Ghana to Build 1,450MW State-Owned Power Plant in Push to End Emergency Power by 2030

Ghana will begin construction of a 1,450-megawatt state-owned thermal power plant in December as part of a sweeping plan to end the country's costly reliance on emergency power and cut electricity generation costs by half, Finance Minister Dr. Cassiel Ato Forson has announced.

Speaking on JoyNews' PM Express on Thursday, November 12, 2026, Dr. Forson said the thermal facility at Ekafudzidzi in the Central Region will be fully funded and owned by the state without borrowing. The first 600 megawatts are expected online by the fourth quarter of 2028, with the remaining 850 megawatts by the third quarter of 2030.

"That will mean that, by that time, we can phase out what we call emergency power," Dr. Forson said. "Aside from that, we want to also diversify our power needs."

The plant will require approximately 150 million standard cubic feet of natural gas daily from the Sankofa and Jubilee fields to operate at full capacity.

Solar and Storage to Stabilise the Grid

Alongside the thermal project, the government will construct a fully state-owned 600MW solar facility equipped with 2,000 megawatt-hours of battery storage. The system is designed to retain excess daytime solar generation for use during peak demand periods, addressing one of the principal limitations of solar power while improving grid stability.

Dr. Forson said the combined generation capacity would support energy-intensive industries including bauxite and manganese processing, steel production, cement manufacturing and agro-processing — sectors central to the government's industrial transformation agenda.

"Energy capacity is economic capacity," he said. "It powers growth, jobs, and prosperity".

A Break From Costly Emergency Arrangements

The announcement comes against a backdrop of persistent financial strain in Ghana's energy sector. In May 2025, Energy Minister Dr. John Abdulai Jinapor disclosed that Ghana owed Independent Power Producers more than US$1.7 billion, with Karpowership threatening to shut down its plant over unpaid bills. The government later paid approximately US$1.47 billion in legacy energy-sector debts.

Sector arrears had stood at about GHS80 billion when the government assumed office. The annual taxpayer-funded shortfall to cover energy-sector gaps is estimated at US$1.4 billion.

The government aims to eliminate that burden entirely by 2030 while reducing the cost of power generation from approximately 16 US cents per kilowatt-hour to 8 US cents or less — a move officials say would lower production costs and improve the competitiveness of Ghanaian goods.

US$500 Million for Transmission, Two Million Prepaid Meters

Beyond generation, Dr. Forson announced a US$500 million investment between 2027 and 2030 to modernise the national transmission network. The funds will support the Ghana Grid Company (GRIDCo) in strengthening the north-south transmission corridor, connecting new generation facilities to demand centres, and providing reliable connections to strategic industrial zones.

On the distribution side, the government plans to deploy two million prepaid meters to reduce losses and improve revenue collection. Performance-based private-sector participation in electricity distribution is expected to be fully implemented by the end of 2027, with strategic public assets remaining protected.

The measures form part of the government's broader New Economy agenda, a GH¢10 billion initiative spanning 2027 to 2030 that targets eight pillars including commercial agriculture, energy infrastructure, critical minerals processing, textiles, pharmaceuticals and technology.

As Parliament begins deliberations on the 2027 Budget, the pressure will be on the government to deliver the generation capacity and grid improvements that have long eluded successive administrations — and to do so without adding to the debt burden that has strained public finances for years.