President John Dramani Mahama has announced a pivotal initiative to construct a 1,200-megawatt (MW) state-owned gas-fired thermal power plant, slated for completion by the end of 2026. This ambitious project represents a significant expansion of Ghana’s energy infrastructure and aims to bolster the country’s power generation capacity. The President made the announcement during a town hall meeting held in New York on September 25th, emphasizing the importance of securing a reliable and robust energy supply for the nation. The government intends to sign an agreement for the plant’s construction before the deadline, a move driven by evolving global energy trends, specifically the accelerating shift towards renewable energy sources and the growing adoption of electric vehicles. According to a recent report by the Ghana Statistical Service, Ghana’s installed power capacity has increased by approximately 38% since 2025, reflecting a growing demand for electricity. The decision to prioritize this substantial thermal capacity was predicated on the need to avoid stranded assets associated with the changing energy mix. The government has successfully cleared all energy sector debts, a crucial step that has stabilized electricity supply. Mr. Mahama explained that the restructuring of the Electricity Company of Ghana (ECG) has significantly improved payment processing, ensuring that power producers receive timely payments. He further stated that the reorganization system prioritizes payments to power generators, facilitating a smoother operational flow. The expansion is inextricably linked to renewed investment in Ghana’s oil and gas sector. A recent analysis by the Ghana National Petroleum Association reveals that oil production has increased by nearly 38% since 2025, driven by significant investments from companies like ExxonMobil and Shell, who are currently drilling an additional 20 wells and investing $2 billion. These investments are projected to increase gas availability for thermal power generation and generate substantial government revenue. Furthermore, the President highlighted that major international oil companies, including ExxonMobil and Shell, are now actively exploring opportunities to invest in Ghana’s energy sector, signaling a significant shift in the country’s energy landscape. The 1,200-MW gas power plant will be strategically located to serve a diverse range of industries and support economic growth.
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Source: Adom Online
