Ghana is expected to receive $40 million from the Climate Investment Funds (CIF) to transform and promote the renewable energy sector.

After a meeting last week, the governing body of the Fund unanimously endorsed Ghana’s ambitious investment plan to transform its renewable energy sector.

Ghana’s plan to transform the renewable energy sector is structured around four key projects which include renewable energy mini-grids and stand-alone solar PV systems, solar PV-based net metering with storage, utility-scale solar PV/wind power generation, and a technical assistance project supported by the Sustainable Energy Fund for Africa (SEFA).

The Fund, in a statement, said Ghana’s renewable sector faces challenges such as inadequate regulatory, contractual and tariff frameworks and limited interest from investors.

“The infusion of SREP funding, along with $53.5 million in support from the African Development Bank (AfDB) and financing from other development partners will help the country scale up and leverage private and public financial resources to build the country’s renewable sector and carry out the innovative set of projects, it said.

Deputy Minister of Power, John Jinapor, who led the country’s delegation to present the investment plan to the SREP Sub-Committee said, “We are very pleased to receive this important endorsement from SREP. The potential we see through this plan for scaling-up the country’s renewable energy development is enormous, not only because of the funding to be provided, but because it will help increase investor confidence, reduce regulatory, institutional and contractual barriers and provide the needed technical support and capacity and ultimately help Ghana’s citizens to sustainably access climate-friendly energy,” he said.

The SREP investment plan is Ghana’s second under the CIF.

The country also has an active portfolio under the CIF’s Forest Investment Programme (FIP).

Established in 2008 as one of the largest fast-tracked climate financing instruments in the world, the $8.1 billion CIF provides developing countries with grants, concessional loans, risk mitigation instruments, and equity that leverage significant financing from the private sector, MDBs and other sources.

Five MDBs – the African Development Bank (AfDB), Asian Development Bank (ADB), European Bank for Reconstruction and Development (EBRD), Inter-American Development Bank (IDB) and World Bank Group (WBG) implement CIF-funded projects and programmes.