The African Development Bank (AfDB) has signed a financing agreement with the government of Ghana for the implementation of a rural electrification project using stand-alone solar systems worth $70 million.
Ghana’s Finance Minister, Ken Ofori-Atta, and Akinwumi Akin Adesina, President of the African Development Bank Group, signed the financing agreement.
This occurred on the sidelines of the Pan-African Bank’s Annual Meetings, which conclude this Friday, May 27, 2022, in Accra, Ghana.
The funding is provided through the Scaling-up Renewable Energy Programme (SREP), which aims to increase access to electricity.
According to Power Africa, Ghana has one of the highest rates of electrification in Sub-Saharan Africa, at 84 percent. Accra, on the other hand, wishes to accelerate the trend in rural areas by focusing on stand-alone solar systems.
The Ghanaian government intends to implement the SREP through two major components with AfDB funding.
The project includes 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 country’s distribution network.
The first is the installation of 38 solar-powered mini-grids to power public-sector structures such as 2,000 SMEs (small and medium-sized enterprises), 1,350 schools, 500 health centers, and 400 rural communities.
The program also intends to install 12,000 rooftop solar systems for businesses and households. The goal is to reduce debt and utility bills.
“This project will increase access to clean and reliable electricity services and support Ghana’s low carbon socio-economic development.
“It will directly support Ghana’s efforts to build resilience to the socio-economic impact of the Covid-19 pandemic,” said Akinwumi Akin Adesina.
Between 2022 and 2025, the SREP program will be implemented. By focusing on clean energy, the Ghanaian government hopes to achieve universal access to electricity.
When fully implemented, the project is expected to contribute to the achievement of universal access to electricity by 2030 and to open up financing opportunities for the country’s renewable energy sector’s accelerated and sustainable development.
To supplement the output of its numerous thermal power plants, the West African country currently produces primarily hydro, solar, and biomass energy.