The Volta River Authority (VRA) has expressed concerns over its liquidity position, citing payment delays, inter-utility debt, and revenue shortfalls as major challenges. Despite generating GH¢8.9 billion in electricity revenue in 2025, the Authority's Chief Executive, Ing. Edward Obeng Kenzo, warned that these financial pressures remain a significant threat to its operations and planned projects. This was disclosed during the VRA's annual stakeholder engagement, where the Authority's financial and operational performance for 2025 was outlined.
According to the VRA's report, electricity revenue declined by 4.0% from GH¢9.291 billion in 2024 to GH¢8.947 billion in 2025. Meanwhile, the Authority's cost of sales increased by 4.0% from GH¢7.479 billion to GH¢7.814 billion. Despite these financial pressures, VRA recorded a net profit of GH¢88 million in 2025, down from GH¢106 million in the previous year. The Authority also reported a significant improvement in its foreign exchange position, moving from an exchange loss of GH¢695 million in 2024 to an exchange gain of GH¢237 million in 2025.
The VRA's financial expenses decreased by 24.0% from GH¢255 million to GH¢194 million, while administrative costs increased by 14.0% to GH¢1.384 billion. Ing. Obeng Kenzo's warning comes as VRA continues to face challenges in maintaining sufficient liquidity to support its operations and investment programme. The Authority identified payment delays, inter-utility debt, and revenue shortfalls as key factors constraining its liquidity.
The VRA remained a major contributor to Ghana's electricity supply in 2025, accounting for 48% of total sector generation. The Authority generated 12,978 GWh, compared with 14,045 GWh generated by Independent Power Producers. Hydropower accounted for 57% of the country's generation mix, while thermal generation contributed 42%, and solar less than 1%.
The Authority is pursuing additional generation capacity, including the 100MW Anwomaso Phase II, 132MW T3 Repowering Project, and 30MWp Akuse Floating Solar Project. These projects aim to enhance the country's power supply and meet growing energy demands. The VRA's generation performance underscores its critical role in Ghana's energy sector.
The VRA's liquidity challenges are further complicated by difficulties in securing financing for projects and lengthy procurement and approval processes. These factors have affected project delivery and the Authority's overall performance. Ing. Obeng Kenzo emphasized the need for the Authority to address these challenges to ensure its financial sustainability.
The VRA's financial performance is a significant indicator of Ghana's energy sector health. The Authority's ability to manage its liquidity challenges will be crucial in ensuring a stable power supply for the country. Key stakeholders will be monitoring the VRA's progress in addressing these challenges and implementing its planned projects.
Key points
- The VRA's revenue declined by 4.0% to GH¢8.947 billion in 2025 despite an increase in cost of sales.
- The Authority's liquidity is threatened by payment delays, inter-utility debt, and revenue shortfalls.
- The VRA generated 12,978 GWh of electricity in 2025, accounting for 48% of Ghana's total sector generation.
