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

President John Dramani Mahama has announced plans for Ghana to construct a 1,200-megawatt state-owned gas-fired thermal power plant, which would become the country's largest single power facility if completed as scheduled. The President revealed his intention to sign an agreement for the project before the conclusion of 2026, during a town hall meeting with the Ghanaian community in New York on September 25.

The proposed facility, at a capacity of 1,200MW, would surpass the current largest single generating facility in Ghana, the 1,020MW Akosombo Hydroelectric Power Station. Mr. Mahama stated that the decision to increase thermal capacity was driven by shifts in the global energy landscape, including the transition towards renewable energy and the increasing adoption of electric vehicles, as well as the government's desire to avoid investing in power assets that might become stranded amidst evolving energy mixes.

Some Independent Power Producers (IPPs) that previously threatened to suspend power generation have now expressed willingness to invest in an additional 500MW of capacity, though the President expressed a preference for state-owned generation. The President also reported that government energy sector debts have been cleared, and the Electricity Company of Ghana (ECG) has been reorganized to prioritize payments to power producers, which has helped stabilize electricity supply.

He connected the planned thermal expansion to the renewed investment in Ghana's oil and gas sector, citing increased production by oil companies and investment commitments from international oil companies.