The Minister for Energy and Green Transition, Dr John Abdulai Jinapor, has revealed that ongoing reforms in Ghana’s energy sector have cleared approximately $1.47 billion in legacy debt while generating significant cost savings for the nation.
Dr Jinapor announced the development during a press briefing on Thursday, August 20, 2026.
He disclosed that the government saved roughly $500 million by transitioning power generation from expensive liquid fuels to natural gas.
Furthermore, the Minister explained that the Cash Waterfall Mechanism has drastically improved payment flows to Independent Power Producers (IPPs). Coupled with the successful renegotiation of IPP contracts, this mechanism has secured an additional $250 million in savings.
According to him, these reforms are central to broader government efforts aimed at stabilising the energy sector, enhancing financial sustainability, and reducing overall generation costs.
“Before we came to office, just about 6 billion was declared monthly into the Cash Waterfall. IPPs were receiving just about 42%. Because of the work we did together and the policy reforms that we implemented, today we declare close to about 15 billion every month into the Cash Waterfall mechanism and almost all the IPPs receive about 100% of the invoice bills. So we are not billing arrears like it used to be.
“When we assumed office, the outstanding bill was about GH¢80 billion. We have also negotiated with the IPPs, and we have saved about $250 million again from them. So clearly we are making significant progress,” he said.
