Nasarawa state government in Nigeria has signed a PPA for the development of 200 MW solar power plant
Local developer Kuber Power Limited (KPL) plans to build the plant for a total cost of $300 million
KPL plans to fund the project through a combination of equity and debt
Power generated by the plant would be available to purchase by eligible customers, who are allowed to buy power from a licensee and not just a distribution licensee
Nigerian state of Nasarawa is expected to soon have a 200 MW solar power plant under a power purchase agreement signed between the state government and local Nigerian developer Kuber Power Limited (KPL).
KPL would also be 2.5% equity partner in the PV plant which is planned to be located on Shendam Road in Lafia town of Nigeria, according to Nigerian Television Authority (NTA). The plant would be developed for a total cost of $300 million. KPL wants to fund the project development through to commissioning phase using both equity and debt financing. Within seven weeks of signing of PPA, construction work is scheduled to commence.
The project is planned to be developed on an eligible customer basis. An eligible customer in the Nigerian electricity market context is one who has the permission to purchase power from a licensee, other than a distribution licensee, according to Nigerian commercial law firm, Advocaat Law Practice.
To be spread over an area covering 400 hectares, the plant is estimated to generate employment for 1,500 workers during construction phase and 600 during operations.
NTA says this would be the biggest solar power plant in Africa next only to Mohammed bin Rashid Solar Park in UAE. However, they forgot to mention the Egyptian 1.8 GW Benban Solar Park. In November 2017, Wärtsila Corporation of Finland announced it will be setting up its first utility-scale grid connected solar PV project in the country with 95.3 MW capacity, the largest solar PV plant in Nigeria to date.
In March 2017, a French IPP GreenWish Partners had expressed interest in developing cumulative 200 MW solar power capacity spread across in various regions of Nigeria (see 200 MW PV For Nigeria).
Nigeria aims to have 30 GW of power generating capacity by 2030, with 30% share reserved for renewables under Nigeria Vision 30-30-30. The country also wants to have 5.3 GW of mini-grids and 2.8 GW of solar home systems by 2030. According to Climatescope 2017, supported by Bloomberg New Energy Finance (BNEF) and the UK Government, the country’s installed electricity capacity at the end of 2016 was 12.8 GW, contributed majorly by fossil fuels.