The Africa Sustainable Energy Centre (ASEC) has reviewed the2026 Mid-Year Budget Review presented by the Minister for Finance and welcomes Government’s continued commitment to strengthening Ghana’s energy sector.

The budget contains several positive  interventions that have the potential to improve energy security and support economic growth. 

However, ASEC believes that some of the proposals require greater stakeholder engagement  and a more balanced approach that aligns with Ghana’s long-term energy transition and climate  objectives. 

1. The Proposed 1,200 MW Thermal Power Plant: A Step in the Right Direction, But  Balance Is Needed 

ASEC welcomes Government’s proposal to develop a 1,200 MW thermal power plant to  increase Ghana’s electricity generation capacity. As electricity demand continues to grow,  additional generation capacity is essential to support industrialization, economic growth, and  the reliability of the national grid. 

However, while increasing generation capacity is necessary, Ghana must not lose sight of its  climate commitments and long-term energy transition goals. 

Ghana has set a target of achieving a 10% renewable energy share by 2030, yet renewable  energy currently contributes only about 2% of the country’s electricity generation mix. The  addition of another 1,200 MW of thermal generation, without a corresponding expansion in  renewable energy capacity, will further increase the share of thermal generation and make it  even more difficult for Ghana to achieve its renewable energy target. 

ASEC therefore calls on Government to complement this investment with accelerated  deployment of utility-scale solar, wind energy, battery energy storage systems, and distributed  renewable energy projects. 

Energy security and the green transition should advance together—not compete with one  another. 

2. The Green Transition Must Be Reflected in the Budget 

ASEC also observes that while the Ministry has been renamed the Ministry of Energy and  Green Transition, the green transition component was not sufficiently reflected in the Mid-Year  Budget Review.

The renaming of the Ministry was a commendable policy signal that demonstrated  Government’s commitment to sustainability. However, that commitment must now be  translated into tangible investments and policy actions. 

The budget places significant emphasis on expanding thermal generation, yet comparatively  little attention is given to renewable energy deployment, battery storage, energy efficiency,  green hydrogen, electric mobility, and other initiatives that are central to Ghana’s green  transition. 

ASEC urges Government to ensure that future budgets allocate adequate resources towards  renewable energy development and other low-carbon technologies. The Ministry’s mandate  should be reflected not only in its name but also in its priorities, programmes, and investments. 

3. Retaining the GHS 1 Fuel Levy Is Disappointing 

ASEC had anticipated that the Mid-Year Budget Review would announce the removal of the  GHS 1 fuel levy. 

While Government continues to pursue measures to stabilize the energy sector, retaining the  levy places an additional financial burden on households and businesses already facing high  living costs. 

Removing the levy would reduce fuel prices at the pump, lower transportation costs, ease  inflationary pressures, and ultimately reduce the cost of goods and services across the economy. 

ASEC therefore encourages Government to provide greater transparency on how the proceeds  of the levy have been utilized and to outline a clear roadmap for its eventual withdrawal. 

4. LPG Expansion Is Positive, But Ghana Needs a Comprehensive Clean Cooking  Strategy 

ASEC welcomes Government’s initiative to replace traditional cooking fuels with Liquefied  Petroleum Gas (LPG) as part of efforts to improve household energy access. 

LPG represents an important transitional fuel that can improve public health and reduce  dependence on biomass. However, Ghana’s long-term ambition should extend beyond LPG. 

The country must accelerate investments in clean cooking solutions such as electric cooking,  bioethanol, biogas, improved biomass cookstoves, and other modern cooking technologies that  align with Ghana’s climate commitments while improving health outcomes. 

A comprehensive national clean cooking strategy is essential to achieving universal access to  modern cooking energy.

5. Second Gas Processing Plant: Greater Stakeholder Engagement Is Essential 

ASEC welcomes Government’s commitment to constructing a second Gas Processing Plant  (GPP Train 2), recognizing its importance in strengthening domestic gas processing capacity,  improving energy security, and supporting industrialization. 

However, ASEC notes that the project has shifted from an originally Government-owned model  to a private sector-led arrangement. 

While private sector participation can bring financing, technical expertise, and operational  efficiencies, such a strategic policy shift should have been preceded by broader stakeholder  engagement and public consultation. 

ASEC further recommends that Government pays particular attention to the fiscal terms  governing the project, including royalty arrangements, local content requirements, and long term value retention, to ensure that Ghana derives maximum economic benefit from its natural  gas resources. 

Strategic national assets should continue to deliver long-term value to the Ghanaian people.

Conclusion 

ASEC commends Government for prioritizing investments aimed at improving Ghana’s energy  security. Nevertheless, Ghana’s energy future must be built on four equally important pillars:  energy security, affordability, sustainability, and resilience. 

Future budget statements should demonstrate a stronger balance between expanding  conventional energy infrastructure and accelerating Ghana’s transition towards a cleaner, more  sustainable energy future.