12 April 2017, Sweetcrude, Abuja – The Federal Government has said it is committed to achieving 30 percent of renewable energy production in the country by 2030.
The Minster of Power, Works, and Housing, Mr. Babatunde Fashola, announced this at a “Put-Call Option Agreement,” between the Federal Government and two indigenous solar power producing companies in Abuja on Tuesday.
A “Put call option agreement” is an option contract, giving the owner or producer of a certain product, the right, but not the obligation, to sell a specified amount of an underlying product, goods or services at a specified price within a specified time.
The two indigenous solar power companies that entered into the agreement with the government are the CT Cosmos Power Company and the AfriNigeria Power Ltd.
The CT Cosmos is currently involved in the process of completing 70 megawatts of solar power in Plateau State, while the AfriNigeria Power Ltd is also in the process of completing 50 megawatts of solar electricity in Nasarawa State.
Fashola said that the essence of the agreement was to give the companies a guarantee that government would buy off the power generated by the company.
He also said it was also designed to link the power generated to the National Grid to improve the system.
Fashola commended local investors investing in the nation’s renewable energy, adding that government was committed to supporting companies to help develop the renewable sector.
The evacuation of the power generated by the companies is expected to begin in six months time.