Ada Solar Energy will develop, build and operate solar PV farms in the Republic of Ghana. Each farm will be 24 MWp/20 MW. The first will be built in the Ada region - 110 km east of Accra, the capital of Ghana.
The project has attractive characteristics including:
- ROI: 20 %/year and gross project ROI of 500 % (25 years)
- Recuperation of investment: 5-7 years
- Unleveraged post tax IRR: 15.6 % in year 25
- Production: 40 GWh in year 1
- Insurance coverage: loss of revenue for up to 52 consecutive weeks
- Capex: mUSD 30-35 (mUSD 1.45/MWp) (average PV cost in Africa: mUSD 3.71 MWp, cf. Clean Energy Pipeline, Finance Guide 2015).
The project enjoys strong support from the family owning the land and from the Member of Parliament for the Ada constituency. 1,000 hectares has been secured for the project and the company will be allowed to build both solar PV farms and wind turbines on the land.
Once the first farm has been built, it is the intention to build another 180 MW, at the same site or in other regions in the country, while at the same time developing wind farms on land made available to the company.