Chinese firm to construct 700MW coal power plant in Ghana

The Volta River Authority in Ghana has proposed the construction of a 700MW coal power plant in Ghana. The project is expected to begin by April next year. Shenzhen Energy Group Co. Ltd. (SEC), a Chinese based power company will cooperate with the VRA to execute the coal plant project.

According to Ben A. Sackey, Manager, Environment and Social Impact-VRA, the project’s kick off will depend on getting a permit from the Environmental Protection Agency. Besides the authority is working closely with the EPA to ensure that all the stringent environment requirements are met.

The coal plant, to be sited in the coastal town of Aboano in the Ekumfi district of the Central Region. On completion the coal plant project is expected to augment the current generation capacity in order to boost the largest power producer diversify its power generation portfolio to meet the growing energy demand in the country.

The China-Africa Development Fund (CADFund) has offered to provide about US$1.5bn long-term loan for the construction of two 350MW coal-fired plants to meet future power demand in Ghana. The 350MW of power, represents the first phase of developing the two coal plants by the largest power producer, as it seeks to strengthen the country’s base load and forestall any future shortage of power. Besides, the existing plants are currently due for mandatory maintenance.

Given that the power demand is expected to rise in the country, the plant will be further expanded in the future by either 4×350MW or 2×600MW supercritical coal-fired generating units. The project will include the construction of a coal port solely dedicated to taking delivery of imported coal.

Pre-feasibility study and design of the plant has successfully been carried out and has since served a scoping notice to allow individuals, groups and organisations with special interest, concerns and expert knowledge on the environmental impacts to furnish the Environmental Protection Agency (EPA), VRA and SEC with it.

Ghana’s electricity demand currently stands at about 2,225MW, the demand is said to have grown by 10% per annum and is expected to hit 7,000MW by 2030. Infact, gas, crude oil and water for hydro power generation will necessitated the need for exploring reliable, cost-effective, and clean power sources.

The current gas supply from the West Africa Gas Pipeline which is about 450Mscf per day is unable to meet the gas demand in the country. Apparently, the available indigenous gas is expected to run out by 2036. On the other hand Coal, is available at a cheaper cost worldwide. Coal power advancements technology have greatly made it possible to generate clean power from coal.