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Ghana secures $180 million to boost renewable energy, cut electricity costs

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Ghana secures $180 million to boost renewable energy, cut electricity costs

Ghana secures $180 million to boost renewable energy, cut electricity costs

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The government of Ghana, with support from the German development agency GIZ, is set to mobilize $180 million in climate finance to implement solar energy and energy efficiency measures in public institutions.

This initiative aims to reduce the government’s electricity costs and ease the financial burden on the energy sector.

Addressing Parliament on the state of Ghana’s energy sector, the Minister for Energy and Green Transition, John Abu Jinapor, announced that initial funding for the initiative had already been secured from the German government, the Swiss government, the Climate Investment Fund, and the African Development Fund.

According to him, feasibility studies have been completed, and full implementation is expected to commence by the third quarter of 2025.

He explained that the initiative is designed to significantly cut down electricity costs, especially in public institutions, while ensuring overall energy efficiency in the country.

The minister also highlighted the increasing energy costs affecting Ghana’s irrigation systems. To address this, the Ministry of Energy, in collaboration with the Ghana Irrigation Development Authority, will roll out the Water-Energy-Food Nexus Initiative. This program will utilize solar and wind power, as well as other renewable energy sources, to power irrigation systems and boost agricultural productivity.

He noted that as part of President John Dramani Mahama’s Green Transition Initiative and Vision, Ghana has completed a strategic investment plan aimed at accelerating partnerships for renewable energy investment in the country and across Africa.

Mr. Jinapor said the country’s participation in the Accelerated Partnership for Renewable Energy in Africa (APRA) was showcased at the 5th General Assembly of the International Renewable Energy Agency

Through this partnership, Ghana stands to benefit from a $4 billion renewable energy fund from the United Arab Emirates, which will help African nations triple their renewable energy capacity and attract sustainable energy investments.

The minister emphasized that under the APRA framework, Ghana is committed to transforming its energy systems and promoting green industrialization.

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