Ghana is set to bring a major a major base-load component online before the end of the year, the Kpone Independent Power Plant (KIPP). The plant, being developed by Cenpower Generation Co., is a combined cycle gas turbine (CCGT) power plant.
The plant is located in the Tema heavy industrial area, adjacent to the West African Gas Pipeline landing point, and close to all main transmission interconnections. KIPP has a planned capacity of 340 MW and is designed to work with multiple fuels: gas, crude oil and distillate. Natural gas will become the primary feedstock when Ghana’s domestic gas production and transmission network is completed.
Vuyo Ntoi, Investment Director at AIIM, one of the project’s core equity investors and member of Old Mutual Alternative Investments, says that the Cenpower project is a true realization of Africa investing in Africa.
“In addition to the revolutionary impact that the project will have on Ghana’s electricity industry – set to add around 10% of energy to the generation stock and meet the demand of approximately 1 million households – an outstanding feature of this particular project is that it is largely an African deal. From the founding shareholders being Ghanaian, to 67% of equity being held by African entities and 83% of senior debt having been issued by African lenders, this project is proof that we are able to structure capital within the continent, and will hopefully provide a template for future project finance IPPs in Africa,” says Ntoi.
Samuel Brew-Butler, the Chairman of Cenpower Generation Co. Ltd., says that CCGTs represent a very attractive solution to meet Ghana’s urgent need for additional generating capacity because of their high reliability and the ability to operate a range of fossil fuel feedstocks. “A CCGT power plant combines the benefits of proven technology, lower emissions and being relatively predictable in terms of build and cost.”