President John Mahama has revealed that the renegotiation of Power Purchase Agreements (PPAs) with nine Independent Power Producers (IPPs) has saved the country US$250 million.
The President who made this known in his 2026 State of the Nation (SONA) in Parliament said apart from saving the country some money, the government has also restructured US$1.1 billion in legacy debt for payment between 2026 and 2028.
“To address the high cost of power, government has successfully renegotiated existing power purchase agreements. Engagement with the nine independent power producers has resulted in 250 million dollars in immediate savings and 1.1 billion dollars of legacy debt restructured for payment between 2026 and 2028,” he said.
According to President Mahama, the revised agreements which will be submitted to Parliament for ratification forms part of broader efforts to reduce the financial burden in the energy sector, improve efficiency, and ease pressure on electricity tariffs for households and businesses.
President Mahama further mentioned that renegotiation of the PPAs is expected to strengthen the financial sustainability of the power sector and ensure that Ghana continues to meet its obligations to the independent power producers under revised and more favourable terms.
By Ebenezer K. Amponsah