Financial

African Development Bank approves grant to boost Ghana’s use of renewable energy

The funding will enable the construction of mini-grids, stand-alone solar photovoltaic systems and solar-based battery facilities for storing excess power

A US $28.49mn grant for Ghana has been approved by the Board of Directors of the African Development Bank. The financing will enable the country to develop renewable energy infrastructure, with the goal of increasing its use of renewables by 10% through 2030.

According to a statement, the financing will come from the Climate Investment Funds (CIF) – Scaling Up Renewable Energy Program in Low Income Countries (SREP), and will support construction of mini-grids, stand-alone solar photovoltaic systems and solar-based battery facilities for storing excess power, a practice known as net metering.

With the latest board approval of $28.49mn, the project’s total cost of $85.18mn is in the coffers. The African Development Fund, the Bank’s concessionary window, has provided $27.39mn, while Switzerland’s State Secretariat for Economic Affairs and the government of Ghana have contributed $13.30mn and $16mn respectively, a statement explained.

In early November 2022, Infinity Power Holding announced that the Sharm El Sheikh solar plant was fully operational and, in early February 2023, ILF awarded a consultancy contract for three solar PV projects in Saudi Arabia.

The statement noted that the project entails the design, engineering, supply, construction, installation, testing and commissioning of renewable energy systems on the island communities in the Volta Lake region.

It is expected to contribute to closing gender gaps at the outcome level by creating 2,865 equitable jobs and livelihood opportunities, out of which 30% will be for women and youth, it added.

Under its New Deal on Energy for Africa, the African Development Bank seeks to promote the reduction of greenhouse gas emissions on the continent as well as light up and power Africa as part of its High Five priority objectives for enhancing the continent’s socioeconomic development, the statement concluded.

In late March 2023, AMEA Power announced the ground breaking of Phase 3 of a solar plant in Togo.

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