John Dramani Mahama has announced plans for the construction of a 1200-megawatt power plant as part of efforts to expand Ghana’s electricity generation capacity and strengthen energy security.
The President made the announcement during the Resetting Ghana Citizen Engagement on May 2, noting that rising electricity demand driven by economic growth requires urgent investment in new infrastructure.
He revealed that peak demand has increased significantly from about 3,500 megawatts to approximately 4,300 megawatts in recent years.
This surge, he said, highlights the need to scale up generation capacity to sustain growth and prevent supply disruptions.
Ensuring Stability and System Resilience
President Mahama explained that the proposed plant forms part of a broader strategy to build redundancy into Ghana’s power system.
By increasing available capacity, the government aims to create a buffer that can absorb shocks and maintain stable electricity supply.
He stressed that reliable power is essential for businesses and overall economic performance, particularly during periods of high demand.
“By God’s grace, this year we will cut sod for its commencement,” he said, indicating that preparatory work has already been completed by the Ministry of Energy and Green Transition and the Ministry of Finance.
According to the 2026 Budget Statement presented by Cassiel Ato Forson, the plant will be state-owned and powered by natural gas.
With a capacity of 1200 megawatts, it is expected to surpass the output of the Akosombo Dam, making it one of the largest power generation facilities in the country.
The facility will rely on domestic gas supplies from fields such as Jubilee and Offshore Cape Three Points. This shift is projected to significantly reduce generation costs compared to the use of imported fuels.
Officials estimate that using domestic gas could cut electricity production costs by up to 75 percent, easing financial pressure on the energy sector and potentially lowering tariffs for consumers.
Driving Industrial Growth and Investment
The new plant is also central to the government’s broader economic agenda, including the push for a 24-hour economy.
Stable and affordable electricity is seen as critical to enabling continuous industrial operations, particularly in manufacturing and services.
President Mahama noted that increased capacity would not only support local industries but also position Ghana to export surplus electricity to neighbouring countries such as Burkina Faso, creating an additional source of foreign exchange.
The project is expected to complement ongoing developments in Ghana’s energy sector, including plans to expand gas processing capacity through a second gas processing plant. This integration will ensure a steady supply of fuel for the new facility.
However, some analysts have raised concerns about the pace of implementation, urging the government to accelerate preparations to meet rising demand.
Strengthening Energy Security
President Mahama emphasised that the plant will help diversify Ghana’s energy mix, reducing reliance on hydropower, which is vulnerable to changing rainfall patterns.
By expanding thermal generation capacity, the government aims to ensure a more stable and consistent power supply year-round.
The planned Ghana 1200MW power plant represents a major step toward building a resilient energy system capable of supporting long-term economic transformation, with expectations that timely execution will be key to realising its full benefits.
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