22 July 2016, Sweetcrude, Abuja – A consortium, consisting of Nigerian-based Nigus Green energy and South African Volt Renewables, has signed a Memorandum of Understanding (MoU) with the federal government for the development of three solar power plants with a total capacity of 300 megawatts (MW).
Volt Renewables has declared that the three power plants will each add 100MW capacity to the national grid and are set to be commissioned in 2017.
The plants are to be located in the northern states of the country including Yola in Adamawa State, Kano in Kano State and Birnin-Kebbi in Kebbi State.
According to a statement from the consortium obtained by our correspondent in Abuja, the power generated will be equivalent to 10% of the total national generation that Nigeria currently produces.
“The off-taker under the power purchase agreement (PPA) will be the National Bulk Electricity Trader (NBET) of Nigeria. The PPA is expected to be finalised through the Nigerian Investment Promotion Commission in the coming weeks,” the company noted.
Nathan Schmidt from Volt Renewables stated that they are excited to take part in adding the much-needed capacity to the Nigerian electricity grid.
The solar energy projects are expected to be funded by a combination of own equity [from the consortium], technology providers and international private equity funders.
Volt Renewables further disclosed that it is currently in negotiations with the consortium and will announce the funders once negotiations are finalised. Financial close is expected to take place in Q4 2016.
Prince Malik Ado-Ibrahim of Nigus Green energy pledged to provide renewable energy in bids to enable the development of the Nigerian economy particularly in the northern region, which is said to have a substantial deficit.
“Our consortium partners believe that solar energy is the perfect solution for these states, which are blessed with strong solar resources as power plants have the ability to be commissioned quickly and on a distributed basis and can make a real difference to the local economy,” Ado-Ibrahim said.
For the execution of this project, the consortium will be collaborating with German solar inverter manufacturer, LTI ReEnergy, to supply the technology.