The report, launched on Thursday, highlighted how these foreign-backed interventions have entrenched a fossil fuel- dependent model, which has deepened Ghana's financial vulnerabilities instead of promoting energy security or economic stability.

Mr John Nkaw, Country Director of ActionAid Ghana, speaking at the launch of the report, expressed concern that these interventions, often supported by World Bank guarantees, had forced the country to bear the costs of gas it could not use and electricity it could not afford.

He also pointed out that many of the contracts had left Ghana with limited flexibility to renegotiate terms.

"Rather than delivering energy security or economic stability, these interventions have deepened Ghana's financial vulnerabilities - forcing the country to pay for gas it could not use for many years, electricity it could not afford, and contracts it had little room to renegotiate," Mr Nkaw said.

The report further revealed that Ghana's energy-related debt stock had grown significantly due to contracts involving multilateral institutions such as the World Bank Group and the African Development Bank.

These agreements have added to the country's financial strain, with the government spending between $1 billion and $1.5 billion annually to finance under-recoveries in the energy sector.

This, according to Mr Nkaw, is a burden that directly impacts public finances and affects service delivery to the Ghanaian populace.

"The lack of transparency, affordability, and sustainability in energy contracts, many of which are negotiated under conditions that favour foreign investors, has entrenched an unjust system," he added.

Mr Luis Scungio, the lead researcher at SOMO, emphasized that over the past two decades, Public-Private Partnerships championed by international stakeholders had pushed Ghana further down a fossil-fueled trajectory while sidelining renewable energy solutions.
He pointed out that the World Bank had played a critical role in creating an energy investment environment that prioritized returns for foreign investors, transferring financial and operational risks to the Ghanaian public sector.

"The World Bank has played a pivotal role in shaping an energy investment environment that prioritizes returns for foreign investors, while shifting financial and operational risks onto the Ghanaian public sector," Mr Scungio stated.

He further highlighted three major fossil fuel projects supported by World Bank financing guarantees, including the West African Gas Pipeline (WAGP), the Jubilee and TEN oil fields, and the Sankofa Gas Project, that had failed to meet expectations.

In the case of the WAGP, led by oil giants Chevron and Shell, the World Bank provided over $125 million in risk guarantees.

However, Mr Scungio asserted that Ghana received less than half of the promised gas supply for prolonged periods, forcing the country to spend over $25 million monthly on expensive fuel imports between 2014 and 2015.

According to the report, the Jubilee and TEN oil fields, which were touted as transformative solutions to Ghana's energy needs, similarly failed to meet expectations.

The report said, despite the World Bank's $425 million investment and political risk guarantees, delays in infrastructure development meant Ghana could not use its own gas until late 2014.
It further stated that, the Sankofa Gas Project, which received the World Bank's largest African investment of $1.2 billion, became a major financial burden for the country due to infrastructural delays, high gas prices, and missed transport arrangements.

The report, therefore, called for a major rethink in the structure and goals of energy partnerships, urging multilateral banks and governments to abandon fossil-fuel-heavy strategies in favour of more equitable and renewable energy transitions.

"Ghana is being asked to pay with its public finances, its climate future, and the welfare of its citizens for projects that serve others' profit agendas," Mr Scungio, the Lead Researcher stated.

Mr Charles Gyamfi Osei, Publicity Head for Climate Change and Energy Transition, stressed that the issues plaguing Ghana's energy sector were not just technical or financial but deeply structural.
He pointed out that without new discoveries in the extractive sector since 2017, the country's energy sector had stagnated, with limited local content and job creation opportunities.

Mr Osei added that raising tariffs alone would not resolve the energy sector's issues, and that "you can increase tariffs by 200%, even 1000%, but if inefficiencies remain, we're going to keep running in circles. The burden keeps shifting to the consumer without addressing the root causes."