Ghana will reintroduce private sector participation in electricity distribution through a decentralized lease model, Finance Minister Dr. Cassiel Ato Forson announced in the 2025 Mid-Year Budget Review.
The reform aims to curb technical losses, attract investment, and modernize the struggling power sector.
A steering committee is implementing Cabinet’s decision to split the Electricity Company of Ghana’s (ECG) network into multiple zones for private management. Transaction advisors will be appointed by Q3 2025 to select qualified operators via performance-based leases. The move follows Ghana’s terminated 2019 concession with Power Distribution Services (PDS).
“Government is committed to decentralizing distribution services under multiple leaseholders,” the budget stated, targeting ECG’s persistent double-digit losses and revenue gaps. Parallel measures include tenders for one million smart meters to improve billing accuracy under the Energy Sector Recovery Programme.
The Energy Ministry also finalized power purchase agreement renegotiations with Independent Power Producers Twin City Limited, Cenpower Generation, and Early Power to address legacy debt. The reform aligns with IMF benchmarks for energy cost rationalization and could set a regional precedent for public-private power partnerships.
