Minister calls on IFC to finance solar energy projects in Ghana

Mr. Herbert Krapa, Minister of State for Energy, has called on the International Finance Corporation (IFC), a member of the World Bank Group, to expand its financing options for solar energy projects in Ghana.

Mr Krapa said adequate financing for renewable energy projects, as for other sectors, would contribute immensely to achieving greener, cleaner energy for industrial and manufacturing activities in the country.

He made this appeal when he inaugurated a 16.82 megawatt peak (MWp) rooftop solar photovoltaic project at the Tema Free Zone Enclave, valued at US$1 million. The project was initiated by Helios Solar Company Limited, a subsidiary of HML Holdings.

The project, the largest in Africa and the second largest in the world, was built in eight months with $17 million in financing from the IFC.

The minister said the power of financing has made a major contribution to the realization of renewable energy. Although Africa has an abundance of sunshine, wind and hydropower, there were more solar installations in Europe than in Africa.

“Africa has a lot of sunshine, wind and hydropower, but there are more solar installations in Europe than in Africa; the missing piece of the puzzle is financing, and that remains a barrier,” he said.

He found that in Europe solar installations cost no more than two percent of a company’s capital, while in Africa they cost an average of 20 percent or more of a company’s capital.

He commended the IFC for financing the solar roof project and urged them to do more in this area by expanding financing for renewable energy, as it is doing in other sectors.

Mr Krapa said that such solar projects would have a positive impact on the industry as it would reduce operating costs, which would then result in expansion and creation of more jobs for the youth.

Mr. Adlai Opoku-Boamah, Managing Director of LMI, announced that the IFC Board of Directors has approved a $110 million facility for LMI Holding to develop an additional 150 MWp of solar power in Dawa in December 2023.

Mr Opoku-Boamah said the aim of the solar park in Dawa is to provide clean energy to two major initiatives: the Dawa City Project and the Dawa Industrial Zone. He added that the Dawa City Project would be the first smart and green city in Ghana.

He added that the 4,000-hectare Dawa Industrial Zone is a purpose-built industrial zone for textile, pharmaceutical, food, light and heavy industry, logistics and technology parks.

“Companies that choose to set up shop in the Dawa Industrial Zone are assured of continuous, uninterrupted power supply and a 10 percent discount on electricity tariffs for the next five years,” he added.

Source: GNA