Nigeria partners with Germany on 420 MW solar projects

Nigeria is set to install 420 MW of solar plants in nine of the country’s 36 states with financial support from Germany.

Nigeria’s National Energy Council Secretary Alhaji Ibrahim Njiddah announced this week that the project would be implemented under the Nigerian-German Energy Partnership-Renewable Energy and Efficient Energy Projects.

As reported in Nigerian newspaper Vanguard, the government signed an agreement with Germany in 2008 to invest €20 million ($27.5 million) to increase energy efficiency in the country through a mix of power generation sources. Under the project, the German government will bankroll 500 MW of solar energy across the northern states of the country within five years.

The pilot program will begin initially begin in the nine states of Adamawa, Bauchi, Benue, Borno, Gombe, Kaduna, Kano Nasarawa and Sokoto but is expected to eventually cover all the northern states.

Most of the states are expected to receive a 30 MW solar plant, although Kano and Nasarawa may get more installations situated at different locations. The plants are budgeted at between $50 million and $60 million.

The project is in line with the West African country’s Power Reform Act, which stipulates that 5% of power generation must come from renewable energy by 2020.

Nigeria’s Infrastructure Bank will serve as the transaction advisor and local financier arranger for the project with the aim of assisting the Nigeria-German energy partnership to structure the project, finding local investors and ensuring proper project management.