U.S. agency approves $1.83 mn grants for two renewable energy projects in Ghana

27 Jun 2016
Financial Nigeria


The projects will potentially add 70 megawatts of renewable energy to Ghana’s grid and provide electricity to 140,000 households.

Ghanaian President John Dramani Mahama

The United States Trade and Development Agency (USTDA) has signed grant agreements worth up to $1.83 million to support two renewable energy projects in Ghana.

In a statement released on Friday, Lida Fitts, USTDA’s Regional Director for Sub-Saharan Africa, said the projects have the potential to add 70 megawatts of renewable energy to Ghana’s grid and provide electricity to 140,000 households.

"We are proud to advance the goals of Power Africa, a U.S. government-led initiative to increase electricity access across the continent," Fitts said.

The two grant agreements were signed during the 18th Annual Africa Energy Forum, which was held in London from June 22nd to 24th.

USTDA said it signed an $899,995 grant with Village Corps Ghana Limited for a biomass-to-power project in the Eastern Region of Ghana. As part of the agreement, Village Corps has selected Recast Energy, a Virginia-based renewable energy company, to conduct a feasibility study for a giant bamboo farm and steam-based power plant, which has the potential to generate up to 20 megawatts of clean, renewable energy.

The study will include an assessment of the available biomass and biomass logistics, a site recommendation, an interconnection study focusing on power evacuation to the grid, economic and financial analyses, and a project implementation plan. Recast Energy will also be conducting a comprehensive social and environmental impact assessment.

"Village Corps is proud to lead this effort to help meet the energy needs of the Eastern Region in Ghana," said Norman Beaulieu, Founder of Village Corps. "We look forward to working with our partners and the communities of the Akyem Abuakwa Kingdom to develop this innovative clean energy facility."

The second USTDA grant of $926,614 will support the efforts of eleQtra (West Africa) Limited to develop a 50 MW wind power project in the Greater Accra region.

The grant will include the preparation of technical studies and reports to determine the energy production, topographical, geotechnical, grid interconnection and market characteristics of the project. The USTDA assistance will also include the preparation of tender documents for the selection of an engineering, procurement and construction (EPC) contractor and long-term service provider. It will also provide legal support in the negotiation and execution of project and financing agreements.

"This project will help meet the growing demand for energy in Ghana by diversifying power sources," said Gad Cohen, eleQtra's CEO. "We are proud to partner with USTDA to develop innovative solutions for the Ghanaian energy sector."

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