The project, which is expected to commence in December 2026, will be fully financed and owned by the state, according to Finance Minister Dr Cassiel Ato Baah Forson.
Presenting the 2028 Government Budget and Economic Plan to Parliament, he said the first 600MW of the facility would be ready by December 2028, with the remaining 850MW expected to be completed by December 2030.
The plant is expected to consume approximately 150 million standard cubic feet of natural gas daily from the Sankofa and Jubilee fields.
In addition to the thermal facility, the government plans to construct a 600MW state-owned solar power plant supported by 2,000 megawatt-hours (MWh) of battery storage.
The battery system is expected to store excess daytime solar electricity for use during peak demand periods and help stabilise the national electricity grid.
Dr Forson said the combined generation capacity and storage infrastructure would support households and industries, particularly businesses involved in bauxite, manganese, steel and cement processing, agro-industry and the 24-hour economy.
End to emergency power plants
The Finance Minister said the government intended to phase out all emergency power plants by December 2030, relying on the new thermal and solar facilities, alongside battery storage, to meet electricity demand.
He said Ghana would also invest US$500 million between 2027 and 2030 to modernise the electricity transmission network and reduce technical losses.
The investment would strengthen the North-South transmission network, connect new generation facilities to demand centres and provide reliable electricity connections to strategic industrial enclaves.
To address distribution losses, the government plans to deploy two million prepaid electricity metres.
The Minister further announced that performance-based private-sector participation in electricity distribution would be fully implemented by the end of 2027, while strategic public assets would remain protected.
Lower electricity generation costs
The government is targeting a reduction in the cost of power generation from US$0.16 per kilowatt-hour to US$0.08 or less.
Dr Forson said the proposed investments in generation, transmission and distribution would help reduce the financial burden of the energy sector on the national budget.
He disclosed that Ghana recorded an annual energy-sector shortfall of US$1.4 billion in January 2025, while outstanding obligations to independent power producers and fuel suppliers stood at US$1.7 billion.
He said reliable and affordable electricity was essential to reducing production costs, attracting investment and accelerating industrialisation.
The government expects the proposed interventions to strengthen energy security and provide businesses with more reliable electricity to support expansion and job creation.
