The Board of Directors of the African Development Bank (AfDB) has approved a $28.49 million grant for Ghana to construct renewable energy infrastructure. The move will serve to enhance Ghana’s universal electrification goal while increasing its renewable energy use 10% by 2030.
The financing will be sourced from the AfDB’s multilateral Climate Investment Fund’s Scaling Up Renewable Energy Program in Low-Income Countries and will support the construction of mini-grids, solar photovoltaic systems and solar-based battery facilities.
Ghana’s renewable energy development scheme will consist of the design, engineering, supply, construction, installation, testing and commissioning of renewable energy systems for island communities in the West African country’s Volta Lake region.
The AfDB’s grant approval brings the total cost of the project to $85.18 million, with an additional $27.39 million having been approved by the multilateral finance institution’s concessionary window, the African Development Fund, with Switzerland’s State Secretariat for Economic Affairs and the Government of Ghana contributing $13.30 and $16 million, respectively.
The project is expected to create 2,865 jobs and livelihood opportunities, out of which 30% will be earmarked for women and youth, thus serving to close gender gaps.
The project represents part of Ghana’s 2019 Renewable Energy Masterplan, which has set a target of 2,514 MW of sustainable energy by 2030. The Masterplan seeks to reduce the country’s dependence on biomass as the primary source of thermal energy while providing decentralized electrification to over 1,000 off-grid communities.