Middle Band Solar One Limited (MBSO), a Nigerian solar power project company, is seeking expressions of interest (EOI) from interested firms to carry out the engineering, procurement, construction and operation of a 100 MW solar plant in Nigeria.
The project is set to be located in Kogi State, in the central part of the country, and to sell power to an unidentified entity through a long-term PPA.
According to the document, MBSO intends to invite EPC contractors and O&M operators, with previous experience in the engineering, procurement, construction and operation of PV plants, to the request for proposal (RFP) process. Interested developers will have time until October 26, 2018, to submit their references.
The project is being developed by Alten Africa, a subsidiary of Spain-based independent power producer (IPP), Alten Energías Renovables. In Africa, the company has recently closed financing for a 45 MW solar project in Namibia, and is also developing a 52 MW project in Kenya.
Large-scale solar projects are mostly being developed by IPPs in Nigeria. In the African nation, they usually negotiate and execute a put and call option agreement (PCOA) with the Federal Ministry of Finance, after executing a PPA. The PCOA guarantee mechanism transfers the payment risk from state-owned company, Nigerian Bulk Electricity Trading Plc (NBET), directly to the ministry. In July 2016, NBET signed PPAs for as much as 975 MW of solar.
Nigeria is aiming to reach a 20% share of solar power generation in its electricity mix by 2030. Currently, most demand is covered by gas-fired plants and hydropower, with a share of 86% and 14%, respectively.