100mw solar power project in Dutse attracts new investors

Nigeria’s quest to improve power generation through solar received a boost December 19 when Scatec Solar signed a Joint Development Agreement (JDA) with Africa50, an African Infrastructure Fund sponsored by the African Development Bank and more than 20 African States and Norfund (the Norwegian Investment Fund for Development Countries), securing investment into the 100 MW (DC) Nova Scotia Power plant located in Dutse in the Northern Nigerian state of Jigawa.

The signing ceremony of the JDA was held in the presence of Børge Brende, the visiting Norwegian Foreign Minister, Ibrahim Hassan Hadejia, deputy governor of Jigawa State, as well as officials from the Nigerian Bulk Electricity Trader (NBET) among others.

“New local power generation capacity is a key element to attract sizeable investment into the State and region, especially into new industries such as light manufacturing and agricultural processing” said rahim Hassan Hadejia, deputy governor of Jigawa State.

Terje Pilskog, executive vice president of Scatec Solar who signed the agreement on behalf of the company said the formation of this consortium is a strong symbol of the Norwegian and Nigerian commitment to invest in clean energy in Nigeria.

“With the Government of Norway taking a direct investment role through Norfund, significant regional and Nigerian ownership through Africa50, and the track-record of Scatec Solar, this offers one of the most solid partnerships for solar PV projects globally,” said Pilskog

Akinwumi Adesina, president of African Development Bank and chairman of Africa50’s Board of Directors expressed delight at the agreement. “I am pleased that Africa50 is already making its first investment, which fits in squarely with our priority to light up and power Africa.”

Africa50 has been created by African governments, including Nigeria, the African Development Bank and institutional investors to mobilize private sector for funding infrastructure projects in Africa.

Alain Ebobisse, Africa50’s CEO noted: “Access to reliable energy is one of the most critical needs in Africa, including in Nigeria, where it is a government priority. I look forward to deepening the relationship with the authorities of Nigeria, one of our key shareholder countries, and to supporting more projects in this and other infrastructure sectors.”

Apart from the three equity investors, the American Overseas Private Investment Corporation (OPIC), Islamic Development Bank and the African Development Bank are expected to be senior debt providers for the project.

International Finance institutions say the key to successful investment is the Nigerian government’s issue of project documents that provides necessary investor confidence and the formulation of a clear roadmap to sustainability in the energy sector.

With an estimated investment of USD 150 million, a production of 200,000 MWh of electricity per year and 120,000 tons of CO2 emissions avoided annually, the Nova Scotia solar plant will help Nigeria ramp up generation capacity, provide economic opportunities, fight desertification caused by climate change, and contribute to fulfilling Nigerian President Muhammadu Buhari’s commitments to develop renewable energy as part of the Paris Climate Change Agreement.

ISAAC ANYAOGU