Pan Africa Solar to develop and deliver 1,000MW solar projects in Nigeria. The German based utility scale solar energy Company, has also revealed plans to inject over US$1bn foreign direct investments into the country for the next coming five years.
The project is made up of a consortium of sponsors who are African Finance Corporation (AFC), Pan Africa Solar and JCM Capital. DEG and Proparco are the FMO lead arrangers of debt raised from the development finance institutions. Power Africa, MIGA and World Bank are also providing support towards the Project.
On behalf of the Federal Government of Nigeria, Nigeria Bulk Energy Trader (NBET) signed Nigeria’s first ever solar power purchase agreement (PPA) with Pan Africa Solar. Marcus Heal, the company’s CEO signed the agreement on behalf the company.
The concluded PPA agreement has paved way for the construction of the 75MW solar photovoltaic power project. The US$146m project will be executed in Katsina State. The project is expected to be commissioned in 2017 and the generated energy will be sold for a tariff of 11.5 cents per kWh.
The tariff has been achieved through harnessing lower solar panel prices, lower construction and the commitment of the project’s lender. Nonetheless, the Federal Ministry of Power is committed to its solar energy policy.
“This is the start of a solar revolution in Nigeria,” said Justin Woodward of JCM Capital, a Canadian Private Equity firm who are co-developers in the project.
According to Pan Africa Solar, once completed and commissioned, the 75MW solar project will be the largest of its kind in the Sub Saharan Africa excluding South Africa. The project will as well be of benefit providing power for 1.1 million Nigerians.
During the 12 month construction period of the project, more than 500 local people will secure employment. Furthermore, from the additional economic activity stimulated by the power plant, over 40,000 employment opportunities will be created.