Togbe Afede, Chairman of Asgoli Power told CNBC Africa that the 700 megawatts coal-fired power plant will cost $700 million.
“They know Ghana’s demand and of because they know the outlook for Ghana’s economy is very good so they’re proposing to invest another million to build a 700 megawatts coal power plant. So in all they will be building an additional capacity of 1,060 megawatts,” Afede said.
Shenzhen Energy, through its local unit Asgoli Power, penetrated Ghana’s power and energy sector in 2006, setting up a 200 megawatts plant that provides affordable energy to consumers.
Afede said the company looked beyond Ghana when setting up its West African branch because the country’s rightly located in the centre of the sub-region, a prime location to generate and supply energy to neighbouring countries.
“Given the lack of adequate supply and given our location in the centre of the sub-region Ghana’s the place to be, nicer place to build power plants and supply power to others in the sub-region. They are looking beyond Ghana and that is consistent with Ghana government’s own policy of making the country a net exporter of power,” he added.
Afede assured that the Chinese Energy Company, with branches also in the Asian territory, has invested in advanced machinery to ensure safety measures against coal mining’s large impact on the environment and health for all workers.
“They use advanced technology to deal with all the bad emissions,” he guaranteed.
Ghana currently generates 2,125 megawatts of power from hydro and thermal plants its government plans to increase power generation to 5000MW by 2016.