A US$164million hydro power project has been signed between Small Hydro Development Company Limited (SHDCL) and the Electricity Company of Ghana (ECG), which will serve as off-taker for the 42MW project.

The deal will see SHDCL, a wholly-owned Ghanaian Independent Power Producer (IPP), build hydro dams on the Ankobra River in the Western Region, using Run of River technology to generate the power.

Director of SHDCL Kwadwo Poku said the company has completed its pre-feasibility studies and identified three sites on the Ankobra River for the proposed hydro dams; and these include Maham, Tarkwa-Breman and Nsuaem, all in the Western Region.

He added that the company has acquired a provisional IPP licence from the Energy Commission and has initiated approval processes with the Water Resource Commission.

“The construction is set to start in the first quarter of 2017 after the Environmental and Social Impact Assessment (ESIA) is completed. The inundated areas do not affect any communities along the river, so there will be no resettlement needed for the project,” he added.

He said the company is striving to be a leading player in Ghana, applying innovative technologies to discover valuable renewable energy resources and deliver the highest quality power to the marketplace.

“Our vision is to be recognised as a pacesetter in identifying various energy potential on stream and rivers across Ghana.”

With the passage of the Renewable Act in Ghana, the generation of green power using renewable sources such as rivers has become very attractive. Though the initial cost of development of such projects is high, the Feed-in-Tarriff arrangement makes it easier for companies to undertake such projects without fear of financial loss.

Mr. Poku stated that SHDCL is implementing Gauging Stations on major rivers and its tributaries across Ghana to gather flow and water level data.

“The preliminary evaluation of the hydropower resources of a river basin, and the identification of generating sites, is the vital first step in the orderly development of a river’s hydropower potential.

“SDHCL and its technical partner, Knight Piesold -- a leading hydro power developer from Canada, are particularly well-placed to undertake this work and to recognise scope for improving the economic benefits of a scheme by integrating other water uses with the objective of power generation.”

He added that the biggest challenge to the development of these dams on the rivers is the galamsey operations taking place on river beds and banks.

“The illegal mining is destroying the water bodies by diverting the rivers during low tides and introducing chemicals into the river.”

He is of the view that Ghana can add about 500MW of power to the national grid from various rivers through hydro dams, but the nuisance of galamsey operations is placing a threat to this progress.

SHDCL’s core areas of operations include evaluation of river basins for hydropower potentials, conceptual studies and design, project management and environmental impact assessment.