06 September 2015, Abuja – The Nigerian Bulk Electricity Trading Plc. (NBET) which is also known as the ‘bulk electricity trader’ has finally signed its first Power Purchase Agreement (PPA) on coal-to-power with Zuma Power for the construction of a 300 megawatts (MW) coal power plant in Itobe, Kogi State.
Following this development, as well as its expected ratification by the Nigerian Electricity Regulatory Commission (NERC) and attainment of a financial closure with its investors, construction is estimated to start on the plant in the first quarter of 2016.
The 300MW plant is the first phase of an entire 1200MW generation license which Zuma holds but NERC decided to break it into four parts of 300MW each two months ago for ease of execution.
The Chairman of Zuma Power, Dr. Innocent Ezuma told reporters when his company signed the PPA with NEBT weekend in Abuja, that work on the 300MW plant will be completed within 30 months from the day it is commissioned.
He also noted that the 20-year PPA has a revenue value of $12 billion, adding that subsequent works on the balance of 900MW generation license will be done consecutively.
“This is the first PPA that is signed for the first phase of the Zuma Energy 1200MW coal-to-power project. This first phase is 300MW and it has reached advanced stage.
- This Day