Government will dedicate US$500 million between 2027 and 2030 to modernise Ghana’s electricity transmission network and deploy two million prepaid meters as part of measures to reduce power losses and improve the efficiency of electricity distribution.
Finance Minister Dr. Cassiel Ato Forson announced the interventions while presenting the 2027 Budget Statement to Parliament, outlining plans to address persistent weaknesses in the country’s energy sector.
The US$500 million investment will support the modernisation of the transmission system, with the Ghana Grid Company Limited (GRIDCo) expected to strengthen the north-south transmission network and improve connections between power generation facilities and major demand centres.
The upgrades will also support sub-regional electricity trade and provide dedicated high-reliability connections to strategic industrial enclaves.
Government is also targeting the deployment of two million prepaid meters to reduce distribution losses and improve revenue collection across the electricity distribution system.
In addition, a performance-based private-sector participation arrangement in electricity distribution is expected to be fully implemented by the end of 2027.
Dr. Forson said the arrangement would draw on private-sector expertise while protecting strategic public assets.
“Strategic public assets will remain protected while private-sector expertise will help reduce the distribution losses,” he said.
The interventions form part of government’s wider strategy to address the financial challenges confronting the energy sector and reduce the burden on public finances.
The Finance Minister said the combined investments in generation, transmission and distribution were expected to eliminate the annual energy sector shortfall of about US$1.4 billion.
He also announced plans to reduce the cost of power generation from approximately 16 US cents per kilowatt-hour to 8 US cents or less.
“Reducing the cost of generating power will accelerate Ghana’s industrialisation,” he told Parliament.
According to him, affordable and reliable electricity would lower production costs, improve the competitiveness of locally manufactured goods and encourage businesses to invest and expand.
