Ghana is set to add a 1,200-megawatt (MW) state-owned gas-fired thermal power plant to its electricity generation capacity. This new facility will be the country's largest single power facility, surpassing the 1,020MW Akosombo Hydroelectric Power Station in installed capacity. President John Dramani Mahama announced the plan during a town hall meeting with the Ghanaian community in New York on Friday, September 25, 2026.
President Mahama stated that an agreement for the development of the 1,200MW gas-fired facility would be signed before the end of 2026. The planned investment aims to position Ghana's power sector to respond to changes in the global energy landscape, including the growing adoption of renewable energy and electric vehicles. The government is also mindful of the risk of investing in energy infrastructure that could become obsolete or underutilized as the global transition progresses.
President Mahama disclosed that some Independent Power Producers (IPPs) previously threatened to suspend electricity generation over unpaid debts but are now prepared to invest an additional 500MW in generation capacity. However, the government has opted to strengthen state-owned generation capacity through the proposed project. This decision comes after the administration cleared outstanding energy sector debts and reorganized the operations of the Electricity Company of Ghana (ECG) to prioritize payments to power producers.
The President highlighted that his administration had cleared energy sector debts and reorganized ECG's operations to prioritize payments to power producers. He stated that IPPs were previously threatening to switch off power but that his government had paid off energy debts and was current with payments. The government has also reorganized ECG to prioritize payments to power generators over other expenditures.
President Mahama also highlighted developments in the oil and gas sector, stating that investor confidence had improved since his administration assumed office. The sector had previously experienced declining production and investor uncertainty, including Eni's relocation of operations to Côte d'Ivoire and a reduction in Jubilee oil production to about 60,000 barrels per day. Jubilee partners have committed $2 billion towards drilling 20 additional wells, while Eni is investing $1.5 billion to develop the remaining portion of its Sankofa field.
According to President Mahama, oil production has risen by almost 38 per cent since 2025 due to increased investment in the sector. Companies including ExxonMobil and Shell are now exploring opportunities in Ghana. The President stated that increased gas production resulting from these investments would provide fuel for the planned thermal power facilities while also generating additional revenue for national development.
On the broader economy, President Mahama stated that his administration had implemented measures to restore an IMF program that was off track. The government introduced fiscal measures beyond IMF requirements, including legislative amendments and decisions taken by Cabinet, which contributed to a faster-than-expected decline in the debt-to-GDP ratio. The President also pointed to a decline in Treasury bill rates and a stabilization of the cedi.
Key points
- Ghana plans to build a 1,200MW gas-fired power plant to exceed Akosombo's capacity.
- The project aims to position Ghana's power sector for changes in the global energy landscape.
- President Mahama's administration has implemented measures to restore an IMF program and stabilize the economy.
