Nigeria’s Federal Government has made an announcement of a major step in its renewable energy drive with the signing of a landmark agreement to establish a 1,000-megawatt solar photovoltaic panel manufacturing facility in the country. The Nigeria Solar Panel Factory will strengthen local production, cut import dependency, and speed up Nigeria’s energy transition. In a move to see this transition come to pass, Nigeria also entered a partnership with the World Bank to construct solar mini grids.
The deal was signed on Wednesday at the Infrastructure Corporation of Nigeria (InfraCorp) office in Abuja. This project will bring together three key partners namely. These partners are: the Rural Electrification Agency, InfraCorp, and Dutch renewable energy company Solarge BV. Together, these companies have set up Solarge Nigeria Limited. This is a special-purpose vehicle to build and operate the facility.
1000MW Nigeria Solar Panel Factory Project Factsheet
Name: Solarge Nigeria Limited Solar Photovoltaic (PV) Panel Manufacturing Facility.
Objective: To establish a 1,000-megawatt (1GW) solar panel manufacturing plant in Nigeria to strengthen local production, reduce import dependency, and accelerate the nation’s energy transition.
Production capacity: 1 GW (1,000 MW) of solar panels per year.
Offtake agreement: The Rural Electrification Agency (REA) has committed to a binding offtake agreement to procure at least 200 MW of solar modules annually over five years. Also, this provides a guaranteed market for the panels produced.
Technology transfer: The partnership with Solarge BV is expected to facilitate significant technology transfer and capacity building in Nigeria’s renewable energy sector.
Job creation: The initiative is projected to create thousands of direct and indirect jobs, from manufacturing to installation and maintenance.
Energy sovereignty: By localizing production, the project aims to reduce Nigeria’s reliance on imported solar panels and enhance its energy security.
Environmental impact: The factory will support Nigeria’s energy transition goals by increasing the availability of locally-made solar panels, which will in turn reduce the country’s reliance on expensive and high-emission diesel generators.
Ownership
As revealed by the details after the signing, Solarge BV will hold the largest stake in the project. It will have 49 per cent ownership. Furthermore, InfraCorp and REA will control 26 per cent and 25 per cent respectively.
Also, officials elaborated that this balance of ownership reflects a public-private partnership model aimed at mobilising investment. Additionally, the partnership will enforce accountability, and guarantee technology transfer.
Significance of the Project
The new factory is in line with the National Public Sector Solarisation Initiative and the Renewed Hope Infrastructure Development Fund. Also, these are government-led programmes that are designed to scale access to clean energy across public institutions while deepening Nigeria’s industrial base.
Roles of Companies in the Development of the Project
InfraCorp is expected to utilize its expertise in investment mobilisation. On the other hand, REA will provide policy leadership in rural electrification and solarisation. As for Solarge BV, it will bring its advanced manufacturing technology and global experience.
The 1GW solar PV plant will be a state-of-the-art facility. It will be designed to achieve 50 per cent local content within its first three years of operation. Additionally, beyond energy supply, the project is expected to drive technology transfer. Also, it will enable skills development and generate thousands of direct and indirect jobs.
