IFC backs group to build $1bn solar energy project in Ghana
TLDR
- $1 billion solar project led by Ghanaian conglomerate aims to increase solar generation capacity sevenfold by 2030
- World Bank's IFC provides $130 million loan to LMI Holdings for construction of 1,000 megawatts of solar installations over six years
- Project already installing rooftop solar panels to generate 16.8 megawatts for supplying affordable electricity to Ghanaian companies
The World Bank’s International Finance Corporation is supporting a Ghanaian conglomerate's $1 billion solar project that aims to increase the country’s solar generation capacity sevenfold by 2030.
The IFC has provided a $130 million loan to LMI Holdings to help finance the construction of 1,000 megawatts of solar installations over the next six years, according to LMI Group Chief Executive Officer Kojo Aduhene.
As of the end of 2023, Ghana had 141 megawatts of installed solar power, based on data from the Energy Commission. The project, designed to supply affordable electricity to companies in Ghana, has already installed 1 million square feet of rooftop solar panels, generating 16.8 megawatts as part of the first phase.
Key Takeaways
At the end of last year, Ghana had an installed capacity of 5,639 megawatts but struggled to generate enough electricity to meet the peak demand of 3,618 megawatts due to insufficient funds to pay suppliers. Studies indicate that Ghana has substantial potential for both concentrating and non-concentrating solar technologies, with an estimated 50–100 megawatts of solar energy potential still untapped. Currently, a dispute between the finance ministry and independent power producers over arrears threatens to bring back unscheduled blackouts, similar to those Ghanaians experienced in the first half of the year. Despite these challenges, the country's solar energy potential remains significant, and efforts like the $1 billion solar project backed by the World Bank’s International Finance Corp. aim to tap into this potential and enhance the country's energy security.
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