Ghana targets 1,200MW thermal power capacity by 2029 to cut electricity costs

Ghana aims to increase its thermal power capacity to 1,200 megawatts (MW) by 2029, as part of efforts to lower electricity costs and enhance the reliability of the country's power supply, according to the Minister for Energy and Green Transition, Dr John Abdulai Jinapor. The initiative is set to provide additional generation capacity and reduce power costs for households and businesses.

Jinapor described the combined-cycle system-based project as a potential game-changer for Ghana's energy sector, with completion projected by 2029. The government's objective is to achieve financial sustainability in the power sector and boost the competitiveness of Ghanaian industries by increasing domestic generation capacity.

However, the Minister acknowledged the challenge of meeting power requirements between now and 2029 without incurring excess capacity and additional financial burdens once new plants become operational. The ministry is collaborating with stakeholders to develop an interim power arrangement that would meet immediate electricity needs without long-term financial obligations.

The 1,200MW project is part of broader reforms to restore financial stability to the power sector and reduce electricity costs. The government has already paid $1.7 billion in inherited debts owed to Independent Power Producers (IPPs), negotiated reductions in IPP guarantees, and saved approximately $250 million through these negotiations.

Additionally, the transition from liquid fuel to natural gas for thermal power generation resulted in savings of around $500 million in the previous year due to reduced fuel imports. The government plans to pursue further measures to improve efficiency, strengthen energy security, and provide a more affordable and sustainable electricity supply for Ghana.