President John Dramani Mahama has announced that government has secured US$250 million in immediate savings following the successful renegotiation of existing Power Purchase Agreements (PPAs) with nine Independent Power Producers (IPPs).

Delivering his 2026 State of the Nation Address in Parliament, President Mahama disclosed that in addition to the immediate savings, 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,” the President stated.

He added that the revised agreements will be submitted to Parliament for ratification.

According to the President, the move 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.

The renegotiation of the PPAs is expected to strengthen the financial sustainability of the power sector while ensuring that Ghana continues to meet its obligations to the independent power producers under revised and more favourable terms.