15 June 2012 – The Electricity Company of Ghana, the country’s second largest utility, has signed a power purchase agreement (PPA) to buy 50 MW of solar power for 25 years. This agreement is valued at over US$280 million.
Siginik Energy, a wholly-owned subsidiary of Episolar, will build a 50 MW ground mounted tracking solar installation, which will be the largest of its kind in west Africa, and one of the largest on the continent.
The installation is projected to create roughly 800 highly skilled jobs, including manufacturing, in the Northwest region of Ghana and Siginik expects to break ground within the next six months. Siginik and ECG intend on expanding on this initial project with a view to additional installations in Ghana, a country with ideal solar radiation and increasing power needs.
Energy consumption within Ghana has been growing at 10% to 15% per year while supply is growing at a significantly lower rate. Experts believe that Ghana needs 5,000 MW of power to keep pace with demand, more than double its current available power. In addition, to achieve energy security in light of the country’s robust economic growth, Ghana requires diversification in both energy mix and energy sources.
ECG, which is wholly owned by the government of Ghana, is responsible for the distribution of electricity in the southern part of Ghana namely, Ashanti, Central, Eastern, Greater Accra, Volta and Western regions.