Nigeria continues to attract foreign investment in its budding solar power market.
Dubai-based Phanes Group has announced plans to set up 300 MW solar PV capacity in the African country over the next three years. The capacity shall be divided into projects of 100 MW each.
The first project will be located in the Sokoto region while the other two will come up in Kadnuna and Kebbi. First phase of the first project (50 MW) is expected to be commissioned by Q1 2018. Power generated from the projects will be sold to local utilities through long-term power purchase agreements.
A number of companies recently signed agreements with the Nigerian government to set up utility-scale solar power projects. Nigeria Bulk Electricity Trading signed long-term agreements for more than 1,000 MW of solar power projects.
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.