NNN: The government of Ghana has signed a grant agreement with the African Development Fund, and a financing agreement with the government of Switzerland, for the Ghana Mini Grid and Solar PV Net Metering project. The project will benefit schools, health centers and communities throughout the country.
The agreements, for the development of 35 mini-grids and stand-alone solar PV systems, were signed on Wednesday, May 25, in a short ceremony held on the sidelines of the 2022 Annual Meetings of the African Development Bank Group. They were signed by the Minister of Finance of Ghana, 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 the African Development Bank Group. Bank.
The post-Covid-19 era has highlighted the importance of reliable energy services. The project will support the Ghana Covid-19 Business Relief and Revitalization Support (Ghana CARES) program, which identifies the energy sector as an enabler of 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 87.13%, the minister revealed. The last mile is often the most expensive and difficult, he noted.
Today‘s event not only marks the first stage, but marks an important milestone in providing climate-conscious development across the country,” said Ofori-Atta. “It is truly important and meaningful to us as we move towards net zero.”
Ambassador Paravicini said: “We are pleased to have reached another milestone in our cooperation with this wonderful country. Together, we hope that this project will bring sustainable and affordable electricity to more than 6,000 small and medium-sized businesses and nearly 5,000 homes, as well as 1,100 public buildings.”
Dr. Adesina said: “The Bank supports Ghana‘s efforts to build resilience to the socio-economic impacts of the COVID-19 pandemic by providing electricity to health care facilities, schools and island communities, which are currently without electricity. access to electricity services, which allows for vaccine refrigeration and testing facilities in these communities.”
The funding from the Government of Switzerland will specifically support the expansion of Ghana‘s existing net metering program and will deploy up to 12,000 units of roof-mounted net metering solar photovoltaic systems 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 and medium-sized businesses, 400 schools, 200 health centers and the energy service systems in 100 communities in the Lake Volta Region and the Northern Region of Ghana. The Ghana Mini Grid and Solar PV Net Metering project is expected to have an estimated annual renewable energy electricity production of 111,361MWh, corresponding to an installed capacity of 67.5MW. The project will mitigate greenhouse gas emissions of 0.7795 million tons of CO2 equivalent per year and create up to 2,865 jobs during construction, of which 30% will go to women and youth.
The total cost of the project is estimated at $85.88 million which includes the mini grid component – $40.29 million and a net metering component of $44.89 million. It will be financed with $27.39 million from the African Development Fund; Government of Ghana counterpart financing of $16 million; and $14 million from the Swiss government. In addition, the African Development Bank Group, as executing entity of the Climate Investment Funds, leveraged concessional financing of $28.49 million.
The annual meetings of the African Development Bank Group are taking place in Accra, Ghana, under the theme: Achieving Climate Resilience and a Just Energy Transition for Africa.
