The Board of Directors of the African Development Fund has approved a $27.39 million grant to Ghana for the development of renewable energy investments in the mini grid and net metering space.
The project will cover the development of 35 mini grids, standalone solar photovoltaic systems in 400 schools, 200 units in healthcare centers and 100 units for community energy services centers in the Volta Lake region.
The structure of the project includes deploying up to 12,000 units of roof-mounted net-metered solar photovoltaic systems for public institutions, small and medium-sized enterprises and selected households.
The project leverages on co-financing from the Scaling Up Renewable Energy Program, a funding window of the Climate Investment Funds, and the Swiss State Secretariat for Economic Affairs, amounting to $28.49 million and $13.30 million, respectively.
The Ghana Mini Grid and Solar Photovoltaic Net Metering is expected to have an annual electricity output of renewable energy estimated at 111,361MWh, corresponding to an installed capacity of 67.5MW. The project will mitigate greenhouse emissions of 0.7795 million tons of CO2 equivalent per year and create up to 2,865 jobs during construction, of which 30% will target women and youth.
The project will also involve the deployment of up to 11,000 stand-alone solar home systems within the lakeside and island communities of Ghana. The project will contribute 13.5% of renewable energy to the Ghana energy mix excluding hydropower.
The project will be implemented over a 4-year period. Direct beneficiaries of the project include 59 communities across 9 island districts through mini grids; 505 communities in 11 districts through standalone solar PV systems; 1,089 public buildings; 4,910 households and 6,001 SMEs under the solar PV net metering component.
The component also includes installation of demonstrative utility battery energy storage at feeder level within the ECG and NEDCO networks.
The project objective is to increase access to clean and reliable electricity services and support low carbon socio-economic development.
Ghana has targeted universal access to electricity by 2030 from the current level of 85percent (2020) of which the remaining 15% are in the island communities best electrified through decentralized energy systems (mini grids and solar home systems).
Marie-Laure Akin-Olugbade, the African Development Bank Group’s Director General for West Africa, underscored that the African Development Bank’s support to Ghana is in line with the country’s objective of developing renewable energy to promote growth and development.
“The Bank Group’s support is aligned to Ghana’s development priorities that aim to promote and develop the country’s rich renewable energy resources for sustainable economic growth, improved social life and reduced adverse climate change effects. In addition, the post Covid-19 era has highlighted the importance of reliable energy services”.
Marie-Laure Akin-Olugbade, AfDB Group’s Director General, West Africa
On his part, Eyerusalem Fasika, the African Development Bank’s Country Manager for Ghana, stated that the projects will support the country’s programs and has the potential of creating employment for Ghanaians.
“The project will support Ghana’s Covid-19 Alleviation and Revitalization of Enterprises Support (Ghana CARES) program, which identifies the energy sector as an enabler of economic transformation. It has the potential to create jobs, fundamentally expand access to businesses and bring prosperity to Ghanaians.”
Eyerusalem Fasika, AfDB Country Manager
Daniel Schroth, Acting Director of the Renewable Energy and Energy Efficiency Department of the Bank, noted that the West African nation of Ghana has one of the highest electrification rates in Africa.
“The approval of the grant facility reflects a strong commitment of the African Development Bank to support Ghana’s objective to achieve universal access to electricity and its 10% renewable energy target by 2030. This project is a good example of the Bank Group’s ability to leverage financing from climate investment funds and donor partners by supporting electrification of Ghana’s remaining 15% located in the island communities”.
Daniel Schroth, Acting Sirector Ren. Energy
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