good things come in small packages

Ghana’s China-backed green energy projects play it small and safe

Eric Olander
By Eric Olander

Managing Editor, The China Africa Project

Posted on Friday, 18 December 2020 11:35

The Bui Power Authority (BPA) in Ghana recently launched a new solar farm that's connected to a Chinese-built hydroelectric dam. The idea here is that when water levels run low and power generation dips, the solar farm kicks in to make up the difference.

It’s kind of like a hybrid car that seamlessly draws on both battery power and a combustion engine.

But what’s so great about the pioneering hybrid power station in Ghana is that it provides a fantastic case study for other developing countries and provides an important model for international development partners as to the kinds of projects they should fund in the future.

Here’s why what they’re doing in Bui is so important:

1. Small scale development

Sure, Africa’s energy needs are enormous but big is expensive, complicated, and creates a huge impact on the environment. BPA’s decision to build the solar farm in five 50mw installments is far more manageable and affordable. If the project isn’t generating the expected returns, they can take a pause and defer the next instalments until the financing situation improves.

2. Leverage Chinese infrastructure

African countries like Ghana have made enormous investments in Chinese infrastructure, especially in the power sector, that will take generations to repay. Rather than build additional capacity to offset the reduced output from the Sinohydro-made hydroelectric dam, BPA opted instead to supplement the dam with the new solar farm.

READ MORE Footing Ghana’s election bill means cycle of higher borrowing

This is an especially important example for international donors and development agencies who should expand funding for projects that amplify the benefits of the existing Chinese-built roads, telecom networks, power stations, ports, etc…

3. Sustainable solutions

Many of the Chinese-built hydroelectric dams throughout Africa are going to face the same problem of unpredictable water levels that confronted the BPA. Drought and other environmental changes brought on by climate change are likely going to worsen in the future, so building sustainable energy solutions that rely on the sun rather than water to generate power is smart.

READ MORE Solar energy is Madagascar’s key to boosting electricity in rural areas

The team that conceptualized this new hybrid solar-hydro power station deserves a raise and ribbon. It’s small, scalable, flexible, affordable, and sustainable. If you want to see what a new model for infrastructure development should look like, well, this is it.

Understand Africa's tomorrow... today

We believe that Africa is poorly represented, and badly under-estimated. Beyond the vast opportunity manifest in African markets, we highlight people who make a difference; leaders turning the tide, youth driving change, and an indefatigable business community. That is what we believe will change the continent, and that is what we report on. With hard-hitting investigations, innovative analysis and deep dives into countries and sectors, The Africa Report delivers the insight you need.

View subscription options
Digital subscription
Digital subscription

Give yourself a headstart:
Get full access to The Africa Report on all your devices.

More Opinion

heavy dependence

Nigeria: Forget oil and gas, look at the potential of shea

The governor of the Central Bank of Nigeria (CBN), reacting to calls by citizens to take drastic action against the free fall of the naira against ... the US Dollar, was quoted in a report saying: "Domestically, there has been zero dollar remittance to the country’s foreign reserve by the NNPC. Monetary policy alone cannot bear all the burden of the expected adjustments needed to manage all these difficulties. It’s our collective duty as Nigerians to shore up the value of the naira.’’