President John Dramani Mahama says government plans to sign an agreement before the end of 2026 to build a 1,200-megawatt state-owned gas-fired thermal power plant, which would become Ghana’s largest single generating facility by installed capacity if completed as planned.
Speaking at a town hall meeting with the Ghanaian community in New York on Friday, September 25, the President said the project would add significant state-owned generation capacity to the country’s power system.
“We are going to build the biggest thermal capacity in Ghana. Before the end of this year, we’re going to sign 1,200 megawatts of gas thermal power,” he said.
At 1,200MW, the proposed facility would exceed the 1,020MW installed capacity of the Akosombo Hydroelectric Power Station, currently Ghana’s largest single generating facility.
President Mahama said the decision to expand thermal generation was influenced by changes in the global energy landscape, including the shift towards renewable energy and the increasing adoption of electric vehicles.
He said government also wants to avoid committing resources to power assets that could become stranded as the energy mix evolves.
The President said some Independent Power Producers that previously threatened to suspend generation are now willing to invest in an additional 500MW of capacity. However, he said government prefers to expand state-owned generation.
Mr Mahama also attributed improved power-sector stability to the clearance of energy-sector debts and changes to the operations of the Electricity Company of Ghana.
According to him, ECG’s collection and payment system has been reorganised to prioritise payments to power producers.
Oil and gas investment
The President linked the planned thermal expansion to renewed investment in Ghana’s oil and gas sector, saying increased domestic production would improve gas availability for power generation.
He said oil production has risen by almost 38% since 2025, following new investments by producers.
According to President Mahama, Jubilee Partners are investing $2 billion to drill 20 new wells, while Eni is investing $1.5 billion to bring the remaining portion of its Sankofa field into production.
He said the investments would increase gas availability for thermal generation while also boosting government revenue.
President Mahama further said international oil companies, including ExxonMobil and Shell, are exploring opportunities in Ghana.