The Millennium Challenge Corporation (MCC) has reiterated the need for Ghana to work hard and reduce the cost of electricity to businesses.

The corporation made the call after it injected $316 million into Ghana’s electricity distribution sector through the Power Compact deal.

Currently, Ghana has one of the highest electricity tariff regime for businesses in the West African region.

Speaking to the media, the Deputy Chief Executive Officer of the Millennium Challenge Corporation, Mahmoud Bah, stressed the need for efficiency in the power sector to reduce the cost of electricity to businesses.

“The cost of electricity is an issue that must be addressed through many ways. We can look at efficiency in the system since it can reduce the cost in the long run”, he said.

Mr. Bah stated that the lack of efficiency is part of the reason why the corporation suggested a private sector participant since government cannot raise all the funds required to enhance efficiency.

Touching on the MCC’s contribution, he explained that the electricity distribution points have been equipped with new substations.

“With the construction of two Bulk Supply Points (the two largest of the country), two primary substations and other IT investments, the MCC-Ghana Power Compact has increased the transmission network capacity by 1,015 MVA representing roughly 10% of Ghana’s total transmission capacity and has successfully enhanced the country’s power sector”.

He stated that the new power substations is directly serving the 37 Military Hospital, the Greater Accra Regional Hospital, the University of Ghana Medical Center, the Noguchi Memorial Institute for Medical Research, the National Mosque, and over 800,000 utility customers.

“This is great work! Further, the MCC-Ghana Power Compact established the Air Conditioner and Refrigerator Test Laboratory, the first of its kind in West Africa, to promote renewable energy sources and curtail the country’s use of low-quality, less energy-efficient equipment and appliances”.

He is hopeful this will lower carbon emissions and advance mutual climate goals.

He added that the Compact activities also installed more than 14,000 new, energy efficient LED streetlights and new metered energy management systems, replacing old, inefficient lighting and setting a new standard for energy savings.

“Our partnership also helped to create a more inclusive economy by empowering Ghanaian women to participate more fully in the country’s power sector and expand economic opportunities”.