The Early Power consortium has received parliamentary approval from the Government of Ghana to develop a 400MW Greenfield Bridge Power plant at Ghana’s Tema Port.
Electricity Corporation of Ghana (ECG) signed the 20-year power purchase agreement that includes a five-year extension option. The Corporation is expected to generate power in two phases: phase I will deliver 194MW while phase II will deliver 206MW of power.
It is reportedly the first project to use a Put Call Option Agreement (PCOA), allowing the government to purchase the plant and associated assets in the event the contract is terminated, meaning any payment under the PCOA will directly benefit Ghana.
The Early Power consortium is made up of trading firm Sage, digital industrial company General Electric via its GE power division and Africa-focused independent power producer Endeavour Energy.
However, the project finance will be raised by equity invested and debt raised by Early Power, with Endeavour providing the majority of the equity in addition to managing the plant’s construction and operation.
The plant will be created by the Consortium partner Sage the plant’s gas-to-power solution using LPG as the primary feedstock. Nonetheless, GE will provide 400MW of power generating capacity through nine GE gas turbines and two purpose built GE steam turbines in two separate combined cycle gas turbine configurations.
The company will also help accelerate the first phase of the project by providing an ‘on balance sheet’ capital option and implementing a long-term service agreement for the plant. According to Sean Long, Endeavour Energy CEO, the Bridge Power is a first of its kind in Ghana and that the company has customised the project to provide quick and reliable energy production for Ghanaians in order to assist Ghana’s economic growth and create employment opportunities.
“Our understanding of Ghana’s long-term vision for its power sector is built on having reliable and diversified energy. Bridge Power checks all those boxes,” said Sean Long.
Additionally, within the first 6 months the Bridge Power project, set to be built in the most economically active part of Ghana, is expected to begin producing 144MW of power to meet the country’s immediate power shortages.
The project will also deliver significant economic benefits to Ghana, with Bridge Power contributing more than 12% of the country’s planned generation capacity by 2020. It will also help to grow the industrial, light manufacturing and agro-based processing sectors.
