Government-backed wholesaler Nigeria Bulk Electricity Trading (NBET) has signed put call options contracts with two renewable energy developers for solar projects with joint capacity of 120 MW.
Also read:General electric to construct five solar plants in Nigeria
NBET signed the contract with Afrinergia Power, a Nigerian renewables developer for the construction of a 50-MW solar plant in Nasarawa State.
Afrinergia says the plant will produce 114.56 GWh per year and will be linked to the national grid through the Keffi-Akwanga section of the 132-kV Karu-Keffi-Akwanga national grid.
The company had earlier said that it would develop the solar plant in joint venture with AEE Power Spain, an international EPC contractor and developer focused on the energy industry and on developing nations. Nevertheless, the Spanish company has not yet issued a formal statement on its joint venture.
NBET also signed an contract with CT Cosmos, a contributory of Nigeria’s Communication Towers, for the development of a 70-MW solar plant in Plateau State, at an projected cost of US$150 million.
The two solar projects are among the 14 for which power purchase agreements (PPAs) were signed in June 2016. 975 MW of photovoltaic (PV) solar capacity was commissioned, in advance of the expected fiscal closure and subsequent start of commercial operations by the developers.
In addition to Afrinergia and CT Cosmo, PPAs signed also incorporated those with Pan Africa Solar, which is developing a 75-MW solar plant in Katsina State; Nigerian Solar Capital Partners, building 100 MW in Bauchi State; Motir Dusable, for 100 MW in Nasarawa State; Nova Solar 5 Farm’s 100 MW in Katsina State and Kvk Power, building 100 MW in Sokoto State.
Others signed were Middle Band Solar One for 100 MW in Kogi State; LR Aaron Power for 100 MW in Abuja; Nova Scotia Power Development for 80 MW in Jigawa State; En Africa for 50 MW in Kaduna State; Oriental Renewable Solutions for 50 MW in Jigawa State, and Quaint Abiba Power for 50 MW and Anjeed Innova Group for 100 MW, both in Kaduna State.
Original plans were to have a tranche of these projects start construction in the last of quarter of 2016, with building work taking place over a period of between 12 and 18 months. The electricity generated would be sold at US$0.115 per kWh.
It has not been yet confirmed which – if any – of these projects had begun actual construction by the last quarter of 2016.
