President John Dramani Mahama has announced plans for Ghana to add 1,200 megawatts (MW) of state-owned gas-fired thermal power generation capacity as the government moves to strengthen the country’s long-term electricity supply.

President Mahama said an agreement for the project is expected to be signed before the end of 2026, describing it as the largest thermal generation project planned for Ghana.

Speaking at a town hall meeting with Ghanaians in New York on Friday, September 25, he said the government was pursuing the project alongside growing interest from Independent Power Producers (IPPs) to add another 500MW of generation capacity.

“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,” he said.

The planned facility would have an installed capacity exceeding the 1,020MW Akosombo Hydroelectric Power Station, potentially making it Ghana’s largest single electricity generation facility by installed capacity.

President Mahama said the decision to invest in additional state-owned generation capacity was partly informed by changes taking place in the global energy industry.

He explained that Ghana must carefully consider the long-term viability of major power projects as renewable energy expands and the adoption of electric vehicles changes future electricity demand.

According to him, the government wants to ensure that new investments do not become stranded assets as Ghana’s energy mix evolves.

The President also linked the planned investment to efforts to stabilise the finances of the energy sector, saying the government had cleared outstanding debts owed to power producers.

“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 added that the Electricity Company of Ghana (ECG) had reorganised its revenue collection and payment arrangements to ensure that power generators receive their payments on time.

President Mahama said the changes had contributed to improved stability in electricity supply by reducing delays in payments to Independent Power Producers.

He further pointed to developments in Ghana’s oil and gas sector as a potential source of fuel security for the planned thermal generation capacity.

According to the President, oil production has increased by almost 38% since 2025, while Jubilee Partners have committed $2 billion to drilling 20 new wells.

He also said Eni had committed $1.5 billion to bring the remaining portion of its Sankofa field into production.

President Mahama added that international oil companies, including ExxonMobil and Shell, were exploring opportunities in Ghana, which he said could support further growth in the country’s oil, gas and energy sectors.

He further said international oil companies, including ExxonMobil and Shell, are exploring opportunities in Ghana, which could provide additional support for the country’s energy sector.