GHANA: insurer ACA will guarantee the deployment of renewable energies

Ghana subscribes to the Regional Liquidity Support Facility (RLSF). This initiative of the African Trade Insurance Agency (ATI), the German Development Agency (KfW) and the Norwegian Agency for Development Cooperation (Norad) aims to support investments by independent producers of electricity (IPP). Concretely, this financial product is designed to address the short-term liquidity risks faced by IPPs that sell electricity to public utilities.

According to the ACA, this mechanism allows projects to reach their financial closures. “Through the MoU, IPPs in Ghana will benefit from the RLSF, which was established to help fight climate change and attract investment by supporting renewable energy projects in ATI member countries and protect IPPs against the risk of late payment by public distributors”, says this Nairobi-based financial institution.

Support for independent electricity producers

The RLSF mechanism should support Ghana in the development of its energy sector. The country’s electricity demand is increasing by 10% per year, while Ghana wants to accelerate the development of its industry. According to Power Africa, the country has an installed capacity of 5,300 MW, that is to say twice the installed capacity of a country like Côte d’Ivoire, or 2,229 MW. This electricity is produced by hydroelectric power stations and thermal power stations.

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But the country is continuing to diversify its electricity mix, notably through solar energy, the first power plants of which have been commissioned in recent years. Ghana exports its surplus electricity production to Benin, Togo and Burkina Faso. At the same time, Ghana is one of the most electrified countries in sub-Saharan Africa with a rate of 86.63% for a population estimated by the World Bank at 31 million inhabitants in 2020.

Accra wants to achieve universal access to electricity by focusing on renewable energies. “However, one of the main constraints to this vision is access to reliable and cost-effective electricity, as well as the sector’s current financial deficit. The RLSF will therefore be available to ease the financial burden on the utility Electricity Company of Ghana (ECG), which is often asked to provide guarantees for similar liquidity instruments under purchase contracts. of electricity (CAE) »says the ACA.

Jean Marie Takouleu

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