Ghana,s renewable energy investment drive has received a boost with a US$1.5 million grant from the Sustainable Energy Fund for Africa (SEFA), a wing under the African Development Bank (AfDB).
The grant will support the country’s efforts to overcome technical, financial, regulatory and institutional barriers to scaling-up renewable energy investments in Ghana.
The project, according to a release from AfDB and copied to Ghana News Agency (GNA), is part of the bank-led Climate Investment Fund (CIF) and the Scaling-up Renewable Energy Programme (SREP) Investment Plan for Ghana and will complement the bank’s effort in the Ghana Energy Development and Access Programme (GEDAP).
The SEFA grant will fund two broad components: the technical/commercial/regulatory and feasibility studies, aimed at providing detailed renewable energy resource studies, grid integration studies and regulatory texts, and resources and public sector skills and capacity development.
In a bid to create an enabling investment climate for renewable energy, the Government of Ghana has put in place several policy and regulatory measures, including the Renewable Energy Act 2011 (Act 832).
However, gaps within the existing renewable energy regulatory framework, continued to slow down private investment in the sector.
The Vice-President for Power, Energy, Climate Change and Green Growth of AfDB, Mr Amadou Hott, said: “African Development Bank’s intervention will address the identified barriers and strengthen Ghana’s enabling environment to unlock more private sector investments into renewable energy projects.”
Acknowledging the bank’s ongoing commitment to climate finance, Mr Hott stated that the SEFA grant would fund the preparation of detailed technical/commercial/regulatory, grid integration and feasibility studies, provide resources and tools, and enable public sector actors with the requisite skills and capacity development to maintain renewable energy assets.
The technical assistance supports Ghana’s Strategic National Energy Plan, its National Energy Policy, SEforALL Action Agenda targets, the Energy Sector Strategy and Development Plan, as well as the ECOWAS Renewable Energy Policy.
This assistance is fully aligned with the bank’s New Deal on Energy for Africa.
Launched in 2012, SEFA is a US$ 90-million multi-donor facility funded by the governments of Denmark, the United Kingdom (UK), the United States and Italy.
It supports the sustainable energy agenda in Africa through grants to facilitate the preparation of medium-scale renewable energy generation and energy efficiency projects; equity investments to bridge the financing gap for small- and medium-scale renewable energy generation projects; and support to the public sector to improve the enabling environment for private investments in sustainable energy.