The global renewable energy market which is currently valued at over $928 billion is expected to cross the $1.5 trillion threshold by 2025, Project Manager for the Renewable Energy Development and Acceleration Project (REDAP), Mr Odjobi Kwakye has said.
He said this presented a huge opportunity for renewable energy businesses in the country to tap into.
For Ghanaian renewable energy companies to be able to take advantage of this opportunity, he said this required that they partner with financial institutions for financial assistance.
“Generation of energy from renewable sources requires huge investments, which requires that financial institutions must inject more resources into the sector”, he stated.
Speaking at the closeout event for the REDAP, he said by merely building the capacity of renewable energy enterprises, creating market linkages, stimulating awareness and demand for renewable energy technologies would not propel renewable energy enterprises growth.
Rather, he said providing funding, investing in end-user financing and establishing collaborative support system with key actors in the renewable energy ecosystem were essential in growing the sector.
Importance of financial institutions
On his part, the Chief Financial Officer (CFO) of the Rural Development Fund (RDF), Mr Sampson Asumadu, underlined the importance of financial institutions in partnering renewable energy companies to provide the needed financial support to them.
He said RDF Ghana seeks to continuously promote financial access to the agriculture and renewable energy sectors through product offerings including lines of credit, credit guarantees and technical assistance.
He emphasized the importance of REDAP to the growth of RDF in the renewable energy space, stating that “the lessons learnt from this one-year project would be used to inform our approach as it enhances our understanding of the renewable energy landscape.”
Highlights of project
Presenting some of the key highlights of REDAP, the , Energy Advisor at SNV Ghana, Mr Aaron Nyarkotey said a total of 9,829 households received Improved Cook Stoves (ICS) as part of the project, whilst 333 end-users adopted solar energy systems.
He also shared some lessons learnt during the roll-out period of the project in the area of developing and making renewable energy enterprises investment-ready.
He said organizational restructuring, financial reporting and audit services, regulatory compliance and business model development and commercialization were among the key needs to be addressed to make renewable energy enterprises prepared and ready for investments.
The Renewable Energy Development and Acceleration Project (REDAP), is a year-long support programme rolled out by SNV Netherlands Development Organization with funding support from the Rural Development Fund (RDF).
The project had a primary goal to facilitate the growth of energy businesses and sustainable energy services.
In all, 16 micro, small, and medium enterprises in the renewable energy space benefitted from the project.
They include Solar Taxi, Tradeworks, Synergy Recycle, and Northlite Solar Ltd. Others are Comeph & Associates, SETECH, Bidipa, Zuriel Carbon Products, Global Bamboo Products, Gamma Energie, Nassam Brand, Translight Solar, Wen Neon, Pumptech, Nasag Lach, and Beta Construction Engineers, all operating in the renewable energy space.
Among its objectives, the project sought to improve access to efficient and suitable finance for sustainable energy businesses, build a pipeline of viable and sustainable energy MSMEs through business and market development support, and increase demand for sustainable energy services.
In pursuit of the project goal and objectives, the project implementers partnered some selected private financial institutions, as well as national research, regulatory, licensing and certification institutions to train and mentor participating MSMEs in the renewable energy space in effective and sustainable business management practices and national regulatory requirements.
Business matchmaking and market linkages interventions yielded three signed contracts for Northlite Solar Limited: 120kWp PV lease project at a cost of $280,250, 100kWp PV lease project at a cost of $234,000, and 20kWp PV lease project at a cost of GHS316,000 respectively.