Ghana’s long-running power-sector liquidity problem is again putting pressure on the Volta River Authority (VRA), with delayed payments, inter-utility debt and revenue shortfalls continuing to constrain the State-owned power generator’s finances and its ability to invest in new generation.
The challenge is not new for VRA, but its latest financial results show that the underlying problem remains unresolved even as the Authority carries a growing responsibility to maintain generation and expand capacity.
VRA recorded GH¢8.95 billion in electricity revenue in 2025, yet its Chief Executive Officer, Ing. Edward Obeng Kenzo, said delays in receiving payments across the electricity value chain continued to affect the Authority’s cash flow.
He disclosed this during VRA’s annual stakeholder engagement, where he presented the Authority’s financial and operational performance for the 2025 financial year.
The latest figures point to a familiar squeeze: VRA continues to generate a substantial share of the country’s electricity, but weaknesses in the payment chain are limiting the cash available to sustain operations and finance future projects.
Revenue falls while costs move up
VRA’s electricity revenue fell by about four per cent from GH¢9.29 billion in 2024 to GH¢8.95 billion in 2025.
Over the same period, however, the cost of sales rose by four per cent, from GH¢7.48 billion to GH¢7.81 billion.
The result was a narrower profit margin, with net profit declining from GH¢106 million in 2024 to GH¢88 million.
Administrative expenses also increased by about 14 per cent to GH¢1.38 billion.
While the Authority remained profitable, the figures underline the pressure created when the cost of maintaining and operating the generation business rises while revenue growth remains constrained.
The problem is deeper than profitability
For VRA, the more pressing issue is whether revenue earned from electricity sales is converted into cash quickly enough to meet its obligations.
Ing. Obeng Kenzo identified delayed payments, inter-utility debt and revenue shortfalls as key factors affecting the Authority’s liquidity.
The problem reflects a wider weakness in Ghana’s electricity value chain, where financial obligations between generators, distributors and other market participants can accumulate and delay payments.
For VRA, that has implications beyond its balance sheet.
A generator needs predictable cash flow to maintain plants, meet operating costs and commit funds to new infrastructure. When payments are delayed, investment decisions can become more difficult even where the underlying business remains profitable.
Investment ambitions meet financing constraints
The renewed attention to VRA’s liquidity comes as the Authority seeks to add new capacity and strengthen its generation portfolio.
VRA said difficulties in securing financing, together with lengthy procurement and approval procedures, were affecting project implementation.
Among the projects in its pipeline are the 100MW Anwomaso Phase II, the 132MW T3 Repowering Project and the 30MWp Akuse Floating Solar Project.
These projects are intended to add capacity to the national grid and support Ghana’s longer-term electricity requirements.
But their implementation depends not only on identifying projects, but also on VRA’s ability to mobilise and deploy financing in an environment where cash-flow pressures remain a recurring feature of the power sector.
A major generator still carrying a heavy load
The financial pressure is significant because VRA remains central to Ghana’s electricity supply.
The Authority generated 12,978 gigawatt-hours (GWh) in 2025, accounting for about 48 per cent of total electricity generated in the country.
Independent Power Producers generated 14,045 GWh.
Hydropower accounted for 57 per cent of Ghana’s generation mix, thermal generation 42 per cent and solar less than one per cent.
VRA therefore remains a critical part of the system at a time when Ghana needs both reliable existing generation and additional capacity to meet future demand.
Some financial indicators improved
There were also areas of improvement in VRA’s 2025 financial performance.
The Authority moved from an exchange loss of GH¢695 million in 2024 to an exchange gain of GH¢237 million in 2025.
Financial expenses also declined by 24 per cent, from GH¢255 million to GH¢194 million.
Those gains, however, did not eliminate the liquidity challenge.
The latest results instead bring an old power-sector problem back into focus: VRA can generate the electricity and record billions of cedis in revenue, but delayed payments and accumulated obligations across the value chain can still leave it financially constrained.
As VRA looks to expand generation while maintaining its existing assets, resolving that recurring cash-flow problem remains important not only to the Authority’s finances, but also to its ability to deliver the infrastructure Ghana’s electricity system will require.
