The Minister for Finance, Cassiel Ato Forson, has announced plans for the construction of a state-owned 1,200-megawatt power plant as part of Ghana’s renewed Gas-to-Power transformation policy aimed at stabilising the energy sector and conserving foreign exchange.
Addressing Parliament on Wednesday, February 25, the Minister said the large-scale power project forms a central pillar of the government’s strategy to transition electricity generation from expensive light crude oil to domestically produced natural gas.
He stressed that the shift is designed to significantly reduce generation costs while strengthening the country’s foreign exchange reserves.
“The implementation of the Gas-to-Power transformation policy will also significantly conserve the country’s foreign exchange reserves, making way for sustainable reserve accumulation,” he stated, adding that beyond the 1,200MW state-owned plant, government plans include the construction of a second gas processing facility and a comprehensive revamp of the oil and gas sector to attract fresh upstream petroleum investment.
The policy is expected to cut power generation costs by at least 75%, reduce the fiscal burden on the national budget, and lower carbon emissions within the electricity sector.
To reinforce the reforms, the government has allocated GH¢15.2 billion to address accumulated energy sector shortfall payments and earmarked an additional GH¢4.8 billion to clear legacy debts owed to Independent Power Producers in 2026.
