Ghana has introduced Legislative Instrument (L.I. 2508) mandating competitive bidding for power generation, a major reform aimed at reducing electricity costs, enhancing transparency, and attracting private sector investment.
Unveiled by Energy Minister John Abdulai Jinapor at the African Energy Week in Cape Town, the regulation requires utility companies and regulators to request proposals from multiple power generators to procure the most reliable and cost-effective electricity. The process is designed to lower tariffs for consumers, drive innovation, and increase private sector participation, even influencing rates for projects already under Power Purchase Agreements (PPAs).
The move aligns with President John Dramani Mahama’s vision to deliver affordable electricity that can spur industrial growth and economic transformation. L.I. 2508 provides a structured framework for transparent and predictable procurement, strengthens regulatory oversight, and builds local capacity in PPA design and negotiation. Collaborating with international partners such as the World Bank and African Development Bank, the Ministry of Energy and Green Transition seeks to make Ghana’s power sector more efficient, bankable, and aligned with global best practices. The reform is expected to foster innovation, reduce costs, and position Ghana as a regional leader in sustainable and resilient energy governance.