Gov’t to Construct 1,200MW State-Owned Thermal Power Plant in 2026 – Ato Forson

By Praisebell Rosemond Larbi
The government has announced plans to commence the construction of a major 1,200-megawatt (MW) state-owned thermal power plant in 2026, a move aimed at expanding Ghana’s energy generation capacity and ensuring long-term energy security.
Presenting the 2026 Budget Statement and Economic Policy in Parliament on Thursday November 13, 2025, the Minister for Finance, Dr. Cassiel Ato Forson, said the new facility will utilise an additional 150 million standard cubic feet of gas per day (mmscfd) expected from the Offshore Cape Three Points (OCTP) partners and the Ghana Power Plant 2 (GPP 2) project.
“Beginning in 2026, Government will commence the construction of a 1,200-megawatt state-owned thermal power plant to offtake the additional 150 million standard cubic feet of gas per day from the OCTP partners and GPP 2,” Dr. Forson announced.
According to the Finance Minister, the project forms part of government’s broader strategy to enhance the reliability, affordability, and sustainability of Ghana’s power supply, which is critical to supporting both industrial expansion and household energy needs. He emphasized that the initiative will not only reduce the country’s dependence on imported power but also reinforce the energy infrastructure required for accelerated economic transformation.
“Mr. Speaker, in the medium term, a total of 150 million standard cubic feet of gas per day will be produced by our OCTP and Jubilee partners, enough to generate up to 1,200 megawatts of power,” Dr. Forson said.
The proposed state-owned thermal plant is expected to complement existing generation assets while reducing the overall cost of power to consumers. It also signals a renewed government focus on state participation in energy production, an area that has largely been dominated by Independent Power Producers (IPPs) over the past decade.
This announcement comes on the heels of the commissioning of the 200MW Bridge Power Plant, which the Minister said now supplies over 7 percent of Ghana’s dependable thermal power capacity. The Bridge Power project, along with other ongoing infrastructure investments, underscores government’s drive to expand local generation capacity and ensure a stable power supply to fuel industrial growth.
Dr. Forson reaffirmed government’s commitment to resolving financial and operational challenges within the energy sector, including clearing arrears owed to IPPs and streamlining energy sector payments. “We remain focused on strengthening partnerships with Independent Power Producers and ensuring that the sector remains financially viable and efficient,” he noted.
The 1,200MW plant, when completed, is expected to become one of Ghana’s largest power facilities, positioning the country as a leading energy hub in West Africa.