Government has announced a major restructuring of Ghana’s electricity generation, transmission and distribution systems, backed by a US$2.2 billion energy infrastructure programme, with a target of ending dependence on costly emergency power plants by 2030.
The ambitious intervention, announced by Finance Minister Dr Cassiel Ato Forson during the presentation of the 2027 Budget Statement to Parliament on Thursday, November 12, 2026, seeks to address persistent electricity sector deficits, high generation costs, distribution losses and mounting financial obligations to independent power producers (IPPs) and fuel suppliers.
Under the programme, Government will commence construction in December 2026 of a 1,450-megawatt thermal power plant at Kafodzidzi-Abrobeano in the Central Region.
The facility will be fully funded and owned by the State, with the first 600 megawatts expected to be ready by December 2028 and the remaining 850 megawatts by December 2030.
The plant is expected to consume an additional 150 million standard cubic feet of gas daily from the Sankofa and Jubilee fields.
Government will also construct a fully state-owned 600-megawatt solar power plant, supported by 2,000 megawatt-hours of battery storage to shift daytime solar generation into peak demand periods and strengthen grid stability.
The combined generation capacity is expected to support households and industries, particularly energy-intensive operations in bauxite and manganese processing, steel, cement, agro-industry and the 24-Hour Economy programme.
Dr Forson said Ghana’s energy challenges remained a major constraint on industrial development, despite the expansion of the country’s generation capacity.
He disclosed that the annual energy sector shortfall stood at approximately US$1.4 billion in 2025, while arrears owed to IPPs and fuel suppliers amounted to about US$1.7 billion.
To address transmission bottlenecks, Government will commit US$500 million between 2027 and 2030 to modernise the national transmission network and reduce technical losses.
The Ghana Grid Company (GRIDCo) is expected to strengthen the north-south transmission network, connect new generation facilities to demand centres, support sub-regional electricity trade and provide dedicated, high-reliability connections to strategic industrial enclaves.
At the distribution level, two million prepaid meters will be deployed to reduce commercial losses and improve revenue collection.
Government also intends to fully implement performance-based private-sector participation in electricity distribution by the end of 2027, while retaining strategic public assets.
The Finance Minister said the combined interventions would help eliminate the US$1.4 billion annual burden on taxpayers and reduce the cost of power generation from approximately 16 US cents per kilowatt-hour to 8 US cents or less.
He argued that cheaper and more reliable electricity would lower production costs, improve the competitiveness of Ghanaian products and encourage businesses to expand.
The Government’s stated ambition is to achieve energy sovereignty through stronger state-owned generation capacity and a more reliable national transmission system.
However, the success of the programme will depend on timely project delivery, sustainable financing, adequate gas supply, improved revenue collection and the ability to translate increased generation capacity into affordable electricity for consumers.
The 2030 deadline therefore places considerable responsibility on the energy sector institutions to deliver the infrastructure and operational reforms required to end Ghana’s dependence on expensive emergency power.
By: Christian Kpesese
