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.
