President John Dramani Mahama has announced plans for the government to build a 1,200-megawatt (MW) gas-fired thermal power plant as part of efforts to expand Ghana’s state-owned electricity generation capacity.

The announcement comes at a time when some Independent Power Producers (IPPs) are also expressing interest in investing in an additional 500MW of generation capacity.

However, President Mahama said the government is prioritising its own generation infrastructure to strengthen the country’s power supply and reduce dependence on private power producers.

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Speaking at a town hall meeting with the Ghanaian community in New York on Friday, September 25, 2026, he said the government expects to sign an agreement for the project before the end of the year.

“We are going to build the biggest thermal capacity in Ghana. Before the end of this year, we're going to sign 1,200 megawatts of gas thermal power,” he said.

The planned facility would have an installed capacity higher than the 1,020MW Akosombo Hydroelectric Power Station, potentially making it Ghana’s largest single power generation facility by installed capacity.

President Mahama said the decision to expand state-owned thermal generation was also influenced by changes in the global energy sector, including the increasing use of renewable energy and electric vehicles.

He explained that the government wants to avoid making investments in power infrastructure that could become stranded as the country’s energy mix changes.

The President also said the government had cleared energy sector debts and reorganised the Electricity Company of Ghana (ECG) to ensure that power producers receive their payments on time.

“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.

According to President Mahama, ECG’s collection system has been reorganised to prioritise payments to power generators, a move he said has contributed to the stabilisation of electricity supply.

The planned thermal plant is also expected to benefit from increased gas availability as investments in Ghana’s oil and gas sector expand.

President Mahama said oil production has increased by almost 38% since 2025, with Jubilee Partners investing $2 billion to drill 20 new wells and Eni committing $1.5 billion to bring the remaining portion of its Sankofa field into production.

He further said international oil companies, including ExxonMobil and Shell, are exploring opportunities in Ghana, which could provide additional support for the country’s energy sector.

ANAS/MA

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