Sunon Asogli Power (Ghana) Limited has resumed operations of its 560MW power plant after an intervention by Finance Minister Mohammed Amin Adam and Energy Minister Herbert Krapa.

The power plant had shut down in October 2024 due to the Electricity Company of Ghana’s (ECG) failure to clear overdue payments, which left Sunon Asogli unable to maintain its operations.

The financial strain had forced the plant to cease generating power, impacting Ghana's electricity supply.

As of September 2024, Sunon Asogli reported a net receivable of $259 million (excluding fuel costs) owed by ECG.

Despite the company's decision not to invoice ECG for idle capacity, it revealed that the debt had increased by 23% between January and September 2024, with only 22.6% of invoices during that period being settled through the Cash Waterfall Mechanism.

In a statement released on Monday, Sunon Asogli disclosed that it had submitted the final version of its Restructuring Terms Sheet to the Ministry of Finance and ECG in August, with plans for finalisation and signing shortly.

The company expressed confidence in reaching a mutually beneficial agreement that would secure the stability and reliability of Ghana's energy supply.

Sunon Asogli also expressed the hope that ECG would adhere to the contractual terms and fulfil their financial obligations under the Power Purchase Agreement (PPA).

The company underlined the importance of a stable partnership with ECG to ensure long-term sustainability in the energy sector.

The company commended Vice President Dr Mahamudu Bawumia for his efforts in facilitating the payment process.

The resumption of operations is expected to help stabilise power supply across the country and address ongoing concerns over the financial viability of Ghana's energy sector.