President John Dramani Mahama has announced that the government has successfully renegotiated power purchase agreements with Independent Power Producers (IPPs), resulting in significant savings and debt restructuring aimed at reducing the cost of electricity.
Delivering his 2026 State of the Nation Address in Parliament on Friday, the President said the renegotiations form part of broader efforts to ease the financial burden on the energy sector and ensure long-term sustainability.
According to him, government engagements with nine Independent Power Producers have yielded immediate savings of GH¢250 million. In addition, legacy debts amounting to GH¢1.1 billion have been successfully restructured, with repayment scheduled between 2026 and 2028.
President Mahama explained that the revised agreements are expected to reduce the overall cost of power generation and improve efficiency within the energy sector, ultimately benefiting consumers and stabilising the economy.
He noted that the agreement will soon be submitted to Parliament for ratification.
“To address the high cost of power, the government has successfully renegotiated existing power purchase agreement. Engagement with the nine Independent Power Producers have resulted in GHC250 million immediate savings and GHC1.1 billion of legacy debt restructured for payment between the period 2026 and 2028.
“This revised agreement will be brought to Parliament, and I am pleased to inform you, Mr Speaker, it will be presented here for ratification,” he said.
The President emphasised that the renegotiation of power contracts reflects the government’s commitment to prudent financial management and reforms in the energy sector. He noted that reducing excessive power costs remains critical to supporting businesses, promoting industrial growth, and protecting households from high electricity tariffs.
The move forms part of ongoing measures by the Mahama administration to strengthen Ghana’s energy sector and improve fiscal discipline while ensuring reliable and affordable electricity supply.
