The Ministry of Energy and Green Transition has launched a guiding framework to steer private sector participation in Ghana’s electricity distribution sector, marking a major step towards improving service delivery, operational efficiency, and long-term sustainability.
The framework intends to provide a clear structure for private sector involvement in electricity distribution, with defined processes, roles, and responsibilities to strengthen subsector performance.
Speaking at the launch in Accra on Monday, the Acting Chief Director of the Ministry of Energy and Green Transition, Mr Solomon Adjetey Sowah, said the initiative underscored government’s firm commitment to transforming the electricity distribution landscape through innovation, strategic collaboration, and responsible private sector engagement in the national interest.
He explained that the framework would guide the work of the technical adviser and the Private Sector Participation implementation unit in close collaboration with the Electricity Company of Ghana, the Northern Electricity Distribution Company, and relevant regulatory institutions.
According to him, the initiative went beyond an administrative exercise, reflecting government’s resolve to address longstanding challenges in the distribution subsector, including technical and commercial losses, inadequate investment, revenue shortfalls, and operational inefficiencies.
He acknowledged that although Ghana had made progress in expanding electricity access, increasing generation capacity, and strengthening transmission reliability, persistent weaknesses in distribution required decisive action.
Mr Adjetey Sowah also stated that the government, therefore, initiated a structured process to design a viable private sector participation arrangement for ECG and NEDCo, to attract technical expertise, operational efficiency, and capital investment while safeguarding national interest and ensuring value for money.
He disclosed that following Cabinet approval on April 17, 2025, the government established a Private Sector Participation Steering Committee, supported by financial, technical, and communications subgroups, to lead a transparent and evidence-driven process.
The committee conducted diagnostic assessments of ECG and NEDCo, evaluated global private sector participation models, and undertook study tours to Nigeria, Cote d’Ivoire, India, and the United States. The process also included financing, modelling, and legal analyses, resulting in a Ghana-specific approach tailored to national needs.
The Chairman of the Technical Sub Committee under the Private Sector Participation Steering Committee, Mr Jabesh Amissah Arthur, in his presentation outlined the scope, structure, and operational responsibilities of the framework.
He noted that the framework would be handed to the transaction adviser to be appointed to lead the process and ensure alignment with national policy objectives.
Mr Amissah Arthur explained that the committee identified key issues requiring guidance and completed the development of the framework in line with government policy.
He said private sector operators would take full responsibility for electricity delivery from bulk supply points to consumers within assigned zones, covering both technical and commercial functions such as supply reliability, voltage quality, billing accuracy, revenue collection, and loss reduction.
He added that the framework preserves government social policy measures, including lifeline tariffs and uniform carriage.
Moreover, Mr Amissah Arthur indicated that the recommendations would be submitted to Cabinet and subjected to nationwide stakeholder and public consultations to allow for amendments where necessary.
BY STEPHANIE BIRIKORANG
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The post Energy Ministry unveils framework for private participation in electricity distribution appeared first on Ghanaian Times.
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