The Government of Ghana plans to invest in electricity generation, transmission and distribution to reduce power costs and end reliance on emergency power plants by December 2030.
Presenting the 2027 Budget, Finance Minister Dr Cassiel Ato Forson said Ghana’s annual energy sector shortfall stood at US$1.4 billion in January 2025, while outstanding payments to independent power producers and fuel suppliers reached US$1.7 billion.
To address the challenges, the government will begin constructing a 1,450MW state-owned thermal power plant in the Central Region in December 2026. The project will be fully state-funded, with the first 600MW expected by December 2028.
The plant will be complemented by 600MW of solar capacity and 2,000 megawatt-hours (MWh) of battery storage to support electricity supply during peak demand.
US$500m For Transmission Infrastructure
Government will invest US$500 million between 2027 and 2030 to modernise transmission infrastructure, reduce power losses and strengthen the North-South grid network.
The Ghana Grid Company (GRIDCo) will connect new generation facilities to demand centres and provide reliable electricity to strategic industrial enclaves.
Government will also deploy two million prepaid meters and fully implement performance-based private sector participation in electricity distribution by the end of 2027.
US$200m Nuclear Readiness Programme
A further US$200 million will fund a 24-month nuclear readiness programme from January 2027 to December 2028.
The programme will prepare Ghana to sign an engineering, procurement, construction and financing contract for a fully state-owned nuclear power plant. Government also plans to train more than 2,000 scientists to support the programme.
Target To Halve Generation Costs
Government aims to reduce electricity generation costs from US$0.16 per kilowatt-hour to US$0.08 or less.
The investments are expected to ease the financial burden of the energy sector, lower production costs for businesses and improve the competitiveness of Ghanaian manufacturers.
Government expects the combination of new generation capacity, grid modernisation and improved distribution to support industrialisation and eliminate reliance on costly emergency power by December 2030.
