Government Unveils 1,200MW Gas Project to Cut Power Tariffs and Boost Energy Security

Ghana is advancing plans to construct a 1,200-megawatt state-owned combined-cycle gas-fired power plant, in a move the government says will lower electricity generation costs, reduce consumer tariffs and strengthen the country’s long-term energy security.

Presenting the 2026 Mid-Year Fiscal Policy Review to Parliament on Thursday, Finance Minister Dr. Cassiel Ato Forson announced that the project will be located at Kafodzidzi-Abrobeano in the Komenda-Edina-Eguafo-Abrem (KEEA) Municipality of the Central Region.

The project forms part of the government’s broader strategy to modernise Ghana’s energy infrastructure while reducing the cost of electricity generation for households and businesses.

“The government is also developing a 1,200-megawatt state-owned combined-cycle gas-fired power plant at Kafodzidzi-Abrobeano in the Komenda-Edina-Eguafo-Abrem Municipality,” Dr. Forson told Parliament.

According to the Finance Minister, feasibility studies have confirmed the project’s commercial and technical viability, while environmental assessments, engineering designs and regulatory permitting are progressing ahead of construction.

The first 600MW phase of the power plant is expected to be commissioned in 2028, with the remaining capacity to be developed in a subsequent phase.

To reduce project costs, the government has opted to procure gas turbines directly from GE Vernova, bypassing intermediaries.

Dr. Forson said the procurement strategy is expected to deliver cost savings of between 35% and 45% compared with conventional third-party procurement arrangements.

Government estimates the project will reduce electricity generation costs sufficiently to lower consumer electricity tariffs by 10% to 20%, while creating more than 2,000 direct and indirect jobs during the first phase of development.

The proposed plant comes as Ghana continues to pursue a more reliable and affordable electricity system amid rising energy demand and persistent concerns over the financial sustainability of the power sector.

For investors, the project signals the administration’s intention to expand domestic generation capacity while leveraging natural gas as a transitional fuel to improve efficiency, lower production costs and support industrial growth.

If completed on schedule, the KEEA power plant would rank among Ghana’s largest thermal generation facilities and become a key pillar of the country’s medium-term energy strategy.