President Mahama Announces Plans for Ghana’s Largest 1,200MW Gas-Fired Power Plant by 2026

President John Dramani Mahama has announced that the Ghanaian government is on track to sign a landmark agreement for the construction of a 1,200-megawatt (MW) gas-fired thermal power plant by the end of 2026. Speaking at a town hall meeting in New York on September 25, 2025, the President revealed that the facility will be the largest state-owned power plant in the country upon completion. This ambitious project is central to the administration's strategy to bolster national energy security and provide a robust foundation for industrial growth.

The initiative comes as a strategic response to the evolving global energy landscape, particularly the shift toward renewable energy and the increasing adoption of electric vehicles. President Mahama emphasized that developing this state-owned capacity is essential to avoid the risk of "stranded assets" and to ensure the government maintains control over critical energy infrastructure. While the President acknowledged that several Independent Power Producers (IPPs) are ready to invest in additional capacity, he clarified that the government is currently prioritizing the expansion of state-owned generation facilities to meet future demand.

To support this expansion, the government has undertaken significant reforms within the energy sector to restore financial health and operational efficiency. President Mahama reported that substantial progress has been made in clearing energy sector debts and reorganizing the Electricity Company of Ghana (ECG). This restructuring is specifically aimed at prioritizing payments to power producers, thereby stabilizing the electricity supply and rebuilding investor confidence. Furthermore, increased investments in the nation’s oil and gas sector are expected to enhance the domestic gas supply required to fuel the new 1,200MW plant.

This infrastructure development is viewed as a cornerstone of Ghana's broader economic stability and industrialization agenda. By ensuring a reliable and affordable power supply, the government aims to support a more resilient economy and a more stable currency. The 2026 deadline for the project agreement underscores the administration's commitment to rapid infrastructure delivery as it seeks to position Ghana as an energy hub in the West African sub-region.