17 August 2016, Sweetcrude, Abuja – A global renewable energy firm, Scatec Solar has signed an agreement with CDIL, a Canadian renewable energy development company focused on Africa to secure a 100 megawatt (DC) solar power plant in Nigeria.
A post on the company’s website stated that the contract was signed alongside BPS, a Nigerian strategic consulting firm, enabling it to officially secure the solar power plant built by Nova Scotia in Jigawa State.
This agreement was announced in connection with Scatec Solar’s second quarter results, following the signing of a 20-year power purchase agreement (PPA) between Nova Scotia Project Company and the Nigerian Bulk Electricity Trading Plc (NBET) on July 21, 2016.
A long-term player with an installation track-record of close to 600 megawatts, Scatec Solar will develop, build, own and operate the solar power plant in Jigawa. The project is expected to reach financial close in 2017, and commercial operations 12 months after.
Currently, Scatec Solar produces electricity from a global network of 404 megawatts of solar power plants, and is a leading independent solar power producer in Africa, with nearly half of this capacity located on the continent.
The company, which is headquartered in Oslo, Norway, is producing electricity in the Czech Republic, South Africa, Rwanda, Honduras, Jordan and the United States.
Its construction of an additional 22 megawatts in Jordan is underway, while its backlog and pipeline of more than 1.5 gigawatts is under development in the Americas, Africa, Asia and the Middle East.
According to the CEO of Scatec Solar, Mr. Raymond Carlsen, “Solar power in Nigeria has significant long-term potential, and we want to take part in the development of this new market.”
He added that this investment is the culmination of an extensive review during which the Nova Scotia Power project stood out due to its exceptional fundamentals.
Carlsen also assured that, with the quality of its site, development standards and equity funded by Scatec Solar and its partners, the project is ideally positioned to progress rapidly to a financial close.
President and CEO of CPCS, the parent company of CDIL, Mr. Arif Mohiuddin, stated that “We recognized the importance of partnering with a sponsor able to bring the project to financial close and with whom we share a long-term vision.
“We are proud of teaming up with Scatec Solar, who has demonstrated its unique ability to deliver similar projects in Africa.”