Ghana is preparing to sign an agreement for a 1,200-megawatt gas-fired thermal power plant before the end of 2026 β a facility that would instantly become the country's largest single power-generating asset, surpassing even the iconic Akosombo dam.
President John Dramani Mahama made the announcement on Friday, September 25, during a town hall meeting with the Ghanaian community in New York.
"We are going to build the biggest thermal capacity in Ghana. Before the end of this year, we are going to sign 1,200 megawatts of gas thermal power," Mahama told the gathering.
At 1,200MW, the proposed plant would exceed the 1,020MW Akosombo Hydroelectric Power Station, currently Ghana's largest single generating facility by installed capacity. The new plant would be state-owned, a deliberate choice by the Mahama administration over relying solely on Independent Power Producers.
Why State Ownership, and Why Now
The President said the push for new thermal capacity is partly a response to global energy shifts β including the move toward renewables and rising electric vehicle adoption β and a desire to avoid acquiring power assets that could become stranded as the energy mix evolves.
Some Independent Power Producers (IPPs) that had previously threatened to suspend generation are now reportedly willing to invest in an additional 500MW of capacity. Mahama said the government acknowledges that offer but prefers building its own generation base rather than ceding that ground to private producers.
Energy Debts Cleared, ECG Restructured
Beyond the new plant, Mahama used the New York platform to claim a broader stabilisation of Ghana's historically troubled energy sector. He said the government has cleared the country's energy sector debts and reorganised the Electricity Company of Ghana (ECG) to ensure payments to power producers come first.
"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," the President said.
ECG's collection system has been restructured so that revenue flows prioritise payments to power generators β a change Mahama credited with helping stabilise electricity supply across the country.
Oil Investments Fuelling the Gas Strategy
The planned thermal expansion is directly tied to a resurgence in Ghana's oil and gas sector. Mahama said oil production has increased by almost 38% since 2025, driven by fresh upstream investments.
Jubilee Partners are committing $2 billion to drill 20 new wells, while Eni is investing $1.5 billion to bring the remaining portion of its Sankofa field into full production. Both investments are expected to increase gas availability for thermal generation while simultaneously boosting government revenue.
The President added that major international oil companies β including ExxonMobil and Shell β are now actively exploring opportunities in Ghana. That renewed international interest is a signal, he suggested, that Ghana's upstream sector is regaining confidence it had lost in previous years.
For Ghanaians still dealing with persistent power reliability concerns, the 1,200MW announcement is the boldest infrastructure pledge Mahama has made since returning to office. Whether the deal gets signed on schedule β and whether the plant ever gets built β is the question the country will be watching closely over the next few months.