Mr. Herbert Krapa, Minister of State at the Ministry of Energy, has called on the International Finance Corporation (IFC), a member of the World Bank Group, to increase its funding facilities for solar projects in Ghana. He emphasized that sufficient funding for renewable energy projects is crucial for achieving greener, cleaner energy for the country’s industrial and manufacturing sectors.
Mr. Krapa made this appeal during the commissioning of a $1 million, 16.82-megawatt peak (MWp) capacity rooftop photovoltaic solar project at the Tema Free Zone Enclave. This initiative, undertaken by Helios Solar Company Limited, a subsidiary of HML Holdings, is the largest of its kind in Africa and the second largest globally. The project was completed within eight months, with $17 million in funding from the IFC.
Highlighting the importance of financing in achieving renewable energy goals, Mr. Krapa noted that despite Africa’s abundant sunshine, wind, and hydro resources, there are more solar installations in Europe due to better financing. “Africa has abundant sunshine, wind, and hydro, but there are more solar installations in Europe than Africa; the missing piece is financing, and it continues to be a barrier,” he stated.
He pointed out that in Europe, solar installations cost not more than two percent of a business’s capital, while in Africa, they can cost 20 percent or more. Mr. Krapa commended the IFC for its support in the solar rooftop project and urged them to expand funding for renewable energy projects similar to other sectors.
Mr. Krapa emphasized that such solar projects would positively impact industries by reducing operational costs, which would lead to business expansion and job creation for the youth.
Mr. Adlai Opoku-Boamah, the Managing Director of LMI, announced that in December 2023, the IFC Board approved a $110 million facility for LMI Holdings to develop an additional 150 MWp of solar energy in Dawa. This solar park aims to provide clean energy for two major initiatives: the Dawa City Project and the Dawa Industrial Zone. The Dawa City Project is set to be Ghana’s first smart and green city.
He added that the 4,000-acre Dawa Industrial Zone is designed to accommodate various industries, including textile, pharmaceutical, food, light and heavy industrial, logistics, and technology parks. “Businesses choosing to locate within the Dawa Industrial Zone will benefit from continuous, uninterrupted power supply and a 10 percent rebate on electricity tariffs for the next five years,” he added.
Source: GNA
