On 14 December, Siemens signed a memorandum of understanding (MoU) with Ghanaian independent power producer (IPP) Rotan Power Ltd to develop and build a 660MW combined cycle power plant at the Aboadze Power Enclave in the Western Region of Ghana. The project is set to be developed over two phases, with the first scheduled to be completed by 2023 and the second by 2025.
Siemens will be the turnkey engineering, procurement and construction contractor and will provide operation and maintenance services for 20 years. According to Siemens, the project is expected to cost more than $500m and German export credit agency Euler Hermes is expected to provide financing.
The future of gas IPPs under development in Ghana has been uncertain after the administration of President Nana Akufo-Addo undertook a review of 28 power purchase agreements for thermal projects signed by the previous administration. Some contracts are reported to have been cancelled, but others have been adjusted so that development timelines coincide with the next expected supply deficit. Deputy energy minister Mohammed Amin Adam was quoted by Ghana’s Star FM in October as saying that the cancelled contracts could result in payments of more than $400m by the government to project developers.
Ghana is currently set to have a power surplus and the government is keen to increase the amount of renewable generation in the mix, which has squeezed thermal projects.
