Nigeria’s renewable energy division is on the rise as multiple agreements for new clean power plants are being signed to enhance the country’s energy generation supply.
Earlier this week, independent solar power producer Scatec Solar contracted a 20-year Power Purchase Agreement with the Nigerian Bulk Electricity Trading Plc (NBET) to develop the 100MW Nova Scotia Power plant in Jigawa state.
The Nova Scotia project is to be developed by a consortium comprising Scatec Solar, CPCS Development International Ltd (CDIL), a Canadian renewable energy development company, together with Business Process Solutions Consult Ltd (BPS), a Nigerian strategic consulting firm.
Raymond Carlsen, CEO of Scatec Solar, commented: “Solar power in Nigeria has significant long-term potential, and we want to take part in the development of this new market.”
Carlsen added: “This investment is the culmination of an extensive review during which the Nova Scotia Power project stood out…”
According to the company, this project is expected to reach financial close in 2017 and commercial operation 12 months thereafter.
Arif Mohiuddin, President and CEO of CPCS, also commented: “We recognised the importance of partnering with a sponsor able to bring the project to financial close and with whom we share a long-term vision.”
Under the agreement terms, Scatec Solar will develop, build, own and operate the solar power plant in Jigawa.
The renewable energy solutions firm claims to be a long-term player in the industry with an installation track-record of about 600MW globally.
This announcement is in line with the recent commitment made by the minister of power, works and housing, Babatunde Fashola, stating that the country can be guaranteed of affordable and improved electricity supply through the deployment of solar energy.
Last month, the NBET approved a new solar energy sale price of $11.5 cents per kWh, which was negotiated down from $23 cents per kWh. The new retail price was agreed upon following lengthy negotiations dating back to 2015 and with the support from the energy ministry.
Source: www.esi-africa.com