Ghanenergy Power Limited has partnered with the government to develop a proposed $320 million waste-to-energy project aimed at generating 80 megawatts (MW) of electricity from municipal waste, beginning with a pilot facility in the Greater Accra Region.
The initiative is expected to combine improved waste management with electricity generation, offering a potential solution to Ghana’s growing sanitation challenges while contributing to the country’s energy supply.
The partnership was formalised through the signing of a memorandum of understanding (MoU) with the Ministry of Special Initiatives at the Office of the President.
Under the proposed arrangement, suitable municipal waste will be processed to generate electricity, with plans to extend the initiative to other parts of the country. Ghanenergy is considering the establishment of similar facilities across four regions as part of its long-term expansion strategy.
Ghana generates approximately 12,700 tonnes of solid waste daily, placing considerable pressure on waste collection services, disposal facilities and local authorities.
The accumulation of refuse, indiscriminate dumping, plastic pollution and choked drains remain persistent environmental challenges, contributing to flooding and creating public health risks in communities.
Poorly managed organic waste also produces methane, a potent greenhouse gas that contributes to climate change.
The proposed project seeks to address some of these challenges by diverting suitable waste from disposal sites and converting it into a resource for electricity generation.
Under the planned system, plastic and biodegradable waste will be separated from household refuse, while appropriate residual waste will be processed for power generation.
If implemented effectively, the initiative could reduce the volume of waste requiring disposal while introducing an additional source of electricity into Ghana’s energy mix.
Speaking at the MoU signing ceremony, the Minister for Special Initiatives, Dr Abdul-Rashid Pelpuo, said the proposed project could generate significant financial benefits for electricity companies during its initial phase.
According to the minister, electricity companies could save more than $90 million by purchasing power from Ghanenergy compared with their current expenditure under the proposed arrangement.
Dr Pelpuo also projected that the project could generate approximately $94 million in earnings from electricity sales during its initial operating period.
“This should generate approximately $94 million in earnings from electricity sales during its initial operating period,” he said.
The projected savings and revenue are expected to strengthen the commercial case for the investment, although the actual financial benefits will depend on the final power-purchase arrangements, operating costs and the volume of electricity supplied.
The proposed investment comes as Ghana continues to pursue a reliable and affordable electricity supply to support households, businesses and industrial activities.
The country’s power sector faces the ongoing challenge of balancing electricity demand, generation costs, infrastructure requirements and the financial sustainability of energy companies.
An 80MW waste-to-energy facility could diversify Ghana’s electricity generation sources by producing power from municipal waste rather than relying exclusively on conventional fuel sources.
Dr Pelpuo indicated that a properly designed facility could supply electricity in line with its operating schedule, potentially complementing other sources of power generation.
However, the extent to which the plant would contribute to the national grid will depend on its operational capacity, maintenance requirements, fuel supply and connection to the transmission network.
The Chief Executive Officer of Ghanenergy Power Limited, Clive Cox, described the initiative as a potential game changer for Ghana’s industrial development.
He said a feasibility study had been conducted to assess the project’s viability, adding that successful implementation would require close coordination among key institutions responsible for electricity distribution, transmission and local government administration.
According to Mr Cox, the Electricity Company of Ghana (ECG), Ghana Grid Company Limited (GRIDCo) and local authorities would play important roles in ensuring the project’s operational success.
The involvement of these institutions is expected to be essential to establishing reliable waste collection systems, securing an adequate supply of suitable materials and providing the infrastructure required to transmit the electricity generated.
Effective waste sorting will also be important because the quality and composition of the materials supplied to the plant could affect its efficiency and operating costs.
The proposed private-sector financing model could attract further investment into waste processing and energy infrastructure, potentially creating opportunities for collaboration between public institutions and private investors.
Nevertheless, the project’s commercial sustainability will depend on the final financing structure, contractual obligations, operating expenses and the allocation of financial and operational risks among the parties involved.
The availability of suitable waste in sufficient quantities will also be a critical consideration, particularly if the initiative is to be expanded beyond Greater Accra.
Beyond electricity generation and improved sanitation, the proposed initiative is expected to incorporate an educational support programme for children.
The programme is intended to provide assistance from kindergarten through secondary school, with the possibility of extending support to university education.
The educational component is expected to broaden the project’s potential social impact by linking infrastructure development with opportunities for children to pursue their studies.
Such a programme could provide additional benefits to participating communities if it is supported by sustainable funding and transparent implementation arrangements.
However, details concerning eligibility requirements, the number of beneficiaries, the level of financial assistance and the duration of the support have yet to be outlined in the information provided about the initiative.
The programme’s long-term impact will therefore depend on how it is structured, financed and implemented alongside the main project.
Ghanenergy is also considering expanding the waste-to-energy initiative beyond the Greater Accra Region, with the long-term objective of establishing similar facilities across four regions.
According to Mr Cox, expansion would require careful consideration of the availability and composition of waste, collection efficiency, transportation costs and access to the national electricity grid.
These factors are expected to influence the technical and commercial viability of individual facilities.
For instance, regions with large volumes of municipal waste and efficient collection systems may offer different investment opportunities from areas where waste is dispersed across communities or transportation infrastructure is limited.
The proposed expansion would therefore require location-specific assessments to determine whether sufficient quantities of suitable waste could be collected and delivered to each facility at a sustainable cost.
Deputy Chief Executive Officer of Ghanenergy Power Limited, Edward Butcher, said the initiative could help address Ghana’s waste management challenges while supporting the country’s electricity needs and industrial development.
He described the proposed $320 million investment as an opportunity to tackle two national priorities through a single infrastructure project.
The initiative is expected to demonstrate how waste, often regarded as an environmental burden, could be processed into a resource with potential economic value.
Beyond electricity production, the development of waste-to-energy infrastructure could create opportunities for investment in waste collection, sorting, transportation, processing and related services.
The scale of these opportunities, however, will depend on the project’s implementation model and the extent to which local businesses and communities are incorporated into its operations.
The Operations Manager for Ghanenergy Company Limited, Alhaji Rufai Tanko Nuhu, said collaboration with local authorities and other stakeholders would be essential to developing an operational model that could be sustained and replicated in other regions.
He stressed the importance of integrating waste management processes with electricity generation to ensure that the initiative delivers benefits beyond power production.
“We are looking at how to integrate these processes to ensure that, beyond generating electricity, the project contributes to improved sanitation and responsible waste management,” he said.
Local authorities are expected to play a central role in coordinating waste collection, supporting public education on waste separation and ensuring that suitable materials are delivered to the facility.
Households, businesses and waste management operators could also be required to participate in sorting and collection arrangements to improve the quality and consistency of the materials supplied.
Such coordination would be particularly important in urban communities where the volume of refuse generated places considerable pressure on existing sanitation services.
The project could also encourage a more structured approach to waste management by linking collection and processing activities to a defined industrial use.
However, its environmental benefits will depend on the technologies adopted, the treatment of emissions, the safe handling of residual materials and compliance with applicable environmental standards.
The proposed Ghanenergy waste-to-energy project represents an opportunity to integrate environmental sanitation, electricity generation and private-sector investment into a single development initiative.
With an estimated investment of $320 million and a proposed generation capacity of 80MW, the project could contribute to Ghana’s efforts to diversify its power supply while addressing the growing challenge of municipal waste management.
Its implementation could also create opportunities for investment in waste processing infrastructure and support the development of systems for recovering value from materials that would otherwise be discarded.
However, translating the proposal into an operational facility will require more than securing financing and establishing institutional partnerships.
The project will depend on the development of reliable waste collection and sorting systems, a consistent supply of suitable feedstock, appropriate waste-processing technology, dependable grid connections and financially sustainable electricity-purchase arrangements.
Environmental safeguards, transparent contractual agreements and effective coordination among government agencies, local authorities and private-sector partners will also be important.
The projected financial savings and revenue will need to be assessed against the project’s construction and operating costs, while the proposed educational support programme will require clear funding and implementation arrangements.
As Ghanenergy and the government move towards the next stages of the initiative, further details on the implementation timetable, financing structure, technology, power-purchase agreements and environmental approvals will be important in determining the project’s readiness for construction.
If successfully implemented, the initiative could provide an additional source of electricity, ease pressure on waste disposal facilities and support efforts to improve environmental sanitation in Ghana.
Story by Henry Eliud Yankey
