The African Development Bank (AfDB) has approved a whopping US $ 1.5m grant that will be used by Ghana for its renewable energy investment drive.
The grant which is from its Sustainable Energy Fund for Africa (SEFA) will support the government’s efforts to overcome technical, financial, regulatory and institutional barriers to scaling-up renewable energy investments in the country.
Renewable energy investment drive
This mega initiative is part of the Bank-led Climate Investment Fund (CIF) and the Scaling-up Renewable Energy Programme (SREP) Investment Plan for Ghana. It will complement the AfDB’s effort in the Ghana Energy Development and Access Programme (GEDAP).
Amadou Hott, Bank Vice President for power, energy, climate change and green growth confirmed the reports and said that in a bid to create an enabling investment climate for renewable energy, the government of Ghana put in place several policies and regulatory measures, including the Renewable Energy Act 2011 (Act 832). However, gaps within the existing renewable energy regulatory framework continue to slow down private investment in the sector.
“The 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,” he said.
Acknowledging AfDB’s ongoing commitment to climate finance, Hott stated that the SEFA grant will 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.