AfDB signs US$70M financing agreement with Ghana for off-grid solar electrification

GHANA – The African Development Bank (AfDB) has signed a US$69.88 million financing agreement with the government of Ghana for the implementation of a rural electrification project via stand-alone solar systems.

The financing agreement was signed between Ghana’s Finance Minister, Ken Ofori-Atta, and Akinwumi Akin Adesina, the President of the African Development Bank (AfDB) Group.

This was on the sidelines of the Annual Meetings of the pan-African bank which ends this Friday, May 27, 2022 in Accra, Ghana.

The financing is granted within the framework of the Scaling-up Renewable Energy Programme (SREP) which aims at accelerating access to electricity.

Ghana is among the most advanced countries in sub-Saharan Africa in terms of electrification, with a rate of 84% according to Power Africa. But Accra wants to accelerate the trend in rural areas by focusing on stand-alone solar systems.

With the AfDB funding, the Ghanaian government intends to implement the SREP through two major components.

The project consists of the design, engineering, supply, construction, installation, testing, and commissioning of mini-grid systems, stand-alone home systems located in island communities, and net metering with solar photovoltaic (PV) systems in the distribution network of the distribution utilities in the country.

The first is the installation of 38 solar-powered mini-grids to provide electricity to public service structures, including 2,000 SMEs (small and medium enterprises), 1,350 schools, 500 health centers, and 400 rural communities.

The other part of the program aims to install 12,000 rooftop solar systems for businesses and households. The aim is to reduce debts and electricity bills.

This project will increase access to clean and reliable electricity services and support Ghana’s low carbon socio-economic development,” said Akinwumi Akin Adesina.

It will directly support Ghana’s efforts to build resilience to the socio-economic impact of the Covid-19 pandemic.”

The SREP program will be implemented between 2022 and 2025. The Ghanaian government hopes to achieve universal access to electricity by focusing on clean energy.

When fully implemented, the project is expected to contribute to the achievement of universal access to electricity by 2030 and unlock financing opportunities to achieve the accelerated and sustainable development of the country’s renewable energy sector.

Currently, the West African country produces mainly hydro, solar, and biomass energy to supplement the production of its numerous thermal power plants.

Liked this article? Subscribe to DealStreet Africa News, our regular email newsletter with the latest news, deals, and insights from Africa’s business, economy, and more. SUBSCRIBE HERE

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.