SONA: Ghana Targets Lower Electricity Costs as Mahama Renegotiates Power Contracts — Mahama

President John Dramani Mahama says government is aggressively pursuing reforms in the energy sector aimed at reducing electricity tariffs, eliminating legacy debts, and ensuring reliable power supply to support economic and industrial growth.

Addressing Parliament, President Mahama announced that government has successfully renegotiated several Power Purchase Agreements (PPAs) with nine Independent Power Producers (IPPs), resulting in significant fiscal savings for the country.

“We are determined to address the high cost of power and ensure that Ghanaian households and industries benefit from affordable electricity,” President Mahama stated.

He disclosed that the renegotiations have already generated immediate financial relief for the state, with about $250 million saved through revised contract arrangements.

“Engagements with the nine independent power producers have resulted in $250 million in immediate savings for the country,” he said.

President Mahama further revealed that the government has also restructured $1.1 billion in legacy energy sector debt, allowing for manageable repayment schedules between 2026 and 2028.

“This administration has successfully restructured $1.1 billion of legacy debt to be paid within a sustainable period from 2026 to 2028,” he explained.

He said the energy sector reforms are guided by a long-term vision to stabilize electricity pricing and remove financial bottlenecks that have historically constrained the sector.

According to the President, the revised agreements will undergo further review before being submitted to Cabinet and subsequently presented to Parliament for ratification.

“These revised agreements will be submitted to Cabinet and will be brought to Parliament for ratification,” he said.

President Mahama added that strengthening domestic gas supply remains central to government’s strategy to lower power generation costs and reduce reliance on expensive liquid fuels.

“By scaling up domestic gas production, we are ensuring reliable nationwide electricity generation while accelerating industrial expansion,” he added.