By Amoako Kwame
The Minister for Finance, Cassiel Ato Forson, says the construction of a state-owned 1,200-megawatt power plant is to conserve foreign exchange, the project is within the framework of Ghana’s renewed Gas-to-Power transformation policy aimed at strengthening the energy sector.
On the floor of Parliament during February 25, 2025 proceedings the minister stated that this move was essential to easing government’s expenditure on electricity generation by changing the production strategy from expensive crude oil to domestic natural gas.
“The implementation of the Gas-to-Power transformation policy will also significantly conserve the country’s foreign exchange reserves, making way for sustainable reserve accumulation” he said
The policy is expected to cut power generation costs by at least 75%, reduce the fiscal burden on the national budget, and lower carbon emissions within the electricity sector.
The Minister also indicated that the government has allocated GH¢15.2 billion to address accumulated energy sector shortfall payments and earmarked an additional GH¢4.8 billion to clear legacy debts owed to Independent Power Producers in 2026.
The new plant is expected to offtake additional gas from the OCTP partners and Gas Processing Plant (GPP 2), providing reliable fuel supply for large-scale power generation.
The project forms part of the Mahama administration’s broader strategy to expand state ownership in the energy sector, reduce dependence on private independent power producers, and stabilize electricity tariffs for both industries and households.
