Blue Energy To Build Africa's Largest Solar Plant
UK company to lead project that ensures Ghana will receive largest African plant
Blue Energy is to build Africa's largest solar photovoltaic (PV) power plant in a move which could spark a renewable energy revolution in West Africa. The giant 155-megawatt Nzema project will be one of the biggest in the world "“ only three solar PV plants in operation today are bigger. It will increase Ghana's current generating capacity by 6% and will meet 20% of the government's target of generating 10% of its electricity from renewable sources by 2020.
The Nzema project will be the first to go ahead under Ghana's 2011 Renewable Energy Act, which set up a system of feed-in tariffs, and it is a success for the government's policy of attracting international finance. Last month Energy Minister Joe Oteng-Adjei announced he was seeking $1 billion of private investment to help Ghana achieve its renewables target.
The US $400 million scheme, which will be fully operational in 2015, demonstrates Blue Energy's ability to mount major projects in the region. The UK-based renewable energy investor and developer plans to develop further renewable energy power plants in West Africa and has a number of projects in the pipeline.
Chris Dean, CEO of Blue Energy, said: "Ghana's forward-thinking strategy puts it in a strong position to lead the renewable energy revolution in sub-Saharan Africa. Nzema is a case study in how governments can unlock the huge potential for solar energy in Africa. We are delighted that it will make a strong contribution to the national economy, provide much needed generating capacity and help develop the skills of the future." He added: "There's huge potential to develop renewable power in the region.
We believe Nzema will show other countries what can be achieved and spur them to action." Blue Energy has secured all the consents it needs to go ahead with the project. Ghana's electricity regulators, the Energy Commission and the Public Utilities Regulatory Commission, have awarded it a generation licence and a feed-in tariff for the plant's 20-year operational life.
The company is majority owned and funded by members of the Stadium Group, one of Europe's largest private asset and development companies with £2.5 billion of assets under management, and is fully able to source the development funding and equity. Blue Energy will now conclude discussions with a number of international financial institutions and global equity and infrastructure funds which have expressed interest in providing debt financing or investing in the project. It expects to reach financial close in the first half of 2013.
The Nzema plant will be built by a subsidiary of Blue Energy, Mere Power Nzema Ltd, on a 183-hectare site close to the village of Aiwiaso in Western Ghana. It has secured a 100-year lease on the site, planning permission and permission to connect to the grid. The site enjoys good solar radiation, has excellent access to the major road system and is within easy reach of a deep water port at Takoradi. The plant will be directly connected to the 161kV West African Power Pool transmission line, which runs alongside the site, linking Ghana to Ivory Coast, Togo, Benin and Nigeria, and has available capacity for its load.
Installation of more than 630,000 solar PV modules will begin by the end of 2013 and electricity generation will start early the next year, with sections coming on stream as they are completed. The project is due to reach full capacity by October 2015.
