Bulk Trader, 12 firms sign pact for 975mw so­lar projects …at­tracts $2bn forex, works be­gin 2017

Daily Trust - - BUSINESS - By Si­mon Echewo­fun Sun­day

The Nige­rian Bulk Elec­tric­ity Trad­ing Plc (NBET) yes­ter­day signed pacts with 12 firms who would con­struct so­lar power plants in eight states and gen­er­ate a cu­mu­la­tive 975megawatts (mw) into the elec­tric­ity grid.

Speak­ing after the sign­ing the Power Pur­chase Agree­ments (PPAs) in Abuja, the act­ing Man­ag­ing Direc­tor, Mr Waziri Bin­tube said the mas­sive so­lar in­vest­ment is a rev­o­lu­tion on di­ver­si­fy­ing the en­ergy mix due to the present con­straints on gas sup­ply to the ther­mal sta­tions.

He said Nige­ria’s elec­tric­ity sup­ply presently re­lies on 86 per cent gas-fired plants and 14 per cent hy­dropower with­out any so­lar in­put. Mr. Waziri said 10 of the firms have for­eign de­vel­op­ers who are will­ing to bring in about $2mil­lion to $2.5bil­lion For­eign Di­rect In­vest­ment (FDI) into the econ­omy.

Ex­plain­ing the value of the PPA, the NBET boss said it is the doc­u­ment that guar­an­tees off tak­ers to gather finance and in­vest in the projects as they have as­sur­ance that the power pro­duced will be bought over by the Fed­eral Gov­ern­ment boosted by the World Bank’s Par­tial Risk Guarantee (PRG) as­sur­ance.

NBET said with the PPAs handy, the firms ex­pect an ap­proval from the reg­u­la­tor, Nige­rian Elec­tric­ity Reg­u­la­tory Com­mis­sion (NERC) and pro­ceed for a fi­nan­cial close within 12 months when they will flag off site works.

Con­struc­tion of the plants to be sited in Enugu, FCT, Nasarawa, Kaduna, Katsina, Sokoto, Bauchi and Plateau states is ex­pected to hap­pen within 12 to 18 months after their fi­nan­cial close by year end­ing. The power gen­er­ated on com­ple­tion will be evac­u­ated into the na­tional grid through the sub­sta­tions to be built at some of the sites, the in­vestors said.

The Bulk Trader act­ing as in­ter­me­di­aries be­tween Gen­er­a­tion com­pa­nies (Gen­cos) and Dis­tri­bu­tion com­pa­nies (Dis­cos) said the gen­er­ated elec­tric­ity will be fed first into the Disco where the plants are sited and that would boost sup­ply across four Dis­cos com­pris­ing Jos, Kano, Enugu, and Abuja.

One of the firms, Nige­ria So­lar Cap­i­tal Part­ners said it is do­ing 135megawatts (mw) plant in Gan­juwa LGA of Bauchi state val­ued at $200mil­lion. The Man­ag­ing Direc­tor, Joel Abrams said the 15-month project will cre­ate 1,000 jobs in the state when the site work starts be­fore June 2017.

AfriNige­ria, an­other firm do­ing 50mw in Garaku town of Nasarawa State said the on-grid project would cost $100mil­lion.The plant will be op­er­a­tional in 18 months after its fi­nan­cial close, the Chair­man, Mr. Best­man Uwa­dia said.

Newspapers in English

Newspapers from Nigeria

© PressReader. All rights reserved.