The Government of Ghana has announced plans to expand the country’s power generation capacity by constructing a 1,200-megawatt state-owned thermal power plant in 2026 to meet growing electricity demand.
The new plant is expected to utilise 150 million standard cubic feet of gas per day from the OCTP and Jubilee partners, as well as the proposed second gas processing plant, known as GPP 2.
Ghana’s electricity generation mix is currently dominated by Independent Power Producers (IPPs), who account for more than 60 percent of the power supplied to the national grid.
The remainder comes from state-owned entities, notably the Volta River Authority (VRA) and the Bui Power Authority (BPA).
With the planned 1,200MW thermal power plant, the share of power generated by state-owned institutions is expected to increase significantly.
Ghana’s Finance Minister, Dr. Cassiel Ato Baah Forson, who disclosed this while presenting the 2026 Budget and Economic Statement in Parliament on Thursday, November 13, 2025, said the new power plant is expected to enhance Ghana’s energy security, reliability, and accessibility, supporting both residential and industrial growth.
“Beginning 2026, Government will commence the construction of a 1,200-megawatt state-owned thermal power plant to offtake the additional 150 million standard cubic feet of gas per day from the OCTP partners and GPP 2,” he stated.
He added that the initiative aligns with the government’s commitment to improving energy infrastructure and meeting increasing demand.
“Mr Speaker, in the medium term, a total of 150 million standard cubic feet of gas per day will be produced by our OCTP and Jubilee partners—enough to generate up to 1,200 megawatts of power.”
The government has also emphasised its dedication to addressing financial challenges within the energy sector and strengthening partnerships with Independent Power Producers.
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