Government and the Takoradi International Company (TICO), a power generation firm, on Thursday signed an agreement for the expansion by 110 mega watts, the thermal generating plant capacity to 330 mega watts.
Currently, TICO has 220 mega watts generating capacity and the additional 110 MW steam plant to be added would transform the plant to combine the
cycle in line with the original plan to enable it meet annual increase in the system demand pegged at six percent.
Dr Emmanuel Buah, the Deputy Minister of Energy, and Mr Carl Sheldon, the General Manager of Abu Dhabi National Energy Company (TAQA), operators of TICO, signed the deal.
TICO is a joint venture between the Volta River Authority and TAQA with the former owning 10 percent shares and the latter 90 percent.
Dr Buah said the expansion programme was in line with the government's power sector programme to increase electricity supply and reliability to
ensure accelerated economic development.
He lauded the commitment of TICO to the project, to expand from single cycle to combine cycle, which is critical to improve generation.
He said the prospects of gas offered in commercial quantities through the West African Gas Pipeline and the discovery and imminent exploitation of gas off Ghana's shores could help reduce the cost of electricity and enhance
reliability of supply.
Mr Sheldon said the company had operated a reliable power generation in the past 10 years, achieving nearly 96 percent availability of power.
He said the company was enthusiastic about Ghana's oil prospects and said he hoped the benefits would inure to all.
Both Takoradi I and II are fuelled by Light Crude Oil until natural gas becomes available.
The West Africa Gas Pipeline, currently under development, will supply gas to both Takoradi I and II. The project will include the conversion of
Takoradi II to gas-fired plant.