Ghana’s energy sector has recorded significant gains following government-led reforms, Finance Minister Ato Forson announced during the 2026 budget presentation.
The Minister revealed that renegotiations of power purchase agreements (PPAs) with independent power producers have saved the state over $250 million while restructuring $1.1 billion in payments over four years. In his words, these reforms were implemented without costing the government a single cedi:
“We have renegotiated our power purchase agreement, led by Ghanaian experts, at no cost to the state, saving over 250 million US dollars and restructuring 1.1 billion Ghana cities over a four-year period.”
Minister Forson also reported that the government is now fully managing energy payments, clearing $300 million in 2025 and allocating $345 million for 2026. He emphasized that for the first time, no new arrears are being accrued in the energy sector:
“Government is now fully carrying on payments…For the first time, we are not accruing new arrests in the energy sector.”
The reforms led to a substantial drop in solar tariffs, reducing costs and expanding access. As Forson explained:
“Solar tariffs…have dropped from 18 to 6.5 cents per kilowatt hour, cutting costs and expanding access.”
Revenue collection by the Electricity Company of Ghana has also surged under the reforms, rising nearly 90% per month from GHS 900 million to GHS 1.7 billion, thanks to better enforcement of cash flow mechanisms:
“ECG’s revenue has improved by almost 90 percent per month, from 900 Ghana cities per month to 1.7 billion Ghana cities per calendar month.”
Minister Forson said these measures not only safeguard public funds but also enhance efficiency and restore investor confidence, marking a milestone in the government’s broader push for fiscal stability and economic transformation.
