Page 13 - AfrElec Week 22 2022
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AfrElec RENEWABLES AfrElec
Ghana signs $86mn deal with
AfDB to support mini-grids
GHANA GHANA has signed a grant agreement worth and youth.
$85.88mn with the African Development Bank Renewable energy has been a major part
(AfDB) as well as a financing agreement with of Ghana’s drive to sustainable energy, and
Switzerland for the Ghana Mini Grid and Solar the administration has rolled out a number of
Photovoltaic Net Metering project. programmes, including towards developing
The agreement for the development of 35 independent solar PVs for schools and health
mini-grids and stand-alone solar PV systems facilities, among others. The project will support
was signed on the sidelines of the AfDB Group’s Ghana’s COVID-19 Alleviation and Revitali-
2022 Annual Meetings in Accra in late May. The sation of Enterprises Support (Ghana CARES)
project is to benefit schools, health centres and programme, which the government sees as an
communities across Ghana. The Swiss govern- enabler of economic transformation.
ment’s financing will specifically support the Ghana’s electricity access rate is currently
scaling up of existing Ghana net metering pro- 87.13%, Finance Minister Ken Ofori-Atta
grammes and deploy up to 12,000 units of roof- said, noting that covering the entire country
mounted net-metered solar PV systems for small is “often the most expensive and difficult”, and
and medium-sized enterprises (SMEs). further adding that the signing of the agreement
The systems will power 750 SMEs, 400 marks an important milestone for providing cli-
schools, 200 health centres and the energy ser- mate-conscious development across the country.
vice systems in 100 communities in the Volta The overall project cost is estimated at
Lake region and Northern region of Ghana. $85.88mn, comprising the mini grid compo-
The project is expected to have an annual nent ($40.29mn) and net metering compo-
electricity output of renewable energy estimated nent ($44.89 mn). It will be financed through
at 111,361MWh, corresponding to an installed $27.39mn from the African Development
capacity of 67.5MW. It will mitigate greenhouse Fund; Ghana government counterpart fund-
emissions of 0.7795 million tons of CO2 equiv- ing of $16mn; and $14mn from the Swiss
alent per year and create up to 2,865 jobs during government.
construction, of which 30% will target women
Ghana’s GCB Bank, France’s AFD
to promote renewables
GHANA GHANA’S GCB Bank PLC has entered into technologies.
a $13.7mn credit agreement with the Agence GCB managing director Kofi Adomako
Francaise de Dévelopment (AFD), with another said that Africa needs support in the sector and
£1mn set aside as a grant, to support indigenous with the right kind of funding, the continent
businesses develop energy efficiency and renew- will make progress in the promotion of energy
able energy projects, JoyNews reports. efficiency, adding that the bank is committed
The facilities and accompanying projects to the partnership and will deploy the funds to
form part of the Sustainable Use of Natural achieve it. For her part, the French Ambassador
Resources and Energy Finance (SUNREF) to Ghana, Anne Sophie Ave, said that affordable
Ghana initiative, aimed at promoting investment loans and grants to provide greener energy are
in sustainable energy and environmental protec- “one of the tools to fight climate change, improve
tion among private sector players. livelihood and contribute to sustainable growth.”
The terms of the agreement suggest that The AFD is a French agency that supports
GCB and SUNREF will offer competitive loans and accelerates the transition to a fairer and
and technical support for structuring green more sustainable world, and it is focused on
investment to companies, organisations, indi- areas including climate, biodiversity, and urban
viduals and households. SUNREF seeks to development among others in pursuit of French
bring together Ghanaian financial institutions policy on Sustainable Development Goals
to finance private sector investments in green (SDGs).
Week 22 02•June•2022 www. NEWSBASE .com P13
