(Bloomberg) -- The World Bank’s International Finance Corp. is backing a Ghanaian conglomerate’s $1 billion solar project that could lift the country’s solar generation sevenfold by 2030.
The IFC has lent $130 million to LMI Holdings to meet part of the investment required to build 1,000 megawatts of solar installations in the next six years, LMI Group Chief Executive Officer Kojo Aduhene said. Ghana had 141 megawatts of installed solar power at the end of 2023, according to the Energy Commission.
The project, which aims to supply affordable electricity to companies in the West African nation, has already set up 1 million square feet of rooftop-solar panels that produce 16.8 megawatts as part of the first phase, Aduhene said in an interview.
“This is just the first phase and the biggest single-roof solar project in Africa, and a significant milestone in our journey toward energy independence and environmental stewardship,” he said. “With the funding from the IFC, our own funds and other private investors we are raising more than $1 billion” for the project, he said.
Ghana had installed capacity of 5,639 megawatts at the end of last year, but it’s struggling to generate enough to meet peak demand of 3,618 megawatts due to a lack of funds to pay suppliers. Currently, there’s a dispute between the finance ministry and independent power producers over the amount of arrears, risking the return of unscheduled blackouts that Ghanaians suffered in the first half.
The project “represents our joint commitment for a sustainable and greener future in Ghana,” said Cemile Hacibeyoglu, the IFC’s senior country officer for the nation. “We are increasingly cognizant of the importance of climate change as a defining development issue of our time, and the partnership with LMI Holdings is a shining example of this commitment.”
LMI has 33 years of experience in Ghana with diversified operations in construction, real estate, warehousing, ICT and utilities. The company will develop 150 megawatts in the second phase that covers 2024 and 833.2 megawatts in the final phase, Aduhene said.
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