Nigeria signs PPA for 925 MW of solar projects

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Nigeria signs PPA for 925 MW of solar projects

Nigeria has signed power purchase agreements (PPA) for solar PV projects in the country. Government-owned Nigerian Bulk Electricity Trading Plc. (NBET) will be the power purchaser of the solar projects. 

The PPAs comprises a total of 12 solar developers for a total of 975 MW of solar power generation. These projects are now seeking approval from the  Nigerian Electricity Regulatory Commission (NERC). 

The first PPA signed was for the 75 MW Katsina solar plant. Pan Africa Solar is the company in charge of the development of the solar PV plant. The power will be sold under a 11.5-cents/KWh PPA. The total project investment stands at US$146 million.

According to sources, Pan Africa has expressed its intentions to carry out 1GW of solar projects all over the country, requiring private foreign investment of about US$1 billion over the next 5 years. JCM Capital has joined Pan Africa Solar on the project. The construction is scheduled to begin in late 2016.

Among the companies that signed PPA’s with NBET are Nigeria Solar Capital Partners for a 135 MW solar farm in Ganjuwa, and AfriNigeria who will construct a 50 MW project in Nasarawa state.

According to sources Pan Africa Solar CEO Marcus Heal said:

“We are delighted that the federal ministry of power is pushing ahead with its solar energy policy. This tariff has been achieved through harnessing lower construction and lower solar panel prices and the commitment of the project’s lender.”

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