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Nigeria Bulk Electricity Trading

GE To Set Up 500 MW Solar Power Capacity In Nigeria

written by saurabh

General Electric has become the latest foreign company to jump on the solar power bandwagon in Nigeria.

According to media reports, General Electric has signed memorandum of understanding with Nigeria to set up five solar power projects of 100 MW capacity each in the west African country. These projects shall come up in the states of Borno, Kebbi, Nassarawa, Niger and Taraba.

Over the last few months several foreign companies 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 with solar power project developers. The NBET signed 12 PPAs with projects of 975 MW cumulative capacity. The developers shall sell power from these projects at US¢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 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 full support and regulatory backing of the government. Last year, the Nigerian Electricity Regulatory Commission 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 50% electricity would have to be sourced from Nigerian Bulk Electricity Trading Company.

11/30/2016 0 comment

Renewable Energy

Scatec Solar Wins 100 MW Solar Power Project In Nigeria

written by saurabh

Norwegian independent solar power provider, Scatec Solar, has signed an agreement with Canadian renewable energy group CDIL and Nigerian consulting company BPS for developing a 100 MW solar power plant project in Nigeria.

The 100 MW Nova Scotia Power plant will be built in Nigerian state of Jigawa. Scatec Solar will develop, build, own and operate the solar plant for which 25 year long-term power purchase agreement (PPA) has been signed with the Nigerian Bulk Electricity Trading Plc (NBET). The plant is expected to reach financial close by 2017 and start commercial operations 12 months later.

Last month, NBET signed the first power purchase agreements with solar power project developers. The NBET signed 12 PPAs with projects of 975 MW cumulative capacity. The developers shall sell power from these projects at US¢11.5/kWh for a period of 20 years.

Last year, the Nigerian Electricity Regulatory Commission 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 50% electricity would have to be sourced from Nigerian Bulk Electricity Trading Company.

Scatec Solar is a renowned solar power developer with portfolio of 404 MW of commissioned solar projects with majority of this capacity located in Africa. Company also has presence in Czech Republic, South Africa, Honduras, Jordan and the US.

The company is looking to develop a several large-scale solar power projects across Africa. It signed an agreement to set up 250 MW capacity in Egypt. It is also working on the largest solar power project in west Africa – 33 MW project in Mali.

08/27/2016 0 comment

Renewable Energy

Nigeria Signs Agreement For 300 MW Solar Power Capacity

written by saurabh

Foreign investors continue to be attracted by the budding renewable energy market in Nigeria as the government there signed fresh agreements for large-scale solar power development.

According to media reports, two companies signed memoranda of understanding with the government of Nigeria to set up a total of 300 MW solar power capacity. Nigeria-based Nigus Greenergy and South Africa-based Volt Renewables formed a joint venture and signed the project development agreement.

The capacity shall be divided into three projects of 100 MW capacity each located in states of Andamawa, Kano and Kebbi. The power generated from the projects will be sold to Nigeria Bulk Electricity Trading (NBET) through a long-term agreement. The projects are expected to be operational by next year although tariff for the PPAs has not be disclosed yet.

Earlier this month, NBET signed the first power purchase agreements with solar power project developers. The NBET signed 12 PPAs with projects of 975 MW cumulative capacity. The developers shall sell power from these projects at US¢11.5/kWh for a period of 20 years.

07/27/2016 0 comment

Renewable Energy

India EPC To Build 250 MW Solar Power Project In Nigeria

written by saurabh

Following the signing of first power purchase agreements for solar power projects, EPC contracts are being sealed for their final implementation in Nigeria.

India-based Sterling & Wilson will set up 250 MW solar power capacity in the west Africa country of Nigeria. The projects are part of the 975 MW capacity whose power purchase agreements (PPAs) were signed by various project developers recently.

The government-owned Nigeria Bulk Electricity Trading (NBET) signed 12 PPAs with cumulative capacity of 975 MW. The developers shall sell power from these projects at US¢11.5/kWh for a period of 20 years.

Sterling & Wilson has managed to grab significant share in EPC contracts in some of the emerging solar power market in Africa. Last year, it landed contract to develop 300 MW solar power projects in Egypt. Additionally, it is also developing projects in Morocco (175 MW), South Africa (87 MW) and Niger (7 MW).

Over the last few months Nigeria has seen increased interest from foreign project developers. One of the reason for this is the regulatory support for the development of renewable energy projects.

Late last year, the Nigerian Electricity Regulatory Commission 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 also mandated that the balance 50% electricity would have to be sourced from NBET.

07/27/2016 0 comment

Renewable Energy

Nigeria Signs First Solar Power Purchase Agreements

written by saurabh

The west African nation of Nigeria took a major step recently towards the integration of utility-scale solar power projects into its grid.

Government-owned Nigeria Bulk Electricity Trading (NBET) recently announced that it signed the first power purchase agreements with solar power project developers. The NBET signed more than 10 PPAs with projects of more than 975 MW cumulative capacity; some more PPAs may be signed in the neat future.

The first project to sign a PPA with NBET is 75 MW solar PV project being developed by Pan Africa Solar. The developer expects to achieve financial closure for the project by next year. The developer has signed 20-year PPA with NBET to which it shall sell electricity at US¢11.5/kWh.

It is interesting to note that Nigeria has not taken the competitive auctions route to select projects, rather international project developers themselves approached the government with intentions of setting up large-scale solar power projects.

One of the reasons that project developers and investors are interested in the nascent solar power sector in Nigeria is the strong regulatory support for the promotion of renewable energy. Late last year, the Nigerian Electricity Regulatory Commission 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 also mandated that the balance 50% electricity would have to be sourced from NBET.

In 2014, the Nigerian Government received pledges from three companies to set up a total of 1 GW of solar power capacity across the country. The entire program will include large utility-scale power projects as well as distributed power projects.

Also, SkyPower and FAS Energy signed a series of agreements to set up 3 GW of solar power capacity in the country. This capacity will be added through utility-scale projects and represents an investment worth $5 billion.

In late November 2014, two US-based companies pledged to set up a total solar power capacity of 1.2 GW by 2017. The projects will require a cumulative investment of $2 billion dollars and once operational will generate enough power to meet the demands of 1 million homes in the country.

07/18/2016 0 comment