The Africa Sustainable Energy Centre (ASEC) has called for increased cross-representation on the boards of key entities within the energy value chain to enhance governance, transparency and operational efficiency.
According to ASEC, diversifying board membership with representatives from entities like the Ghana Grid Company (GRIDCo) and Volta River Authority (VRA) would ensure sector-wide decisions are informed by diverse technical perspectives.
“Cross-representation allows for firsthand insights into challenges, improving governance and operational effectiveness,” the think-tank said in a statement.
ASEC also stressed the need for government to prioritise internal expertise within the Electricity Company of Ghana (ECG), especially as discussions advance regarding its privatisation.
“It would have been prudent for the Ministry of Energy to draw from the expertise of past managing directors and senior directors with decades of experience. These professionals have a deep understanding of operational dynamics, regulatory challenges and financial structuring,” ASEC noted.
Enhancing revenue distribution and accountability
Another area requiring reform, according to ASEC, is the cash waterfall mechanism which ensures equitable revenue distribution across the energy sector.
It argues that including GRIDCo and VRA representatives on the ECG board would improve revenue collection and payment schedules, reducing disputes and delays. The Public Utilities Regulatory Commission’s (PURC) presence could also ensure that tariffs reflect operational costs and investment needs.
“Direct representation would allow for prompt resolution of financial concerns, while consumer advocacy groups on the board would strengthen accountability in addressing service quality and affordability issues,” said the statement signed by ASEC’s Director of Corporate Strategy, Karikari Kwagyan Achireko.
Aligning investments and promoting sustainability
ASEC further highlighted the importance of aligning infrastructure investments with national energy goals to prevent resource misallocation and operational bottlenecks.
“For instance, when ECG plans network expansions GRIDCo and VRA representatives can ensure upgrades are compatible with existing generation and transmission capacities, avoiding financial losses and service disruptions,” the think-tank explained.
ASEC also advocated private sector involvement in energy sector governance, believing it could introduce innovative financing models and promote the integration of renewable energy into Ghana’s national grid.
The think-tank concluded that cross-representation in domestic energy sector governance is essential for achieving transparency, accountability and efficiency. It stressed that prioritising seasoned professionals within ECG would ensure leadership continuity and better oversight of any transition process.
“A governance framework that embraces cross-representation will benefit policymakers, investors and consumers, ensuring a stable and transparent energy sector that supports Ghana’s long-term development goals,” ASEC stated.
