President John Dramani Mahama has announced plans for Ghana to build a 1,200-megawatt gas-fired thermal power plant, which would be the largest single power facility in the country if completed as planned. The government aims to sign an agreement for the project before the end of 2026.
Mahama revealed the plan during a town hall meeting with the Ghanaian community in New York on Friday, 25 September 2026. “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 plant would surpass the 1,020MW Akosombo Hydroelectric Power Station, Ghana’s current largest single generating facility by installed capacity.
The decision to add this new thermal capacity comes amid changes in the global energy landscape. Mahama mentioned the shift toward renewable energy and the growing use of electric vehicles as factors influencing the government’s approach. He also said the government wants to avoid investing in power assets that might become stranded due to shifts in energy sources.
Some Independent Power Producers (IPPs) that had previously threatened to stop power generation are now reportedly ready to invest in an additional 500MW of capacity. Still, Mahama said the government prefers to develop more state-owned generation capacity.
The President also said the government had cleared debts in the energy sector and reorganised the Electricity Company of Ghana (ECG) to prioritise payments to power producers. “We brought IPPs, and everybody was threatening to switch off power. Today, I can tell you, we have paid off our energy debts. And we are current with the payments,” he said. Mahama added that ECG’s collection system had been restructured so payments to power generators take priority.
The planned thermal expansion ties into renewed investment in Ghana’s oil and gas sector. Mahama said oil production had increased by almost 38 percent since 2025, thanks to investments by oil producers.
He noted that Jubilee Partners are investing US$2 billion to drill 20 new wells, while Eni is investing US$1.5 billion to bring the remaining portion of its Sankofa field into production. These investments should increase gas availability for thermal power generation and boost government revenue.
Mahama also said major international oil companies, including ExxonMobil and Shell, are exploring opportunities in Ghana. The involvement of these companies signals growing interest in Ghana’s energy sector on the global stage.
This plan for a large state-owned gas-fired plant comes at a time when Ghana balances its energy needs with global energy trends. The government’s focus on state capacity and clearing energy debts indicates a move to stabilise power supply and prepare for future demands linked to oil and gas production.
According to 3News.
