As part of the reforms in Ghana’s energy sector, the government has introduced a Legislative Instrument (LI) that mandates the procurement of power generation through competitive bidding.
The new law, Energy Commission (Planning and Competitive Procurement of Additional Electricity Generation Capacity) Regulations, 2025 (L.I. 2508), is designed to enhance transparency, reduce electricity costs, and attract stronger private sector participation.
This legislative milestone is in line with the vision of H.E. President John Dramani Mahama to deliver affordable electricity tariffs that can spur industrial growth and economic transformation.
Currently, power generation accounts for about 65% of Ghana’s electricity value chain costs. By introducing competitive procurement, the government expects to reduce this burden, drive efficiency, and deliver better value to consumers.
“This reform marks a new era for Ghana’s power sector. Competitive bidding will not only ensure value for money, but also unlock innovation and greater private sector participation,” said Hon. John Abdulai Jinapor, the Minister for Energy and Green Transition.
Key Objectives of LI 2508
The LI establishes a structured framework for future power generation procurement, with goals to:
- Enhance transparency and accountability in the energy sector;
- Promote cost-effectiveness and affordability for consumers;
- Attract diverse technologies and investors;
- Create predictable and streamlined procurement processes;
To ensure effective implementation, steps are being taken to strengthen the capacity of regulatory institutions. This includes improving the vetting of license applications and maintaining a comprehensive, up-to-date Power Purchase Agreement (PPA) register, enhancing transparency and oversight.
Collaboration with Development Partners
The Ministry is working closely with international partners, including the World Bank, the African Development Bank, and the Energy for Growth Hub, to:
- Standardize Power Purchase Agreements (PPAs);
- Build local capacity in PPA design and negotiation;
- Ensure fair and balanced returns for investors;
- Deliver high-quality electricity at competitive prices;
This cooperation is expected to make Ghana’s power sector more bankable, efficient, and aligned with global best practices.
A New Chapter for Ghana’s Energy Sector
With the passage of this Legislative Instrument, Ghana positions itself as a regional leader in energy sector reform, demonstrating a strong commitment to transparent governance, fiscal discipline, and inclusive growth in the power industry.
The new policy framework is expected to foster innovation, reduce costs, and create an attractive environment for investment, as Ghana works toward a resilient and sustainable energy future.
