The Nigeria Bulk Electricity Trading Plc (NBET) has received the name of Proton Energy from Nigerian Electricity Regulatory Commission (NERC), among other firms that were seeking licenses for Power Purchasing Agreement (PPA). The company is also planning to boast power generation at the Sapele II power plant to a total of 500 MW using Siemens technologies.
The 500MW gas-powered plant in Sapele, Delta State – Proton Energy, is expected to cost approximately US$200m and the project will be funded through a project finance structure of 70% debt and 30% equity basis. The funding will also come from a mixture of both local and international sources.
However, Proton Energy is partnering with IL&FS Energy, a leading infrastructure development and finance company in India. The company, with offshore investments planned in Tanzania for a 200MW natural gas plant and another 500MW wind power project, is likely to provide equity funding and support on the debt funding.
According to the Vice Chairman, Oti Ikomi, the documents required for IPP licence to operate have been submitted to NERC, and discussions are at an advanced stage with others strategic to its fruition. Sam Amadi, the Chairman of NERC said the commission expects the company to complete all that is required for a power license.
In order to be licensed, Proton will have to show evidences of satisfying the requirements of bodies like Transmission Company of Nigeria TCN, NBET and other companies critical to the award of a power licence, although the company has been issued with a PPA draft to kick start negotiation.
Proton Energy is expected to boost power supply at the Sapele plant currently with an initial installed capacity of 150MW, and which will be expanded using Siemens technologies to give a total of 500MW at its completion.