22 July 2016, Sweetcrude, Abuja – In a bid to explore the immense potentials in the renewable energy in the country, the Federal Government on Thursday signed a Front-Runner Solar Power Purchase Agreements (PPAs) worth 1.75 billion dollars with 14 companies to build 1.125 Megawatts (MW) capacity of renewable power in the country.
The Minister of Power, Works and Housing, Mr Babatunde Fashola, who signed the documents on behalf of government, said the agreement was to demonstrate government’s commitment to diversify Nigeria’s power industry.
The minister further disclosed that before the year 2030, Nigeria would have achieved 30 per cent capacity in renewable energy, adding that Nigeria would invest in renewable power in areas such as Biomass and coal.
He explained that the era had gone when the country would depend on one source to generate its electricity.
Fashola listed the companies as Pan Africa Solar with 75mw of electricity to be located in Kankia Local Government in Katsina and Nigerian Solar Capital Partners, 100mw located in Ganjuwa, Bauchi state.
Others are Afrinergia Power Limited, 50mw located in Kokowa, Nasarawa State; Motir Dusable Limited, 100 mw in Udi, Enugu State and Nova Solar 5 Farm Limited, 100mw located in Katsina State.
Also Kvk Power Nigeria Pvt Limited, 100mw located in Yabo of Sokoto state; Middle Band Solar One Limited, 100mw in Lokoja West in Kogi and LR Aaron Power Limited, 100mw in FCT;
Nova Scotia Power Development Limited, 80mw located in Dutse; CT Cosmos, 70 mw located in Kaduna West in Kaduna State and Oriental Renewable Solutions, 50mw in Kakowa, Jigawa.
Quaint Abiba Power Limited, 50mw located in Manchor Local Government of Kaduna State and Anjeed Innova Group, 100mw located in Kafanchan, also in Kaduna State, round off the participating companies.
Fashola lauded the participating firms for taking advantage of the opportunity to invest in Nigeria’s energy sector, even as he added that the PPAs are the heart and soul of financing the power industry.
He added that Nigeria sited many of its solar energy projects in the northern part of the country because the area had more sun radiation than other parts.
The minister expressed happiness over the confidence the investors had to invest in Nigeria’s power sector not minding challenges in the industry.
He assured the investors that the Federal Government would provide them with good investment climate but would not tolerate low standard in the quality of their projects.
Speaking earlier, the Acting Managing Director, Nigerian Bulk Electricity Trading (NBET), Mr Waziri Bintube, expressed happiness that the energy sector was making progress in ensuring that Nigerians had quality and stable electricity.
Mr. Marcus Heal, Managing Director of Pan Africa Solar, who spoke on behalf of the investors, thanked states, Federal Government and other agencies that assisted the investors to succeed in getting their PPAs.
He expressed dissatisfaction with the low rate of the tariff regime in the sector, adding that the investors had expected high tariff in the energy industry.