West Africa: Ghana Plans 1,200 Mw Gas Plant As Power Sector Costs Mount

What the report says

Ghana is pressing ahead with plans for a 1,200-megawatt gas-fired power plant at Kafodzidzi-Abrobeano in the Central Region, according to Daba Finance, distributed by AllAfrica. The state-owned facility is intended to improve electricity supply and lower power costs that continue to strain public finances. If completed, it would be the country’s largest power station, surpassing the 1,020-megawatt Akosombo hydroelectric dam.

Finance Minister Cassiel Ato Forson said feasibility work has supported the project’s prospects, while environmental, engineering and permitting steps are ongoing. The report says the first 600-megawatt phase is expected to start operating in 2028. Ghana has already secured gas turbines from GE Vernova, and officials estimate the direct purchase could save 35% to 45% compared with sourcing the equipment through third parties.

The project comes as Ghana continues efforts to reduce losses in the electricity sector. The report cites World Bank and IMF projections showing large annual financing gaps tied to collection losses, distribution problems and generation contracts. Officials say the new plant could help cut generation costs and potentially support lower tariffs, although financing the project remains a challenge.

The article adds that Ghana is also developing a gas-processing facility and has shifted more thermal generation from liquid fuels to natural gas, which the government says has reduced costs. More broadly, the plant is part of a wider effort to expand supply without adding too much pressure to public debt, while improving the economics of the power sector.