The €100 million concessional loan, which Ghana secured from Germany in June this year, is to boost investments in the renewable energy sector, German Ambassador, H.E Christoph Retzlaff has stated
Earlier in June, Finance Minister, Ken Ofori Atta, said the loan was to improve sustainable private sector investments through employment creation but the German Ambassador has emphatically stated that the money is to develop the country’s renewable energy sector.
The arrangement, which is under the G20 ‘Compact with Africa’, will enable Germany to commit up to €100 million in the form of highly concessional loans, with a reform partnership aiming at privately driven expansion of renewable energy in the country.
Addressing dignitaries at the 3rd Ghana Renewable Energy Fair in Accra, Ambassador, Retzlaff, said, renewable energy could contribute more than 40 percent power to Ghana’s energy mix when potentials in the sector are fully exploited.
“When we [Germany] signed the memorandum with Ghana, the focus was to strengthen competition in power generation and to make the renewable sector a shining example” he disclosed.
H.E Retzlaff explained that the partnership among others is intended to reduce cost of power generation and introduce a competitive bidding, which in the long term, would attract value for money invested.
He observed that, a second priority of the agreement was to increase the share of renewable energy in the country’s energy mix.
“Investments are mainly coming from the private sector to benefit households as well as small and medium sized companies. Therefore, one goal of the partnership is to reduce the costs of financing for the private sector” he indicated.
Ambassador Retzlaff noted that the initiative to install solar power for the various ministries, departments and agencies by the Energy Ministry, must not delay.
“That initiative shows the country’s readiness and belief in renewable energy solutions for accelerated growth and development. Ghana has made a lot of right decisions in the promotion and deployment of renewable energy with a favourable investment environment and legislation in place,” he said.
He revealed that Germany is one of the countries transitioning from a fossil fuel based economy to the reliance on renewable energy.
“We have learned a lot of lessons about our renewable energy sector, as it has contributed to reducing carbon emissions, reduced cost of power generation and resulted in tremendous fuel saving systems” he said.
He noted that, the Renewable Energy Fair must allow for awareness creation of prospects in the sector and said the annual event must not only be a ‘show’, but must be an opportunity for private sector deals to be struck.
By Wisdom Jonny-Nuekpe