The government’s decision to renegotiate the tariffs of existing Power Purchase Agreements (PPAs) with nine Independent Power Producers (IPPs) in Ghana has resulted in savings of $261.9 million.
This was disclosed by Finance Minister Dr. Cassiel Ato Baah Forson while presenting the 2026 Budget Statement and Economic Policy of the Mahama administration in Parliament on Thursday, November 13, 2025.
“Mr. Speaker, the renegotiation of Power Purchase Agreements with nine Independent Power Producers has saved US$261.9 million,” Dr. Ato Forson said.
Independent Power Producers account for over 60 percent of the electricity generated on the national grid.
However, their generation tariffs have remained relatively high, leading to increased end-user tariffs and persistent complaints from the business community.
During the previous administration, a similar renegotiation exercise reportedly resulted in savings of US$13.2 billion. Despite that effort, IPPs tariffs remained elevated, prompting the current administration to initiate another round of talks.
The latest renegotiation is expected to be welcome news for industry, as it could help reduce electricity costs in the near future.
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