Development finance institution the African Development Bank's (AfDB's) concessional funding arm the African Development Fund has approved a $27.39-million grant to Ghana for the development of renewable energy investments in the minigrid and solar photovoltaic (PV) net metering space.

The project involves the development of 35 minigrids, standalone solar PV systems in 400 schools, 200 units in healthcare centres and 100 units for community energy services centres in the Volta Lake region.

It will also deploy up to 12 000 units of roof-mounted net-metered solar PV systems for public institutions, small and medium-sized enterprises and selected households, the AfDB says.

“The Ghana Mini Grid and Solar PV Net Metering is expected to have an annual electricity output of renewable energy estimated at 111 361 MWh, corresponding to an installed capacity of 67.5 MW. The project will mitigate greenhouse-gas emissions of 779 000 t/y of carbon dioxide equivalent and create up to 2 865 jobs during construction.

“The AfDB's support is aligned to Ghana’s development priorities that aim to promote and develop the country’s rich renewable energy resources for sustainable economic growth, improved social life and reduced adverse climate change effects. In addition, the post Covid-19 era has highlighted the importance of reliable energy services,” says AfDB Group director-general for West Africa Marie-Laure Akin-Olugbade.

AfDB Ghana country manager Eyerusalem Fasika adds that the project will support Ghana’s Covid-19 Alleviation and Revitalisation of Enterprises Support, called Ghana CARES, which identifies the energy sector as an enabler of economic transformation. It has the potential to create jobs, fundamentally expand access to businesses and bring prosperity to Ghanaians.

Meanwhile, Ghana has one of the highest electrification rates in Africa and the approval of the grant facility reflects a strong commitment of the African Development Bank to support Ghana’s objective to achieve universal access to electricity and its 10% renewable energy target by 2030, says AfDB renewable energy and energy efficiency department acting director Daniel Schroth.

“This project is a good example of the group’s ability to leverage financing from climate investment funds and donor partners by supporting electrification of Ghana’s remaining 15% located in the island communities.”

The project has leveraged co-financing amounting to $28.49-million from the Scaling Up Renewable Energy Program, which is a funding window of the Climate Investment Funds, and $13.30-million from the Swiss State Secretariat for Economic Affairs, he says.