Last week, World Bank's private arm IFC signed a Joint Development Agreement with Alten’s Middle Band Solar One Limited, a Nigerian solar power project company, to co-develop a 120 MW peak photovoltaic solar power project with a consortium of developers.
The project is expected to provide renewable energy supply to about 175,000 people and nearby industrial clusters, support job creation, and boost economic growth in the country. The project is based in Lokoja, Kogi State and benefits from the support of the host state government.
Under the agreement IFC InfraVentures, IFC’s Global Infrastructure Project Development Fund, will provide development funding and commercial and technical support to a developer consortium to co-develop the solar power project via the Middle Band Solar One project company.
The consortium consists of Alten Renewable Energy Developments Africa, B.V., Green Continent Partners Holding B.V. and Nemoante Ltd, The project is expected to reach financial close by the fourth quarter of 2016.
Arjen Pen, Founding Partner of Green Continent, said:
“The key strategy of Middle Band Solar One is to harness the abundant all-year-round supply of sunlight and become one of Nigeria’s leading providers of renewable energy".
Erabor A. Okogun, from Nemoante and Co-Founder/Managing Director of Middle Band Solar One Limited, said:
"We will leverage our local knowledge with the long-term experience and technical expertise of Alten and IFC in developing solar power projects globally, to build a world class solar project that not only increases the country’s energy supply and diversifies its energy mix but also helps mitigate climate change, fundamental for the sustainable development of Nigeria.”
Luis Castellanos, CEO of Alten Africa, said:
“We are proud to lead one of the biggest solar projects in Africa. From Alten, we'll contribute our vast experience in the design, development, funding, construction and management of utility-scale photovoltaic power plants. Developing this project fits with our strategy to provide access to power for the millions of people who currently have low or no access to electricity, especially in developing economies.”
Eme Essien Lore, IFC Country Manager for Nigeria, said:
“The World Bank Group’s core focus is to support the development of infrastructure in the country. This project supports our commitment to the Federal Government of Nigeria under our Energy Business Plan, a comprehensive World Bank Group approach to support each segment of the energy value chain in the country. IFC InfraVentures allows us to get involved in the project at a relatively early stage and collaborate with our partners to ensure that the project meets the highest technical and environmental standards. Through this project, IFC is also supporting the Federal Government’s strategy to add more renewable energy generation, especially solar, to the energy mix in Nigeria.”
This project would be IFC’s first solar project in Nigeria and is expected to have a considerable demonstration effect in the region, support the growth of renewable energy, increase private sector participation and ease the high dependence on gas-fired power generation.