Power generation firm Karpowership Ghana says it is in advanced discussions with government for an extension of its Power Purchase Agreement (PPA), as the current contract draws closer to expiration in 2027.
The company, which has supplied electricity to the national grid for more than a decade, described the negotiations as steady and constructive, expressing optimism about continuing operations in the country.
Corporate Communications Manager Sandra Amartikar Amarquaye disclosed this during a media tour of the company’s powership at the Sekondi Naval Base in the Western Region.
“We are currently in discussions for an extension of the agreement. Negotiations are ongoing and the outlook is positive. Beyond the current contract period, we are optimistic about continuing our operations in Ghana,” she said.
She explained that an extension of the PPA would enable Karpowership to deepen its support for Ghana’s industrialisation agenda and help meet rising electricity demand.
According to her, electricity demand in Ghana has been increasing by between 8 and 10 percent annually, driven by population growth and economic expansion.
“As economies grow and populations expand, demand for power increases. This creates room for private sector participation to complement government efforts,” she noted.
Ms Amarquaye stressed the importance of sustained public-private collaboration in the power sector, noting that government alone cannot shoulder the investment burden required to maintain reliable electricity supply.
“Private sector participation is necessary for sustained socio-economic development, particularly in energy, which is capital-intensive,” she added.
She further observed that policy reforms over the years had improved Ghana’s attractiveness to investors in the power sector, as evidenced by the growing number of independent power producers operating in the country.
“Compared to two decades ago, there has been significant independent power producer participation. This reflects better policy direction and a more competitive environment,” she said, adding that transparency in power procurement and payment structures remains critical for investor confidence.
On the issue of payments, Ms Amarquaye said government’s receivables to the company had been stable so far. “Payments have been consistent and impressive, and this helps ensure operational sustainability,” she said. She also underscored the role of upstream gas suppliers in ensuring steady power generation, citing ENI as a key partner in maintaining fuel supply reliability.
“Collaboration across the entire value chain is essential for uninterrupted power generation,” she noted. Touching on corporate social responsibility, Ms Amarquaye said Karpowership views itself as an integral part of its host communities and has invested significantly in social interventions both in Tema and Sekondi. “Wherever we operate, we consider ourselves part of the community,” she said.
She explained that the company’s social investment programmes align with Sustainable Development Goals (SDGs) 4&5, with a focus on quality education and gender equality.
“We have renovated schools, awarded scholarships and implemented mentorship programmes to support young people,” she said. She added that the company is currently rolling out a targeted initiative aimed at empowering young women.
“Our ‘Women on Board’ internship programme is designed to promote gender equality and encourage young women to pursue careers in the energy sector,” she explained.
Speaking at the event, Semih Sehin, Technical Manager for Europe and Africa at Karpowership, said the company remained committed to supporting African countries with tailored energy solutions. He described Ghana as a key market and Africa as a strategic growth area for the company.
“Africa is fast becoming a home for us, and we are happy to support its development,” he said. Mr Sehin noted that reliable and cleaner power supply is essential for sustaining industrialisation and improving livelihoods across the continent.
“Many African economies require uninterrupted power to grow industries and create jobs, and we stand ready to support that need,” he said. The media tour formed part of Karpowership’s efforts to promote transparency and enhance public understanding of its operations. Journalists were taken through key sections of the powership, including the control room, where real-time power generation and system monitoring take place.
Karpowership began operations in Ghana in 2015, initially producing power from Tema. In 2019, it relocated the 470MW Karadeniz Powership Osman Khan to the Sekondi Naval Base to switch dependence on heavy fuel oil and take advantage of nearby natural gas infrastructure in the Western enclave, a move the company says has improved efficiency and reduced operating costs.
