Ghana’s port cities Tema and Takoradi will be welcoming two floating power plants next month from Turkey. The plants will generate 450MW of power that will be linked directly to Ghana’s national electricity grid.
According to the GhanaWeb, in June 2014 the Electricity Company of Ghana (ECG) signed a 10-year power purchase agreement with Turkish Karpowership to deliver two offshore power stations to meet Ghana’s rising energy demand.
Independent power producer Karpowership has pre-financed the project at an estimated total cost of $1.2 billion (ZAR11 billion) with each ship costing $600 million (ZAR7 billion). Ghana will begin paying back the loan in May 2015.
For the first five years of operation the power plants will consume heavy fuel oil (HFO) at a cost of $0.19 (ZAR2.2) a unit per kWh. In the sixth year, the plant will transition to natural gas, reducing the unit tariff to $0.15 (ZAR1.7).
It is anticipated that this project will improve the overall electricity market in Ghana, creating employment, attracting foreign direct investment and lowering electricity tariffs due to low-costing fuel sources.