Ghana is on the verge of constructing a groundbreaking 1,200-megawatt (MW) state-owned gas-fired thermal power plant, poised to become the country’s largest single power facility, marking a significant shift in Ghana’s energy landscape. President John Dramani Mahama announced the project during a town hall meeting in New York on September 25, 2026, stating that the government intends to sign an agreement for the plant’s construction before the end of 2026. He emphasized the importance of this expansion, highlighting that the facility would significantly increase Ghana’s overall power generation capacity.
The proposed plant, projected to have a capacity of 1,200 MW, surpasses the previous record of 1,020 MW held by the Akosombo Hydroelectric Power Station, currently Ghana’s largest single generating facility. Mr. Mahama explained that this decision was driven by evolving global energy trends, specifically the growing adoption of renewable energy sources and the increasing reliance on electric vehicles. He further stated that the government’s strategic goal was to avoid investments in power assets that could become stranded due to changes in the energy mix. The announcement came after the government successfully cleared energy sector debts and reorganised the Electricity Company of Ghana (ECG) to prioritize payments to power producers, a move designed to stabilize electricity supply. President Mahama also revealed that Independent Power Producers (IPPs) that had previously threatened to suspend power generation were now prepared to invest in an additional 500 MW capacity, though government prefers to focus on developing additional state-owned generation facilities.
Furthermore, the planned thermal expansion is intrinsically linked to renewed investment in Ghana’s oil and gas sector. President Mahama stated that oil production had increased by almost 38% since 2025, following investments by major international oil companies such as ExxonMobil and Shell. ExxonMobil is currently 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. He explained that these renewed investments will significantly increase gas availability for thermal power generation, while simultaneously boosting government revenue.
The project’s completion is expected to have a substantial impact on Ghana’s economic growth. According to an analysis by the Ghana Economic Exchange Rate (GERE) project, the 1,200 MW thermal plant is projected to contribute significantly to Ghana’s GDP, generating an estimated $12 billion in annual revenue. The government also cited improved grid stability as a key benefit, expecting a significant reduction in power outages and increased reliability across the nation. Mr. Mahama reiterated the government’s commitment to fostering sustainable energy development and ensuring Ghana’s energy security through this strategic investment.
The construction of the new thermal plant represents a major step forward for Ghana’s power infrastructure, signaling a long-term commitment to bolstering the nation’s energy sector. Experts believe this expansion will not only meet the growing demand for electricity but also play a vital role in Ghana’s economic advancement. The project’s timeline remains contingent on securing the necessary regulatory approvals and addressing potential logistical challenges. The government is actively working to leverage the new investment to further modernize the country’s energy grid and enhance its competitiveness in the global market. The project is expected to be completed before the end of 2026, aligning with President Mahama’s stated goal of creating a more resilient and sustainable energy future for Ghana.”
“This is a pivotal moment for Ghana, representing a significant investment in our nation’s future,” stated a spokesperson for the government. ‘
“The government is committed to ensuring that this expansion contributes to Ghana’s economic prosperity and strengthens our position as a regional energy hub,” added the spokesperson.
Watch Related Video
Source: TV3
