The Early Power consortium has secured parliamentary approval from the Government of Ghana and subsequently signed a 20-year power purchase agreement (PPA).
This PPA comprises a five-year extension option with the Electricity Corporation of Ghana (ECG) for the 400MW greenfield Bridge Power project.
Early Power consortium comprises Endeavor Energy, a leading Africa-focused independent power development and generation company; Sage, a leading independent trading firm in Ghana; and digital industrial company General Electric through its GE Power division.
Early Power intends to achieve financial close on Bridge Power in December 2016. It will develop the project in two phases, 194MW in Phase 1 and 206MW in Phase 2.
The company expects to start producing 144MW within the first six months to help the country meet near-term shortages.
Endeavor's CEO Sean Long said: “Bridge Power is a first of its kind in Ghana. We’ve customised the project to provide quick and reliable energy production for Ghanaians in order to assist Ghana’s economic growth and create jobs.
“Our understanding of Ghana’s long-term vision for its power sector is built on having reliable and diversified energy. Bridge Power checks all those boxes.”
The project is expected to bring significant economic benefits to the country. While Ghana’s economy has grown by an average rate of 7% annually over the last 16 years, an addition of reliable power will further boost the country’s economic success.
Ghana is estimated to require at least a further 2,000MW over the next five years. Bridge Power will provide over 12% of the country’s planned power generating capacity by 2020.