$250m saved as gov’t renegotiates power deals with IPPs- Mahama
President John Dramani Mahama has announced that Ghana has saved approximately $250 million following successful renegotiations of power purchase agreements (PPAs) with independent power producers (IPPs), as part of government’s broader reforms to stabilize the energy sector.
Delivering the 2026 State of the Nation Address (SONA) in Parliament, President Mahama said the renegotiated agreements also include restructuring of $1.1 billion in legacy energy sector debts to be paid between 2026 and 2028.
“Mr. Speaker, engagement with nine independent power producers has resulted in $250 million in immediate savings and the restructuring of $1.1 billion in legacy debts for payment between 2026 and 2028,” the President told Parliament.
He explained that the renegotiations were part of government’s strategy to address high energy costs, reduce fiscal pressure on the national budget, and improve reliability in electricity supply for households and industry.
“These revised agreements will be submitted to Cabinet and subsequently brought to this honourable House for ratification,” President Mahama added, stressing the government’s commitment to transparency and parliamentary oversight in implementing the reforms.
According to the President, the energy sector reforms are also focused on strengthening Ghana’s gas supply chain, improving efficiency in electricity distribution, and reducing dependence on expensive liquid fuels for power generation.
Government has been engaging upstream partners in the oil and gas sector to increase domestic gas production and support reliable power generation for national development.
“Engagement with upstream partners has resulted in increased gas production, guided by a clear national vision to rapidly scale up domestic gas supply and reduce reliance on expensive liquid fuels,” he stated.
President Mahama said the reforms are expected to provide long-term stability for the power sector while ensuring that Ghana maintains its attractiveness to investors in the energy value chain.
Energy sector analysts have often pointed to power purchase agreements signed in previous years as contributing to rising generation costs. The government’s renegotiation efforts, therefore, are being positioned as a key fiscal and economic recovery measure.
The President reiterated his administration’s commitment to ensuring affordable and reliable electricity supply across Ghana, while strengthening the financial sustainability of utility companies.
“I remain fully committed to turning around the sector, strengthening its foundations, and ensuring reliable, affordable and sustainable energy security for our nation,” he said.
