‎2027 budget: Gov’t to build 1,450MW power plant in Central Region, invest US$2.2bn in energy infrastructure

‎Finance Minister Dr Cassiel Ato Forson has announced government plans to begin construction of a 1,450-megawatt state-owned thermal power plant at Kafodzidzi-Abrobeano in the Central Region in December 2026 as part of a US$2.2 billion investment in energy infrastructure.
‎
‎Dr Ato Forson made the announcement during the presentation of the 2027 Budget Statement and Economic Policy to Parliament on Thursday, November 12, 2026.
‎
‎The proposed power plant will be fully funded and owned by the state, with the first 600 megawatts expected to be ready by December 2028 and the remaining 850 megawatts scheduled for completion by December 2030.
‎
‎The plant is expected to utilise approximately 150 million standard cubic feet of additional gas daily from the Sankofa and Jubilee fields.
‎
‎Government will also construct a fully state-owned 600-megawatt solar power plant supported by 2,000 megawatt-hours of battery storage to improve electricity supply and strengthen grid stability.
‎
‎The investments are expected to support industrial activities, including bauxite and manganese processing, steel, cement and agro-industries, as well as the 24-Hour Economy programme.
‎
‎Dr Forson said the projects were part of efforts to achieve energy independence and address the financial challenges confronting the energy sector.
‎
‎”In December 2026 (this year), we will start the construction of a 1,450-megawatt thermal power plant at Kafodzidzi-Abrobeano in the Central Region,” he announced.
‎
‎He further declared that government would end its dependence on expensive emergency power plants by 2030.
‎
‎”Mr. Speaker, we will end our dependence on costly emergency power by 2030,” he said.
‎
‎The budget indicates that Ghana’s energy sector recorded an annual shortfall of approximately US$1.4 billion in 2025, while arrears owed to Independent Power Producers and fuel suppliers stood at about US$1.7 billion.
‎
‎To address the challenges, government will invest US$500 million between 2027 and 2030 to modernise the country’s electricity transmission system and reduce transmission losses.
‎
‎Additionally, two million prepaid meters will be deployed to reduce distribution losses, while performance-based private-sector participation in electricity distribution is expected to be fully implemented by the end of 2027.
‎
‎The government is also targeting a reduction in the cost of power generation from approximately 16 US cents per kilowatt-hour to eight US cents or less.
‎
‎Another major component of the energy programme is the development of nuclear power.
‎
‎Government plans to invest US$200 million in a 24-month nuclear-readiness programme from January 2027 to December 2028.
‎
‎By December 2028, government expects to complete preparations and sign the engineering, procurement, construction and financing contract for a fully state-owned nuclear baseload power plant.
‎
‎However, Dr Forson clarified that completing nuclear readiness in 2028 would not mean electricity generation would begin that year.
‎
‎He said the preparatory work would include site studies, technology selection, environmental assessments, financing, licensing preparations, safeguards and emergency planning.
‎
‎Government also intends to train more than 2,000 scientists to develop the local expertise required to support the country’s nuclear energy ambitions.
‎
‎The Finance Minister said reliable and affordable electricity remained essential to Ghana’s industrialization agenda, adding that the investments would lower production costs, improve competitiveness and create employment opportunities.
‎