Ghana's government is developing a 1,200-megawatt state-owned combined-cycle gas-fired power plant at Kafodzidzi-Abrobeano in the Komenda-Edina-Eguafo-Abrem Municipality. Finance Minister Dr. Cassiel Ato Forson announced this initiative, which aims to boost electricity generation and significantly lower power costs across the nation.
The project's viability has been confirmed through comprehensive feasibility studies, with preparatory work already in progress. Environmental, engineering, and permitting processes are advancing steadily, ensuring the project adheres to all necessary regulations. The first phase, which will deliver 600 megawatts of power, is scheduled for commissioning in 2028.
This new power plant is a critical component of Ghana's broader strategy to strengthen its energy infrastructure and ensure a more reliable and affordable electricity supply. High electricity costs have long been a concern for both businesses and households, impacting economic competitiveness and household budgets. This project seeks to address these long-standing issues directly.
Dr. Forson stated during the 2026 Mid-Year Fiscal Policy Review in Parliament on Thursday, July 23, that the government secured gas turbines directly from GE Vernova. This direct procurement method has achieved substantial savings, estimated between 35 and 45 percent, compared to acquiring them through third-party suppliers. This cost-saving measure underscores the government's commitment to fiscal prudence in major infrastructure projects.
The Finance Minister indicated that the project will lower electricity generation costs, leading to a reduction in electricity tariffs by 10-20 percent. Additionally, the construction and operation of the power plant are expected to create more than 2,000 direct and indirect jobs during its initial phase. This employment generation will provide a significant economic boost to the local community and the broader Ghanaian economy.
Ghana has historically faced challenges with power supply reliability and cost, leading to periods of 'dumsor' or power outages. Investments in new generation capacity, particularly from gas, are crucial for diversifying the energy mix and reducing reliance on more expensive or less stable sources. The government's focus on gas-fired plants aligns with its long-term energy security goals, leveraging domestic gas resources where possible.
The development of this 1,200MW plant follows previous government efforts to stabilize the energy sector, including initiatives to clear legacy debts and improve the financial health of state-owned power utilities. This project represents a significant step towards achieving energy self-sufficiency and providing a stable foundation for industrial growth and improved living standards. The expected tariff reductions will offer tangible relief to consumers and businesses, fostering a more conducive environment for economic activity.
Stakeholders will closely monitor the project's progress, particularly its adherence to the 2028 commissioning timeline for the first phase. The successful implementation of this power plant could serve as a model for future energy infrastructure developments in Ghana, demonstrating the government's capacity to execute large-scale projects efficiently and cost-effectively. The long-term impact on Ghana's energy landscape and economic stability will be substantial.