Ghana collaborates with African Development Fund and Switzerland for mini-grids and solar PV net metering
The Government of Ghana has signed a Grant Agreement with the African Development Fund and a Funding Agreement with the Swiss Government for the Ghana Mini Grid and Solar Photovoltaic Net Metering project. The project benefits schools, health centers and communities across the country.
The agreements for the development of 35 mini-grids and stand-alone solar PV systems were signed on Wednesday 25 May during a brief ceremony on the sidelines of the African Development Bank Group’s 2022 Annual Meeting. They were welcomed by 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 Dr. Akinwumi A. Adesina, President of African Development, signs bank.
The post-Covid-19 era has highlighted the importance of reliable energy services. 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.
Minister Ofori-Atta said the agreement shows his government’s commitment to improving the economic and social viability of low-carbon investments and achieving energy efficiency. Ghana’s electricity access rate currently stands at 87.13%, the minister announced. The last mile is often the most expensive and difficult, he noted.
Today’s event not only marks the first phase, but an important milestone in delivering climate-conscious development across the country,” said Ofori-Atta. “It’s really important and meaningful for us as we move towards net zero.”
Ambassador Paravicini said: “We are delighted to have reached another milestone in our cooperation with this wonderful country. Together, we hope this project will provide sustainable and affordable electricity to over 6,000 small and medium-sized businesses and nearly 5,000 homes in 1,100 public buildings.”
dr Adesina said: “The bank supports Ghana’s efforts to build resilience to the socio-economic impact of the COVID-19 pandemic by providing power to health centers, schools and island communities that currently lack access to electricity, cooling vaccines and testing facilities in these communities”.
Specifically, the funding from the Swiss government will support the expansion of Ghana’s existing net-metering program, installing up to 12,000 units of net-metered solar PV systems on the roof for small and medium-sized enterprises (SMEs) and households. Solar cells, also called photovoltaic (PV) cells, convert sunlight directly into electricity.
The systems will power 750 small to medium-sized businesses, 400 schools, 200 health centers and the power supply systems in 100 communities in the Volta Lake region and northern Ghana. The Ghana Mini Grid and Solar Photovoltaic Net Metering project is expected to have an estimated annual renewable electricity generation of 111,361 MWh, resulting in an installed capacity of 67.5 MW. The project will reduce greenhouse gas emissions by 0.7795 million tonnes of CO2 equivalent per year and create up to 2,865 jobs during the construction phase, 30% of which will be dedicated to women and youth
The total cost of the project is estimated at $85.88 million and includes the mini-grid component – $40.29 million – and a net metering component of $44.89 million. It is funded with $27.39 million from the African Development Fund; US$16 million in self-funding from the Ghanaian government; and $14 million from the Swiss government. In addition, the African Development Bank Group, as the implementing agent of the Climate Investment Fund, leveraged US$28.49 million in concessional financing.
The annual meetings of the African Development Bank Group are held in Accra, Ghana under the motto “Achieving Climate Resilience and a Just Energy Transition for Africa”.