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 announcement was made during a town hall meeting with the Ghanaian community in New York on Friday, 25 September 2026. This new facility will have a higher installed capacity than the 1,020MW Akosombo Hydroelectric Power Station, currently Ghana's largest single generating facility.
The President cited changes in the global energy landscape, including the transition towards renewable energy and the growing adoption of electric vehicles, as reasons for the decision to add the new thermal capacity. He also stated that the government wants to avoid investing in power assets that could become stranded as the energy mix changes. This strategic move aims to ensure Ghana's energy security and adapt to the evolving global energy environment.
President Mahama mentioned that some Independent Power Producers (IPPs) had previously threatened to suspend power generation but are now prepared to invest in an additional 500MW of capacity. However, he emphasized that the government would prefer to develop additional state-owned generation capacity. This indicates a shift in the government's approach to energy production, prioritizing state-owned facilities over private investments.
The President also highlighted the government's efforts to stabilize electricity supply, including clearing energy sector debts and reorganizing the Electricity Company of Ghana (ECG) to prioritize payments to power producers. He stated that these changes have helped stabilize electricity supply, ensuring a more reliable energy supply for the country.
President Mahama linked the planned thermal expansion to renewed investment in Ghana's oil and gas sector, with oil production increasing by almost 38 per cent since 2025. He mentioned that Jubilee Partners are investing US$2 billion to drill 20 new wells, while Eni is investing US$1.5 billion to bring the remaining portion of its Sankofa field into production. This investment is expected to increase gas availability for thermal power generation and boost government revenue.
The President further stated that major international oil companies, including ExxonMobil and Shell, are now exploring opportunities in Ghana. This renewed interest in Ghana's oil and gas sector is expected to drive economic growth and increase the country's energy production capacity. The government's efforts to attract foreign investment are seen as a positive step towards achieving Ghana's energy goals.
The agreement for the 1,200MW thermal power plant is expected to be signed before the end of 2026. Once completed, the facility will significantly enhance Ghana's energy production capacity and help meet the country's growing energy demands. The project is a key component of the government's strategy to ensure a reliable and sustainable energy supply for Ghana's future growth and development.
Key points
- Ghana to build 1,200MW state-owned gas thermal plant, its largest power facility yet.
- Agreement for the project expected before end of 2026.
- The new facility will have a higher installed capacity than the 1,020MW Akosombo Hydroelectric Power Station.
