President John Dramani Mahama has announced that the Tema Oil Refinery is back in operation marking the end of a seven year shutdown that has cost the country a lot of money.
Delivering the 2026 State of the Nation Address on the floor of Parliament on Friday, 27 February, President Mahama stated that the refinery is processing crude oil into petroleum products again following extensive turnaround maintenance.
“I’m pleased to inform this August House that for the first time since 2018, the refinery has commenced processing of crude oil into petroleum products once more,” he said.
ECG Losses and Private Sector Participation
President John Dramani Mahama has raised concerns over persistent inefficiencies within Ghana’s power distribution system, particularly at the Electricity Company of Ghana (ECG).
He noted that nearly 25 percent of generated power is reportedly lost within the distribution chain — a situation he described as deeply worrying.
To curb the losses, Cabinet has approved private sector participation in billing and revenue collection. According to the President, engaging the private sector in these areas represents the most effective strategy to significantly reduce revenue leakages and improve operational efficiency.
He further revealed that Cabinet has endorsed a multiple-lease concession model for distribution utilities, with implementation already underway.
Solar Capacity Expands to 250MW
On renewable energy progress, the President announced that the Bui Power Authority has added 50 megawatts of solar power to the grid, while rooftop solar installations have contributed an additional 30 megawatts.
Ghana’s total installed solar capacity now stands at 250 megawatts, accounting for five percent of the national energy mix.
The President also highlighted progress on a major 200-megawatt solar project at the Dawa Industrial Zone, for which he recently performed a groundbreaking ceremony. The first 100 megawatts of the project are scheduled for completion in December 2026
Mini-Grids for Island and Lakeside Communities
The Ministry of Energy and Green Transition is advancing renewable mini-grid projects to expand access to remote and underserved communities.
Currently, 35 mini-grids are under construction to serve 47 island and lakeside communities across the Oti, Savannah, and Bono East regions.
Additionally, a feasibility study has been completed for 100 communities in the Afram Plains North District to benefit from solar-powered mini-grids. This increases the total targeted island and lakeside communities in Afram Plains North and South to 150.
As part of efforts to achieve 99.98 percent universal electricity access by 2030, mini-grids have now been fully integrated into the National Electrification Scheme.
The President also disclosed that the African Development Bank has committed funding support for renewable energy-based mini-grids in these communities.
Smart Meters and Solar for Public Institutions
Beginning at the end of the first quarter of 2026, government will roll out 12,000 smart net meters to strengthen monitoring systems and reduce power losses.
Under the off-grid solar home system programme, materials for the first phase of 350 solar installations for public institutions have already been delivered. These installations are expected to reduce energy consumption costs across government facilities.
$3.5 Billion Oil and Gas Investments
Beyond renewables, the President announced new investments aimed at strengthening Ghana’s oil and gas sector.
Government has signed a Memorandum of Understanding with Tullow Oil and partners to secure $2 billion in additional investment in the Jubilee Field, including plans to drill up to 20 new wells — the first such drilling activity in more than nine years.
A separate Memorandum of Intent has also been signed with Eni and Vitol to mobilise $1.5 billion in new investment in the Cape Three Points Block 4 contract area.
According to the President, these agreements are expected to significantly boost Ghana’s oil and gas output, enhance energy security, meet domestic demand, and support infrastructure development.
The reforms form part of the government’s broader economic reset agenda, aimed at strengthening resilience, improving efficiency, and expanding nationwide access to essential services.