Under the agreement, a solar energy plant that will produce between 20 and 50 megawatts (MW) of electricity will be established in the Northern Savannah Ecological Zone in the Northern Region.

The project, which is expected to start next year, will be connected to the national grid on completion to help improve on the energy situation in the country.

The Chief Executive Officer of SADA, Mr Charles Akelyira Abugre, signed for his outfit, while the Managing Director of ENI Ghana, Mr Fabio Cavanna, signed for his company at a ceremony in Accra.

Project

Mr Cavanna said already a technical and economic feasibility study and assessment of the project had commenced.  

He explained that the SADA zone was chosen for the project because of the vast stretch of land and abundant sunshine in the region.

Although the actual amount for the project was not disclosed, ENI Ghana is expected to provide large portion of funds under the agreement.

 ENI, an Italian international petroleum company, has been in Ghana since 2009. The government of Ghana is in a $7bn contract with the company to produce oil and gas at Cape Three Points.

Interest

Even though the company is involved in the exploration of oil and gas, Mr Cavanna indicated that his outfit was interested in renewable energy because “we believe that renewable energy is the future”.

For that reason, he said, it was collaborating with the government to realise its long-term strategy of integrating traditional businesses with renewable energy sources.

With regard to the company’s operations in the oil and gas sector, he said the first gas from the Sankofa and Gye Nyame fields where it was operating was expected in the first half of 2018, while first oil production would be realised in August 2017.

He noted that the 170 million standard cubic feet of gas expected from the fields to operate Ghana’s thermal plants would further boost the country’s energy production.

Job creation

For his part, Mr Abugre said SADA was pleased to be associated with ENI, since “SADA placed a lot of premium on this cooperation with ENI Ghana, as this will not only translate into job creation in the zone but also the generation of power”.

He said natural resources and assets in the northern zone of the country made it an appropriate site for the project, adding that “it has the most suitable amount of radiation and land required for solar energy”.

As part of its commitment to the project, he said, SADA would facilitate land acquisition and the necessary regulatory arrangement for the establishment and operation of the power plant.

 SADA is an independent agency that is mandated with autonomous statutory power to provide a framework for comprehensive and long-term development of the Northern Savannah Ecological Zone.

It is made up of the three northern regions and parts of the Brong Ahafo and the Volta regions.

It constitutes Ghana’s response to effects of climate change associated with floods and drought.