Government to sign 1,200MW gas power deal before end of 2026 – Mahama

President John Dramani Mahama has announced Ghana's plans to construct a 1,200-megawatt (MW) state-owned gas-fired thermal power plant, which would become the country's largest single power facility upon completion. During a town hall meeting with the Ghanaian community in New York on September 25, Mahama stated that the government plans to sign an agreement for the project before the end of 2026.

The proposed facility's 1,200MW installed capacity surpasses the 1,020MW Akosombo Hydroelectric Power Station, currently Ghana's largest single generating plant. Mahama explained that the decision to add the new thermal capacity was driven by shifts in the global energy landscape, including the move towards renewable energy and the increasing adoption of electric vehicles.

He emphasized the government's goal of avoiding investments in assets that might become stranded as the energy mix evolves. Although some Independent Power Producers (IPPs) have previously threatened to suspend power generation, Mahama stated that the government now anticipates investment in an additional 500MW of capacity. He also noted that the government has cleared energy sector debts and reorganized the Electricity Company of Ghana (ECG) to prioritize payments to power producers, thus stabilizing electricity supply.

Mahama linked the thermal expansion to renewed investment in Ghana's oil and gas sector, with oil production increasing by nearly 38% since 2025. Major international oil companies, such as ExxonMobil and Shell, are exploring opportunities in Ghana as well.