The Volta River Authority (VRA) Staff Group has noted with interest an article by Dr. Elikplim Kwabla Apetorgbor, Chief Executive Officer of the Independent Power Generators, Ghana (IPGG), titled “Optimizing Ghana’s Power Sector: A Case for Privatizing VRA’s Thermal Plants,” published on www.3news.com, as well as another article, “VRA Thermal Plants Wasting Scarce Natural Gas Resource,” on www.myjoyonline.com. It seems Dr. Apetorgbor has taken creative liberties in shaping a narrative that conveniently glosses over the complexities of the energy sector while seeking to push an agenda of privatization.

We find it necessary to offer a more informed and balanced perspective, particularly regarding the efficiency of VRA’s thermal Plants compared to Independent Power Producers (IPPs), as well as the broader conversation around the use of natural gas resources. The issues deserve to be addressed as follows:

1.  Efficiency Metrics (Combustion Gas Turbines):

While the article highlights lower efficiency in some of VRA's thermal Plants, conducting a selective, one-off analysis of fuel efficiency across different Plants is not only misleading but intentionally deceptive. The TAPCo thermal plant, built in 1997, operates within an entirely different efficiency class than newer Plants with more advanced technologies—a standard industry reality that has nothing to do with mismanagement.

Comparing power generation efficiencies requires a deeper understanding of several factors beyond simple output-per-fuel metrics. Critical considerations include plant age and technology, fuel type and quality, operational conditions, capacity factors, grid and load dynamics, and plant design purpose. Some Plants are optimized for efficiency, while others prioritize flexibility or reliability. Drawing conclusions by comparing Plants with fundamentally different objectives is inherently flawed, and we believe Dr. Apetorgbor’s comparison was deliberately crafted to mislead the good people of Ghana.

It is normal for a power network to have Plants with varying efficiency classes and configurations to ensure grid stability. Nevertheless, VRA’s thermal Plants outperform similar facilities built in the same period across sub-Saharan Africa due to exceptional management practices. It is rare to find such well-maintained Plants operating efficiently for 27 years. VRA's Plants continue to function within their original efficiency class, as defined by the Original Equipment Manufacturer (OEM), despite enduring numerous operational cycles involving mixed fuel sources—Crude Oil, Diesel, and Natural Gas—under both peak and continuous operations. These demanding conditions, which would have accelerated asset deterioration elsewhere, have been expertly managed by VRA. In contrast, most IPPs would balk at such operational demands, raising various objections on commercial issues at the expense of the Ghanaian consumer.

A fair comparison would be between the VRA /TAPCo plant and the Sunon Asogli Phase 1 plant, as both use similar older technology, and such an analysis should be conducted over a reasonable period for objectivity. Selecting a single day for spot analysis is cherry-picking and amounts to spreading misinformation. The VRA Plants in Tema are simple cycle Plants, which serve an important role in the national power system. In most power systems, emergency Plants with quick startup times are crucial for addressing sudden grid challenges, where the

priority is rapid response rather than efficiency. Comparing simple cycle Plants to combined cycle Plants is both misleading, mischievous, and dishonest.

2.  Justification for privatisation

The biggest misinformation campaign perpetrated by Dr. Apetorgbor is that privatizing VRA will automatically result in lower electricity costs for consumers through so-called "efficiency gains." In reality, the total cost of power from the "highly efficient" IPP Plants is significantly higher than that from VRA’s "inefficient" simple cycle Plants. Nowhere in the world are simple cycle Plants cheaper than combined cycle Plants, except in Ghana. Why is Dr. Elikplim Kwabla Apetorgbor not asking the members of his chambers to stop short-changing Ghanaians? The most expensive and “inefficient” thermal plant of VRA is cheaper than the cheapest thermal plant of the IPPs in Ghana where Dr. Apetorgbor is the CEO of their chamber. The VRA Tema Thermal 1 Power Plant (TT1PP) has a tariff of GHp158/kWh and this is cheaper than the cheapest thermal plant of the IPP which according to Elikplim is very efficient. The AKSA plant which is an IPP thermal plant has a tariff of 164 GHp/kWh which is GHp6/kWh higher than the most expensive thermal plant of VRA.

It is misleading to suggest that VRA’s inefficiencies are the primary cause of higher tariffs in the power sector. The tariff given to IPPs is significantly higher than that of VRA-operated Plants. This disparity stems from contractual agreements that guarantee IPPs fixed capacity and availability charges, even when their Plants are not running at full capacity or even on idle, coupled with higher operating costs that are passed on to the consumer. VRA, on the other hand, operates under stricter financial constraints, including limitations on tariff adjustments, yet continues to provide stable power generation at highly competitive rates. The claim that IPPs offer more cost-effective solutions overlooks the broader financial context in which these entities operate.

Furthermore, VRA’s thermal Plants perform essential ancillary services to support the power system, which IPPs do not provide. These include offering expert services in Light Crude Oil (LCO) and Distillate Fuel Oil (DFO) procurement for IPPs and securing additional gas supplies during disruptions. VRA undertakes these critical tasks quietly, ensuring the system continues to function smoothly.

The notion of a "debt burden" due to VRA’s supposed inefficiencies is purely imaginary. The fact remains that Plants of VRA deliver the lowest costs compared to IPPs' total charges. What is likely to happen, as has been seen before, is that private interests will work with state actors to acquire these assets at a low price, only to impose exorbitant tariffs under the pretext of recouping their investments at inflated returns. This would ultimately increase electricity costs for consumers.

Privatization of the VRA’s thermal Plants could jeopardize Ghana’s strategic interest in maintaining control over a vital part of its energy infrastructure. While private firms may bring technological innovation and efficiency gains, these come at the cost of reduced government control over energy security. In times of crisis, such as fuel shortages or geopolitical tensions, VRA’s mandate to prioritize national interest could be compromised if power generation is left entirely in the hands of profit-driven private entities.

The real issue here is that electricity supply is a matter of national security. Allowing private entities to control 100% of thermal generation would be a recipe for disaster, leaving the state with no leverage when IPPs threaten shutdowns; effectively holding the country hostage. Case studies from Indonesia and Malaysia demonstrate the negative impact of IPPs on energy markets. Ghanaians should not lose sight of the fact that in 2023, IPPs in Ghana threatened to shut down their generating assets due to debt owed them. VRA has never in its over sixty years of operations threatened to shut down the whole country because of debt owed it.

Contrary to the suggestion that privatization is the only way to introduce technological advancements, VRA has already taken significant steps toward improving its operational efficiency. Recent upgrades to thermal Plants, investments in renewable energy projects, and initiatives to extend the life of the older thermal Plants are examples of VRA’s ongoing commitment to innovation. What VRA requires is sustained support and investment from the government, rather than an outright sale of assets to private entities.

VRA secures fuel through long-term contracts with suppliers to ensure stability in pricing and supply and this reduces the risks of price volatility and supply shortages, helping to keep generation costs predictable and stable. It must be noted that VRA bears the risk of procuring gas from Nigeria for power generation in the country and this gas is shared with Sunon Asogli Power Plant, an IPP.

While the need for efficiency improvements in Ghana’s energy sector is an ongoing process, privatizing VRA’s thermal Plants is not a guaranteed solution. Instead of selling public assets to private operators and political actors whose interest is to fleece the ordinary Ghanaian, the government should focus on addressing the systemic challenges facing the power sector, such as fuel supply challenges, debt accumulation due to non-payments by Ministries, Municipalities, Departments and Agencies, Volta Aluminium Company and ECG (under the Cash Waterfall Mechanism).

The fundamental issue of the power system in Ghana is the inability of ECG to collect and declare enough revenue to service the entire electricity value chain. The main reason for the IPPs’ high interest in the privatization and takeover of VRA’s thermal assets, is to have a

monopoly over thermal generation in the country and to gain access to the export market for private gain.

VRA’s role in ensuring energy security, providing affordable power, and serving the broader public interest must be preserved. Privatization may offer short-term gains, but the long-term implications for Ghana’s energy independence and consumer pricing could be far more detrimental.

The VRA Staff Groups remains committed to working towards a more efficient and sustainable energy sector, but it firmly believes that privatization is not the solution to the challenges currently facing the energy sector.

We shall not allow Dr. Elikplim Kwabla Apetorgbor and his cohorts to destabilize the Volta River Authority for his selfish gain. If he is one of those proponents whose main agenda is to obliterate the VRA from Ghana‘s history, they shall not succeed.

If he knows how to manage and operate thermal power plants efficiently then he should advise the members of his chambers to reduce their throat-cutting electricity price below that of VRA Simple Cycle Plant cost/KWh to the Ghanaian consumer and businesses.