Machi Navi
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The government of Ghana has signed a grant agreement with the African Development Fund and a financing agreement with the Swiss government for the Ghana Mini Grid and Solar Photovoltaic Net Metering project. The project will benefit schools, health centers and communities across the country.
The agreements, for the development of 35 mini-grids and stand-alone solar photovoltaic systems, were signed on Wednesday, May 25 during a short ceremony held on the sidelines of the 2022 Annual Meetings of the African Development Bank Group. They were signed by the Ghanaian Minister of Finance, Ken Ofori-Atta, Chairman of the Board of Governors of the African Development Bank Group, Ambassador Dominique Paravicini, Governor of the African Development Bank Group for Switzerland and the Dr. Akinwumi A. Adesina, President of the African Development Bank. Bank.
The post-Covid-19 era has highlighted the importance of reliable energy services. The project will support Ghana’s CARES (Covid-19 Alleviation and Revitalization of Enterprises Support) program in Ghana, which identifies the energy sector as a catalyst for economic transformation.
Minister Ofori-Atta said the agreement demonstrates his government’s commitment to improving the economic and social viability of low-carbon investments and achieving energy efficiency. Ghana’s electricity access rate is currently at 87.13%, the minister revealed. The last mile was often the most expensive and difficult, he noted.
Today’s event not only marks the first step, but marks an important milestone in delivering climate-friendly development across the country,” Ofori-Atta said. “It’s really important and meaningful to us as we move towards net zero.”
Ambassador Paravicini said: “We are happy to have taken a new step in our cooperation with this wonderful country. We hope that together this project will bring sustainable and affordable electricity to more than 6,000 small and medium-sized businesses and nearly 5,000 households, in addition to 1,100 public buildings.
Dr Adesina said, “The Bank is supporting Ghana’s efforts to build resilience to the socio-economic impacts of the COVID-19 pandemic by providing electricity to health care centres, schools and island communities, currently without access to electricity services, thus enabling the refrigeration of vaccines and testing facilities in these communities”.
Funding from the Swiss government will specifically support the scaling up of Ghana’s existing net metering program and deploy up to 12,000 units of rooftop-mounted solar PV systems for small and medium enterprises (SMEs) and households. Solar cells, also called photovoltaic (PV) cells, convert sunlight directly into electricity.
The systems will power 750 small medium enterprises, 400 schools, 200 health centers and energy service systems in 100 communities in the Lake Volta region and northern Ghana. The Ghana Mini Grid and Solar Photovoltaic Net Metering project is expected to have an estimated annual renewable energy electricity generation of 111,361 MWh, corresponding to an installed capacity of 67.5 MW. The project will mitigate greenhouse gas emissions by 0.7795 million tonnes of CO2 equivalent per year and create up to 2,865 jobs during construction, 30% of which will target women and youth.
The overall cost of the project is estimated at $85.88 million comprising the mini-grid component – $40.29 million and a net metering component of $44.89 million. It will be financed by $27.39 million from the African Development Fund; Government of Ghana matching funding of $16 million; and $14 million from the Swiss government. In addition, the African Development Bank Group, as the Implementing Entity of the Climate Investment Fund, has mobilized concessional financing of $28.49 million.
The African Development Bank Group Annual Meetings are taking place in Accra, Ghana under the theme: Achieving Climate Resilience and a Just Energy Transition for Africa.
Distributed by APO Group for the African Development Bank (AfDB) Group.
Contact:
Amba Mpoke Bigg
Communication and External Relations Department
African Development Bank Email: [email protected]
Technical details:
Antoine Karembu
Senior Renewable Energy Specialist, Renewable Energy Division,
African Development Bank Email: [email protected]
About the African Development Bank Group:
The African Development Bank Group (AfDB) is Africa’s premier development finance institution. It comprises three distinct entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). Present in 44 African countries with an external office in Japan, the AfDB contributes to the economic development and social progress of its 54 regional member states. For more information: www.AfDB.org
This press release was issued by APO. Content is not vetted by the African Business editorial team and none of the content has been verified or validated by our editorial teams, proofreaders or fact checkers. The issuer is solely responsible for the content of this announcement.
