In Ghana, market opportunities have been realised by Chinese-owned company Shenzhen Energy Group, who through their parent company Sunon-Asogli Power will be investing $700 million in a coal-fired power plant.
Coal power investment
Speaking to CNBC Africa, Togbe Afede, Chairman of Asgoli Power said that the 700MW coal-fired power plant will cost around $700 million.
Ghana currently has an output capacity of 2,1125MW and has plans to increase this to 5,000MW by 2016.
Afede said: “They know Ghana’s demand and […] because they know [that] the outlook for Ghana’s economy is very good […], they’re proposing to invest another million to build a 700 megawatt coal power plant. So in all, they will be building an additional capacity of 1,060 megawatts.”
The Ghana-based Asgoli Power, selected its location due to its position in the centre of the sub-region, an ideal location to generate and supply power to neighbouring countries, Afede told media.
“Given the lack of adequate supply and given our location in the centre of the sub-region, Ghana’s the place to be, nicer place to build power plants and supply power to others in the sub-region.
“They are looking beyond Ghana and that is consistent with Ghana government’s own policy of making the country a net exporter of power,” Afede added.
With countries making every effort to reduce carbon emissions while finding a reliable power source, Afede stressed that the Chinese firm will install highly advanced machinery to ensure that the effects of coal mining are done in the most safe and environmentally aware way.
Afede stressed: “They use advanced technology to deal with all the bad emissions.”