The world is experiencing a remarkable increase in support for green energy in both political arenas and business sectors. This shift is driven by investment in renewable energy and the widespread adoption of net-zero emission targets by mid-century.
This also aligns with the Paris Agreement targets and aims to limit global warming to 1.5°C and to “achieve a total renewable energy capacity of just over 11,000 GW by 2030.”
As energy security and sustainability become inextricably linked, governments around the globe prioritize these issues in their agendas and Ghana is no exception.
NEK Umwelttechnik AG (NEK), a Swiss renewable energy company, has been actively developing six large-scale onshore wind farms in Ghana’s Greater Accra Region.
These projects, ready for implementation, are set to significantly impact the region’s energy landscape. With a total capacity of approximately 1,300 megawatts (MW), they hold the potential to generate around 3,400 gigawatt-hours (GWh) of clean and affordable electricity annually.
To address the growing energy needs in Ghana and combat issues like “dumsor” (intermittent power outages), NEK has launched a new renewable energy initiative in Accra called Anansi Green Energy Ltd. (Anansi).
This platform aims to provide cheap, sustainable, and reliable electricity to meet the rising demands of both residential and industrial sectors.
Anansi is set to take over NEK’s existing wind farms while also expanding its portfolio to include solar and biomass plants. Through these efforts, Anansi seeks to contribute to Ghana’s energy security while promoting environmental sustainability.
NEK’s renewable energy ventures, including its wind farms, solar plants, and biomass facilities under the Anansi platform, promise to revolutionize Ghana’s electricity landscape by offering the most cost-effective generation rates.
While traditional fossil fuel power plants typically produce electricity at around 15 US cents per kilowatt-hour (kWh), NEK’s wind farms boast a significantly lower production cost, at less than 8 US cents per kWh based on current pricing.
Moreover, potential additional savings could be achieved through the utilization of carbon credits, further enhancing the economic viability of these renewable energy projects.
Diverse Funding Options
Anansi would receive funding from various equity partners, lenders, and investors, including prominent international power companies and green funds.
“Discussions with various Ghanaian stakeholders regarding participation in the platform are ongoing.
“Large industrial or energy funds, oil and gas trading companies, climate funds, investors, and various development and commercial lenders from both Ghana and internationally will play a role in the financing of the entity.”
Anansi Green Energy Ltd
The Anansi platform would serve as a dedicated industrial power provider by supplying green electricity directly to industrial consumers.
With a focus on direct sales to industrial “off-takers”, Anansi aims to cater to the energy needs of Ghana’s industrial sector while promoting sustainable energy practices.
Looking ahead, there’s a vision for Anansi to play a pivotal role in positioning Ghana as a renewable energy hub for the entire West African region. This ambition includes the prospect of exporting renewable energy to neighboring countries through the existing West African Power Pool (WAPP) network.
Although there will always be a need for baseload energy capacity in the planning of any energy sector, both for environmental and indeed affordability reasons it will be essential to create a structure through which renewable energy can be developed, without relying on the public sector.
Anansi will not become a competitor to ECG, VRA, or NEDCo – nor will it be necessary for Anansi to have the traditional “take or pay” power purchasing agreement (PPA) with ECG or any support from the Government of Ghana. Anansi will be able to implement its projects without any reliance on the public sector at all. Indeed, the intent will be that Anansi will have, as its partners, VRA and ECG in providing baseload capacity to its customers.
