eleQtra developed and lead to financial closing a 340MW, light crude oil and gas fired, combined cycle power plant in the municipality of Kpone within the Tema industrial zone.
The Project will provide urgently needed low cost, reliable and efficient thermal power to the deregulated Ghanaian power market.
In recent years Ghanaian power supply has been unable to meet growing demand, leading to severe shortages and negative impacts on economic development. The Project has been developed by eleQtra on behalf of InfraCo alongside local partners Cenpower Holdings Limited to meet the growing demand for power in Ghana.
The Project will ultimately become one of the main off-takers of natural gas from the West African Gas Pipeline which links gas fields in Ghana and Nigeria to the Tema Industrial zone. In 2010 a controlling equity position was sold to Africa Finance Corporation who are now jointly developing the Project with eleQtra and Cenpower Holdings.
Primary Economic Benefits
- Increased electricity supply and improved reliability of supply to the Ghanaian consumer
- Reduced cost of electricity, replacing expensive diesel fired generating units and crude oil fired turbines which currently provide marginal power supply
- Improved usage of the West African Gas Pipeline Project and of both Ghanaian and Nigerian natural gas resources, reducing both gas flaring and oil imports
Primary Social Benefits
- Increased access to electricity for all social sectors
- Job creation through supply of power to the industrial sector
- The Project is being structured as a classic Independent Power Producer (IPP) financed with 70% project finance and 30% equity.
- The Project will sell its capacity and all energy produced to the Electricity Company of Ghana (ECG) under a 20 year Power Purchase Agreement (PPA).
- The project will be responsible to purchase its own fuel with fuel price risk passed to the off taker, ECG through the PPA.
- When eleQtra initially began developing this project in 2005, it was a pioneering initiative.
- eleQtra has developed this IPP with a textbook approach, to serve as an example for the future.
- In addition, during the development experience, InfraCo Africa has worked closely with the Government of Ghana with the aim of increasing their capacity to undertake IPP’s; this included a “post-transaction” grant from the TAF to help build capacity at the newly set up Ghanaian Grid Company.
Approximate scope of project
Cost up to US$500 million
Permitted for up to 460MW installed capacity
25 years operation
Reltub Company Limited
Cenpower Holdings Company Limited
African Finance Corporation