Ghana to Build 1200MW Thermal Plant by End of 2026

Why it matters

The decision to prioritize state-owned generation capacity highlights Ghana's strategy to maintain direct control over critical energy infrastructure following past disputes with Independent Power Producers over debt. Details regarding the exact construction timeline, financing partners, and site location were not available at the time of writing.

Ghana is set to sign an agreement for a state-owned 1,200-megawatt gas-fired thermal power plant before the end of 2026, according to announcements made by President John Dramani Mahama.

Speaking at a town hall meeting with the Ghanaian community in New York on September 25, 2026, President Mahama stated that the upcoming facility will become the largest single power installation in the country. It will officially surpass the installed capacity of the 1,020-megawatt Akosombo Hydroelectric Power Station.

Why is ghana building this power plant?

President Mahama explained that the new thermal capacity is necessary to address shifts in the global energy landscape, including the rise of electric vehicles and renewable energy. The government aims to prevent stranded assets while meeting national power demands.

Independent Power Producers previously threatened to switch off power over unpaid debts. However, the government cleared these energy sector debts and reorganised the Electricity Company of Ghana to prioritise payments to producers, stabilizing the electricity supply.

What happens next?

While some Independent Power Producers offered to invest an additional 500 megawatts of capacity, the administration chose to prioritize state-owned generation for this project. The formal agreement to build the plant is scheduled for signing before the close of 2026, with construction timelines to follow.

Frequently asked questions

What is the capacity of the planned thermal plant in ghana?

The planned state-owned gas-fired thermal power plant will have a capacity of 1,200 megawatts, making it the largest single power facility in the country.

When will the agreement for the power plant be signed?

According to President John Dramani Mahama, the government will sign the agreement to build the 1,200-megawatt thermal power plant before the end of 2026.

Who announced the new power plant project?

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

How does the new plant compare to the Akosombo Dam?

The new 1,200-megawatt thermal plant will surpass the 1,020-megawatt Akosombo Hydroelectric Power Station, making it the country's biggest power plant.

Why did the government choose a state-owned plant over IPP offers?

Although Independent Power Producers offered an additional 500 megawatts of capacity, the government opted to build and strengthen state-owned generation capacity instead.

What is the current status of Ghana's energy sector debts?

President Mahama stated that the government has successfully cleared previous energy sector debts and reorganized the Electricity Company of Ghana to prioritize payments.