AfDB Approves $1.5mn For Nigeria PV Program

$1.5 Million SEFA Grant For Phase-I Of Nigeria’s 1 GW Independent Power Producer Solar Procurement Program Approved By African Development Bank
02:10 AM (Beijing Time) - 15. May 2018
nigeria

According to Renewable Energy Association of Nigeria (REAN), the country is progressing as it prepares to get ready for renewables. At the end of 2016, the Nigerian Bulk Electricity Trading Company (NBET) even signed PPAs with 14 developers for 1.1 GW. However, still hardly any PV capacity is installed in the country so far. (source: REAN)

Key Takeaways

  • The African Development Bank (AfDB) approved $1.5 million as grant through Sustainable Energy Fund for Africa (SEFA) for Nigeria’s solar procurement program
  • It will cover the technical and feasibility study under Phase I of Jigawa 1-GW Independent Power Producer (IPP) Solar Procurement Program
  • The grant will also support design of a masterplan for entire program site
  • AfDB may offer additional support to the Nigerian government in the form of funding of a transaction advisor to design and launch the IPP Procurement program

Nigeria will received $1.5 million grant from the Sustainable Energy Fund for Africa (SEFA) for Phase-I of its Jigawa 1-GW Independent Power Producer (IPP) Solar Procurement Program. The grant was approved by the board of the African Development Bank (AfDB).

This program is aimed at helping Nigeria ensure 75% electricity access by 2020 and increase the share of renewable energy to 30% by 2030. It will be implemented by an intergovernmental team led by Rural Electrification Agency of Nigeria.

The grant will also support the completion of outstanding technical and feasibility studies. It will also cover the design of a masterplan for the entire program site. Based on the studies, AfDB may offer additional support to the Nigerian government. It could be in the form of funding of a transaction advisor to design and launch the IPP procurement program. The Nigerian government will provide land and other common facilities including transmission facilities for the program.

AfDB approved the grant under its New Deal on Energy for Africa program, that aims to help the continent solve its energy challenges and achieve universal electricity access by 2025. Focus will be on promoting clean and renewable energies.

According to Renewable Energy Association of Nigeria (REAN), Nigeria could generate 207,000 GWh per annum with PV, from using just 1% of its more than 920,000 km2 land area. At the end of 2016, the Nigerian Bulk Electricity Trading Company (NBET) signed power purchase agreements (PPA) with 14 developers of 1,125 MW solar IPPs for 11.5 US cents per kWh for a period of 20 years, said REAN head Segun Adaju while speaking at the Intersolar Europe 2017 conference in Germany. However, there is hardly any solar built in Nigeria so far.

Through NBET, the government plans to launch its first renewable energy auction process for capacities between 500 and 1,000 MW.

Under its Intended Nationally Determined Contribution (INDC) submitted to the United Nations Framework Convention on Climate Change (UNFCCC), Nigeria aims also to work towards 13 GW off-grid PV capacity of by 2030.

Recently, the state of Nasarawa in Nigeria signed a PPA with Kuber Power Limited to develop a 200 MW solar power plant (see 200 MW PV Plant Planned In Nigeria).

 

Anu Bhambhani

Anu Bhambhani is the Senior News Editor of TaiyangNews

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