Deputy Energy Minister Outlines €10 Billion Investment Strategy to Lower Industrial Power Costs and Expand Capacity

The Ghanaian government has announced an ambitious roadmap to reduce electricity costs for the industrial sector, aiming to bolster local production and regional competitiveness. Speaking at the 2026 Ghana Industrial Summit, Deputy Minister of Energy and Green Transition Richard Gyan-Mensah revealed strategies to attract €10 billion in investments to meet a projected peak demand of 10,000 megawatts by 2040. These measures include lowering renewable energy tariffs, capping thermal power tariffs, and aggressively addressing legacy energy-sector debts. The initiative comes as the Association of Ghana Industries (AGI) continues to raise concerns regarding significant hikes in electricity bills, which manufacturers warn are undermining the competitiveness of Ghanaian goods in the regional market.

To support these long-term industrial goals, the government is focusing on a sustainable energy ecosystem that balances affordability with reliability. The Volta River Authority (VRA) is currently making progress on a new power project featuring integrated battery energy storage to stabilize the grid. Furthermore, the Deputy Minister highlighted Ghana's growing potential as a regional energy hub, noting the country's capacity to transmit electricity to Nigeria. However, achieving this vision requires a significant expansion of gas-fired thermal generation and a more streamlined approach to energy pricing to ensure that local industries are not disadvantaged by high overheads.

Parallel to these industrial reforms, the Electricity Company of Ghana (ECG) is intensifying efforts to secure the sector's financial liquidity through a mass revenue mobilization exercise. Scheduled from September 23 to October 2, 2026, the operation will target customers with outstanding arrears across the Volta and Oti regions. Special teams will be deployed to enforce compliance and disconnect illegal connections, a move seen as vital for maintaining the cash flow necessary to fund infrastructure upgrades. ECG officials have urged all customers, including commercial and industrial entities, to settle their bills promptly via mobile platforms to avoid service disruptions.

Reflecting on the progress made over the last decade, industry analysts point to the stabilizing role played by Karpowership, which has become a cornerstone of Ghana’s energy security since the 2015 'dumsor' crisis. Currently providing approximately 450 MW—nearly a quarter of the national demand—Karpowership’s transition to domestic gas in 2019 has yielded substantial cost savings for the state. As the government looks toward the 2040 target, the integration of established private partners with new large-scale investments and stricter revenue collection is expected to form the bedrock of Ghana’s energy transition and industrial resurgence.