AfDB approves final lending for large renewables project in Ghana

Written by
31 Mar 2023
AfDB approves final lending for large renewables project in Ghana

With of $28.49 million by the Bank’s Board of Directors, the project’s total cost of $85.18 million is now secured for building renewable energy systems in Volta Lake region; creating 2,865 jobs and livelihood opportunities

The African Development Bank (AfID) announced this week that it has approved a grant of $28.49 million for Ghana to construct renewable energy infrastructure that will increase its renewable energy use by 10% through 2030.

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

With the latest approval of $28.49 million by the Bank’s Board of Directors, the project’s total cost of $85.18 million is now secured. The African Development Fund, the Bank’s concessionary window, has provided $27.39 million while Switzerland’s State Secretariat for Economic Affairs and the government of Ghana have contributed $13.30 and $16 million respectively.

The project consists of 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 create 2,865 jobs and livelihood opportunities out of which 30% will be for women and youth, contributing to closing gender gaps at the outcome level.

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 5 priority objectives for enhancing the continent’s socioeconomic development.

Energy & Utilities reported last year that AfDB approved the Leveraging Energy Access Finance Framework (LEAF), to commit up to $164m to promote decentralised renewable energy projects in six African countries including Ghana.

E&U also reported last year that AfDB approved a $379.6m financing facility for the Desert to Power G5 Sahel scheme, which covers Burkina Faso, Chad, Mali, Mauritania and Niger.

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