Ghana is preparing to add a major new source of electricity generation, with President John Dramani Mahama announcing plans for government to sign an agreement before the end of 2026 for the construction of a 1,200-megawatt (MW) state-owned gas-fired thermal power plant.
President Mahama made the announcement on Friday, September 25, during a town hall meeting with members of the Ghanaian community in New York.
If completed at the proposed capacity, the facility would become Ghana’s largest single power-generating facility by installed capacity, exceeding the 1,020MW installed capacity of the Akosombo Hydroelectric Power Station.
A plant larger than Akosombo
The proposed 1,200MW plant would represent a significant addition to Ghana’s electricity-generation infrastructure.
Akosombo currently has an installed capacity of approximately 1,020MW, meaning the proposed gas-fired facility would have about 180MW more installed capacity.
President Mahama said the project is part of government’s efforts to strengthen Ghana’s power-generation capacity and provide the electricity required to support economic activity.
The announcement follows earlier statements from government about plans to develop a 1,200MW gas-fired power facility. In July, Finance Minister Dr Cassiel Ato Forson said government was developing a state-owned combined-cycle gas-fired power plant and that preparatory work was underway.
Government targets agreement before end of 2026
President Mahama’s latest announcement focuses on the agreement for the project.
According to reports of his New York town hall, government expects to conclude the agreement before the end of 2026.
The President also said independent power producers could add approximately 500MW of additional generation capacity, while government is pursuing its own state-owned generation project.
The proposed project therefore forms part of a broader effort to increase Ghana’s available electricity supply as demand continues to grow.
President reports progress in energy sector
During the town hall, President Mahama also highlighted developments in Ghana’s energy sector.
He said government had cleared energy-sector debts and reorganised the Electricity Company of Ghana’s (ECG) payment and collection arrangements, with the aim of ensuring that power generators receive payments more efficiently.
President Mahama also reported that Ghana’s oil production has increased by almost 38 per cent since 2025.
New oil and gas investment
The announcement comes against the backdrop of increased investment in Ghana’s upstream petroleum sector.
The Presidency previously announced a combined US$3.5 billion in planned investment associated with Ghana’s oil and gas industry, including US$2 billion from the Jubilee Partners and US$1.5 billion from Eni and its partners in the Offshore Cape Three Points (OCTP) project.
Government has linked increased domestic gas availability and investment in the petroleum sector to efforts to improve Ghana’s energy security.
What the project could mean for Ghana
If the proposed 1,200MW facility is completed, it would significantly increase Ghana’s installed generation capacity and become the country’s largest single generating facility by capacity.
However, the project remains at the development and agreement stage. The government still needs to conclude the proposed agreement and proceed through the necessary project-development, financing, construction and commissioning stages before the additional generation capacity becomes available.
For now, the key immediate milestone is government’s stated intention to sign the agreement before the end of 2026.
MBOS Media will continue to follow developments around the proposed power plant, Ghana’s electricity supply and investments in the country’s energy sector.