Mahama Announces 1,200MW State-Owned Gas Power Plant by End of 2026
President John Dramani Mahama has announced that government plans to build a 1,200-megawatt (MW) state-owned gas-fired thermal power plant as part of efforts to expand Ghana’s electricity generation capacity.
The President said an agreement for the project is expected to be signed before the end of 2026.
He made the announcement during a town hall meeting with members of the Ghanaian community in New York on Friday, September 25, 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,” President Mahama said.
If completed as planned, the proposed facility would become Ghana’s largest single power-generating plant by installed capacity, surpassing the 1,020MW Akosombo Hydroelectric Power Station.
President Mahama explained that the decision to increase thermal power generation was influenced by changes in the global energy sector, including the shift towards renewable energy and the growing use of electric vehicles.
He said government also wanted to avoid making major investments in power infrastructure that could eventually become stranded as the global energy mix changes.
The President further disclosed that some Independent Power Producers (IPPs), which had previously threatened to suspend power generation, were now ready to invest in an additional 500MW of generation capacity.
However, he said government preferred to increase the country’s state-owned generation capacity through the proposed project.
Energy Sector Debts
President Mahama also said government had cleared the energy sector debts and reorganised the Electricity Company of Ghana (ECG) to ensure that power producers receive priority in payments.
According to him, the measures have contributed to the stabilisation of electricity supply.
“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 explained that ECG’s revenue collection system had been reorganised so that payments to electricity generators would be made first.
The President said the approach was intended to ensure that power producers receive their payments before other expenditures are made.
Oil and Gas Investments
President Mahama also linked the planned expansion of thermal power generation to renewed investments in Ghana’s oil and gas industry.
He said oil production had increased by almost 38 percent since 2025 following new investments by oil producers.
According to the President, Jubilee Partners are investing $2 billion to drill 20 new wells, while Eni is investing $1.5 billion to bring the remaining portion of its Sankofa field into production.
He said the investments would increase the availability of gas needed to fuel thermal power generation while also increasing government revenue from the oil and gas sector.
President Mahama further disclosed that major international oil companies, including ExxonMobil and Shell, are now exploring opportunities to invest in Ghana’s oil and gas industry.
The government’s 2026 Budget had already outlined plans for a 1,200MW state-owned thermal power plant, linked to additional gas production expected from the OCTP and Jubilee partners.
