For the second time since 2016, Nigeria has extended by another six months, the deadline for the execution of the power purchase agreements (PPAs) it signed with investors for 14 utility solar power projects to be built in some states of the country, OGN reports.
It was reportedly rolled over after the last extension which was granted in July 2017, expired at the weekend. The extension has been communicated to the promoters of the solar IPPs by the Nigerian Bulk Electricity Trading Plc (NBET), which signed the PPAs on behalf of the government with the 14 solar IPPs in July 2016. The new extension was given with the hope that some of the PPAs would be executed and backed with partial risk guarantees (PRGs).
It was also learnt that the government through the Ministry of Finance, may have turned back to ask the IPPs to lower the tariff they proposed in their PPAs. The government, it was gathered is now holding out for solar tariffs that are lower than the 11.5 cents per kilowatt-hour (kWh) the investors included in their PPAs. Two of the IPPs, has reportedly offered to execute their PPAs with a tariff of 7.5 cents per kWh.