Ghana is moving ahead with plans to build a 1,200-megawatt gas-fired power plant that would become the country’s largest power-generation facility, surpassing the 1,020 MW Akosombo hydroelectric plant.

The project is being developed at Kafodzidzi-Abrobeano in the Central Region as the government seeks to strengthen electricity generation and reduce the financial pressures weighing on Ghana’s power sector.

The first phase of the project is expected to deliver 600 MW by 2028, with the full 1,200 MW capacity to follow. The government has already secured gas turbines directly from GE Vernova, a move officials say could reduce procurement costs by between 35% and 45%.

The planned plant is expected to operate as a gas-fired combined-cycle facility and will be owned by the Ghanaian state.

The investment comes as Ghana continues to struggle with financial and operational challenges in its electricity sector. The International Monetary Fund estimates that the sector’s financial shortfall could reach about $1.1 billion in 2026.

Power reliability problems also impose significant costs on businesses, which frequently rely on diesel generators and other backup systems when grid electricity is unavailable or unstable.

The government expects the new plant to help reduce electricity generation costs and potentially support a 10% to 20% reduction in power tariffs. The first phase is also expected to create more than 2,000 direct and indirect jobs.

Once fully completed, the 1,200 MW facility would represent a major addition to Ghana’s generation capacity and exceed Akosombo’s installed capacity.

But the success of the project will depend not only on generation capacity. Reliable gas supplies, transmission infrastructure and the financial health of Ghana’s electricity sector will remain critical to ensuring that the additional power reaches consumers.

For Ghana, the project represents a major bet on gas-fired generation as the country seeks to secure more reliable electricity while reducing the economic burden of its troubled power sector.