Ghana signs a renewable energy agreement worth $69.88 million to expand access to power

Ghana has agreed to invest $69.88 million in renewable energy over the next 4 years to improve access to power. About 6,890 families, 6,001 SMEs, and 6,890 public buildings are going to be linked to energy as a result of the deal.

The project, which includes the design, engineering, supply, building, installation, testing, as well as commissioning of mini-grids and the standalone systems, would also help 1,350 schools as well as 500 health centers.

In the country, 70 communities in nine island districts have mini-grids, while 505 communities in 11 districts have independent solar photovoltaic (PV) systems. The goal of the “Scaling-up Renewable Energy Programme (SREP)” is to narrow Ghana’s 12.8 percent electricity gap by improving access to clean, reliable energy and promoting socioeconomic growth.

It will also aid in the reduction of public sector electrical debt, as well as costs for SMEs and homes, while also assisting the country’s environmental, climatic, and social management strategies. Dr. Akinwumi Akin Adesina, the AfDB (African Development Bank) Group President, and Mr. Ken Ofori-Atta, Minister of Finance, signed the protocol agreement.

Mr. Dominique Paravicini, the AfDB’s Governor for Switzerland, also signed the project’s financial agreement. Mr. Ofori-Atta, speaking at the ratification of the deal, said the initiative “fits neatly into an important global agenda and underscores our country’s commitment to improving the social and economic viability of low-carbon investments.”

It also supports the country’s ambition to develop new energy-efficient markets and achieve energy sufficiency to avoid future energy crises. He went on to say that the project “fully aligns with the Government’s overarching aim of increasing the proportion of Renewable Energy in the generating mix to 10% by 2030 while meeting our emission reduction targets.”

Mr. Ofori-Atta stated that the initiative would offer hundreds of people around the country reliable and affordable electricity, as well as new economic opportunities, especially for women in rural areas. Dr. Adesina, for his part, stated that the project would help Ghana reach its renewable energy targets under the SDGs (Sustainable Development Goals) and establish a more resilient economy.

“This project will improve access to safe and dependable electricity while also promoting Ghana’s low-carbon socioeconomic growth.  It will directly boost Ghana’s attempts to build resilience to the COVID-19 pandemic’s socioeconomic effects.” This would be accomplished by providing electricity to healthcare centers and island settlements, allowing for the vaccines refrigeration and COVID-19 testing facilities.

“Through rooftop solar power production and storage within the net metering component of the project, MDAs (Ministries, Departments, and Agencies) will be able to achieve self-sufficiency,” he added. Mr. Paravicini stated that the ratification of the deal demonstrated Switzerland’s ongoing commitment to providing families and companies with reliable and cheap electricity.

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