Ghana to build 1,200MW gas-fired power plant, surpassing Akosombo capacity before 2026 - Mahama

Ghana is set to add a 1,200-megawatt (MW) state-owned gas-fired thermal power plant to its electricity generation capacity, making it the country’s largest single power facility and putting it ahead of the 1,020MW Akosombo Hydroelectric Power Station in installed capacity.

President John Dramani Mahama announced the plan during a town hall meeting with the Ghanaian community in New York on Friday, September 25, 2026.

He said an agreement for the development of the 1,200MW gas-fired facility would be signed before the end of 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," the President said.

According to President Mahama, the planned investment is intended to position Ghana’s power sector to respond to changes in the global energy landscape, including the growing adoption of renewable energy and electric vehicles.

He said the government was also mindful of the risk of investing in energy infrastructure that could become obsolete or underutilised as the global transition progresses.

President Mahama disclosed that some Independent Power Producers (IPPs), which previously threatened to suspend electricity generation over unpaid debts, were now prepared to invest an additional 500MW in generation capacity.

However, he said the government had opted to strengthen state-owned generation capacity through the proposed project.

Energy sector finances
The President said his administration had cleared outstanding energy sector debts and reorganised the operations of 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.

"We have reorganised the Electricity Company of Ghana. The first charge on any money they collect is to pay the power generators. Instead of procurements, buying cables, street lights that we cannot even use for 10 years, we are measuring their procurements. We are paying the IPPs first," he said.

President Mahama also highlighted developments in the oil and gas sector, saying investor confidence had improved since his administration assumed office.

He said the sector had previously experienced declining production and investor uncertainty, including the relocation of some operations by Eni to Côte d’Ivoire and a reduction in Jubilee oil production to about 60,000 barrels per day.

According to him, Jubilee partners have committed $2 billion towards the drilling of 20 additional wells, while Eni is investing $1.5 billion to develop the remaining portion of its Sankofa field.

"Already oil production has risen by almost 38 per cent since 2025," he said.

He added that companies including ExxonMobil and Shell were now exploring opportunities in Ghana.

The President said increased gas production resulting from these investments would provide fuel for the planned thermal power facilities while also generating additional revenue for national development.

Economy and fiscal stability
On the broader economy, President Mahama said his administration inherited an IMF programme that was off track and subsequently implemented measures to restore it.

He said the previous administration had received the next tranche of the $3 billion IMF loan by June 2024 but had not fulfilled some of its commitments under the programme before the 2024 elections.

President Mahama said his government therefore had to implement difficult measures before the next IMF review to bring the programme back on track.

"We had to work before the next IMF mission came to bring the programme back on track, which we did. We had to take various scale measures, which were difficult, but Ghanaians cooperated, we all sacrificed. And by the time the mission came, the programme was back on track," he said.

He said the government had also introduced its own fiscal measures beyond the IMF requirements, including legislative amendments, bills submitted to Parliament and decisions taken by Cabinet.

According to him, these measures had contributed to a faster-than-expected decline in the debt-to-GDP ratio.

"Our debt to GDP has come down. We're supposed to reach 45 per cent debt to GDP by 2028. I'm happy to say that by the end of last year, we have achieved it," he said.

The President also pointed to a decline in Treasury bill rates, saying rates had fallen from 23.4 per cent to about 5 per cent by the end of 2025.

He said the cedi had also stabilised after periods of significant depreciation, noting that the currency had at one point appreciated by as much as 70 per cent.

"I know you guys were happy with GHc 17. But, our national currency stabilised and came as low as even below 10. Now, the current exchange rate is 11.5, 11.6 in the bank. And then, foreign exchange rate is about 12," he said.

President Mahama said exchange-rate stability was important for businesses because it could help moderate import costs and support economic activity.

"We don't want a too low exchange rate. But, at the same time, we don't want a too high exchange rate. And so, the exchange rate is being managed so that it is within a certain point of depreciation every year. And so, the economy is doing well," he said.