Written by Khaled Mahmoud

Ghanaian President John Dramani Mahama announced a strategic project to build a 1,200-megawatt gas-fired power plant, a move aimed at securing the country's growing needs and enhancing its position as an energy supplier in West Africa.

During a field tour in the Eastern Province under the slogan “Reset” Ghana“President Mahama explained that the groundbreaking ceremony for the project will take place before the end of 2026. The President noted that electricity consumption in Ghana has seen a significant jump, rising from 3,500 megawatts when the government took power to 4,300 megawatts at peak times currently.

Mahama attributed this increase to increased investment and frenetic economic activity, stressing that the new station is essential to ensuring the stability of the national grid and providing a reliable supply.

Financing and operating details

For his part, Finance Minister Kassel Atto Forsson had included the project in the 2026 budget presented to Parliament last November. Details of the project include the energy source, with the plant to be supplied with 150 million standard cubic feet of gas per day.

Gas will be supplied from the Jubilee and OCTP offshore fields via the development of the second gas processing plant (GPP-2), which will be wholly state-owned, marking the government’s return to direct production after two decades of dominance by independent producers.

Financial challenges and accumulated debt

This ambition comes at a time when the energy sector is struggling in Ghana From a severe financial crisis, the sector recorded a deficit of $2.2 billion in 2024. The IMF forecasts that the sector's debt could exceed $9 billion by the end of 2026 unless attractive structural reforms are implemented.

This financial fragility is partly due to losses incurred by the Ghana Electricity Company, which only manages to collect the value of 62% of the energy it purchases.

Energy export and grid security

Despite the challenges, President Mahama stressed that the increased production capacity (which would represent an increase of 28% over the current peak) would allow Ghana to export electricity to neighboring countries such as Burkina Faso, to save hard currency.

The importance of diversifying energy sources comes after the “Akosombo Dam” incident on April 23, when a fire in the control room caused the dam to go out of service and resulted in the loss of 1,000 megawatts from the national grid. Energy Minister John Ginabur described it as “one of the most serious disruptions in the history of Ghana’s electricity sector,” revealing the danger of over-reliance on hydroelectric facilities.