West Africa: Ghana Plans 1,200 Mw Gas Plant As Power Sector Costs Mount
[Daba Finance] Ghana is moving ahead with a 1,200-megawatt gas-fired power plant as the government seeks to improve electricity supply and reduce costs that continue to weigh on public finances. The state-owned project will be built at Kafodzidzi-Abrobeano in the Central Region and would become the country's largest power plant, exceeding the 1,020-megawatt Akosombo hydroelectric facility.
Ghana is constructing a 1,200-megawatt gas-fired power plant in Kafodzidzi-Abrobeano, Central Region, to enhance electricity supply and alleviate financial burdens. This is the country's largest power plant, surpassing the 1,020-megawatt Akosombo hydroelectric facility. The first 600-megawatt phase is scheduled to commence operation in 2028, following feasibility studies and environmental, engineering, and permitting efforts.
GE Vernova has supplied the gas turbines, and Ghana anticipates savings of 35% to 45% by purchasing the equipment directly instead of through third parties. The investment aims to curb generation costs and bring down electricity tariffs by 10% to 20%. However, securing financing remains a hurdle, necessitating guarantees, blended finance, local-currency funding, capital markets, and public-private partnerships.
Despite fiscal reforms, Ghana continues to grapple with unpaid bills, utility losses, and power contracts that mandate payments even when power is not needed. The government has paid $1.47 billion of its energy debt and saved $500 million by utilizing domestic gas, but the sector's shortfall remains above $1 billion in 2026.
Written by urgent.news from AllAfrica's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
