Over the last few months, several foreign firms have either directly or in partnership with local firms signed agreements to set up large-scale solar power projects in Nigeria.
In July, Nigeria Bulk Electricity Trading (NBET) signed the first power purchase agreements (PPA) with solar power project developers.
NBET signed 12 PPAs with projects of 975 MW cumulative capacity. The developers will sell power from these projects at 11.5/kWh for a period of 20 years.
A joint venture between Nigeria-based Nigus Greenergy and South Africa-based Volt Renewables signed an agreement to set up 300 MW of solar power capacity.
Paris-based investment company GreenWish Partners and Dubai-based Phanes Group separately signed deals to install 100 MW and 300 MW solar power capacity, respectively.
The development of solar power projects in Nigeria has the full support and regulatory backing of the government.
The Nigerian Electricity Regulatory Commission (NERC) last year approved feed-in tariff regulations for renewable energy sourced electricity. As per the provisions of the regulations, electricity distribution companies will be required to source at least 50% of their total procurement from renewable energy sources.
The Commission has also mandated that the balance of 50% of the electricity would have to be sourced from Nigerian Bulk Electricity Trading Company.