Nigeria and the largest US renewable energy company operating in Africa, Sun Africa LLC, have signed an agreement for the construction of 5,000 megawatts of solar generation and 2,500 megawatts of battery energy storage power plants for up to 10 billion dollars investment from the US government.
The agreement was signed at the US-Africa Business Forum by the Minister of Industry, Trade, and Investment, Mr. Adeniyi Adebayo, and CEO of Sun Africa, Mr. Adam Cortese, in the presence of President Joe Biden’s Special Presidential Co-ordinator for the Partnership for Global Infrastructure and Investment, Mr. Amos Hochstein.
At the event, President Buhari had said as part of the National Renewable Energy and Energy Efficiency Policy, Nigeria had set the vision 30:30:30, which aims at achieving 30 gigawatts of electricity by 2030 with renewable energy contributing 30 percent of the energy mix, and sought the United States’ support to achieve it.
A statement says Sun Africa, Sterling and Wilson Renewable Energy Limited “S&W”, a leading US and international solar EPC company, and the Nigerian government have been working on the development of transformation grid-connected and mini-grids solar projects in multiple locations, including interconnection, electrification and smart meters infrastructure.
To ensure the broadest and most comprehensive approach to access electricity, the statement says Sun Africa is also implementing solar cabins and solar home systems, where the mini-grids are not economically viable.
Signed by the Special Assistant to the President on Media and Publicity, Mallam Garba Shehu, the statement says the project will be constructed in different phases across the 6 geopolitical zones, and that it will provide clean, reliable and affordable electricity to more than 30 million homes.
Project portfolio location and size
Location
PV size (MWp)
Energy Storage (MWh)
Utility-Scale Solar
Damaturu (Yobe State)
150
70
Bauchi (Bauchi State)
143
68
Gombe (Gombe State)
270
128
Yola (Adamawa State)
174
82
Dutse (Jigawa State)
150
60
Lafia (Nasarawa State)
350
166
Makurdi (Benue State)
168
77
Geregu (Kogi State)
174
82
Katsina (Katsina State)
150
70
Kaduna (Kaduna State)
180
80
Kebbi (Kebbi State)
174
82
Kano (Kano State)
174
82
Gwagwalada (FCT)
143
68
Ganmo (Kwara State)
143
68
Ihovbor (Edo State)
24
11
Akwa (Anambra State)
143
68
Subtotal
2,710
1,262
Solar mini-grids electrification infrastructure + Smart meters
360 rural communities across the 36 states
2,200
1,200
Total
4,910
2,462
The statement explains that all the technical and financial due diligence activities for the phase 1 of the project have been completed for the first five selected locations for the grid-connected solar projects of up to 961 MWp of solar and 455 MWh of battery energy storage.
Subsequently, according to the statement, ING Bank, US EXIM Bank, the Federal Ministry of Finance, and the Debt Management Office DMO, have concluded all the financial negotiations and are closing the financing terms for up to two billion dollars.
It says construction of phase 1 is expected to start in the first quarter of 2023 as follows:
Location
PV size (MWp)
Energy Storage (MWh)
Gwagwalada (FCT)
143
68
Gombe (Gombe State)
270
128
Lafia (Nasarawa State)
350
166
Geregu (Kogi State)
174
82
Ihovbor (Edo State)
24
11
Total
961
455
It says the transformative solar project is on top of the US Climate and Sustainable Energy Agenda, and has been prioritised as a strategic lead for the US, which is entirely in line with the Federal Government’s Energy Transition Plan, addressing clean and reliable energy supply, creating jobs, and ensuring transfer of knowledge and technology.
Bello Wakili
