank’s guarantee for the Sankofa gas project, strengthening the Cash Waterfall Mechanism and renegotiating power purchase agreements to improve the sector’s financial sustainability.
The Vice President said the measures were important for protecting public finances and restoring investor confidence, which were necessary for Ghana’s energy security.
She also highlighted government’s gas-to-power strategy to reduce electricity generation costs through increased reliance on natural gas instead of more expensive liquid fuels.
Beyond generation capacity and financial stability, Prof. Opoku-Agyemang said government was working to improve electricity access, reliability and affordability, particularly in underserved communities.
She cited an electrification project launched in the Volta Region to connect 206 communities to the national grid, alongside investments in distribution infrastructure to improve power supply.
The Vice President commended Cenpower for its contribution to Ghana’s electricity generation and energy security since the commencement of commercial operations in June 2019.
She also urged the company to sustain its environmental protection initiatives and strengthen its relationship with communities surrounding the plant.
The Kpone Independent Power Plant has an installed capacity of 375 megawatts and an annual electricity generation capability of approximately 2,800 gigawatt-hours, supplying power to support households, businesses and essential services.
Cenpower Generation Limited was incorporated in 2003 by four Ghanaian entrepreneurs, with the vision of developing a major independent power generation facility through local entrepreneurship and strategic international partnerships.
