Ghana’s 2026 Budget and Economic Statement, presented by the Finance Minister, Dr. Cassiel Ato Baah Forson, prioritises the energy sector as a catalyst for socio-economic growth and development, with allocations aimed at ensuring reliable power supply across the country.
He allocated $250 million to pay Independent Power Producers (IPPs), who account for more than 60 percent of the electricity supplied to the national grid.
In addition, he budgeted GH¢2 billion for Phase I of the Rural Electrification Acceleration and Urban Intensification Initiative to expand electricity access nationwide.
Dr. Ato Forson outlined the government’s agenda for the energy sector with a renewed focus on financial stability, renewable energy expansion, and reliable power supply to fast-track Ghana’s industrialisation drive.
According to him, the aim is to provide sustainable electricity for households, industry, and exports, positioning energy as a key driver of economic growth.
The budget highlights key interventions, including the continuation of the Energy Sector Recovery Programme (ESRP), the Cash Waterfall Mechanism, and targeted measures to clear legacy debts owed to IPPs.
These reforms, Dr. Forson noted, are expected to revitalise investor confidence, stabilise the operations of the Electricity Company of Ghana (ECG), and enhance efficiency across the power value chain.
Regarding the country’s climate commitments, he stated that the government plans to increase renewable energy generation to 15 percent by 2030, supported by projects such as the Bui Solar Expansion, Norbert Anku Solar Park, and off-grid mini-grid systems across Northern Ghana.
These measures, he emphasised, are designed to augment industrial electrification and support the government’s proposed 24-Hour Economy by ensuring continuous power availability.
Touching on the Ministry of Energy and Green Transition and Employment’s flagship initiative—the Green Jobs and Skills Programme—the Finance Minister noted that thousands of young Ghanaians have already been trained in solar assembling, installation, and maintenance, helping to build a skilled workforce for the country’s emerging energy sector.
Dr. Forson stressed that the budget aims to stabilise the energy sector, expand renewable energy development, and promote local expertise to boost industrial productivity.
The budget also seeks to reduce operational costs within the energy sector and provide a reliable and sustainable energy foundation for Ghana’s long-term economic growth.
Ghana’s Renewable Energy Master Plan aims to increase renewable energy capacity to over 1,300 MW by 2030, expand electrification to off-grid communities, promote local participation, and reduce carbon emissions through phased implementation and regular reviews.
Ghana has made significant progress in advancing its renewable energy agenda through scaled solar and off-grid electrification programmes.
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