Government-owned energy purchasing company Nigerian Bulk Electricity Trading (NBET) has signed the first ever solar power purchase agreements (PPAs) in Nigeria, local media reports. The agreements have been signed with 12 solar developers for a total of 975 MW of power generation, with the projects now needing the approval of the Nigerian Electricity Regulatory Commission (NERC).
The first to be signed was for a 75 MW solar plant in Katsina state, to be developed by Pan Africa Solar. According to the report, the project is worth $146 million, and the power will be sold under a PPA of 11.5 cents per kWh. At the time of going to press Pan Africa Solar had not replied to pv magazine to confirm these figures.
During the signing of the agreement, Pan Africa Solar outlined intentions to develop 1 GW of solar projects within Nigeria, which would require outside investment of $1 billion over the next five years. JCM Capital is partnering with Pan Africa Solar on the project, and forecasts construction to begin in late 2016.
We are delighted that the federal ministry of power is pushing ahead with its solar energy policy, said Pan Africa Solar CEO Marcus Heal. This tariff has been achieved through harnessing lower construction and lower solar panel prices and the commitment of the projects lender.
Other companies that signed PPAs with NBET include Nigeria Solar Capital Partners for a 135 MW solar farm in Ganjuwa, and AfriNigeria who will develop a 50 MW project in Nasarawa state.