Volta River Authority Returns to Profitability with GH¢88m Gain While Maintaining Regional Export Commitments

The Volta River Authority (VRA) has recorded a significant financial turnaround, posting a net profit of GH¢88 million for the 2025 fiscal year. This recovery marks a substantial rebound from the GH¢106 million net loss reported in 2024, despite a four percent decline in electricity revenue, which fell to GH¢8.95 billion. VRA Chief Executive Officer, Ing. Edward Ekow Obeng-Kenzo, attributed this positive performance to stringent cost controls, reduced financial expenses, and improved operational efficiency across the Authority’s hydro and thermal generation units. Total electricity generation in Ghana reached 27,023 gigawatt-hours during this period, with Independent Power Producers (IPPs) contributing 52 percent of the total output and the VRA providing the remaining 48 percent.

While the financial recovery is a milestone, the VRA is simultaneously navigating a complex regional energy strategy. Board Chairman Jabesh Amissah-Arthur has publicly advocated for the continued supply of electricity to Togo and Benin, even as Ghana faces intermittent domestic power shortages. Amissah-Arthur emphasized that these export relationships have been built over five decades of mutual support and remain vital for both regional stability and revenue generation. He warned against adopting a "selfish" approach to energy distribution, suggesting that maintaining these long-standing commitments is essential for Ghana's standing within the West African Power Pool.

To sustain this momentum, the VRA leadership is calling for a strategic shift in how the state evaluates the Authority’s performance. Amissah-Arthur has urged the government to prioritize reliable and cost-effective power supply over profit maximization when assessing dividend payments and state-owned enterprise (SOE) benchmarks. Furthermore, the Authority is raising concerns about an over-reliance on IPPs and is seeking renewed investment in its own generation capacity to ensure long-term energy security. This includes the development of new infrastructure such as the 620-megawatt Nantian Thermal Power Project and the 30-megawatt Akuse Floating Solar Project.

Despite the return to profitability, the VRA continues to face significant headwinds that could impact future growth. Chronic liquidity challenges, inter-utility debts, and persistent payment delays from stakeholders remain major operational constraints. Additionally, land encroachment issues have hampered the progress of several infrastructure projects. As the Authority moves forward under the current administration, its success will depend on balancing domestic demands with regional obligations while resolving the systemic financial bottlenecks that characterize the energy sector.