The Volta River Authority (VRA) has posted a net loss of GH¢106 million for the 2024 financial year, marking a major reversal from the GH¢80 million profit it recorded in 2023.
According to the Authority, the downturn was largely driven by foreign exchange losses and the diversion of power originally intended for export to meet growing domestic demand.
Speaking at the 15th Stakeholder Interface Meeting in Accra, VRA Board Chairman Jabesh Amissah-Arthur described 2024 as “a particularly difficult year,” citing persistent exchange rate volatility, rising financial expenses, and increasing reliance on expensive thermal power generation.
He revealed that VRA’s foreign exchange losses alone surged to GH¢695 million, up from GH¢591 million in 2023, significantly eroding its operating margins.
The depreciation of the Ghana cedi, coupled with a directive from the Public Utilities Regulatory Commission (PURC) to redirect export-bound power to the national grid at lower domestic tariffs, further constrained the Authority’s revenues.
“The diversion of power originally slated for export to the West African Power Market reduced our export earnings by 17 percent, while higher domestic tariffs and financing costs wiped out earlier gains,” Mr. Amissah-Arthur explained.
He urged the PURC to consider a new tariff mechanism for power diverted from export markets to domestic consumption, to cushion utilities from exchange rate shocks and revenue shortfalls.
VRA Chief Executive Ekow Obeng-Kenzo noted that 2024 operations were dominated by expensive thermal generation, which accounted for 89 percent of total output, up from 79 percent in 2023.
Hydro generation, he said, remained constrained due to lower reservoir levels, which increased reliance on thermal plants and drove up production costs.
“The low inflows into our hydro reservoirs have limited flexibility. We expect thermal generation to remain dominant in the near term,” he added.
Mr. Obeng-Kenzo highlighted ongoing efforts to diversify energy sources through renewable projects, including the 16.5 MW Pwalugu Solar Project, the 30 MW Akuse Floating Solar Plant, and the Anwomaso Phase II Expansion Project.
Representing the Minister of Energy and Green Transition, Deputy Minister Richard Gyan-Mensah commended the VRA for maintaining supply reliability despite its financial challenges.
He assured stakeholders that government would continue to ensure fair implementation of the cash waterfall mechanism to improve the Authority’s liquidity and revenue mobilization.
“VRA has increased its generation capacity by 23 percent and continues to play a central role in advancing Ghana’s green energy transition,” Mr. Gyan-Mensah said.
He also emphasized the need to complete all stalled generation projects and bring idle plants back online to stabilize power supply nationwide.
Director-General of the State Interests and Governance Authority (SIGA), Prof. Michael Kpessa-Whyte, encouraged the VRA to strengthen its corporate governance and internal controls to restore profitability.
He disclosed that new guidelines for dividend payments by state-owned enterprises are being finalized to enhance accountability and ensure that SOEs contribute more effectively to national development.
“VRA must focus on innovation, efficiency, and prudent financial management to sustain its leadership in Ghana’s power sector over the next five years,” Prof. Oquaye added.
