John Dramani Mahama has announced that his administration has renegotiated key power purchase agreements, securing an immediate savings of $250 million and restructuring $1.1 billion in legacy energy sector debt.
Addressing Parliament, President Mahama said engagements with nine Independent Power Producers (IPPs) resulted in the financial relief, describing it as a major step toward restoring stability in the energy sector.
“To address the high cost of power, the government has successfully renegotiated existing power purchase agreements,” he said, adding that the restructured legacy debt would be spread between 2026 and 2030. He noted that the agreements would be brought before Parliament for ratification.
The President explained that the reforms form part of a broader strategy to strengthen the financial foundation of the power sector, which he said was previously burdened by heavy debts and inefficiencies.
He disclosed that between January and December 2025, government settled all outstanding gas invoices owed to suppliers, amounting to approximately $500 million, bringing the country fully up to date on its gas consumption obligations.
A strengthened cash waterfall mechanism has also been implemented to ensure transparency and discipline in revenue distribution within the sector, he said. In addition, the operationalisation of ECG’s single holding account — overseen by the Ministry of Energy and the Public Utilities Regulatory Commission — has significantly reduced revenue leakages and improved the Electricity Company of Ghana’s ability to meet its obligations.
On access to electricity, Mr Mahama reported that 200 out of 400 targeted communities have been connected to the national grid under the Rural Electrification Programme, with national electricity access now standing at 89.05 per cent.
He further announced progress in renewable energy expansion, including additional solar capacity and plans for a 200-megawatt solar project at the Dawa Industrial Zone, with the first 100 megawatts expected to be completed by December 2026.
The President assured Ghanaians that energy sector reforms would continue unabated.
“I remain fully committed to turning around the sector, strengthening its foundations, and ensuring reliable, affordable and sustainable energy security for our nation,” he stated.
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