President John Dramani Mahama has announced plans for Ghana to build a 1,200-megawatt (MW) state-owned gas-fired thermal power plant, which would become the country's largest single power facility if completed as planned. The President made the announcement during a town hall meeting with the Ghanaian community in New York on Friday, September 25. He stated that the government intends to sign an agreement for the project before the end of 2026.
The proposed facility would have a higher installed capacity than the 1,020MW Akosombo Hydroelectric Power Station, currently Ghana's largest single generating facility by installed capacity. At 1,200MW, the new plant would significantly boost Ghana's power generation capacity. President Mahama said the decision to add the new thermal capacity was informed by changes in the global energy landscape, including the transition towards renewable energy and the growing adoption of electric vehicles.
President Mahama also mentioned that some Independent Power Producers (IPPs) that previously threatened to suspend power generation are now prepared to invest in an additional 500MW of capacity. However, he said the government would prefer to develop additional state-owned generation capacity. This move is expected to provide a more stable and reliable power supply for the country.
President Mahama stated that the government had cleared the energy sector debts and reorganised the Electricity Company of Ghana (ECG) to prioritise payments to power producers. He said the changes had helped stabilise electricity supply. “We brought IPPs, and everybody was threatening to switch off power. Today, I can tell you, we have paid off our energy debts. And we are current with the payments,” he said.
The President explained that ECG's collection system had been reorganised so that payments to power generators would take priority. This reorganisation has helped to improve the financial stability of the energy sector and ensured that power producers receive timely payments for their services.
President Mahama linked the planned thermal expansion to renewed investment in Ghana's oil and gas sector. He said oil production had increased by almost 38% since 2025, following investments by oil producers. According to him, Jubilee Partners are investing $2 billion to drill 20 new wells, while Eni is investing $1.5 billion to bring the remaining portion of its Sankofa field into production.
The renewed investment in the oil and gas sector is expected to increase gas availability for thermal power generation while also boosting government revenue. President Mahama further stated that major international oil companies, including ExxonMobil and Shell, are now exploring opportunities in Ghana. This increased investment in the energy sector is expected to have a positive impact on Ghana's economy.
Key points
- The government plans to sign a 1,200MW gas power deal before the end of 2026.
- The new power plant will be Ghana's largest single power facility.
- The project is part of a broader effort to stabilise electricity supply and boost investment in the energy sector.
