The Ghanaian government has signed two new Power Purchasing Agreements (PPAs) to increase the country's power generation capacity by approximately 720 megawatts (MW), according to Minister of Energy Dr Matthew Opoku Prempeh.

The agreements, with AKSA in Tema (370MW) and AKSA in Kumasi (350MW), were signed under a new PPA policy that replaces the earlier "Take or Pay" arrangement. 

This move is aimed at ensuring a prudent addition of power generation while enhancing efficiency in generation and distribution. 

Dr Prempeh emphasised that these agreements were made within a framework of efficiency, distinguishing them from previous arrangements.

The minister highlighted other measures in the power sector, including the conversion of thermal plants to combined cycles, retrofitting existing plants, and increasing the share of renewable energy in the generation mix. He mentioned ongoing solar projects, such as the 100MW Solar Photovoltaic (PV) under construction at Bui and the completed five-megawatt floating PV on the Bui Reservoir, the largest in Africa.

Additionally, Dr Prempeh addressed challenges in the power transmission sector, emphasising ongoing projects to address congested networks, infrastructure overages, and right-of-way encroachments. 

He provided updates on completed projects and feasibility studies for new substations.

In the petroleum downstream sector, the minister explained that global price increases and excess forex demand for petroleum product imports led to higher pump prices. Prudent negotiations and the implementation of the government's Gold for Oil policy have helped manage forex exposure on BOST and BIDECs, he noted.

The minister's remarks were made during the weekly Minister’s Briefing organised by the Ministry of Information in Accra.