The Minister resigned on New Year's eve following a promise to Ghanaians that he will relinquish his post if he was unable to solve the energy crisis of the West African country by close of 2015.
"The President thanked him for his services as the pioneer Minister for the Ministry of Power which was carved out of the then Ministry of Energy and Petroleum," an official communication from the seat of government - The Flagstaff House - said.
His resignation follows earlier report by StarrFM that Mahama had given him up to the close of business on December 31, 2015 to pack out or be sacked.
The decision, according to StarrFM sources within the corridors of power, was triggered by the conflicting reports regarding the supposed end to the power crisis by the Power ministry and the Ghana Grid Company (GRIDCo).
Reports are rife that he could be replaced by Nii Osah Mills, who is the Minister of Lands and Natural Resources, Kwame Awuah Darko, who heads the Bulk Oil Storage and Transportation (BOST) or John Jinapor - the Deputy Minister of Power.