President Mahama has announced that government intends to sign an agreement for the construction of a new 1,200-megawatt state-owned gas-fired power plant before the end of 2026.
Speaking at a town hall meeting with Ghanaians in New York on September 25th, President Mahama said the project would significantly expand the country’s thermal power generation capacity and help secure reliable electricity.
“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.
The President explained that the government was being cautious about long-term investments in thermal infrastructure because of the global shift towards renewable energy and the growing use of electric vehicles.
He said gas-fired power remained important to Ghana’s electricity needs, particularly as the country adjusts its energy mix to changing global trends.
President Mahama also said the government had cleared accumulated energy-sector debts and was now current with payments to independent power producers (IPPs).
“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.
He added that the Electricity Company of Ghana (ECG) had restructured its revenue collection arrangements to ensure that funds collected from consumers are more effectively channelled towards payments to power producers.
According to him, the measure is expected to improve the financial sustainability of the electricity sector and reduce the risk of disruptions to power generation
