The government has successfully concluded the renegotiation of all Power Purchase Agreements (PPAs) with Independent Power Producers (IPPs), according to the 2026 Budget Statement presented to Parliament by the Finance Minister, Dr. Cassiel Ato Forson.
The budget reports that the renegotiations have resulted in savings of over US$250 million for the nation. Furthermore, the remaining US$1.1 billion in legacy obligations has been reprofiled over a four-year period ending in 2028.
The government inherited a significant US$1.4 billion legacy debt owed to IPPs. The Minister reported that the renegotiations were achieved by a team of Ghanaian experts at no cost to the State.
In a related development, the budget highlighted a substantial improvement in the revenue performance of the Electricity Company of Ghana (ECG). The company’s average monthly revenue has risen from GH¢900 million in 2024 to GH¢1.7 billion in 2025, an increase attributed to full compliance with the Cash Waterfall Mechanism (CWM).
The government also stated it is now fully current on its payment obligations to IPPs under the renegotiated agreements. In 2025 alone, US$300 million was paid, with an additional US$345 million programmed for payment in 2026.
Additionally, Cabinet has approved a strategy to open the power-distribution segment to private participation, with concessions expected to be awarded in 2026.
