On Tuesday, the Early Power consortium announced that it has received parliamentary approval from the Government of Ghana and subsequently signed a 20-year power purchase agreement (PPA), which includes a 5-year extension option, with the Electricity Corporation of Ghana (ECG) for the 400MW greenfield Bridge Power project.
The consortium includes Endeavor Energy, an Africa-focused independent power development and generation company, Sage, an independent trading firm in Ghana and global digital industrial company General Electric through its GE Power division.
According to a statement released by the consortium, the project is expected to reach financial close in December 2016.
Bridge Power greenfield project
Endeavor CEO Sean Long said: “Bridge Power is a first of its kind in Ghana. We’ve customised the project to provide quick and reliable energy production for Ghanaians in order to assist Ghana’s economic growth and create jobs.
“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.”
The project will be developed in two phases – 194MW in Phase 1 and 206MW in Phase 2 in the coastal city of Tema, the biggest port in Ghana.
“Bridge Power is expected to start producing 144MW of first power within the first six months to help the country meet near-term power shortages,” the consortium said in a statement.
The power group added that while Ghana’s economy has grown by an average rate of 7% annually over the past 16 years, the provision of additional, reliable power will further bolster the country’s economic success.
The west African country has forecast to procure an additional 2,000MW of power generation over the next five years and this power project will provide more than 12% of the generating capacity by 2020.
Project attracting firsts for the country
According to the consortium, this project marks the first Ghanaian project to use a Put Call Option Agreement (PCOA).
“It allows the Ghanaian government to purchase the plant and associated infrastructure in the unlikely event of an early termination, which means any payment under the PCOA will result in the government and by extension, the Ghanaian people, getting a valuable asset in return,” the consortium explained.
Emmanuel Egyei-Mensah, CEO of Sage noted: “Being the first LPG-fired plant in Africa, it is a pioneering example of using clean fuel for power generation in Africa as an alternative to natural gas.”
Across the two phases of the project, 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 (CCGT) configurations.
In addition, GE will provide an ‘on balance sheet’ financing solution for the capital required for an acceleration of the first phase of the project as well as a long-term service agreement for the life of the project to ensure reliability and power plant availability of world-class standards
GE Ghana CEO, Leslie Nelson commented: “[…] this project represents the first integrated gas-to-power project we will successfully deploy on the continent.
“Our goal was to successfully create and implement a gas-to-power project that included a full gas solution and financing package and then deploy this model to other countries that are not endowed with cost-efficient fuel sources.”